China Integrated City Index 2024: Emerging first-tier cities become new engines

Editor's note: Cloud River Urban Research Institute recently released China Integrated City Index based on a comprehensive evaluation of 297 prefecture-level and above cities across China. This annual evaluation assesses cities across three major dimensions — economy, society, and environment. Now in its ninth consecutive year, China Integrated City Index analyzes the achievements and challenges of China's urban development and offers future prospects. This article, the second in the series, presents the top 10 emerging first-tier cities in manufacturing, IT, and technology influence rankings while analyzing the characteristics of their development.

According to China Integrated City Index 2024, Beijing remains in first place, followed by Shanghai at second, Shenzhen at third, and Guangzhou at fourth. These four cities are classified as first-tier cities, scoring deviation values above 200 out of 300 across the three core categories of economy, society, and environment. 

The index identifies 11 cities as emerging first-tier cities, including Hangzhou, Chengdu, Chongqing, Nanjing, Wuhan, Suzhou, Tianjin, Xi'an, Xiamen, Ningbo, and Changsha, based on deviation values between 175 and 200. Ningbo and Changsha are new comers on the list. Moreover, Hangzhou has overtaken Chengdu to become the leader among emerging first-tier cities.

There are 68 second-tier cities with deviation values between 150 and 175, and 214 third-tier cities with deviation values below 150.

Ming Xiaodong, former first-level inspector of the Department of Development Strategy and Planning of the National Development and Reform Commission and former minister-counselor of the Chinese Embassy in Japan, noted that classifying cities by their cumulative deviation values across economic, social, and environmental dimensions is a vital tool for urban planning.

He emphasized that this index helps to steer Chinese cities toward a more coordinated development model, instead of an economy-driven one. 

Xu noted that this index underscores that the status of China's established first-tier cities — Beijing, Shanghai, Shenzhen, and Guangzhou — remains unshakable. 

"These four have consistently led the rankings for years, backed up by their dominant GDP and high concentration of top companies to serve as hubs for national and global technology, economy, and culture," he said.

Emerging first-tier cities are catching up

The combined GDP of the 11 emerging first-tier cities accounts for 19.8% of the national total, surpassing the four first-tier cities' 12.7% share. However, the emerging cities account for just 12.1% of the nation's top 100 companies by market value. This is dwarfed by the first-tier cities' commanding 78.4% share, underscoring a high concentration of high-value leading enterprises in China's top four urban hubs.

The index reveals a stark per capita GDP hierarchy among emerging first-tier cities. Suzhou leads the group with 206,000 yuan, on par with first-tier city Shenzhen. Alongside Suzhou, the Yangtze River Delta powerhouses of Nanjing (193,000 yuan), Hangzhou (173,000 yuan), and Ningbo (186,000 yuan) form an elite economic tier.

The second tier includes Xiamen (161,000 yuan), Wuhan (153,000 yuan), Changsha (144,000 yuan), and Tianjin (132,000 yuan). The third tier consists of Chengdu (109,000 yuan), Xi'an (101,000 yuan), and Chongqing (101,000 yuan). 

A significant gap is visible within the group, with Suzhou's per capita output more than doubling that of Chongqing. 

This demonstrates that these high-ranking cities showcase their unique strengths. Because they excel in different ways, no single summary can fully capture the diverse strengths they bring to China's urban landscape.

Among the 19 city clusters proposed in the 13th Five-Year Plan, the Yangtze River Delta has four emerging first-tier cities, the Chengdu-Chongqing region has two, the middle reaches of the Yangtze River have two, the Beijing-Tianjin-Hebei region has one, the Guanzhong Plain has one, and the coastal areas of Guangdong, Fujian, and Zhejiang have one. 

Suzhou and Ningbo: Emerging cities with strongest manufacturing capabilities

China Integrated City Index underscores that a city's "influence" is a definitive measure of its broader impact. Specifically, manufacturing influence evaluates a city by its export prowess and the scale of its manufacturing workforce. 

According to the index's "China City Manufacturing Influence 2024" rankings, the top 10 manufacturing powerhouses command a massive 42.4% of the national total export value and employ 21.8% of the manufacturing workforce. Among them, four emerging first-tier cities are included, with Suzhou and Ningbo ranking second and fifth, respectively.

In terms of total exports, Suzhou and Ningbo rank third and fourth in China, respectively, with the 11 emerging first-tier cities accounting for 25.2% of the national total.

Suzhou and Ningbo cement their status as premier manufacturing cities, both ranking third nationally in total manufacturing employment. These industrial giants lead the 11 emerging first-tier cities, which collectively support 16.4% of China's total manufacturing workforce.

The dominance of China's industrial heartlands remains clear: Of the nation's top 10 manufacturing super cities, nine are concentrated in the Yangtze River Delta (five cities) and the Pearl River Delta (four cities). With one additional powerhouse located in the Guangdong-Fujian-Zhejiang coastal region, this distribution underscores the overwhelming advantages of the Yangtze River Delta and the Pearl River Delta in manufacturing.

