Did you know Shanghai has been San Francisco's sister city since 1979?
According to the Bay Area Economic Forum (bayeconfor.org), "Shanghai was chosen for its parallels with San Francisco as a port city and a financial center, following a business mission there led by Feinstein." (from the BAEF report, The ties that bind, The San Francisco Bay Area's economic links to Greater China, November 2006)
Sister city agreements typically make it easier to create a connection between two cities, and in this case, made it easier to create a two way economic connection between San Francisco and Shanghai - and, on a larger scale, between the Bay Area region and China.
Therefore what better place to set up a " China Desk" than San Francisco?
UPDATE : They're setting up a ChinaSF office.
More details on that later.
In the meanwhile, this 2006 article (based on the BAEF report mentionned above) sums up pretty well the situation in '06.
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