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The Star
7 minutes ago
- The Star
What are China's most dynamic cities? New report gives surprising answer
China's most dynamic local economies are no longer metropolises like Beijing and Shanghai, but lesser-known cities including Hangzhou and Hefei, according to a new report by the Economist Intelligence Unit. The findings reflect a growing shift in China's economic landscape, as smaller cities emerge as a main engine of growth due to their strength in advanced manufacturing, clean energy and other emerging sectors. The annual report by the EIU ranks Chinese cities in terms of their growth potential, with the eastern city of Hangzhou – home to e-commerce giant Alibaba, artificial intelligence start-up DeepSeek, and several other major technology companies – topping the list for the fifth consecutive year. It was followed in the ranking by Hefei – an eastern city known for being a hub for semiconductor and electric car companies – and the southwestern industrial powerhouse of Chengdu. Shenzhen, often dubbed China's Silicon Valley, placed fifth, while Beijing, Guangzhou and Shanghai all failed to make the top 10. The results 'capture the rise of manufacturing and the decline of the service sector' in China, economists Xu Tianzeng and Su Yue wrote in the report, as a prolonged property downturn drags down consumer spending and the economy continues to rely on strong production. Most of the top-ranked cities have benefited from China's advanced manufacturing boom, recording strong economic growth and attracting significant population inflows over the past two years. According to the report, Hangzhou has made a strong recovery from Beijing's regulatory crackdowns on the tech sector launched in 2021. 'The city has since reasserted its leadership in China's artificial intelligence race, driven by major players like DeepSeek, while also leveraging its strengths in advanced manufacturing,' the authors wrote, noting that Hangzhou has one of the most robust fiscal positions of cities nationwide. Hangzhou is home to China's 'six little dragons' – a group of high-profile tech start-ups including DeepSeek, humanoid robot maker Unitree Robotics and Neuralink rival BrainCo. Local authorities in Zhejiang, the eastern province where Hangzhou is located, have put a strong emphasis on supporting hi-tech companies. Last week, the province released a draft action plan for boosting local innovation, which set a target that over 80 per cent of its new listed companies should come from the tech sector by 2027. Meanwhile, Hefei and Chengdu have both 'made bold, strategic investments in foundational technologies' to drive their development, the report said. Hefei has invested heavily in CXMT, a major producer of dynamic random access memory (DRAM) chips, which is now preparing for an initial public offering. The company is widely regarded as China's best hope of competing with South Korea and the United States in the global memory chip market. Chengdu has also invested in the semiconductor company Hygon, a joint venture with US chipmaker AMD. 'These ventures have not only generated substantial returns for the two cities, but have laid the groundwork for broader industrial ecosystems with surrounding cities,' the report's authors said. They noted that the broader metropolitan area covering the core cities of Chengdu, Deyang, Meishan and Ziyang logged an average growth rate of more than 7 per cent in the first quarter of 2025 – making it one of the country's fastest-growing regions. Similarly, China's clean energy push is powering significant growth in smaller cities with established manufacturing bases for renewable energy technologies, according to the report. Xinyu and Yichun in the eastern Jiangxi province, for instance, have seen their growth boosted by rising demand for lithium-rich ores from the electric vehicle and energy storage sectors. Meanwhile, Jinchang in the northwestern Gansu province recorded an impressive average annual growth rate of 12.9 per cent between 2022 and 2024, as demand for renewable energy infrastructure boosted the city's non-ferrous metals industry. But smaller cities that are riding high thanks to the green transition also face 'vulnerabilities', the report noted. 'These include exposure to commodity price cycles, external trade shocks and spillover effects from overcapacity rectification in downstream industries,' it said. - South China Morning Post
New Straits Times
7 minutes ago
- New Straits Times
China and Russia start joint drills in Sea of Japan
