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Industrial Transformation and Upgrading of Three World Major Cities: Experience and Implications(No.124, 2016)

2016-10-21

By Guo Wei, General Office, DRC & Xu Wei, Department of Macroeconomic Research, DRC

Research Report No.124, 2016 (Total 5007)2016-09-13

Abstract: Industrial transformation is the common issue facing all large cities across the world in the course of development. During the 13th Five-Year Plan period, major domestic cities like Beijing, Shanghai and Guangzhou, which are experiencing some changes relating to their current economic development, are in dire need of fulfilling the tasks of changing growth model, playing the leading role in driving the development of surrounding areas and stimulating regional development through industrial upgrading. London, New York and Tokyo are three world-class major cities, and they have undergone a long transformation period from “industrial economy” to “service-oriented economy” and finally established the new growth mode led by production- and service-oriented industry to support the sustained and sound urban economic development. In the wake of the outbreak of the international financial crisis, there emerged some new trends for world urban development. The above-mentioned experience in some large cities in the world has offered some reference for China relating to their economic transformation and development. China needs to guide industrial relocation in an orderly fashion and push forward industrial transformation through innovation; to make scientific judgments about transformation costs and ensure economic and social stability; and to make coordinated plans for reaching the goal of transformation by following advanced development concepts.

Key words: world-class cities, service-oriented economy, innovation-driven development, the 13th Five-Year Plan