Guangzhou, the capital city of Guangdong, which was the third largest Chinese city by GDP for 27 years, has been surpassed by Shenzhen, whose GDP exceeded two trillion yuan in 2016 for the first time, Yicai.com reported.
According to the Statistic Bureau of Guangdong province, after the revision, Shenzhen’s GDP in 2016 totalled 2,007.86 billion yuan (US$303.37 billion), an increase of 58.6 billion yuan, as it became the third city to break through the two trillion yuan mark following Shanghai and Beijing.
Meanwhile, Guangzhou only recorded 1,980.54 billion yuan after the revision.
Lin Jiang, the deputy director of the Free Trade Zone Integrated Research Institute at Sun Yat-sen University, thinks Shenzhen is facing a crisis because of its limited land area of less than 2,000 square kilometers. Shenzhen, however, is more willing to experiment with innovations.
According to the report, Guangzhou, with an area over 7,000 square kilometers, is less anxious about developing new industries and relies on its strong petrochemical and automotive industries.
“In recent years, much of the incremental GDP has come mainly from science, technology and high-tech industries rather than traditional industries,” Lin added.