Hangzhou tops emerging Chinese cities for second year in a row

A bird's-eye view of Hangzhou, capital of East China's Zhejiang province. [Photo/zjol.com.cn]

For the second year, Hangzhou has topped the 2022 emerging city rankings issued by the Economist Intelligence Unit, which evaluated Chinese cities based on their potential for economic growth.

A number of coastal cities, including Shenzhen and Shanghai, followed Hangzhou on the list.

The report incorporates a total of 61 indicators, including economy, population, trade, finance, logistics and education, as well as historical data and the EIU's China forecasts. A total of 108 prefecture-level cities have been evaluated.

Chinese cities have faced extraordinary challenges and mounting uncertainty since late 2021.

With strong population inflows and solid industrial foundations, the listed cities, especially Hangzhou, are expected to play even more important roles in national strategies to move China up global value chains, such as technological upgrading and longer-term decarbonization.

The report has also shown that cities in the Yangtze River Delta have healthier fiscal structures, with the advanced manufacturing and service industries providing sufficient revenue flows to local government coffers.

Suzhou and Hangzhou, for example, are the only two cities on the list with budget surpluses. This will help them navigate the fallout of ongoing property sector troubles.

The EIU said that recent growth patterns in average land transaction prices could foreshadow housing price trends. Hangzhou and Guangzhou stand out in attracting population inflows. The two cities should sustain local property values, as both of these cities are home to advanced and extensive supply chains in key industries, including the electronics, automotive, biopharmaceutical and modern service industries.

A countdown clock displays the number of remaining days until the new start date of the 19th Asian Games in Hangzhou on Sept 10. [Photo/CFP]

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