Tianjin Office

Asian Cities

2H 2017

 

Economic growth
As one of the economic centres of northern China, Tianjin’s economy has been dominated by the manufacturing sector (secondary industry) for a long time. Steady economic growth has however provided a solid foundation for the recent development of tertiary industry, with its contribution to the economy exceeding 50% for the first time in 2015, signifying a key milestone in the city’s transformation from being a manufacturing-oriented economy to a services-oriented one. The tertiary sector continued to see its contribution to the economy grow in 2016 to 54%.

Nevertheless, compared to the economic make-up of the nation’s first tier cities, Tianjin’s tertiary sector still accounts for a relatively low percentage of the economy. The tertiary industry in these cities contributes 60% or more to the city’s economy, with Beijing’s tertiary sector recording the highest in the country at 80%. A slowdown in the manufacturing sector over the last two to three years, has accelerated the cities transformation into a services economy, with the local authorities looking to hasten the development of the tertiary sector to take up the slack generated by the slowdown in the secondary industry. They have done this by encouraging start-ups and providing incubator spaces, as well as trying to attract larger corporates to relocate operations from more costly economic centres like Beijing. Nevertheless the transition will take time to catch up to its larger neighbour, especially considering the considerable retraining that the workforce will need to undergo.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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