China’s CNY1 Trillion GDP ($155 Billion) Club Adds Six New Cities

[TaiShang]

China’s CNY1 Trillion GDP Club Adds Six New Cities

www.yicaiglobal.com

(Yicai Global) Feb. 9 -- China’s club of cities with annual gross domestic product of at least CNY1 trillion (USD155.4 billion) had six newcomers last year, bringing the total to 23, with six others logging GDP of more than CNY2 trillion, according to official data.

The six new members are Quanzhou, Jinan, Hefei, Nantong, Xi'an and Fuzhou. Quanzhou's GDP rose 2.9 percent to CNY1.02 trillion last year from 2019, ranking the southeastern city in 18th place.

Jinan's GDP jumped 4 percent to CNY1.01 trillion, ranking it No. 19, while Hefei came in 20th at CNY1 trillion, a gain of 4.3 percent. Nantong, Xi'an and Fuzhou all posted annual GDP of CNY1 trillion, with Xi'an seeing a rise of 5.2 percent, the fastest growth of all China’s cities, followed by Fuzhou at 5.1 percent.

China’s economy expanded 2.3 percent last year to exceed CNY100 trillion (USD15.5 trillion) for the first time and make it the world’s only major economy to escape recession as the country bounced back from the initial impact of the coronavirus outbreak. GDP stood at CNY101.6 trillion in 2020, according to data the National Bureau of Statistics released on Jan. 18.

SOEs, Defense Tech Buoy Xi’an

Two factors contributed to Xi'an's rapid advance, Zhang Baotong, director of Shanxi Province Economic and Cultural Research, told Yicai Global. First, even though the pandemic hit the city's private, small and micro-sized companies hard, Xi'an has many state-owned enterprises and defense technology firms, both of which were less affected by Covid-19. Second, Xi'an spent a lot on stadium construction in 2020 as China's National Games will take place in the city this year.

But there are also some shortcomings in Xi'an's economic development, Zhang said. Due to its underdeveloped private economy, Xi'an failed to commercialize many of its scientific research findings despite strong resources in terms of higher education and science and technology. Instead, many of the research results were commercialized in more developed coastal areas such as the Pearl River Delta. So strengthening the private sector’s development is crucial for Xi'an’s further progress.

Shanghai Leads the Pack

Of the 30 biggest cities by annual GDP, Shanghai remained No. 1 with CNY3.8 trillion, followed by Beijing at CNY3.6 trillion, with Shenzhen and Guangzhou coming third and fourth. Shenzhen’s GDP grew by 3.1 percent, the fastest of the four cities.

The eastern city of Shanghai is targeting an economic growth rate of more than 6 percent this year, Mayor Gong Zheng told reporters on Jan. 27.

Chongqing and Suzhou are the two remaining cities that posted annual GDP of over CNY2 trillion.

Of the top 30 cities, 22 are in eastern coastal areas, with only seven in central and western China. Dalian, a city specifically designated in the state growth plan, is the only northeast city on the list, ranking 29th.

Of China's coastal provincial-level administration areas, Jiangsu province had the most cities in the top 30 with six, while Guangdong province, which ranked first among provinces by GDP, had four cities included, all in the Pearl River Delta.

The GDP of the top 30 cities last year totaled CNY43.73 trillion, making up 43 percent of China's total, the data showed.