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City
Development and
Internationalization
in China
Quanzhou, Yiwu,
and Nanning
q i a n y i wa ng
k e e c h eok c h eong
ran li
City Development and Internationalization in
China
Qianyi Wang • Kee Cheok Cheong • Ran Li

City Development and

Internationalization in
China
Quanzhou, Yiwu, and Nanning
Qianyi Wang Kee Cheok Cheong
Yantai, Shandong, China Petaling Jaya, Selangor, Malaysia

Ran Li
Kuala Lumpur, Malaysia

ISBN 978-981-15-0543-0    ISBN 978-981-15-0544-7 (eBook)

https://doi.org/10.1007/978-981-15-0544-7

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer
Nature Singapore Pte Ltd. 2019
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189721, Singapore
 Preface

Among the countries of the world, China represents a hothouse for city
development not just because of its population size—India will soon over-
take it—but the antiquity of the country’s history yields many examples of
city growth, decay, and regeneration. At the same time, the economic
transition that the country has gone through over a matter of decades
provides fertile ground for analyzing the impact of changes, both external
and internal to the cities themselves, on the way cities respond to changes.
Key among growth drivers are liberalization, urbanization, specialization,
and globalization.
Size does matter of course, and China arguably boasts the widest range
of city size, which it classifies into four tiers. Cities in the top tier are char-
acterized by their dense population and well-developed economic infra-
structure, each of which is able to impact China economically, culturally,
and politically and able to attract a large number of foreign enterprises.
Beijing, Shanghai, Guangzhou, and Shenzhen are examples of tier-one
cities. Tier-two cities are slightly smaller population-wise, but through
provincial government support they are able to achieve a rapid develop-
ment rate. Second-tier city examples are Qingdao and Hangzhou. Tier-­
three and tier-four cities are respectively prefectural- and county-level
cities, largest in number in China but, by virtue of their numbers and
smaller size, are less developed socio-economically.
Among all these cities, the largest megacities naturally receive the most
attention, whether positive or negative, as do city clusters like the Pearl
River Delta adjacent to Hong Kong. But the number of lower-tier cities
far outnumbers the number of megacities and by virtue of sheer numbers

v
vi PREFACE

their impact on China’s economy and socio-economic well-being far

exceeds that of China’s megacities.
This book is about these secondary cities. These low-tier cities, defined
as the prefectural- and county-level cities, comprise about 60% of national
GDP and are homes to more than 70% of the country’s population. Many
among these small cities are important not only collectively but distin-
guish themselves through distinct growth paths and dynamic change in
their own right. They accomplish this by leveraging local factors—so-­
called specific assets that include geographical, historical, demographic, or
economic—to break away from the traditional development mode through
leveraging local factors.
We talk of these small city development “models” as “alternative
model” not in the sense that they possess characteristics not found in other
models but because as city development models they have been often
bypassed and notable features ignored. That this has happened is the result
of the focus on large cities. To the extent they are discussed, then, small
city development modes qualify as alternatives to the mainstream. These
small city models also qualify to be alternative models as a consequence of
the arguably unique contexts that determined their development trajec-
tory. In a sense, these unique characteristics often render it hard to find
other models in China like them. We feel that the relevance of their experi-
ences will be enhanced if other cities have shared experiences, at least par-
tially. For each of these case studies, we have made an attempt to find a city
similar to that under discussion.
At the same time, even if it is possible to group cities into particular
classes of models, there are distinctive features associated with each city
that distinguish them from other cities in the same class. We describe these
distinctive features in each city case in this book.
The case study approach represents a major departure from most stud-
ies of city development that focus on city planning, to the neglect of how
cities respond to the challenge of liberalization, urbanization, specializa-
tion, and globalization. In taking a detailed approach to analyze how
stakeholders contribute to the growth of cities, this book offers insights
into stakeholder interactions that large-scale quantitative studies cannot.
The case studies in this book deal with three secondary cities of differ-
ent population sizes, each with distinctive features worthy of study. The
first city, Quanzhou, located in Fujian Province, distinguishes itself as hav-
ing risen to prominence as early as the Yuan dynasty when Marco Polo was
in China, but declined as the Ming emperors discouraged maritime trade
 PREFACE vii

