Fudan University economist Zhang Jun found himself in hot water recently after newspapers reported he advocates Shanghai becoming a new special administrative region like Hong Kong.

In a telephone interview with China Daily, Zhang said he was not talking about what some netizens described as "one country, two systems" for Shanghai.

"What I really mean is that there should be a breakthrough in transforming government functions," he said.

Zhang, director of the China Center for Economic Studies of Fudan University, believes that unlike other provinces, Shanghai's government should not be pushed into meeting a set GDP target.

Without that burden, Shanghai can focus on developing even more into an economic and trade center and an international city, according to Zhang.

"If city leaders are assessed only by GDP growth, they will hold onto those projects that contribute to GDP growth and will not allow them to go to other provinces," said the economics professor.

Local government leaders often tout GDP growth as a sign of success. To pursue a higher GDP growth, Shanghai and other Yangtze Delta cities have waged a tough battle to compete for large foreign investment projects, despite the fact that the service industry is widely regarded as the future of Shanghai.

Zhang said what he advocates is that Shanghai's government should no longer steer the economy and engage directly in attracting foreign investment, implementing projects and boosting GDP. Rather, it should learn from the Hong Kong government.

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