Recent strategies announced by Shanghai and neighbouring Jiangsu and Zhejiang provinces intend to fix duplicate development structures that have negative impacts on the national and local economy, the International Finance Journal reported.   With China’s continuous opening, execution of industrial distribution and development is directly linked to the quality of economic growth over next five years. According to past examples, uncoordinated development between different cities and areas lead to duplicated economic structures that would led to raw materials shortages, rise in energy prices, and lower prices of end-products in the market. As the fastest growing region in China, the Changjiang (Yangtze) delta region suffers from duplicate development structures with structural duplication coefficient between Shanghai and Zhejiang as 0.76, Shanghai and Jiangsu 0.82 as well as Jiangsu and Zhejiang as 0.97. Without proper coordination and communication, a series of problems are bound to arise.   The three areas announced their own individual development plans with the same priority given to manufacturing as the engine of economic development. In electronic information, auto and pharmaceutical sectors, the convergence rate is 70 percent. This high level of convergence rate reduces the influence of the city chain and minimizes the interactive cooperation on various levels. Economic development would be maximized if different cities can coordinate and work together .   According to the global development pattern of metropolis or city chain, there is naturally a core city in the region with secondary cities developed around this central city. Industries’ evolution and expansion could also follow this circular form of development. The concentration and gradual expansion of the industries would lead to the integration of different cities, which would in turn reduces the cost of operations by cultivating coordinated planning and organized development.   Among the 16 cities in the Changjiang delta region, the core city is Shanghai with secondary cities of Nanjing and Hangzhou as its right hand, Suzhou, Wuxi and Ningbo on the third level and Yangzhou, Huzhou and Jiaxing on the fourth level. All these secondary cities all initially have their development plan connected to Shanghai on various levels. However, these policies fail to be thoroughly executed to create an integrated industrial development, weakening the competitiveness of the Changjiang delta area.   The competitive position of different countries is created through the establishment of industrial clusters. An industrial cluster is a competitive corporate formation in which enough resources and competencies are amassed to reach a critical threshold.  This gives the cluster a key position as a given economic branch of activity with a decisive sustainable competitive advantage over others companies or even a world supremacy in that field.   There is still no industrial cluster concretely established in the Changjiang delta region. The resistance generated from prioritizing local economy obstructs the development of industrial clusters. Lacking of labour division system leads to the lack of long-term concerted efforts between different cities to raise regional industrial quality and productivity. Therefore, it is difficult for industrial clusters to form, which in turn weakens sustainable and deep-rooted industrial development.   As a matter of fact, the current industrial development in the region has laid the groundwork for the establishment of an industrial cluster. Shanghai is dominated by large-scaled enterprises with heavy industry establishments in the Shanghai area and light industry in the neigbouring cities.   Changjiang delta cities need to take advantage of the current characteristics of the industrial sector, strengthening their regional position in the world by improving coordination between different local governments and adopting operational methods of a market economy; Second, the cities need to take advantage of the industrial chain in the area to attract more foreign investment and transferal of operations from other countries.   While forming a low-cost supply chain of quality services, the cities also need to increase their integration in order to increase mutually beneficial regional competitiveness. Shanghai should strengthen its leading position through cooperation with secondary cities and incentives to avoid internal competition that would create conflicts of interest that would obstruct economic development.