Will Beijing remain paramount in the future?
Beijing is currently home to some of China’s biggest and most powerful companies. However, as China keeps growing in wealth and starts producing more powerful cities, will the capital keep its grip on business?
As has been discussed in previous blog articles, some entrepreneurs might locate in second or third tier cities or other emerging metropolises.
Beijing is home to 46 per cent of the total revenue of China’s companies. Take into consideration that only one of the top forty companies in Beijing is non-state-controlled, whereas the other 39 are still state controlled. In addition the capital also holds China’s four biggest banks.
Private companies might want to verge elsewhere as Shanghai has recently been made a free-trade zone, and Hangzhou is home to 22 large companies already. Other cities such as Shenzhen are rapidly growing.
As some of these “newer” cities are turning into megacities and start representing more big companies, a growth in the revenue made in these cities is likely too. As a result this may even out the distribution of companies over the country, and have Beijing be less paramount than it currently is.