Beijing and Shanghai comprise the axes of China’s two leading urban regions. Their economic fortunes will affect the overall growth of China. The economic composition of the two megacities differs significantly and the future sources of competitive advantage also lie in different areas although there is some overlap. Shanghai with its diverse industrial base is the industrial powerhouse of China. Its strongest growth prospects still lie in activities associated with manufacturing industry buttressed by improvements in the technological and innovation capabilities of domestic firms and supported by the deepening of business services. In contrast, Beijing’s future prospects are more closely tied to research intensive activities and the services industry. This book explores the contrasting development options available to Beijing and Shanghai and proposes strategies for these cities based on their current and acquired capabilities, experience of other world cities, the emerging demand in the national market, and likely trends in global trade.
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