The Milken Institute has released its annual Best-Performing Cities Index, with Hangzhou, the capital of Zhejiang Province and a burgeoning e-commerce hub, topping the list. The report, published on September 3, highlights the role of emerging industries in propelling urban growth and development across China.
Economic Resurgence Through Technology
Hangzhou, traditionally known for its tourism, has diversified its economy significantly in recent years. The city’s strategic location within the Yangtze River Economic Belt has been instrumental in its economic prowess, as evidenced by its ranking in the report. The city has emerged as a leading center for live-streaming e-commerce, complementing its established sectors such as entertainment services, financial services, and manufacturing.
The Milken Institute’s report underscores Hangzhou’s significant investment in technology, showcasing its commitment to technological advancement. Institutions like Zhejiang University continuously supply the local job market with highly qualified talent, further enhancing the city’s appeal.
Rising Stars in the Urban Landscape
Wuhan stands out among first-tier and second-tier cities, ranking prominently due to the development of high-tech industries within the China Optics Valley. The city’s ranking soared from 29th in 2022 to the second position this year, reflecting the substantial progress in its economic performance.
Other cities like Jinan, Changsha, and Chengdu follow closely, ranking third, fourth, and fifth, respectively. Beijing and Shenzhen, two of China’s most populous metropolises, rank eighth and ninth, showcasing their sustained economic strength.
Growth in Third-Tier Cities
The report also highlights the performance of third-tier cities, with Danzhou in Hainan Province leading the pack. Danzhou, along with Sanya and Haikou, forms part of the Hainan Free Trade Port. The city’s Yangpu Port is being developed as a major international trade logistics hub, contributing to its economic growth.
Other third-tier cities such as Huanggang, Jingzhou, and Ezhou in Hubei Province, as well as Ya’an, Jincheng, and Xianyang, have also shown strong performance. Their proximity to provincial economic powerhouses and the benefits of regional economic clusters have been key factors in their growth.
Strategic Focus on Emerging Industries
According to Huang Hua Yue, Managing Director of the Milken Institute’s Research Department for China, the report reflects China’s strategic shift towards increasing technology investments and focusing on emerging industries such as artificial intelligence, autonomous vehicles, and electric vehicles. This shift aims to inject new vitality into the economic growth engine.
National Policy and Industry Development
The report’s findings align with the Chinese government’s emphasis on nurturing emerging industries. The annual work report of the Second Session of the 14th National People’s Congress highlighted the significant progress made in modernizing the industrial system.
Conclusion
The Milken Institute’s Best-Performing Cities Index serves as a testament to the transformative power of emerging industries in urban development. Cities like Hangzhou and Wuhan are leading the way in this economic revolution, setting the stage for a future where technology and innovation drive prosperity and growth across China. As the country continues to invest in and support these industries, the potential for further urban development and economic advancement is immense.
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