BEST-PERFORMING CITIES
CHINA 2017
THE NATION’S MOST
SUCCESSFUL ECONOMIES
PERRY WONG, MICHAEL C.Y. LIN, AND JOE LEE
TABLE OF CONTENTS
ACKNOWLEDGMENTS
The authors are grateful to Laura Deal Lacey, executive director of the Milken Institute Asia
Center; Belinda Chng, the center’s director for policy and programs; Ann-Marie Eu, the
Institute’s associate for communications, and Jeff Mou, the Institute’s associate, for their
support in developing an edition of our Best-Performing Cities series focused on China. We
thank communication teams for their support in publications, as well as Ross DeVol, the
Institute’s chief research officer, and Minoli Ratnatunga, economist at the Institute, for their
constructive comments on our research.
License, available at creativecommons/licenses/by-nc-nd/3.0/.
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CONTENTS
EXECUTIVE SUMMARY 01
INTRODUCTION 05
OVERVIEW: CHINA’S ECONOMIC DEVELOPMENT 06
REGIONAL DEVELOPMENT 07
THE EVOLUTION AND INFLUENCE OF THE10
“ONE BELT, ONE ROAD” (OBOR) INITIATIVE
METHODOLOGY 11
REPORT FINDINGS
Top 10 Best-Performing Cities China (First- and Second-tier Cities) 12
Complete Results: First- and Second-tier Cities 23
Top 10 Best-Performing Cities China (Third-tier Cities) 24
Complete Results: Third-tier Cities 35
APPENDIX: DATA AND METHODOLOGY 41
Classification and Designation of Cities
Data and Variables
Methodology in Detail 42
ENDNOTES 43
ABOUT THE AUTHORS 48
ACKNOWLEDGMENTSEXECUTIVE SUMMARY
This third edition of the Milken Institute’s Best-Performing Cities (BPC) China series analyzes the latest and most comprehensive
official data as it continues tracking the recent economic performance of Chinese cities. The main purpose of this series is to offer
a tool for monitoring and evaluating the economic dynamics of cities in China and help improve their performance. In addition, this
work provides businesses with insight into regional economic trends, helping them to explore potential investment opportunities
in China.
Following the methodological framework used in our previous BPC China reports, the 2017 rankings incorporate nine indicators:
one-year (2014-2015) and five-year (2010-2015) job growth, one- and five-year wage growth, one- and five-year gross regional product
(GRP) per-capita growth, three-year (2012-2015) foreign direct investment (FDI) growth, the FDI/GRP ratio measuring the use of
foreign capital for local development (2015), and the location quotient (LQ) for high value-added industry employment (2015). As in
previous editions, we present two separate rankings—one for first- and second-tier cities and the other for third-tier cities—to reflect
the fact that cities fall into different developmental stages and urban hierarchies. The former group are normally the forerunners of
urbanization, larger in size, and receive more support from the central government.
Since 2007, China’s gross domestic product (GDP) growth has been decelerating. In 2015, it was 6.9 percent, falling below 7 percent
for the first time since 1991. The rate dipped further, to 6.7 percent, in 2016.1 Recognizing its economic slowdown and the challenges
it brings, China’s government launched the “New Normal” concept marked by low-to-moderate economic growth. To cope with
these challenges, China has set new goals in its 13th Five-Year Plan (FYP), notably that of doubling its 2010 GDP and per-capita
income by 2020. Several key strategies were also proposed in the plan. First, China wants to transform its economy from being
the “world factory” to an “entrepreneurial and innovation base,” where more high value-added industries will be the driving force
of growth. Second, China has been accelerating urbanization, promoting more balanced regional development, and spawning and
strengthening regional clusters where domestic consumption will be critical in driving economic growth. Third, China is developing
more eco-friendly cities and industries. In addition to the 13th FYP, the government has also launched the “One Belt, One Road
(OBOR)” initiative to strengthen trade and reignite economic growth in various regions inside China and across Asia. Unlike previous
strategies to attract foreign investment, the government in the last few years has encouraged China Inc. to make investments and
to sell its products in international markets. Under the central plan, OBOR not only envisages more investment in foreign countries
through infrastructure projects, but also encourages linkage of domestic infrastructure with the “Silk Road Economic Belt” and
“Maritime Silk Road.” This initiative can also help reduce overcapacity in certain sectors, including steel production and construction.
The long-term effects of these programs on China’s overall economic growth remain to be seen. Nonetheless, quantitative and
qualitative changes in the urban and regional economic landscape are already underway. In addition to the well-known Yangtze River
Economic Belt and the Pearl River Delta Economic Zone, more regional clusters such as the Jing-Jin-Ji Metropolis Region (BeiJING,
TianJIN and JI, an initial for Hebei Province) and the Diamond Economic Zone (linking Chengdu, Chongqing, Xi’an and Kunming)
are emerging or expanding. Increasing numbers of cities are now improving their infrastructure and becoming more integrated into
regional clusters. Guiyang (ranked third among first- and second-tier cities) and some cities like Zunyi (ranked 5th among the third-
tier cities) in Guizhou Province are examples. Guizhou used to be one of the least accessible and poorest areas in China. However,
this area has been booming in recent years. From 2011 through 2016, its rate of economic growth has been among the top three
in China.2 The recent rise of Guizhou can be attributed to improvement in its transportation networks and industrial development
strategies. Guiyang now has a high-speed rail connection to Beijing, Shanghai, and Guangzhou. It has also been cultivating the big
data sector as a core industry. Guiyang and Guizhou as a whole have assumed greater role in the Pan-Pearl River Delta
(Pan-PRD) collaboration.3
The emergence and expansion of regional clusters are also highlighted in our rankings. Three of the four anchor cities in the Diamond
Economic Zone are ranked in the top 10 first- and second-tier cities: Chengdu (ranked 1st), Chongqing (ranked 2nd) and Kunming
(ranked 8th), with Xi’an ranked 11th. Many cities among the first- and second-tier cities, such as Nanjing (ranked 5th) and Shan