China City Tiers – An Overview | China Checkup

If you’ve ever visited China or researched the Chinese market, you will probably have heard of the concept of “China city tiers”.Brought about by the rapid growth of Chinese cities over the last 20 years, labelling a city as “1st Tier” or “2nd Tier” became a convenient way to quickly describe its relative level of development.This article introduces and provides maps for each of the China city tiers and identifies which tier 338 different Mainland China cities are ranked under.

Source: China City Tiers – An Overview | China Checkup

CHINA LIST OF CITIES AND TIERS

Tier 1 Cities:

Large densely populated urban metropolises with huge economic, cultural and political influence in China. Tier 1 cities attract great attention from foreign enterprises due to income levels much higher than the national average, and larger middle class representation and increasing consumption habits. Cities that fall within this category represent China’s most developed markets in terms of consumer behavior.

  • Shanghai
  • Beijing
  • Guangzhou
  • Shenzhen*
  • Tianjin*
  • Chongqing*

* Due to their size and government classification, many will also include these in the Tier 1 category, although it is up for debate.

Tier 2 Cities:

These are generally made up of Provincial capitals, sub-provincial cities, SEZs, and other more developed cities with cultural and economic influence. Over the past decade, Tier 2 cities have received increased attention and investment from foreign companies due to lower labor costs, less competition, lower operating costs for retailers, and rapidly increasing consumer spending habits. It is important to note that not all Tier 2 cities are created equal, and with a large number falling into this category, there are substantial differences in the economic, population, and consumer habits in each. It could easily be argued that many of these could fall into the Tier 3 city category based current levels of economic development. The list includes:

  • Changchun 
  • Changsha
  • Chengdu
  • Dalian 
  • Fuzhou
  • Guiyang 
  • Haikou
  • Hangzhou 
  • Harbin
  • Hefei 
  • Hohhot
  • Jinan
  • Kunming
  • Lanzhou 
  • Lhasa
  • Nanchang
  • Nanjing
  • Nanning
  • Ningbo 
  • Qingdao 
  • Sanya
  • Shantou 
  • Shenyang 
  • Suzhou 
  • Taiyuan 
  • Urumqi 
  • Wuhan 
  • Wuxi
  • Xiamen 
  • Xian
  • Zhengzhou
  • Zhuhai

Tier 3 Cities:

These are generally made up by open coastal cities, high income cities, and cities with significant economic development which you may not have heard of. The list includes:

  • Beihai
  • Changzhou
  • Dongguan
  • Foshan
  • Guilin
  • Huizhou
  • Jiangmen
  • Jiaxing
  • Jinhua
  • Lianyungang
  • Nantong
  • Qinhuangdao
  • Quanzhou
  • Shaoxing
  • Shijiazhuang
  • Taizhou
  • Tangshan
  • Wiehai
  • Wenzhou
  • Xining
  • Xuzhou
  • Yantai
  • Yinchuan
  • Zhangjiang
  • Zhenjiang
  • Zhongshan
  • Zibo

Tier 4 and 5 Cities:

I am leaving out a lot from these categories, however would like to touch on some of the more well-known cities. It’s also important to note that this is not necessary a scientific classification at this point, and the rapidly changing rates of development across China have great potential to change many of these lower classifications. Nevertheless, I will throw these in.

Tier 4:

  • Anshan
  • Baotou
  • Chaozhou
  • Daqing
  • Datong
  • Fushun
  • Handan
  • Huzhou
  • Jilin
  • Liuzhou
  • Luoyang
  • Qiqihar
  • Weifang
  • Wuhu
  • Yangzhou
  • Zhangzhou
  • Zhoushan
  • Zhuzhou

Tier 5:

  • Leshan
  • Lijiang
  • Mianyang
  • Nanping
  • Putian
  • Rizhao
  • Taian
  • Taizhou
  • Xiangfan
  • Xiangyang
  • Yan’an
  • Yichang
  • Yueyang
  • Zhaoqing

 

SOURCE :

http://nexus-pacific.com/blog/2013/7/9/china-city-tier-system-how-it-works-and-why-its-useful

 

China’s Top 10 Largest Cities, the Most Populous in China

If you enjoy the happening atmosphere of big and rapidly growing cities, then China is the place to come. Feel the buzz of the urbanization rush in the fastest developing country in the history of the planet. When you travel through any mainland Chinese city remember you are walking through a giant that 30 years ago was only a fraction of the size!

Source: China’s Top 10 Largest Cities, the Most Populous in China

China’s Tier 2 and Tier 3 Cities – Forbes

In recent posts, Managing The Dragon (MTD) has discussed the idea of locating factories in China’s Tier 2 and Tier 3 cities as a way of dealing with rising costs in the country. There’s no question that wages, rents and just about every other cost incurred when building a factory are highest in Tier 1 cities like Beijing and Shanghai, and that significant savings can be had in other parts of China.

Source: China’s Tier 2 and Tier 3 Cities – Forbes

China City Tier System: How it Works and Why its Useful — Nexus Pacific

I have gotten many questions relating to the meaning and differences of first, second, and third tier cities, and how this affects strategies for doing business in China. First off, it is important to note that the commonly referenced tier system is broadly up to interpretation. While originally stemming from the Chinese government’s classification system, many economists, consultants and businesses use slightly different methods for classification including the government classification, GDP, population, retail sales, etc. Also remember, China’s extraordinary pace of development has led to massive changes across China that aren’t spread equally across this list.

Source: China City Tier System: How it Works and Why its Useful — Nexus Pacific

All You Need to Know about China City Tiers | Sinostep

I have always been asked by questions on China city tier system. It seems difficult to provide an accurate answer but it’s quite interesting and it’s very useful for doing business in China. Why Do Chinese City Tiers Matter? China is developing really fast in the last 30 years, and numerous China cities have experienced unprecedented economic growth. However the whole Chinese market is quite unbalanced. A classification system based on “tiers” emerges to rank cities throughout China, and it often cited by many business people. Dividing China’s cities into different tiers has obvious advantages, as it can illustrate how economic development is moving inland or westwards in China, and how China’s large metropolises are being gradually matched by cities with rapid economic growth yet that are not yet quite as big or have as many people. The idea seems simple and practical enough. Yet the snag of using the tiers system is in setting the exact parameters for them, because with so many different classifications being used, the result is confusing and contradictory. So the only way to go about it if you really need to divide all China’s cities into tiers, is to put forward (your own) clear formula for what makes a first tier city and especially what makes a second or third tier one. Perhaps its just case of ‘know one when you see one’ to define a second or third tier city – not exactly a science.

Source: All You Need to Know about China City Tiers | Sinostep