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.

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).

The number of national high-tech enterprises is an important indicator to measure the industrial transformation and upgrading of a region. According to the data, the number of high-tech enterprises in Shenzhen exceeded 17000 last year, 1.77 times that of the other four cities (9606).

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.

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.

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.

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. He suggested that the five cities with separate plans should pay local taxes to the provincial finance, and that the taxes from local taxes, central taxes and local shared taxes should be retained in provincial finance in a certain proportion. We should increase the provincial fiscal revenue and take the road of common prosperity through helping the rich first and then getting rich later.

Some experts also believe that the current economic advantages of cities with separate plans are formed by various factors, and the fiscal and tax mechanism under separate listing is not the only factor. Ding Changfa believes that Shenzhens surpassing Guangzhou is related to the fact that Shenzhens business environment and high-tech industry development are better than Guangzhous. With so many university resources in Guangzhou, why is innovation far inferior to Shenzhen? In Fujian, the business environment of Xiamen is better than that of Fuzhou. In addition, compared with Ningbo, which is a separate planned city, why can Hangzhou maintain a significant leading edge? It is because Hangzhou has done a good business environment in recent years, and the digital economy and the new economy have developed very well. Therefore, the provincial capital cities that have been surpassed by the planned cities should also reflect on their differences in business environment and the development of science and technology innovation industries.

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.

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.