The current degree of independence enjoyed at the local level by lower tier government in mainland China is under threat from globalization and regionalization, especially over crucial issues. This means that a new mode of governance is called for. Academics in China (PRC) have suggested the idea of regional governance which depends on direction from above and co-opetition within a given region. This paper applies the model to the case of the port covering the Yangtze River Delta. Two modes of operation are identified: (1) a traditional reformist mode of government-led co-opetition, and (2) a market mode in which the government is a major player. Following this latter mode Shanghai emerges as the core of a system of regional governance. The paper also notes that the development of regional governance for the port group of the Yangtze River Delta is marked by China's own special characteristics.