Beijing, CHINA September 3 2024—Hangzhou, the capital of China’s Zhejiang province and an emerging e-commerce hub, is ranked as China’s best-performing city in 2023-2024, according to the recently released Milken Institute’s Best-Performing Cities China Index. As a key component of the Yangtze River Economic Zone, Hangzhou benefited from its strategic location and demonstrated remarkable economic strengths in this year’s ranking. Initially renowned for its vibrant tourism industry, the city has gradually diversified its economy by evolving into a burgeoning hub for livestream e-commerce. Additionally, Hangzhou today boasts thriving sectors such as entertainment, finance and manufacturing. Its strong commitment to science and technology is also evidenced by sizable investment in the domain. Bolstering this multifaceted development is a steady influx of high-quality talent graduating from top local universities such as Zhejiang University.
Wuhan rose 27 spots to take a noteworthy second place in the first- and second-tier cities ranking, while Jinan (capital of Shandong province), Changsha (capital of Hunan province) and Chengdu (capital of Sichuan province) followed in third, fourth and fifth place respectively. Beijing and Shenzhen – two of China’s most populated metropolises – held the eighth and ninth spots respectively. Meanwhile, Danzhou held the crown in the third-tier cities ranking.
“Despite geopolitical headwinds impacting China’s economic growth trajectory and momentum, this year’s index sheds light on the success China is achieving through boosting investment in science and technology, as well as strategically refocusing its efforts to enhance its capabilities in emerging industries including AI, autonomous vehicles and electric vehicles, which is the key to reinvigorating China’s growth engine.” said Perry Wong, Managing Director of Research at the Milken Institute, and author of the report.
Best-Performing Cities China 2023-2024 Index Highlights:
First- and Second-Tier Cities
- Wuhan ranked second as it exhibited robust performance in the manufacturing sector and thrived with the Optics Valley of China - the emerging high-tech cluster driving the city’s innovation and growth.
- Jinan moved up one place to the third position from last year’s ranking with its robust economic and innovative growth. The city’s broadened industrial diversity was exemplified by the establishment of three strategic zones, including the Jinan Innovation Zone, the China (Shandong) Pilot Free Trade Zone and China’s inaugural Technology Innovation Finance Reform Pilot Zone.
- Changsha on the fourth place has distinguished itself by boasting heavy equipment manufacturers, attracting prominent multinational corporations and welcoming companies developing high-value-added products such as innovative software.
- Chengdu, sitting on the fifth, solidified its position as the most consistent city to rank in the top 10 list since the ranking’s inauguration in 2015, benefitting from its industry cluster in information and technology.
Third-Tier Cities
- Danzhou topped third-tier cities with economic growth engines such as the Yangpu Port poised to become a logistics hub for international trades, together with other cities such as Sanya and Haikou included in the Hainan Free Trade Port network.
- Three cities – Huanggang (second), Jingzhou (eighth) and Ezhou (tenth) – in Hubei province claimed spots in the top 10. Notably, Huanggang and Ezhou, two cities that are only 50 miles away from Wuhan, hold first places respectively in the one-year and five-year average wage growth measurement.
- Ya’an (third), Jincheng (fourth) and Xianyang (sixth) benefited from their proximity to provincial economic powerhouses and being part of China’s regional economic clusters.
“The Milken Institute Best-Performing Cities China 2023-2024 Index has established itself as a trusted source for global business leaders, investors, policymakers and other decision-makers as they seek to navigate China’s evolving economic development landscape and seize unique and emerging opportunities,” said Laura Deal Lacey, Executive Vice President at the Milken Institute. “By bridging cultural and economic understanding between China and the international community, we strive to build meaningful connections and facilitate peer-to-peer exchange through shared insights, inspiring impactful collaborations that transcend borders and uplift communities worldwide.”
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To download the full report of the Milken Institute's Best-Performing Cities China 2023-2024 Index, please visit: https://milkeninstitute.org/content-hub/research-and-reports/reports/be…
Methodology
Please refer to the Appendix B in the full report.
About the Best Performing Cities China Index
The Milken Institute’s Best-Performing Cities (BPC) China Index analyzes the latest and most comprehensive official data, found in the China City Statistical Yearbook to track the recent economic performance of Chinese cities. The primary purpose of this series is to offer a tool to policymakers to monitor and evaluate the economic dynamics of cities in China and improve their performance. In addition, this work provides businesses with insight into economic trends to explore potential investment opportunities in China.
About the Milken Institute
The Milken Institute is a nonprofit, nonpartisan think tank focused on accelerating measurable progress on the path to a meaningful life. With a focus on financial, physical, mental, and environmental health, we bring together the best ideas and innovative resourcing to develop blueprints for tackling some of our most critical global issues through the lens of what's pressing now and what's coming next. For more information, visit www.milkeninstitute.org.
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