BEIJING: China and Russia began joint naval drills in the Sea of Japan on Sunday as they seek to reinforce their partnership and counterbalance what they see as a US-led global order. Alongside economic and political ties, Moscow and Beijing have strengthened their military cooperation in recent years, and their relations have deepened since Russia invaded Ukraine in February 2022. The "Joint Sea-2025" exercises kicked off in waters near the Russian port of Vladivostok and would last for three days, China's defence ministry said in a statement on Sunday. The two sides will hold "submarine rescue, joint anti-submarine, air defence and anti-missile operations, and maritime combat." Four Chinese vessels, including guided-missile destroyers Shaoxing and Urumqi, are participating in the exercises alongside Russian ships, the ministry said. After the drills, the two countries will conduct naval patrols in "relevant waters of the Pacific." China and Russia have carried out annual drills for several years, with the "Joint Sea" exercises beginning in 2012. Last year's drills were held along China's southern coast. The Chinese defence ministry said Friday that this year's exercises were aimed at "further deepening the comprehensive strategic partnership" of the two countries. China has never denounced Russia's more than three-year war nor called for it to withdraw its troops, and many of Ukraine's allies, including the United States, believe that Beijing has provided support to Moscow. China insists it is a neutral party, regularly calling for an end to the fighting while also accusing Western countries of prolonging the conflict by arming Ukraine.--AFP
The Star
an hour ago
- The Star
Russian media search for China boy who met Putin 25 years ago; now engineer recalls kiss
A Russian media search for a Chinese boy who met Vladimir Putin 25 years ago succeeds, finds that the now engineer recalls a forehead peck from the president. - Photo: SCMP composite/Baidu BEIJING: A Russian media search for a Chinese boy who had his photo taken with President Vladimir Putin 25 years ago has gone viral on mainland social media. Now an engineer, the man has recalled the moment the president kissed his forehead and says the encounter had a lasting impact on his life. On July 17, Russia Today TV, which is also known as RT, posted a 'missing person search' on a major social media platform. The post recounted how, on July 17, 2000, Putin, then 47, made his first official visit to Beijing as President. After visiting the Forbidden City, Putin suggested rowing in a park. The sudden change of plan left security unable to clear the area in time, drawing a crowd of tourists. During the visit, Putin interacted with a 12-year-old Chinese boy and his father, creating a heartwarming moment captured by photographers. The boy, Peng Pai, is reportedly from Yueyang City in Hunan province, central China. The RT post concluded: 'Finding him on the same day, 25 years later, would be truly meaningful.' The post made headlines, and major media outlets and netizens joined in the search for the boy. Later in life, Peng went on to study engineering at a top university in Moscow. - Photo: handout On July 25, Hunan province's official media outlet, Red Net, reached out to Peng Pai. Peng told them how, after Putin got off the boat and waved at the crowd, he excitedly stood on a stone railing by the lake to respond. The president then lifted him from the railing, kissed his forehead, and said something in Russian that he could not understand at that time. 'President Putin was like a kind uncle to me, and I feel so lucky to have been lifted out of that crowd by him,' Peng said. Meeting Putin was a life-changing moment for Peng. Inspired by the encounter, he developed an interest in Russia and began learning Russian. In 2007, he received the Russian Presidential Scholarship and studied bridge and tunnel engineering at a top university in Moscow. After earning his master's degree in 2013, Peng returned to China and became the head of the engineering department at a major construction company in Hunan. He and his team developed a new bridge railing that won a national patent and designed a pedestrian landscape bridge that earned a national award. Peng told the mainland media that government officials had mentioned arranging a possible meeting between him and President Putin if he visits China for a military parade in Beijing in September. Peng said: 'I am really looking forward to the chance to meet him again, express my respect, and share my story of growth. 'I have changed a lot over the years, but President Putin still looks as handsome as ever.' The story has fascinated mainland social media. One online observer said: 'President Putin's hug and kiss not only changed Peng's life but also showed the warmth of diplomacy.' 'I am deeply moved by this decades-long connection. The bond between China and Russia is growing stronger,' said another. - South China Morning Post