after the advent of Admiral Zheng He’s voyages. The result has been
waves of migration to Taiwan and Southeast Asia that the now re-­emergent
city is able to effectively tap both culturally and as sources of investment.
The second city, Yiwu in Zhejiang Province, with just over a million inhab-
itants, is recognized as the largest wholesale small market in the world. Its
development showcases an approach to globalization that is refreshingly
different from the conventional export-driven capital-intensive model that
Shenzhen has made famous. The third city, Nanning, is a frontier city
close to Vietnam, a member of ASEAN. China sees Nanning as its key
gateway to ASEAN and has made a coordinated effort at different levels of
government to promote this gateway role.
An overarching objective here is to analyze, through detailed accounts
of each of these case studies, city development that responds to the forces
of globalization, as suggested in the title of this book. Also looked into is
local stakeholders’ role in this process, especially of the different levels of
government in crafting and implementing economic strategies.
With respect to taking advantage of globalization, each city has lever-
aged its own advantages—Quanzhou its historical legacy, Yiwu its strong
trading traditions, and Nanning its status as a gateway city to achieve com-
mercial success. Although a degree of success is achieved by each, the
book also warns of the challenges that come with this success. Striking a
balance is important because it reminds us that city development is
dynamic. Factors that make for success or failure will not always remain so
as circumstances change. City administrations and key stakeholders need
to be cognizant of challenges and respond in a timely and effective way.
This raises the issue of the role of the state. The narrative for each case
study points to a significant role for the state, both negative and positive.
Quanzhou’s early rise to greatness was clearly orchestrated by the Chinese
state, while its subsequent decline was also attributable to state prohibi-
tions. An unintended consequence of state action was to encourage migra-
tion overseas that gave birth to a sizable Quanzhou diaspora, especially in
Taiwan. Quanzhou’s latest re-emergence owes much to its city govern-
ment’s proactivist stance. Yiwu’s early enterprises were tacitly endorsed by
the local government despite the central government’s disapproval, while
its current growth phase owes much to the city government’s dynamism.
Finally, Nanning’s current development has the role of government—cen-
tral, provincial, and local—written all over it. The challenge for this city is
whether the level of commitment can be maintained.
viii PREFACE

As a final footnote, the account of just three cities cannot more than
scratch the surface of a subject as expansive as city development in China.
All it can do is to highlight the richness of experiences that can be found
in secondary cities in China. In showcasing these experiences, we hope
that a greater focus can be levied on cities in China outside the megacities
that are the center of attention.

Yantai, China Qianyi Wang

Petaling Jaya, Malaysia  Kee Cheok Cheong
Kuala Lumpur, Malaysia  Ran Li
 Contents

1 Introduction  1
1.1 Background  1
1.1.1 Liberalization  2
1.1.2 Urbanization  2
1.1.3 Specialization and Globalization  3
1.2 Cities in China  3
1.3 Why This Book?  7
1.4 Themes  9
1.5 Significance of This Book 10
1.6 Organization of This Book 12
References 14

2 Extant Studies: The Dominance of Large Cities 17

2.1 Introduction 17
2.2 Theoretical Perspectives 18
2.2.1 Growth Theories 18
2.2.2 Theories Applicable to Urban Development 20
2.2.3 Theories Targeting Urban Development 24
2.2.4 Frameworks 26
2.3 Empirical Research on City Development Strategies 29
2.3.1 Industrial Zones 30
2.3.2 City Branding 30
2.3.3 Spatial Arrangement 33
2.3.4 Knowledge-Based Urban Development 35

ix
x Contents

2.3.5 Building Environment Improvement 36

2.3.6 Stakeholders’ Role in Regional Development 36
2.3.7 City Development Planning and Implementation 37
2.3.8 City Development Issues 38
2.4 Research Gap 40
2.5 Integrating Theories 41
References 44

3 The Case Study Approach to City Analysis 53

3.1 Introduction 53
3.2 The Case Study Approach 55
3.3 Documentary Review 56
3.4 Applying the Case Study Method: City Selection 58
3.4.1 City Selection Criteria 58
3.4.2 Cities Selected and Rationale for Selection 59
3.5 Conclusion 61
References 61

4 Quanzhou: Reclaiming a Glorious Past 63

4.1 Introduction 63
4.2 History 66
4.3 Administration Structure 68
4.4 Spatial Planning in Quanzhou’s Socioeconomic
Development 70
4.4.1 Spatial Development in Historical Perspective 70
4.4.2 Development of a Concentric Circle Spatial Layout
1980–1995  71
4.4.3 From Concentric Circles to Hub-Spoke Spatial
Structure, 1995–2008  71
4.4.4 The Zonal Distribution Structure Since 2008  73
4.5 Economy 79
4.6 Quanzhou, the Maritime Silk Road, and Cross-Straits
Relations 84
4.6.1 Quanzhou in Taiwan 84
4.6.2 Taiwan in Quanzhou 85
4.7 Conclusion 89
References 93
 Contents  xi

5 From Obscurity to Global Prominence: Yiwu’s Emergence

as an International Trade Hub 99
5.1 Introduction 99
5.2 History100
5.3 Economy102
5.3.1 The “Yiwu Model”102
5.3.2 A Distinctive Form of Globalization107
5.3.3 Leveraging “The Belt and Road” Initiative108
5.4 Administrative Structure and Spatial Planning109
5.4.1 Expansion in Concentric Circles 1982–1991110
5.4.2 From Concentric Circles to an Axis Structure,
1992–1999111
5.4.3 Multinuclear Structure, 2000–2012112
5.4.4 A New Structure from 2013115
5.5 The Yiwu Conundrum118
5.6 Conclusion120
References123

6 Nanning: Perils and Promise of a Frontier City129

6.1 Introduction129
6.2 History131
6.3 Administrative Structure and the Role of Government132
6.4 Spatial Planning136
6.5 Economy139
6.5.1 From Peril to Promise139
6.5.2 Nanning’s Economic Promise143
6.6 Conclusion144
References148

