Competition of five cities with separate plans: the GDP of Dalian, Qingdao and Xiamen is inferior to Shenzhen

category:Finance
 Competition of five cities with separate plans: the GDP of Dalian, Qingdao and Xiamen is inferior to Shenzhen


Shenzhens GDP is very large

In terms of GDP, the order of the five cities with separate plans is Shenzhen, Ningbo, Qingdao, Dalian and Xiamen. Among them, Shenzhen, Ningbo and Qingdao have exceeded the trillion yuan mark, and Dalian and Xiamen are still far from the trillion yuan GDP club.

Among them, Shenzhens GDP in 2019 will reach 2692.709 billion yuan, ranking third only to Shanghai and Beijing, and far ahead of the five cities with separate plans. It is 2.25 times as much as Ningbo, which is more than the sum of Dalian, Qingdao and Xiamen (2473.8 billion yuan).

Peng Peng, executive chairman of the Guangdong Provincial Institute of restructuring, analyzed the first finance and economics that the system of separate listing of plans has greatly promoted the development of these cities, and has delegated some autonomy, so that cities and enterprises can have greater development space, which is conducive to mobilizing local enthusiasm. Of course, the foundation of these cities themselves is also relatively good, such as Xiamen, Ningbo and other places are modern trading ports, the port advantages are very prominent, good foundation.

Table: Main Indicators of five cities separately listed in the plan (source: statistical bulletin of various regions. The urbanization rate of Dalian is the data of 2018)

In addition to GDP, Shenzhen is also in the absolute leading position in several other major economic indicators. Especially in the total amount of funds and the number of high-tech enterprises, the advantages are more prominent. The balance of various deposits of financial institutions, or total amount of funds, is the result of the economic operation of a region or city and the embodiment of economic vitality. According to the data, the total amount of funds in Shenzhen will reach 8.39 trillion yuan in 2019, which is more than the sum of the other four cities (6497.7 billion yuan).

A corner of Nanshan, Shenzhen (Photo by Lin Xiaozhao)

Ding Changfa, an associate professor of economics at Xiamen University, said that compared with other cities with separate plans, Shenzhen first has geographical advantages. After reform and opening up, Shenzhen has accepted the spillover effect of Hong Kongs capital, technology and talents, giving full play to its comparative advantage. Secondly, Shenzhens reform and innovation, business environment building and so on are in the forefront. In addition, Shenzhen Stock Exchange, China Merchants Group and other platforms, enterprises and other resource elements gather, as well as talents from all over the country, many factors promote Shenzhen to take the lead.

After Shenzhen, Ningbo surpassed Qingdao in terms of GDP, ranking the second in the list of cities. Among them, Ningbos foreign trade import and export is nearly three times that of Qingdao, and its per capita income and total capital are also significantly higher than that of Qingdao.

With the rapid development of economy, the population attraction of these cities with separate plans is also very strong, and the scale of cities is expanding. At present, Shenzhen has become a mega city with an urban population of more than 10 million; Qingdao has an urban population of more than 5 million, becoming a megacity; Dalian, Ningbo and Xiamen are all type I cities with urban population ranging from 3 million to 500 million.

Should the fiscal and taxation system be adjusted if several cities are beyond the provincial capital?

The system of separate planning has promoted the rapid development of these cities, and many of them have surpassed the provincial capital cities in the development level. In 2012, Shenzhens total economic output exceeded that of Guangzhou, Jinan lagged behind Qingdao in a number of indicators, Dalians GDP and per capita GDP far exceeded Shenyangs, Xiamens per capita GDP, per capita income, high-tech industries and other major indicators were all ahead of Fuzhou.

Comparatively speaking, among the five cities with separate plans, only Ningbo has a significantly lower development level than its provincial capital. The total amount of capital in Hangzhou is 2.17 times that of Ningbo, and the number of high-tech enterprises in Hangzhou is 2.57 times that of Ningbo.

