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China’s urban economies scale new heights in 2025

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By Liao Ruiling

Recent reports on China’s 2025 economic performance reveal significant milestones. As China’s total economic output surpassed the 140-trillion-yuan ($20.18 trillion) mark, many Chinese cities also achieved fresh breakthroughs in economic scale.

Data released by local authorities shows that 29 Chinese cities recorded a GDP exceeding 1 trillion yuan in 2025. These cities include Beijing, Shanghai, Tianjin, Chongqing, Shenzhen, Ningbo, Qingdao, Dalian, Guangzhou, Chengdu, Wuhan, Hangzhou, Nanjing, Changsha, Zhengzhou, Hefei, Fuzhou, Jinan, Xi’an, Suzhou, Wuxi, Nantong, Changzhou, Foshan, Dongguan, Quanzhou, Yantai, Tangshan, and Wenzhou. 

Notably, Dalian in Liaoning province and Wenzhou in Zhejiang province became new members of the “trillion-yuan GDP club.”

What development drivers lie behind these cities?

From a regional perspective, roughly 1/3 of the cities with GDP exceeding 1 trillion yuan are concentrated in the Yangtze River Delta region; four are located in the Guangdong-Hong Kong-Macao Greater Bay Area; three are in the Beijing–Tianjin–Hebei region; and two belong to the Chengdu–Chongqing economic circle. The growing importance of coordinated regional development is increasingly evident.

“The 2025 ‘trillion-yuan GDP club’ includes municipalities, provincial capitals, cities under separate state planning, and prefecture-level cities. The landscape is no longer dominated by provincial capitals alone, reflecting the diversified development of China’s urban economy,” said Pan Helin, a member of the Ministry of Industry and Information Technology’s Expert Committee for Information and Communication Economy. 

China’s “trillion-yuan GDP club” is no longer the exclusive domain of traditional first-tier or central cities. Instead, growth is being driven by city clusters, expanding in a ripple effect from cores to wider regions. This pattern of coordinated regional development underscores the robust vitality and immense potential of China’s urban economy.

Analyzing a city’s economic progress requires examining both quantitative expansion and qualitative enhancement. In 2025, Beijing’s GDP exceeded 5 trillion yuan for the first time, making it the second Chinese city after Shanghai to surpass this threshold.

As a mega-city, Beijing has in recent years adhered to a “reduction-oriented development” approach — cutting back where needed while upgrading its economic structure. Over the past five years, the city has relocated or upgraded more than 594 general manufacturing enterprises, demolished 120 million square meters of illegal buildings, and reclaimed 117 square kilometers of land.

This strategic downsizing has not hindered growth. Moving away from traditional expansion models, Beijing’s current economic growth is increasingly driven by emerging technologies and high value-added industries. The information services sector, the financial sector, and industry together contributed more than 80% to the city’s economic growth. 

Integration between technological innovation and industrial innovation is also accelerating: R&D spending among large and medium-sized key enterprises rose by 7.1% in 2025, with both industrial enterprises and technology service firms increasing their R&D investment by more than 10%.

Optimizing structure, driving growth through innovation, strengthening industries, and attracting talent–similar development experience can also be observed in Nanshan district of Shenzhen, Guangdong province. In 2025, Nanshan’s GDP surpassed 1 trillion yuan, making it the first county-level administrative region in China to reach the trillion-yuan level.

A review of Nanshan’s economic performance highlights innovation as its defining feature. Data show that the district holds more than 860 invention patents per 10,000 people, about 22.9 times the national average. Well-known companies such as Tencent, Huawei, and DJI all got their start here. 

Commenting on the district’s industrial development, Guo Wanda, executive vice president of the Shenzhen-based China Development Institute, said the city’s competitiveness lies in the integration of manufacturing and services, the integration of technological and industrial innovation, and the coordinated development of talent, capital, innovation, and industrial chains. Such integration has already expanded across the Guangdong-Hong Kong-Macao Greater Bay Area, helping drive coordinated regional development.

Dalian, a newcomer in the 2025 “trillion-yuan GDP club” and seen as a traditional “old industrial base,” once faced challenges from limited growth drivers.

Dalian became the first city in northeast China to hit the 1-trillion-yuan mark by strengthening its industrial base. In 2025, value added in the city’s secondary industry grew by 7.7%, while output from industrial enterprises above designated size rose 11.7% year on year, driven largely by the equipment manufacturing sector.

“Building on its solid industrial base, Dalian has strengthened high-tech manufacturing and expanded opening up by leveraging on its port advantages. As a result, the city has not only expanded its economic scale but also made progress in industrial upgrading, improving the business environment, and developing itself into an open gateway hub,” Pan said.

A closer look at China’s “trillion-yuan GDP club” cities reveals their industrial strengths: Quanzhou in textile and apparel, Nantong in construction and shipbuilding, Fuzhou in electronics and information technology, and Hefei in sci-tech innovation. 

As Pan pointed out, by concentrating on these competitive sectors, these cities are driving high-quality growth. They increase R&D investment, optimize the business environment, and facilitate the efficient flow and aggregation of resources — strategies that collectively enhance both the scale and quality of their economic development.

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China

China becomes world’s largest holder of AI patents

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By Gu Yekai, Lu Tao, People’s Daily

In China, AI technologies are advancing at an unprecedented pace, entering a phase of explosive growth. From the meteoric rise of DeepSeek to the viral popularity of Seedance, alongside breakthroughs in humanoid robotics and increasingly sophisticated smart vehicles — not to mention the rapid expansion of smart factories and ever-evolving smart city ecosystems — AI is unlocking transformative potential across industries  and daily life.