7 Comparing Growth and Internationalization Trajectories151

7.1 Introduction151
7.2 Growth, Globalization, and the Shenzhen Model153
7.3 Small Cities Growth and Globalization Trajectories155
7.3.1 Quanzhou: Intergenerational Growth and
Globalization155
7.3.2 Inside-out Growth and Globalization: The Yiwu
Model157
7.3.3 State-Led Growth and Globalization: Guangxi’s
Nanning158
xii Contents

7.4 Comparing Growth and Globalization Models159

7.4.1 Contrasts159
7.4.2 Commonalities161
7.5 Conclusion: Lessons for Development162
References164

8 Conclusion167
8.1 Introduction167
8.2 The China Context and City Development168
8.3 Implications for Theory169
8.4 Implications for Policy174
8.5 Limitations of This Study176

Index179
 About the Authors

Qianyi Wang serves as a lecturer in Economic School of Shandong

Technology and Business University and an associate member of Institute
of China Studies, University of Malaya. She obtained her Ph.D. from the
Faculty of Economics and Administration, University of Malaya. Her
research interests include regional development, especially expertizing in
urban-rural coordinated development, and urban studies from local stake-
holders’ perspectives. Various articles of hers have appeared in journals
such as Cities, Habitat International, International Journal of China
Studies, and China: An International Journal.
Kee Cheok Cheong is a senior research fellow at the Institute of China
Studies, University of Malaya. A graduate of the University of Malaya, he
obtained his Ph.D. at the London School of Economics. He has held the
positions of Dean at the Faculty of Economics and Administration,
University of Malaya, and senior economist at the World Bank, Washington
DC, for which he continues to consult after he left. Since his return, he has
co-authored quite a number of books and book chapters, and over 40 of
his papers have appeared in academic journals. His research interests
include economic development, transition economies, particularly China
and Vietnam, international economic relations, education and human
capital, and economic history, specifically relating to the Chinese
overseas.
Ran Li is a research fellow at the Institute of China Studies, University
of Malaya. She obtained her Ph.D. in economics from the University of
Malaya in 2014. She has been studying the Chinese state and state

xiii
xiv About the Authors

e­nterprises, and other research areas like development economics,

urban economics, and Chinese outward investment. Her specialization
is in the transformation of China’s state enterprises, state enterprise
system and China’s political-economic system, and her areas of research
include China’s global strategy and China-Malaysia economic relations.
Her previous writings have appeared in a number of international
journals such as China: An International Journal, Engineering
­
Economics, Cities, International Journal of China Studies, Journal of
Contemporary Asia, and Cold War History. Moreover, her thesis was
published as a book by the reputable publisher Palgrave Macmillan. She
also regularly wrote for Sin Chew Daily as a column author.
 Abbreviations

BGEZ Beibu Gulf Economic Zone

BIZ Hence Beiyuan Industrial Zone
BSC Balanced Scorecard
CAEXPO China-ASEAN Exposition
CAFTA China-ASEAN Free Trade Agreement
CBD Central Business District
CCC China Commodity City
FDI Foreign Direct Investment
GDP Gross Domestic Product
ICC International Commercial Center
NRCS New Rural Construction Scheme
OBOR One Belt One Road
POE Privately Owned Enterprises
PPP Public Private Partnership
RV Reconstruction Within the Village
SEZ Special Economic Zones
SOE State-owned Enterprises
STR Spatial Territory Reorganization
SUD Sustainable Urban Development
UNESCO United Nations Educational, Scientific and Cultural Organization
WCED World Commission on Environment and Development
YEDZ Yiwu Economic Development Zone

xv
 List of Figures

Fig. 1.1 Structure of this book 13

Fig. 2.1 Sector-territory framework proposed by Debrie and Raimbault.
(Source: Debrie & Raimbault, 2016) 22
Fig. 2.2 The institutional intervention framework. (Source: Wei et al.,
2015)27
Fig. 2.3 Balanced scorecard framework. (Source: Kaplan & Norton,
1996)28
Fig. 2.4 Overarching framework for this study 43
Fig. 3.1 Structural hierarchy of the administrative divisions of the People’s
Republic of China. (Source: Wikipedia) 59
Fig. 3.2 Geographical location of selected cities. (Source: Map from
Wikipedia)60
Fig. 4.1 Quanzhou’s Xi Street 65
Fig. 4.2 Quanzhou’s administrative map. (Source: Adapted from
Wikipedia maps) 69
Fig. 4.3 Spatial functional clusters in 1995 Master Plan, Quanzhou.
(Source: Wang, 2001) 73
Fig. 4.4 2008 Master Plan, Quanzhou. (Source: Quanzhou News Web:
h t t p : / / w w w. q z w b . c o m / g b / c o n t e n t / 2 0 0 8 - 0 4 / 2 6 /
content_2791832.htm. Note: The middle orange area represents
the “Central Coastal Zone”; the green belts demonstrate “Two
Liner Districts” development plan; and the yellow are “Three-­
Direction Regions”. Two further orange clusters in the north
and south are proposed urban complexes along the coast) 74
Fig. 4.5 Urban infrastructure in Quanzhou’s socioeconomic clusters in
central coastal zone. (Note: Top from left to right are the newly
built government administration building in Donghai Division