Zhou Muzhi, head of Cloud River Urban Research Institute, said, "The super manufacturing cities with strong exports are the cornerstone of China's manufacturing power, and the Yangtze River Delta and Pearl River Delta have grown into the world's largest manufacturing centers."

Hangzhou and Nanjing: Emerging first-tier cities with strongest IT influence

According to the index's "China City IT Influence 2024" rankings, the top 10 IT cities host 74.1% of IT companies listed on the main boards and employ 46.4% of the workforce in the country's information transmission, computer services, and software industry. Among them, six emerging first-tier cities are included, with Hangzhou and Nanjing ranking fourth and fifth, respectively.

In terms of the number of listed IT companies on the main boards of Shanghai, Shenzhen, Hong Kong, and Beijing, Hangzhou and Nanjing rank fourth and fifth in China, respectively, with the 11 emerging first-tier cities accounting for 21.5% of the national total.

Hangzhou and Nanjing have solidified their positions as premier IT hubs, ranking fifth and seventh nationally in tech-sector employment. These two cities have spearhead a growing digital workforce within the 11 emerging first-tier cities, which collectively host 26.1% of China's information transmission, computer services, and software professionals.

While manufacturing remains heavily clustered in the Yangtze and Pearl River Deltas, the nation's top 10 IT powerhouses are increasingly dispersed among major regionals center, Four in the Yangtze River Delta, two in the Pearl River Delta, one in the Beijing-Tianjin-Hebei region, one in the Chengdu-Chongqing region, one in the middle reaches of the Yangtze River, and one in the Guanzhong Plain. 

Zhou asserted that the IT industry serves as a primary engine for the global economic development, fostering the most dynamic and highest-valued enterprises. 

He noted a significant shift in global competition: The IT industry is now led by China and the U.S., with Europe and Japan, once manufacturing giants, slipping into the secondary position. In the AI-driven era, this trend will intensify. 

Zhou sated, China's top 10 IT cities gather the leading players, and emerging first-tier cities, such as Hangzhou, home to six leading tech startups, also make contributions to this national and global leadership.

Hangzhou and Suzhou: Emerging first-tier cities with strongest technology prowess 

According to the index's "China City Science and Technology Influence 2024" rankings, the nation's top 10 tech hubs produce 39.2% of all national patent grants and employ 34.5% of the scientific research and technical services workforce.

Emerging first-tier cities are increasingly driving this research surge, securing half of the top 10 spots. Notably, Hangzhou and Suzhou ascend to the fifth and sixth positions, respectively, establishing themselves as critical pillars of China's national innovation strategy.

Regarding the number of institutions in the top 500 of the Nature Index in 2024, Hangzhou and Suzhou rank ninth and 16th in China, respectively. Collectively, the 11 emerging first-tier cities host 36.2% of the nation's top-tier research institutions.

In terms of highly cited researchers ranking in the top 1% of citations in their respective fields, Hangzhou and Suzhou rank fifth and 13th in China, respectively, with the 11 emerging first-tier cities accounting for 32.1% of the national total.

When it comes to patent grants, Hangzhou and Suzhou claim the sixth and fourth positions in China, respectively, while the 11 emerging first-tier cities account for 23.7% of the national total.

In terms of the number of employees in the scientific research and technical services industry, Hangzhou and Suzhou rank ninth and 12th, respectively, with the 11 emerging first-tier cities accounting for 24.2% of the national total.

Among the top 10 science and technology cities, five are in the Yangtze River Delta, three in the Pearl River Delta, one in the Beijing-Tianjin-Hebei region, and one in the middle reaches of the Yangtze River. This geographic breakdown highlights the overwhelming dominance of the Yangtze River Delta, the Pearl River Delta, and the Beijing-Tianjin-Hebei region as the primary engines of China's innovation and R&D excellence.

Zhou said, the robust investment in sci-tech innovation during the 14th Five-Year Plan period has created a large number of science and technology power cities, resulting in the rise of the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area as international science and technology innovation centers. This in turn has provided a strong impetus for the development of China's manufacturing and IT industries.

Ming commented, "The development pattern of emerging first-tier cities has solidifies with significant progress, with the number growing to 11. These cities are distributed across city clusters such as the Yangtze River Delta, the Chengdu-Chongqing region, the middle reaches of the Yangtze River, the Beijing-Tianjin-Hebei region, the Guanzhong Plain, and the coastal areas of Guangdong, Fujian, and Zhejiang."

He noted a remarkable change: Hangzhou has overtaken Chengdu as the leading city in the group.

These cities each have their own characteristics in manufacturing, IT, and technology, reflecting the diversified development of China's cities, he added.

He highlighted a rising strength of emerging first-tier cities, as powerhouses like manufacturing leaders Suzhou and Ningbo, IT hubs Hangzhou and Nanjing, and R&D centers Hangzhou and Suzhou demonstrate the solid foundation of China's real economy and strong innovation momentum.

However, a significant gap remains in the agglomeration of high-value leading enterprises compared to established first-tier cities. Furthermore, unbalanced development leads to major disparities in per capita GDP within the emerging tier itself.