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Small cities a driving force of future GDP growth
By Wang Yanlin from Changshu |
September 17, 2010, Friday
|
Online Edition
Online Edition
COUNTY-LEVEL cities, or third-tier cities, with a thriving private sector and growing consumer spending will be a driving force for China's future economic growth, said participants at the Forbes China County Investment and Development Forum today.
Investors may shift their attention to these cities for lower costs and more market potentials, they said.
"County-level cities are getting more competitive," said Ha Jiming, former chief economist at the China Investment Corp. "There is a growing trend that skilled workers are leaving big cities to their native towns, drawn by cheaper living costs and better job opportunities."
Also, consumption growth in county-level cities will pick up with the return of skilled workers who are most likely to spend, especially on property, automobile and expensive products, Ha said.
As a basic unit of China's economy, county-level cities produced 56.3 percent of the country's gross domestic product in 2009.
They are more flexible than big cities to adapt to market changes, said Zhou Jiangong, chief editor of Forbes China.
But now they are facing tremendous challenges, including the lack of capital and skilled labor, the participants said.
"Many talented people choose to go to big cities like Shanghai and Beijing," said Wu Wei, vice mayor of Wujiang, a county-level city in Jiangsu Province. "I want to say we can offer them a better life and bigger space to achieve their goals in life if they come to our city."
In a list compiled by Forbes China, Kunshan is the best county-level city for business this year, followed by Changshu and Zhangjiagang. All three cities are in Jiangsu Province.
The ranking was based on eight indices, including skilled labor, city size, consumption, traffic, economic performance, and capability to innovate.
Investors may shift their attention to these cities for lower costs and more market potentials, they said.
"County-level cities are getting more competitive," said Ha Jiming, former chief economist at the China Investment Corp. "There is a growing trend that skilled workers are leaving big cities to their native towns, drawn by cheaper living costs and better job opportunities."
Also, consumption growth in county-level cities will pick up with the return of skilled workers who are most likely to spend, especially on property, automobile and expensive products, Ha said.
As a basic unit of China's economy, county-level cities produced 56.3 percent of the country's gross domestic product in 2009.
They are more flexible than big cities to adapt to market changes, said Zhou Jiangong, chief editor of Forbes China.
But now they are facing tremendous challenges, including the lack of capital and skilled labor, the participants said.
"Many talented people choose to go to big cities like Shanghai and Beijing," said Wu Wei, vice mayor of Wujiang, a county-level city in Jiangsu Province. "I want to say we can offer them a better life and bigger space to achieve their goals in life if they come to our city."
In a list compiled by Forbes China, Kunshan is the best county-level city for business this year, followed by Changshu and Zhangjiagang. All three cities are in Jiangsu Province.
The ranking was based on eight indices, including skilled labor, city size, consumption, traffic, economic performance, and capability to innovate.
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