China’s ‘New Manhattan’ Becomes Censorship Capital

A city run by one of Chinas incoming political leaders that has billed itself as a future international financial center is instead becoming the countrys internet censorship capital.

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Tianjin skyline

Tianjin, whose Communist party secretary Zhang Gaoli is one of the seven men most likely to get a seat on the new politburo standing committee due to be unveiled at the 18th party congress starting on Thursday, is developing a replica of Manhattan to which it aims to attract global banks.

But local government officials explaining a mock-up of Yujiapu, the new district on the site of a former fishing village, last week said they did not know of any foreign bank that had committed to coming. Meanwhile, some of Chinas leading internet firms are relocating their censorship operations to Tianjin as they battle soaring labor costs.

Tianjins tale illustrates Chinas rapidly changing economic landscape but also puts a question mark over the reform and economic policy credentials of the countrys incoming leaders.

(Read More: Chinas New Leadersthe Lineup)

Mr. Zhang has been characterized as a financial reformer, mainly because he served in the southern province of Guangdong, known for piloting economic reforms. Two people familiar with the partys discussions over leadership posts said Mr. Zhang could receive an important economic portfolio in the team that will rule China for the coming decade.

But while Tianjin, which he has run since 2007, has failed to boost Mr. Zhangs credentials, it has become the first choice for internet companies as they follow textile, toy, and electronics manufacturers away from larger cities in pursuit of lower wages.

Youku Tudou, Chinas largest online video company by revenue, is considering moving its censorship operations from Beijing 170km to the coastal city of 10m people.

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China’s ‘New Manhattan’ Becomes Censorship Capital