Analysis of the Development of Beijing (2020)

1.1.1.1. Regional economic growth has slowed down on the whole, showing a trend of steady improvement

In the context of economic structural transformation and upgrading, economic operation has entered a period of deep adjustment, regional economic growth has slowed down on the whole, and economic development has entered a new normal of a declining growth rate and shifting drivers. In 2019, China’s GDP reached RMB 99.0865 trillion (National Bureau of Statistics 2020), an increase of 6.1% year on year at comparable prices; on a quarterly basis, it grew by 6.4% in the first quarter, 6.2% in the second quarter, 6.0% in the third quarter, and 6.0% in the fourth quarter, with a slight drop in the growth rate. With the changes in China’s economic growth rate, the regional economy has presented different development characteristics, and regional economic growth has remained stable on the whole, with “faster growth in the west and slower growth in the east.”

Economic growth in the eastern region was faster than the national average, but has slowed down somehow. The eastern region had the largest economic scale in 2019, with GDP of RMB 51.12 trillion, an increase of 6.2%. In terms of the economic performance of the ten provinces and cities in the eastern region in 2019, Fujian Province, the fastest-growing economy in the eastern region, led the way with year-on-year growth of 7.6%, followed by Zhejiang and Hebei, both registering 6.8% growth. Four provinces and cities recorded slower growth than the national average: Shanghai (6.0%), Shandong (5.5%), Hainan (5.8%) and Tianjin (4.8%). In 2019, the economic growth rates of Guangdong (6.2%), Jiangsu (6.1%) and Beijing (6.1%) were equal to or slightly higher than the national average in the same period. On the whole, the eastern region has promoted innovation-driven development, strengthened capacity for technological innovation, and promoted collaborative innovation between enterprises, universities, and research institutes. New drivers, mainly new and high technologies and strategic emerging industries, have emerged at a faster pace, playing an important role in driving national economic development.

The central region ranked first in economic growth among the “four regions” and continued to achieve rapid growth, with its GDP reaching RMB 21.87 trillion, an increase of 7.3% at comparable prices. Compared with the national average of 6.1% during the same period, all five provinces except Shanxi grew at more than 7%, with Jiangxi topping the list at 8.0%. As a key region in China’s new round of industrialization, urbanization, IT application and agricultural modernization, the central region has the potential to expand domestic demand and open wider to the outside world, and is an important region that supports China’s medium-to-high-speed economic growth. In the future, under the national regional development strategy, the central region will explore new modes of industrial transfer and guide and support the orderly transfer of environmental protection industries and production bases of well-known domestic and foreign enterprises from the eastern coastal region to the central region, thereby invigorating economic growth in the central region and promoting substantial progress in industrial development.

Economic growth in the western region has declined, and economic development has been steadily slowing down. In 2019, the economic growth rate of the western region was 6.8%. Guizhou, Yunnan and Xizang, which have the highest GDP growth rates in China, are all in the western region. Guizhou led the way with 8.3% GDP growth, followed by Xizang and Yunnan with 8.1% GDP growth. Economic growth in Shaanxi, Guangxi and Inner Mongolia was slower than the national average. The economic growth rate of the western region was in double digits until 2013. Since 2018, the economic growth of the western region has been slower than that of the central region. After the implementation of the strategy for the large-scale development of the western region, the gap between the western region and the developed eastern region has narrowed. Due to the rising labor cost in the eastern region, capital and technology have been transferred from the east to the west, bringing new industrial development opportunities to the west. Since the 18th CPC National Congress, the economy of the western region has developed further. Relying on its rich natural resources and energy, the western region has promoted sustained and rapid economic development, and made continuous progress in various undertakings. Some provinces have maintained strong growth momentum.