Table 2: comparison of economic indicators between cities with separate planning and major cities in their provinces. (source: local statistical bulletin)

On the other hand, the fiscal and tax system under the separate plan also makes these cities have more abundant self retaining financial resources.

Zhu Lieyu, deputy to the National Peoples Congress and director of Guangdong Guoding law firm, believes that the revenues and expenditures of cities listed separately in the plan are directly linked to the central government, and the central and local finance are divided into two parts, instead of being handed over to the provincial finance. The financial revenue generated by other cities in the province should be shared with the provincial finance. This makes cities with separate plans have more funds for local economic construction, which often forms unfair competition with neighboring cities and weakens the financial control ability of the province.

For example, Guangdong, which has the largest regional development gap among the developed coastal provinces, has a large annual fiscal revenue in Guangzhou, but about three-quarters of it has to be handed over to the central government and the provincial government, leaving only about one fourth of it. In this case, in 2019, the general public budget revenue of Guangzhou is 169.72 billion yuan, and that of Shenzhen is 377.321 billion yuan, about 2.22 times that of Guangzhou.

Zhu Lieyu believes that due to the limitation of local fiscal revenue, the neighboring cities such as Guangzhou, Shenyang and Fuzhou, which are separately listed in the plan, are not as good as those in Shenzhen, Dalian and Xiamen in terms of support for enterprises, urban construction, tax incentives, and introduction of high-end talents, which has led to the relocation of local enterprises in many cities, including high-end talents, capital and high-quality enterprises All of them settled down in cities with separate plans, resulting in unfair competition with neighboring cities, which is not conducive to the balanced development of the region.

Zhu Lieyu told first finance and economics that if the local tax revenue of the city with separate planning needs to be retained in proportion to the provincial finance, the difference caused by the uneven distribution of resources between the city with separate planning and its neighboring cities can be reduced. It is suggested that the tax should be paid separately to the central government and local governments according to the proportion of the tax from the provincial finance and local governments. We should increase the provincial fiscal revenue and take the road of common prosperity through helping the rich first and then getting rich later.

Shenzhen is at the forefront of reform and innovation and business environment

At present, Shenzhen has become one of the most developed cities in Chinas high-tech industry. Tan Gang, inspector and vice president of Shenzhen Institute of socialism, has previously analyzed the first finance and economics. In the past, Guangzhous advantages over Shenzhen lie in the fact that Guangzhous heavy industry has developed relatively well. In the total economic volume, the proportion of automobile and other industries is relatively high, which brings about a rapid increase in the total amount. However, for Shenzhen, due to the lack of resources and factor endowment for the development of traditional industries, it also forces Shenzhen to take the industrial path of less pollution and relatively light-weight. Since the 1990s, it has gradually moved to the road driven by scientific and technological innovation, which is many years earlier than that of the whole country, and the effect is obvious. Tan Gang believes that in terms of high-tech industries, Shenzhen has rewritten the worlds innovation rule system, changing the innovation system represented by Silicon Valley and supported by universities, and formed a system in which there are no well-known universities or too many universities that can also carry out innovation, and the innovation effect is still remarkable. These are all formed by continuous innovation, reform and opening up. Source of this article: Guo Chenqi, editor in charge of first finance and Economics_ NBJ9931

At present, Shenzhen has become one of the most developed cities in Chinas high-tech industry. Tan Gang, inspector and vice president of Shenzhen Institute of socialism, has previously analyzed the first finance and economics. In the past, Guangzhous advantages over Shenzhen lie in the fact that Guangzhous heavy industry has developed relatively well. In the total economic volume, the proportion of automobile and other industries is relatively high, which brings about a rapid increase in the total amount. However, for Shenzhen, due to the lack of resources and factor endowment for the development of traditional industries, it also forces Shenzhen to take the industrial path of less pollution and relatively light-weight. Since the 1990s, it has gradually moved to the road driven by scientific and technological innovation, which is many years earlier than that of the whole country, and the effect is obvious.