In 2021, Beijing and Shanghai recorded per capita disposable incomes of more than CNY70,000, far ahead of the nation's 29 other provincial-level regions. Shanghai had the highest figure, at CNY78,027, while Beijing's per capita disposable income exceeded CNY70,000 for the first time, reaching CNY75,002, up 8% year-on-year. In 2021, both cities' GDPs topped CNY4 trillion, representing year-on-year growth of 8.5% and 8.1%, respectively. In comparison, CNY4 trillion is equal to or more than the GDPs of more than 20 countries and regions, including Thailand, Belgium and Austria. In 2021, China's per capita disposable income hit CNY35,128, growing 8.1% year-on-year after adjustment for inflation, the National Bureau of Statistics (NBS) said. Eight provincial-level regions, including Shanghai, Beijing, Zhejiang, Jiangsu and Tianjin, recorded per capita disposable incomes above the national level.
The income growth rates in western China were generally higher than those along the East coast. Data from the NBS showed that per capita disposable incomes in western China increased by 9.4%, 0.3, 0.2 and 1.4 percentage points faster than in eastern, central and northeastern China, respectively. Fang Xiaodan, an official from the NBS, said that the figures reflected a narrowing income gap between the western parts of the country and the traditional economic hubs in the east and south. In 2021, the per capita disposable income of rural residents stood at CNY18,931, up 9.7%, while the per capita disposable income of urban residents reached CNY47,412, up 7.1%, reflecting a narrowing divide.
Shanghai’s gross domestic product (GDP) is expected to grow by around 5.5% this year, according to the city’s government work report delivered at the local People's Congress. Shanghai is an important window for the world to see China, shouldering the responsibility to pioneer at this critical stage of building strategic advantages for future development, Mayor Gong Zheng said. “We will adhere to prioritizing stability while pursuing progress, be comprehensively committed to the new development philosophy, help foster a new pattern of development and promote high-quality development,” Gong said. The city’s GDP achieved a robust 8.1% growth for the full year of 2021 to reach CNY4.32 trillion, the first time it exceeded CNY4 trillion and ranking first among all cities in China. Revenue from the local general public budget jumped 10.3%, reversing last year’s dip, and consumer prices rose 1.2%.
According to the work report, Shanghai’s manufacturing output in the three major industries – integrated circuits, biomedicine and artificial intelligence – soared by 18.3%. Core industries of the digital economy accounted for 12% of overall GDP. Shanghai also led the nation in the protection of intellectual property rights, Gong noted. The number of high-value invention patents per 10,000 people reached about 34, and the number of high-tech enterprises exceeds 20,000. In 2021, Shanghai attracted 1,078 new companies to set up their “first stores” in the city, the highest number for any city in China, and total retail sales of consumer goods jumped 13.5%. To boost foreign investment, the management system and mechanisms for the approval and filing of foreign investment projects were further optimized, driving the actual use of foreign investment to USD225.5 billion, an increase of 11.5%.
This year, general budget revenue is expected to rise 6% from last year, and overall expenditures on research and development (R&D) will account for around 4.2% of the city’s GDP. The city also expects the consumer price index to increase around 3% in 2022. Shanghai will set up a group of functional platforms for industry innovation and services, support the introduction of more yuan financial products on international markets and promote the establishment of major platforms, the Shanghai Daily reports.
Beijing's goal is to increase its GDP by more than 5% and the general public budget revenue should increase by around 4%. The rise in the CPI will be kept at about 3%. There are three main reasons why the city government set the growth rate of GDP at 5%, said Cui Xianghua, an official from the Beijing Commission of Development and Reform. Beijing’s economic growth in 2021 was better than expected. The growth rates in the first half of the year and the first three quarters were higher than those of the whole country. This has caused a relatively high baseline for future performance. Driven by events such as the 2022 Winter Olympic Games, the opening of the Beijing Stock Exchange and new projects in the Universal Beijing Resort, there are a foundation and favorable conditions for achieving higher growth. Thirdly, achievements were reported in scientific and technological innovation. In the first three quarters of 2021, the added value of Beijing’s high-tech industry accounted for 27.1% of the city’s total GDP. From January to November last year, 1,713 foreign-funded enterprises were established in the city, a year-on-year increase of 53.2%. The contracted foreign capital totaled USD37.5 billion, an increase of 1.3 times, while the paid-in foreign capital reached USD15.16 billion, a year-on-year increase of 9.7%. Beijing is building up three national-level laboratories and Huairou Science City is striving to become a world-class innovation hub.
Guangdong province has reached a new milestone as its GDP reached CNY12.4 trillion in 2021, making it the first Chinese provincial-level economy to hit the CNY12 trillion mark. In 2021, Guangdong's economy grew by 8% acting governor Wang Weizhong said. The province's foreign trade surpassed CNY8 trillion in 2021, a year-on-year increase of 16.7%.
This overview is based on reports by the South China Morning Post, China Daily, Global Times and Shanghai Daily.