xvii
xviii List of Figures

and exhibition hall in Ganhong Division. Bottom are commercial

mall and underground commercial corridor in Xianshi Division,
and photoelectricity industrial park in Luoxiu Division) 75
Fig. 4.6 Cai-Clan traditional residential buildings. (Source: https://
zhanglv.wordpress.com/2010/03/10/quanzhou_cais_1/)86
Fig. 5.1 The first three generations of Yiwu commodity markets. (Note:
Clockwise from left, Yiwu’s small commodity market in 1982,
from Zhejiang news website: http://www.xsnet.cn/news/
zj/2008/12/26/799530.shtml)103
Fig. 5.2 The multi-nuclear structure in Yiwu Master Plan 2000–2020.
(Source: Wu, 2007) 113
Fig. 5.3 New clusters under the Master Plan 2000–2020. (Note:
Clockwise from top left: Hesilu Lavender Tourist Park in West
City New Area; residential area in Ersanli Cluster; train station in
Houzhai Cluster; and exhibition hall in International Commercial
Center)114
Fig. 5.4 The New Rural Construction Scheme in Tashan Village, Fotang
Town, Yiwu in 2009. (Source: Zhejiang agriculture website:
http://www.agri.com.cn/town/330782100000.htm. Note:
Living conditions before (top) and under NRCS (bottom)) 116
Fig. 5.5 Inland port in Yiwu. (Note: Clockwise from left to right: the
Yiwu Port custom entrance; logistic center; cargo container area;
Yiwu-Madrid express train) 117
Fig. 6.1 Nanning cluster spatial layout in Nanning Master Plan 2006–
2020. (Source: Nanning Land Resource Bureau, 2008). Nanning
Master Plan 2006–2020) 138
 List of Tables

Table 1.1 City system based on socioeconomic index in China 4

Table 2.1 Growth theories 20
Table 2.2 Theories and their dimensions useful for the overarching
framework43
Table 4.1 Administrative divisions of Quanzhou 68
Table 4.2 Functions of socioeconomic clusters in the 2008 Master Plan,
Quanzhou76
Table 4.3 Regional priority development districts and ecological
protection ­districts, Quanzhou 77
Table 4.4 Thirty-minute transportation network, Quanzhou, 2008 79
Table 4.5 Key economic indicators of Quanzhou, 1949–2013 80
Table 4.6 Quanzhou economic indicators in a provincial and national
context, 2013 81
Table 4.7 Value added of large-scale industrial enterprises in Quanzhou,
201382
Table 4.8 FDI by type in Quanzhou, 2014 83
Table 4.9 Selected indicators of foreign presence in Quanzhou, 2012 and
201384
Table 4.10 Selected cultural events, academic forums, and Cross-Strait
cooperation Expo in Quanzhou 87
Table 5.1 Yiwu’s GDP trends, 2000–2013 102
Table 5.2 Changes in selected economic statistics, 2010–2014 104
Table 5.3 Administration structure in Yiwu, 2013 110
Table 5.4 The bridges in consolidating Yiwu 113
Table 6.1 Nanning administration structure, 2011 133
Table 6.2 Nanning economic, industrial, and development zones 133
Table 6.3 City clusters and functions in the Beibu Gulf Economic Zone 135

xix
xx List of Tables

Table 6.4 Transportation network projects in the Beibu Gulf Economic

Zone Plan 136
Table 6.5 Cluster development plan and subclusters in Nanning Master
Plan 2006–2020 138
Table 6.6 Nanning: Growth in industrial value added, 1990–2012 139
Table 6.7 China-ASEAN expo statistics, 2004–2014 141
Table 8.1 Quanzhou development in relation to existing theories 170
Table 8.2 Yiwu development in relation to Existing Theories 171
Table 8.3 Nanning development in relation to existing theories 172
 List of Boxes

Box 4.1 China’s Diaspora Attraction Strategies 90

Box 5.1 Linyi and Yiwu Model 118
Box 6.1 Khorgos: A Belt and Road Gateway 145

xxi
 CHAPTER 1

Introduction

1.1   Background
Chinese cities of all sizes are models and drivers of economic growth. This
growth occurs through the expansion of the cities themselves as well as
their impact on the surrounding areas. City development involves and
reflects the accumulated decisions of governments in the provision of
infrastructure, land management, spatial arrangement, economic develop-
ment, and institutional management (Friedmann, 1986). At the same
time, the antiquity of many Chinese cities means that the ebbs and flows
of history would have led to periods of growth, decay, and regeneration
that many “classic” theories provide at best partial explanations of these
cities’ development. Thus, concepts like “garden city”, “satellite city”,
“organic decentralization”, “urban agglomeration”, and “urban-rural
integration” can provide explanations of phases of city growth but not
completely (Shao, 2015). Indeed, how cities actually develop owes much
to context—historical, geographical, to name just a few. The primary con-
cern of this book is that inasmuch as generic factors like institutions and
globalization can characterize city development, contextual differences
often shape decisively how cities actually develop.
As the most populous country in the world, China offers arguably the
most numerous examples of city development. While the decisions cited
above are applicable to the many cities in China, her cities are also evolving
through the changing policies, transforming through liberalization,
urbanization to specialization, and through efforts to position themselves

© The Author(s) 2019 1

Q. Wang et al., City Development and Internationalization in
China, https://doi.org/10.1007/978-981-15-0544-7_1
2 Q. WANG ET AL.

from just being domestic markets to become international markets. More

specifically, liberalization drove the initiation of city development in con-
temporary China and sparked, sometimes rekindled, industrialization.
Large-scale urbanization, in line with industrialization witnessed in the
last few decades, led to dramatic urban expansion and development. In
accordance with a branch of growth theory which articulated the signifi-
cance of technology in driving growth, cities in China are enthusiastic in
formulating their specific innovation strategies to maintain sustainable
growth. These growth drivers are briefly discussed with respect to
China below.

