The first quarter of the new Five-Year Plan period saw Beijing, Shanghai, Shenzhen, and Guangzhou report robust economic performance, with growth rates outpacing the national average. All four cities exceeded the national GDP growth rate of 5.0%. Guangzhou led with 6.0% growth, its first time surpassing both national and provincial (4.6%) growth rates in five years. Beijing and Shanghai grew at 5.9%, while Shenzhen expanded by 5.8%. Shanghai recorded its fastest first-quarter growth in nearly five years, while both Beijing and Shenzhen showed improvement compared to the same period last year and the full previous year.
Key indicators such as industrial output, investment, and consumption in these cities generally outperformed national trends. An economics researcher noted that the strong start reflects smoother transmission of macroeconomic policies to production, consumption, investment, and expectations. It also signals recovery in China's core growth engines, particularly in advanced manufacturing, modern services, foreign trade, and consumption sectors. Given their economic scale and strong spillover effects in capital, talent, technology, and consumption trends, stability and recovery in these cities often lead to faster diffusion of business confidence, employment improvements, and industrial chain coordination nationwide, serving as important economic barometers.
Another expert emphasized that these cities function as stabilizers and growth drivers for China's economy. Their rapid, high-quality development significantly propels national economic progress.
Industrial support strengthened significantly during the quarter. Value-added industrial output for Beijing, Shanghai, Shenzhen, and Guangzhou grew by 5.3%, 6.2%, 8.7%, and 6.5% year-on-year, respectively. Except for Beijing, all exceeded the national average of 6.1%, with Shenzhen leading. Shenzhen maintained its position as China's top industrial city, with high-tech products like industrial robots, 3D printing equipment, and lithium-ion batteries showing rapid output growth of 74.2%, 71.8%, and 25.9%, respectively.
Shanghai and Guangzhou showed marked industrial recovery. Shanghai's industrial growth was its highest first-quarter rate in five years and exceeded both national industrial growth and its own GDP growth. Guangzhou recorded its highest quarterly growth since 2023, driven by structural industrial adjustments. In Shanghai, leading industries like integrated circuits, biomedicine, and artificial intelligence manufacturing grew by 21.3%, 9.6%, and 19.2%, respectively. The industrial rebound is attributed to increased investment, new growth drivers, and industrial upgrading, leading to a more integrated structure of advanced manufacturing and modern services.
In Guangzhou, the automotive sector, a key pillar, grew by 5.5%, with new energy vehicle production up 36.1%. This boosted output of automotive lithium-ion batteries and smart vehicle equipment by 41.7% and 35.3%, respectively. Electronics and petrochemical manufacturing also provided solid support.
The artificial intelligence sector emerged as a significant growth driver. Beijing's integrated circuit industry output surged over 60%. Shenzhen's AI-related storage components and computer parts imports/exports totaled 429.16 billion yuan, up 63.7%. Shanghai's integrated circuit manufacturing grew 21.3%, while Guangzhou's integrated circuit wafer output jumped 79.5%. Experts noted that cities capitalizing on AI and new technologies are experiencing accelerated growth, with each of the four major cities leveraging their unique strengths—Beijing in foundational research, Shanghai in application and capital, Shenzhen in hardware commercialization, and Guangzhou in smart devices and content.
Fixed-asset investment growth in Guangzhou, Shanghai, and Beijing far exceeded the national rate of 1.7%, reaching 9.8%, 7.6%, and 5.5%, respectively. Guangzhou's investment structure improved, with high-tech services and manufacturing investments growing 42.4% and 25.5%. Shanghai saw a 72.4% surge in equipment purchases, while Beijing's high-tech manufacturing investment grew over 20%. Shenzhen's modest 0.2% investment growth was attributed to its mature development stage and limited space for large new projects, though technology R&D investment rose 173.8%.
The services sector also performed well. Beijing, Guangzhou, Shanghai, and Shenzhen's tertiary industry grew by 6.4%, 6.1%, 6.0%, and 5.0%, respectively, all matching or exceeding the national 5.2% growth. Financial services in Beijing and Shanghai were particularly strong, with securities trading volume in Beijing surging 41.5%. In Shanghai, financial market turnover grew 35.7%. The financial sector, alongside industry and information services, contributed nearly 70% to Shanghai's economic growth.
Consumption recovery was notable in Shanghai and Guangzhou, with retail sales growing 5.5% and 6.6%, respectively, outperforming the national 2.4% growth. Guangzhou saw strong demand for home appliances, automobiles, and communications equipment, while Shanghai benefited from its retail density, brand appeal, and cultural events. In contrast, Beijing's consumption growth was dampened by a decline in traditional fuel vehicle sales.
Foreign trade rebounded strongly in Shenzhen and Shanghai, with import/export growth surpassing the national 15% rate. Shenzhen's foreign trade hit a record 1.32 trillion yuan, up 33.6%, driven by computer and communications products, especially AI-related components. Shanghai's trade grew 21.9%, with exports of electric vehicles and other new products surging.
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