China's Inland Cities Hit Their Stride

With an export-oriented economy, it's no wonder that China's major cities have traditionally been on the coast, most notably Shanghai and the cluster around the Pearl River Delta. Tens of millions of migrants have left rural interior areas to seek fortune in these cities. 

With the rise of new technologies and new economic sectors, access to shipping routes and the perceived cosmopolitanism of the coasts is becoming less crucial. Cities such as Chongqing are benefiting from a combination of government programs, like high-speed rail and new borrowing opportunities, and economic advances, like expertise in manufacturing laptops, have given it one of the highest rates of urban GDP growth in China. Meanwhile, even Beijing has outperformed, with robust economic activity above and beyond the government activity that takes place in the capital. 

"Coastal cities like Shanghai, Mumbai and New York have traditionally been centers not only of trade but also of commerce, culture, and wealth. They monopolize infrastructure investment and media attention, and occupy the longings of aspirational youth seeking stimulation and opportunity. With this inherent advantage, however, come the practical challenges of overpopulation: infrastructure deficits, soaring property values, and glaring inequalities in wealth distribution that some argue compromise the social fabric. Furthermore, coastal cities are increasingly vulnerable to sea level rise associated with climate change."

"With increased autonomy, improved infrastructure, and an outward orientation, China’s inland cities have fiercely global ambitions that may help them outpace urban growth in the West. These cities view even their coastal counterparts – larger Chinese mega-regions – as competitors for investment and labor. Indeed, government data indicate that many migrants are returning from coastal cities to their home provinces, drawn by employment opportunities. Moreover, the recent announcement by China’s State Council that it would develop urban clusters along the Yangtze River raises additional prospects for inland growth. Ambition is now meeting preparedness"