1.1.1  Liberalization
Deng Xiaoping’s open-up reform since 1978 has sown the seeds of eco-
nomic liberalization in China. Through decentralization, local govern-
ments were empowered to mobilize resources, and allowed to make local
socioeconomic decisions in promoting regional development (Wei, 1995).
Thus the cities were enthusiastic in being designated “Special Economic
Zones” (SEZs) to attract foreign investment, famous examples being
Shenzhen (Ng, 2003) and Suzhou (Wang, Shen, & Chung, 2015).
Together with loosened administrative restrictions on international trade
and relaxation of foreign exchange controls, most of the coastal cities were
led by local governments with the aim to build genuine export-oriented
economies.

1.1.2  Urbanization
Incentivized by its open-up reform, China has experienced unprecedented
urbanization since the 1990s. More liberalized migration of the rural
labor force into cities continuously extended the urban city limits, which
resulted in farmland encroachment and intensified urban accommodation
pressure (Wang, Zhang, & Cheong, 2014). Meanwhile, rapid industrial-
ization in conjunction with urbanization led local governments to develop
and extend their respective urban jurisdictions as fast as possible in order
to capture the benefits of economic development. Local governments
appealed to underlying concepts such as spatial concentration in their city
master plans, all of which seek to encroach upon rural land to support
urban expansion (Long, Tang, Li, & Heilig, 2007).
 1 INTRODUCTION 3

The overheating city economy was reflected in the mushrooming of

industrial zones nationwide. To attract investment, local governments
built numerous industrial estates to accommodate national and interna-
tional industries (Wei, 2015; Yang & Wang, 2008). This had created a
problem where the peasants who made a living in urban areas but still lived
the lifestyles of farmers behaved differently from their urban counterparts.
To reconcile the culture clash, regional zones had to be identified by local
government in urban areas to accommodate the rural migrants to the cit-
ies (Wang et al., 2014).

1.1.3  Specialization and Globalization

A thriving economy owes much of its success to technology and innova-
tion. The attempt of China in transforming itself from simply manufactur-
ing to emphasize also branding shifted many a city plan to focus on
high-tech research and development. The emergence of “University
Towns” and “Technology Parks” is the result of this initiative, and reflects
the ambitions of local governments to build a knowledge-based economy
(Li, Wang, & Cheong, 2016; Wei, 2015). Apart from that, with the pro-
posed One Belt One Road strategy announced in 2013, China is seeking
to become a world leader in internationalization and to change the global
economic order. To this end, the strategic sea-port cities and land-port
cities are assigned specialized development functions in order to build
China as a gigantic international logistic hub (Li et al., 2016). Meanwhile,
the cities along the Silk Roads are all tasked by their local governments
with specific and distinctive functions in order to achieve and sustain their
growth and compete in the global market.

1.2   Cities in China

Both urban system classification and the socioeconomic index are employed
to measure city levels in China. In terms of the urban system, Chinese cit-
ies are classified into three levels: provincial level, prefectural level, and
county level. At the same time, according to city size and city socioeco-
nomic conditions, the cities in China are divided into four tiers. The fac-
tors that determine the city tier are GDP, politics, and population
(Table 1.1), where politics refer to the urban authority.
The top-tier city is characterized by its dense population and well-­
developed economy, which is able to impact China economically, cultur-
4 Q. WANG ET AL.

ally, and politically. It attracts a large number of foreign enterprises.

Beijing, Shanghai, Guangzhou, and Shenzhen are considered tier-one cit-
ies. Tier-two cities are those with a rapid development rate and which
enjoy the benefits of cheaper labor costs. Examples are Qingdao and
Hangzhou. Tier-three and tier-four cities are respectively prefectural- and
county-level cities, largest in number in China with less developed socio-
economic condition. In what follows, several tier-one and tier-two cities
will be briefly profiled.
Beijing, the capital of China, is considered one of the most developed
cities in China with a recorded GDP of 2.49 trillion yuan in 2016, account-
ing for over 3% of national GDP (Beijing Statistical Bureau, 2016). The
6.7% economic growth of the city in 2016 owed much to its high-­
technology industries. The city economy tripled in size in only eight years
from 2004, thanks to its booming tertiary sector, which currently gener-
ates more than 70% of the city’s total output (Beijing Statistical Bureau,
2016). It enjoys the benefits bought by accommodating a vast number of
state enterprises. In the 2012 Global Fortune 500 list, 89 Chinese enter-
prises were listed, among which state enterprises accounted the lion’s
share (Malik, Malik, Makhdoom, & Makhdoom, 2016). About 81 of
these top global Chinese enterprises set up their offices in Beijing, 48 of
them as headquarters. Meanwhile, 345 of the foreign companies on the
list have offices in Beijing. Being home to numerous top enterprises has
enabled Beijing to develop with sufficient domestic and foreign invest-
ments. Further, Beijing is known for its high-tech industries. The outskirts
of the city are surrounded by development zones. Zhongguancun, dubbed
“China’s Silicon Valley”, is a cluster of electronics enterprises, which,
together with Yongle Economic Development Zone, has become the cen-
ter of pharmaceuticals, information technology, and material engineering.

