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Shanghai rated No. 3 city
29/8/2005 9:35

Xue Wen/Shanghai Daily news


Buoyed by its strong service industry, Shanghai moved up from fourth to third place on this year's Forbes Magazine ranking of the Chinese mainland's best business cities.
Nearby Hangzhou held onto the top spot, and Wuxi rose from No. eight to No. 2.
Jiangsu Province, where Wuxi is located, put more winners on the list than any other province, helping the Yangtze Delta region beat out the Pearl River area in competitive power.
Released over the weekend, this year's city list was Forbes' second. In compiling the ranking, the magazine rated 661 Chinese mainland cities on criteria such as their labor force, high-level talent, operating costs, market capacity, growth momentum, passenger and freight transport systems and contributions from the private economy.
In addition to getting high marks for its service sector, Shanghai was also praised for its efficient freight transport network and the government's efforts to promote the logistics industry.
The survey also pointed out that Shanghai is becoming an increasingly popular headquarters location for the rapidly growing private enterprises in Jiangsu and Zhejiang provinces.
Hangzhou, the capital of Zhejiang Province, maintained its No. 1 status thanks to its stabilized housing prices, growth momentum and balanced development in the private economy and overseas-funded sector.
Though it has suffered severely from the nation's electricity shortfall, Hangzhou is now on the right development track by focusing on information technology, Forbes said.
Hangzhou-based Alibaba Inc, China's biggest e-commerce firm, attracted a US$1 billion cash investment from the US Internet giant Yahoo and absorbed the search firm's domestic operations earlier this month, marking the biggest deal in China's dot.com history.
"After visiting our partners there several times, I got the impression that Hangzhou may have good potential for the next round of startups in China, something like the Bay area in San Francisco," Wang Jianshuo, an executive for a US Internet firm's Shanghai office, said on his blog.
Among its attractions, Wuxi beat all other mainland cities in investment from Japan, the report noted. One-third of the city's economy - 55 billion yuan (US$6.78 billion) - is generated by the private sector.
Eighteen cities from Jiangsu Province, Shanghai's neighbor, were in the Forbes top-100 ranking.
Jiangsu was followed by Zhejiang, last year's best performer, and Guangdong and Shandong provinces. These four provinces accounted for more than half of the cities on the list, showing the dominance of the Yangtze River Delta, the Pearl River Delta and the Bohai Sea area.
The collective rankings of the cities in the Yangtze Delta region were higher than those in the Pearl River area.
"The exodus of overseas-funded plants has started to affect the economy in the Pearl River Delta area while the economies in Jiangsu and Zhejiang provinces, which are mainly funded by private capital, remain strong," Forbes said.