It marks the first time a Chinese province has achieved a GDP of 9-trillion-yuan, with a figure more substantial than the national economic total of Australia
China is still booming and Jiangsu province, north of Shanghai, is driving the growth. Traditionally Jiangsu is one of the most rich and productive region, but cities such as Nanjing or Suzhou are driving the growth in middle area of China. The “golden triangle” made by Shanghai-Jiangsu and Zhejiang (where Alibaba is based with its HQ in Hangzhou) is one of the most productive in the planet.
As stated by PRC State Council, 10 Chinese provinces have so far announced their economic performances for 2018. Among them Jiangsu has shown the the most remarkable achievements so far.
According to the provincial government work report, Jiangsu maintained medium-high economic growth last year. Its GDP growth is expected to have reached around 6.7 percent in 2018, with a total GDP of 9.2 trillion yuan, almost US$ 1.4 trillion.
It marks the first time a Chinese province has achieved a GDP of 9-trillion-yuan, with a figure more substantial than the national economic total of Australia – the 13th largest economy in the world, as underlined officials.
Guangdong province, another massive productive cluster, is also likely to join the 9-trillion-yuan club this year. Its GDP hit 8.99 trillion in 2017, and also ranked first in China for 29 consecutive years.
Sichuan is also growing and the “pandas province” is likely to become the second province in China to cross the 4-trillion-yuan GDP mark in 2018, after the central province of Henan.
Having a scale of almost continental size, it’s difficult to talk about China without pointing out that the “real” China is much richer and heterogeneous than the Western traveler thinks. Government statistics have always been at the forefront of telling the story of China’s urban reality. It’s estimated that by 2022 there will be a 56% increase in consumption in urban areas and the middle class will constitute about 54% of the Chinese resident population in the cities.
But what is changing within the country? Historically, the central government has separated large cities into three categories according to GDP: first, second and third tier. Cities like Beijing, Shanghai Or Hangzhou are first-tier metropolises. But nowadays, thanks to the new state incentives, the megacities of the other two categories are pushing the structural economic revolution. In which sectors does the Chinese consumer resident in second-tier and third-tier cities spend? Estimates are clear: clothing, food delivery, and education.
In second-tier cities such as Chongqing and Suzhou, there’s a high consumption of goods and services, de facto representing the new engine of development for the Chinese economy. But the panorama we are facing is complex.
The literature also stresses that second-tier cities represent the future of the Chinese market and at the same time a hope for the many foreign entrepreneurs who intend to break into virgin territory.
China has now become an important center of attraction for young foreign graduates and researchers who are interested in trying out a new experience, to see their skill set recognized, and to live in dynamic and developing environments. Second-tier cities are a great opportunity for professional and personal growth. For this reason cities like Xiamen in Fujian Province, Chengdu in Sichuan Province, or the enchanting Shenyang in Liaoning are attractive options.
The system is also widely used among analysts to define consumer habits, income levels, policy and local trends to better adapt investment and research strategies to local conditions. The ranking drawn up by the Chinese newspaper takes into consideration three main categories of classification of “tier”: that of the city’s GDP, the administrative level, and the urban population. By compiling this data and evaluating the importance of an assortment of variables, we arrive at results of the aforementioned study.
It is interesting to note that the first-tier cities are strategically distributed in a uniform way, corresponding to each crucial area of Chinese economic development.
This should not surprise us – when China set out on its “new course” the Government first identified the strategic areas to develop and incentivize. Second-tier cities, however, are more concentrated along the Yangtze River, while the North and South of the country can only count on seven cities each.
This signifies how the division of territory is completely heterogeneous, but the fact remains that Chongqing, Chengdu, Suzhou, and others are becoming the new pillar of Chinese consumption thanks to the Government’s commitment to promoting its infrastructure and urbanization.
MORE ON THIS TOPIC