Table 1.1 City system based on socioeconomic index in China

GDP (US$ billion) Politics Population

Tier 1 Over 300 Controlled by central government Over 15 million

Tier 2 68–299 Provincial capital cities and 3–15 million
subprovincial capital cities
Tier 3 18–67 Prefecture capital cities 150,000–3 million
Tier 4 Below 17 County-level cities Below 150,000

Source: Data collected from China’s tiered city system, http://multimedia.scmp.com/2016/cities/

 1 INTRODUCTION 5

They contribute to accelerate the restructuring of city economy and efforts

to achieve sustainable city development.
As a central point of the north-south coastline of China, Shanghai has
served as a national trading center and logistics hub of China since the
Opium War. Its economic revival and rapid economic growth since the
establishment of PRC has relied heavily on China’s open-up reform. With
national government support, Shanghai has successfully restructured its
economy, with its tertiary sector accounting for over 50% of GDP since
2001 (Shanghai Statistical Bureau, 2016). The development of its finan-
cial, logistics, trade, and information service sectors contributes mightily
to the city’s prosperity and growth. In the tertiary sector, financial services
is the pillar industry, accounting for the lion’s share of output. The finan-
cial sector not only maintained consistent growth, but also hit a remark-
able 22.9% in 2015, contributing to 16% of total city GDP (Shanghai
Statistical Bureau, 2016). Meanwhile, Shanghai, as the largest exporter in
the world and one of the top three importers, recorded an average 18%
growth in the trade sector in the last two decades. Inspired by this perfor-
mance, Shanghai is gearing up to expand its global international center
and international hub, stimulating further growth.
Shenzhen, a coastal city, is situated in southern China, lying north of
the prosperous metropolitan Hong Kong. It was selected as the experi-
mental city for socialist market liberalization as one of four SEZs in 1980,
a year after it was awarded city status in 1979. It owes its initial growth to
its status. Foreign investment helped the city energize its export-­orientated
economy especially since the 1990s. With government coordination,
Shenzhen is now a headquarter city, a far cry from its original reputation
as a city known for labor-intensive industries. It houses numerous Chinese
international and reputable financial and network enterprises and incu-
bates various IT giants such as Huawei and Tencent as part of its long-­
term development. In the city’s development process, national support
has been vital, without which Shenzhen would not have become the
vibrant metropolis it now is, a world apart from its origins as a fishing vil-
lage and known for little more than the terminus of the Kowloon to
Shenzhen railway. Shenzhen’s pragmatic strategies have produced a
knowledge economy boasting a large number of enterprise headquarters,
state and non-state, that attest to the city’s achievements and international
influence. Its talent concentration, dynamism, and prestige have secured
not only a stream of tax revenues for the city government but also the
city’s sustainable future (Zhao, 2005). The strategies adopted by
6 Q. WANG ET AL.

Shenzhen, especially in attracting investment and technology, are being

emulated in other cities in China.
Located in the Shandong Peninsular, Qingdao is the prime economic
engine of Shandong Province. As a coastal open-up city, Qiangdao’s
revival was driven by strong national support and rapid development of
secondary industries. The city’s active involvement in foreign trade has
resulted in Qingdao becoming a dominant international hub in northern
China. With its continuously increasing output of services, secondary
industry and the service sector now contribute most of the city’s GDP,
with a sectoral output of RMB 364.14 billion and RMB 401.28 billion,
accounting for 45.5% and 50.1% of the city’s GDP respectively in 2014
(Qingdao Statistical Bureau, 2015). The pillar industries in the city include
electronics, biopharmaceuticals, and textiles. Among the electronics com-
panies, Haier and Hisense promote Qingdao’s international brand image
and are drivers of the local economy. The city itself has been active in set-
ting up the free trade agreement between China and Japan. Economic
relations between China and South Korea are also important for the city.
At the same time, with a focus on the marine economy, marine technol-
ogy, water management, and marine logistics are receiving considerable
attention from the Qingdao government, which has high expectations for
this sector.
As the capital city of Zhejiang Province and neighbor to Shanghai,
Hangzhouis is located in the Yangzt Delta Area. The city is quite dynamic
in developing its economy, and is the province’s leader in regional devel-
opment. In 2015, the city’s GDP was recorded as RMB 1005.4 billion,
with a 10.2% growth rate, much higher than the national GDP growth
rate of 6.9% (Hangzhou Statistical Bureau, 2016). The private sector
dominates Hangzhou’s economic development. This sector’s trading and
sales volume accounted for 56.3% of total trading sector. Meanwhile, pri-
vate investment in fixed assets made up 53.5% of total fixed assets
(Hangzhou Statistical Bureau, 2016). More than 40% of government fis-
cal income came from private enterprises (Hangzhou Statistical Bureau,
2016). Beyond the prosperous private sector, the city’s growth is also
driven by technological enterprises. The city is emerging as an interna-
tional technology hub, catalyzed by the international expansion of Alibaba,
which emerged as the world largest ecommerce marketplace. The city’s
financial sector is also facilitated by Alipay, part of Alibaba, and vast
amounts of private capital. Leveraging its private sector, emerging techno-
logical cluster, and growing financial service sector, Hangzhou is trans-
 1 INTRODUCTION 7

