Beyond GDP Major Cities Lagging in Economic Growth

Analysis of 不唯GDP，这些经济大市“掉队”了？

This article from the WeChat public account 每日经济新闻 (Daily Economic News) delves into the newly released China Big City Strong City Index (Version 2) report, highlighting the disparity between cities’ GDP rankingsand their performance in the Strong City index.

Here’s a breakdown of the key points and insights:

1. Beyond GDP: A New Lens for Evaluating City Strength

The report emphasizes that GDP alone is not a sufficient measure of a city’s strength. It introduces a Strong City index that considers factors beyond economic output, including:
Economic Efficiency: Labor productivity, land productivity, capital productivity
- Innovation and Potential: Patent authorization per 10,000 people, number of companies with a market capitalization of over 10 billion yuan, city’s digital development level
- Quality of Life: Environmental air quality, per capita general public budget expenditure

2. Long Triangle vs. Greater Bay Area: A Tale of Two Cities

The report reveals a significant difference in the Strong City rankings between the Long Triangleand the Greater Bay Area, despite their similar economic performance.
Long Triangle: 19 cities made the Strong City list, with many cities ranking higher in the index than their GDP ranking. This is attributed to their strong focus on innovation and digitalization.
Greater Bay Area:Only 5 cities made the list, with their Strong City rankings largely aligning with their GDP rankings. This suggests a higher focus on traditional economic indicators.
Reasons for the Difference:
- Size: The Long Triangle is significantly larger than the Greater Bay Area, with a greater number ofcities exceeding the 5000 billion yuan GDP threshold for inclusion in the report.
- Urban Structure: The Long Triangle has multiple independent urban clusters, while the Greater Bay Area’s economic activity is concentrated in a smaller number of core cities.
- Environmental Performance: The LongTriangle’s heavy industry base leads to lower air quality rankings compared to the Greater Bay Area.

3. The Power of Concentration: Small Cities Outperforming Big Cities

The report highlights the importance of urban density and agglomeration effects in driving city strength.
Smaller Cities: Cities like Shenzhen, Nanjing, and Wuxi, despite their smaller size, rank high in the Strong City index due to their high concentration of resources and talent.
Larger Cities: Cities like Chongqing, with a vast area, rank lower due to their lower population density and lessconcentrated economic activity.
The Heart of the City Effect: The report echoes the findings of Lu Ming’s book 向心城市 (Centripetal City), which emphasizes the importance of urban density for innovation and cultural exchange.

4. Innovation: A Key Driver of City Strength

The report showcases various cities’ approaches to innovation and how it contributes to their Strong City rankings.
Shenzhen: A leading example of a city with a strong focus on innovation, boasting high rankings in areas like capital productivity, patent authorization, and digital development.
Ningbo: Focuses on developing specialized and innovative small giant companies, leveraging its strong manufacturing base and digital transformation initiatives.
Hangzhou: Leverages its digital economy and innovative ecosystem to achieve high rankings despite lacking a strong industrial foundation.
Hefei: Benefits from its proximityto the Long Triangle and the presence of the Chinese University of Science and Technology, providing a talent pool for innovation.

5. The Importance of Context-Specific Strategies

The report emphasizes that cities should adopt innovative strategies tailored to their specific strengths and resources.
No One-Size-Fits-All Approach: The success of cities like Shenzhen, Ningbo, and Hangzhou cannot be simply replicated by other cities.

Overall, the China Big City Strong City Index (Version 2) provides a valuable framework for understanding the multifaceted nature of city strength beyond GDP. It highlights the importance of innovation,urban density, and context-specific strategies in driving sustainable and inclusive urban development.