forming from its traditional growth mode to embrace the “China Dream”.
It is a shining example of the emergence of a technology- and service-­
oriented urban economy.
As arguably the powerful driver of China’s economy in the aggregate,
given their huge number, small cities, either in the aggregate or individu-
ally, have been paid less attention in the research arena. Yet, these low-tier
cities, defined as the prefectural- and county-level cities, comprising about
60% of national GDP, and resident to more than 70% of the country’s
population, are expected to have significant prospects. Many among these
small cities, breaking away from the traditional development mode, not
only differentiate themselves from large metropolises, but also expand
themselves through leveraging local factors that include geographical, his-
torical, demographic, or economic. For instance, Shouguang, a county-­
level city in eastern Shandong Province, positions itself as an
agriculture-dominated city, stressing the role of the primary sector in fuel-
ing its economy. Kunshan, a county-level city in southern Jiangsu Province,
houses the Suzhou Industrial Park, ranked as the top county-level city in
China, and leverages the strategic position to reinforce its role as an indus-
trial base between Shanghai and Suzhou. Shihezi in the west, a county-­
level city in Xinjiang Autonomous Region, aims to be an aircraft
modification center and a drone logistic hub connecting Eastern Europe
and Southeast Asia. Manzhouli, in the north, a county-level city in Inner
Mongol Autonomous Region, benefits from cross-border trading. Beyond
those few examples, there are still a vast number of small cities creating
various unique initiatives to speed catch-up growth, examples being
Quanzhou, Jiangyin, Nanning. These examples imply the need for a
broader definition of “China Development Model” than is currently
understood.

1.3   Why This Book?

Many recent studies worldwide have been devoted to analyze city develop-
ment in terms of spatial structure (Cheng & Masser, 2003; Fang, Song,
Zhang, & Li, 2005; Salet, Thornley, & Kreukels, 2003), local stakehold-
ers’ role (Jones, Tefe, & Appiah-Opoku, 2015; Wang et al., 2014), eco-
nomic strategies (Obeng-Odoom, 2014; Xiao & Xiao, 2015),
environmental sustainability (Cui, 2014; Schnell, Potchter, Yaakov, &
Epstein, 2015), and provision of infrastructure (Brockfeld, Barlovic,
Schadschneider, & Schreckenberg, 2001; Jing, 2014; Taniguchi,
8 Q. WANG ET AL.

Thompson, Yamada, & Van Duin, 2001), mostly by using conventional

statistical methodologies.
Despite all these studies, significant knowledge gaps exist in explaining
the specific and changing roles of city governments in stimulating city
development, especially in response to and/or in leveraging the forces of
globalization. Many studies limit themselves to examining city planning,
although this represents just one, albeit critical, area of promoting city
growth. In addition, there is little recognition that cities approach devel-
opment and internationalization in distinctive ways, shaped by their his-
torical, geographical, economic, and sociocultural contexts. The foreign
investment, export-driven model represented by Shenzhen, for instance, is
just one of many models embraced by cities in China.
Meanwhile, quantitative analysis of urban development associated with
policy changes often requires huge databases not easily available. Further,
much of the analytical narrative of city development applies only to a par-
ticular period or to a particular policy regime. Few, for instance, have
investigated the cities from a historical perspective. Yet the age and antiq-
uity of China’s cities point to the relevance of history in their growth or
decline. Many research studies have also been devoted to investigating city
development at the national level, focusing on how national policies affect
city development (McCann, 2003; Parnell & Robinson, 2006; Tian &
Ma, 2009). In doing so, the role of city governments executing local
development programs is not given sufficient attention. Lastly, city devel-
opment reflects the accumulated decisions of numerous local stakeholders
in providing infrastructure, land management, spatial arrangement, eco-
nomic development, and institutional management. This cast of characters
however varies from city to city and is seldom fully portrayed.
Also, cities range from metropolises (Beijing, Shanghai) to much less
populous county cities (e.g. Yiwu in Zhejiang Province and Shouguang in
Shandong Province with populations of only 1.08 million and 0.95 mil-
lion respectively in 2016). While large cities have been the foci of atten-
tion, small cities and their development models are seldom if ever in the
limelight. Yet in these cities are found many models of growth and devel-
opment that have relevance for other cities of the world and from which
major lessons can be learned.
China’s small cities are the focus of this book. The overarching objec-
tive is to attain a deep understating of the interaction between urban
development and local policies. For this purpose, qualitative analysis
 1 INTRODUCTION 9

describing and analyzing the development and internationalization of

China’s small cities is the preferred approach.
We talk of these small city development “models” as “alternative mod-
els” not in the sense that they possess characteristics not found in other
models but because as city development models they have been often
bypassed. That this has happened is the result of the focus on large cities.
Lauded as “our greatest invention”, Florida (2011) argued that “they
generate wealth and improve living standards while providing the density,
interaction and networks that make us more creative and productive”. But
these cities he referred to are not small cities but metropolitan areas. To
the extent they are discussed, small city development qualifies as alterna-
tives to the mainstream.
These small city models also qualify to be alternative models as a conse-
quence of the arguably unique contexts that determined their develop-
ment trajectory. In a sense, these unique characteristics often render it
hard to find other models in China like them. For each case, we have made
an attempt to find a city similar to that under discussion.
Finally, even if the city models belong to particular classes of models,
there are distinctive features associated with each city that distinguishes
them from other cities in the same class. We describe these distinctive fea-
tures in each city case in this book.

1.4   Themes
In addition to more generic questions about city development and growth,
a large number of questions can be asked regarding the dynamics of small
cities. This book cannot hope to address comprehensively these questions.
Rather the focus here is to understand the growth and internationalization
of small cities from a historical context, comparing these experiences with
mainstream theories of growth and internationalization. Thus, the specific
questions to be investigated are:

1. How does the geography/history/culture shape the low-tier cities’

characteristics in terms of business climate and spatial layout?
2. How does the local government respond to national policies and
make adjustments according to local characteristics in formulating
its own policies, in order to promote low-tier city development?
3. Given the advantages and disadvantages associated with city’s char-
acteristics, including history, geography, and size, what are the alter-
native ways in seeking a small city’s internationalization?
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1202

Diagnosis,

1205

Etiology,

1202

1203

Symptoms,

1203

Facial expression,

1203

1204

Muscles and organs affected,

1203

1204

Reactions, electrical, in,

1205

1206

Special senses and sensibility in,

1204

1205

Treatment,

1206

Bleeding and counter-irritation in,

1207
 Electricity,

1207

Iodide of potassium,

1207

Mechanical appliances and massages,

1207

1208

neuralgia,

1232

epileptiform,

1233

spasm, painless,

462
Facies hysterica,

230

Faith-cure,

277

Family form of tabes dorsalis,

870

Faradic reactions, significance, in diagnosis of nervous lesions,

66

Fasting girls,

351
 saints,

351

Fatty heart, in chronic alcoholism,

611

Febrile insomnia,

379

Feeding, forced, in neurasthenia,

359

Feet, condition of, in advanced tabes dorsalis,

838

in diffuse sclerosis,
888

Festination in paralysis agitans,

436

Fever, thermic,

388

and cerebral anæmia,

779

Fibrillary contractions in nervous diseases,

47

Fifth nerve, neuralgias of,

1233
Flexibility, wax-like, in catalepsy,

321

337

Fontanels, state of, in chronic hydrocephalus,

741

742

in tubercular meningitis,

727

Frauds of hysterical patients,

233

,
234

Frequency of epileptic attacks,

483

Friedreich's disease,

870

Front-tap, in diffuse spinal sclerosis,

888

Functional nervous diseases, diagnosis of,

63
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Gait in chronic lead-poisoning,

686

in diffuse sclerosis,

888

in general paralysis of the insane,

194

in paralysis agitans,

435

in spastic spinal paralysis,

863

864

in tabes dorsalis,
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Galvanic reactions, significance of, in diagnosis of nervous lesions,

66

Galvanism, use in insanity,

137

Ganglionic elements, condition of, in abscess of the brain,

793

Gangrene in vaso-motor neuroses,

1252

Definition, history, and synonyms,

1257
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1261

Etiology and diagnosis,

1262

1263

of Reynaud's disease,

1259

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Prognosis,

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Symmetrical,

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1258-1260

Treatment,

1262

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1262

Massage, rest, and tonics, use,

1262

Opium, use,

1262

Gastric crises in tabes dorsalis,

835

Disorders, as a cause of epilepsy,

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Vertigo,

420

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Neuralgia

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Gelsemium, use, in neuralgia,

1225

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462

General paralysis of the insane,

176
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614

Genito-urinary disorders of the chloral habit,

662

663

of the opium habit,

654

658

Genius, relations of, to insanity,

115
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1268

Gliomatous tumors of the brain,

1046

Gold, use of, in hemiplegia,

970

and sodium chloride, use of, in hysteria,

278

Gout, relation of, to chronic lead-poisoning,

685

to hysteria,
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Guarana, use, in migraine,

1232

Gummatous brain syphilis,

1003

1014

brain tumors,

1049

Gums, state of, in chronic lead-poisoning,

684
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41

Gymnastics, value of, in hysteria,

275

280

in writers' cramp,

536

Gynæcological treatment of hysteria,

289

H.
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577

opium, and kindred affections,

647

Hæmatoma of the dura mater,

707

Hæmatorrachis,

754

Hair, changes in, in progressive unilateral facial atrophy,

695

Hallucinations in alcoholism,
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631

in cerebral anæmia,

782

784

785

hyperæmia,

769

in delirium tremens,

627

628

in hystero-epilepsy,
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in nervous diseases,

21

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in the opium habit,

655

658

659

Handwriting in general paralysis of the insane,

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in paralysis agitans,

435