As a strategic technology driving the next wave of scientific and industrial transformation, AI has received significant national focus in China. The country’s overall strength in the field continues to grow.. 

By the end of  2025, China was home to over 6,000 AI enterprises, with its core AI industry valued at more than 1.2 trillion yuan ($174.3 billion). At the same time, China’s intelligent computing power capacity has exceeded 1,590 EFLOPS.

In recent years, China has continued to strengthen basic research in AI. Both the quantity and quality of AI research papers produced in the country rank among the top globally. Data released in 2025 by the World Intellectual Property Organization showed that China has become the world’s largest holder of AI patents, accounting for as much as 60 percent of the global total.

Innovation-driven progress has fortified China’s AI sector with robust core technologies. The country has launched multiple AI chips, accelerated the development of high-quality industry datasets, and cultivated domestically developed large-scale models that contribute to the global open-source ecosystem. These advances reinforce China’s capacity to maintain control over critical AI technologies amid growing international competition.

AI’s impact is amplified through diverse real-world applications. Industrially, it is revitalizing traditional sectors while catalyzing growth in strategic emerging and future industries. Socially, AI is enhancing public well-being by seamlessly integrating into daily life — enriching work, education, and leisure experiences.

China has seen rapid growth in both the scale and penetration of generative artificial intelligence. According to the 57th Statistical Report on Internet Development in China released by the China Internet Network Information Center, the number of generative AI users in China reached 602 million by December 2025, up 141.7 percent from the end of 2024. The penetration rate climbed to 42.8 percent, representing a substantial year-on-year increase of 25.2 percentage points. 

During the 14th Five-Year Plan period (2021-2025), generative AI has rapidly integrated into both production and daily life, becoming a key engine driving China’s digital and intelligent transformation of its economy and society.

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China maintains position as world’s top apple producer and consumer

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By Chang Qin, Li Xiaoqing, Xu Leipeng

Apples hold an important place in the “fruit basket” of Chinese consumers. 

A recent report on China’s apple industry development showed that since the beginning of the 14th Five-Year Plan period (2021-2025), China has remained the world’s largest producer and consumer of apples. 

The launch of apple futures — the world’s first fresh-fruit futures contract — has significantly boosted China’s influence in global price discovery.

According to the report, China’s annual apple output exceeds 51 million tons, while annual consumption surpasses 47 million tons. 

Behind these figures lies the strong rise of China’s homegrown seed technology. So far, China has developed 158 new apple varieties with independent intellectual property rights. 

About 70 percent of newly established orchards are planted with domestically developed varieties, under modern, efficient production models.

China’s apple industry has achieved remarkable improvements in variety structure, production models, and technological support. 

The industry landscape has shifted from scattered planting to intensive and standardized production in key growing regions, while development has moved beyond reliance on weather conditions toward comprehensive technological empowerment. 

Technologies such as variety breeding, dwarf-rootstock intensive cultivation, water-saving irrigation, and intelligent sorting are now widely applied, highlighting the sector’s ongoing upgrade.

For farmers, apple cultivation has become an important source of income. Apples are now grown across more than 20 provincial-level regions in China, spanning altitudes from dozens of meters to over 3,700 meters, providing livelihoods for tens of millions of people. 

In many major producing regions, integrated models linking enterprises, cooperatives, and farmers have been adopted to strengthen benefit-sharing across the value chain. This allows growers to profit not only from harvesting but also from value-added segments like processing and logistics, helping ensure a more balanced distribution of profits.

In Yan’an, northwest China’s Shaanxi province, apples contribute 61 percent of farmers’ operational income, benefiting more than two million growers. In Tianshui, northwest China’s Gansu province, the 2025 harvest of the well-known Huaniu apple variety has seen both rising prices and strong market demand. For many local communities, apples have become a symbol of improving livelihoods.

At the industrial level, the sector is accelerating its transition toward digital management and greater mechanization. Meanwhile, the rise of new business models such as livestream commerce and cross-border e-commerce is helping Chinese apples reach global markets more quickly. In 2024, exports of fresh apples reached 980,900 tons, up 23.24 percent year on year. Export revenue from other apple products — mainly concentrated apple juice — reached nearly 5.88 billion yuan ($852.22 million), a surge of 89.06 percent.

Looking ahead, China will continue to optimize apple variety structures, diversify markets, and promote deeper industrial integration. 

By leveraging its resource advantages and further developing distinctive agricultural industries, the country aims to inject sustained momentum into rural revitalization. Apples, long regarded as a “fruit of prosperity,” are expected to create even greater value in the years ahead.

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China’s ice-and-snow tourism sector experiences sustained boom

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By Wang Ke, People’s Daily

China’s winter tourism industry has demonstrated significant vitality, attracting an estimated 360 million visits during the latest winter season from December 2025 to February 2026, generating 450 billion yuan (about $65.1 billion) in revenue. Of these visits, approximately 220 million were made with ice-and-snow activities as the primary motivation.

According to a report released by the China Tourism Academy, the sector is entering a new phase of sustained prosperity.

This evolution is reflected in changing consumer preferences. For instance, Sun Li, a tourist from Beijing, traveled with her family to Chongli district in Zhangjiakou, north China’s Hebei province. Her goal was not just skiing, but also experiencing local cuisine — a desire increasingly common among modern travelers.

China’s ice-and-snow tourism sector is shifting from single-purpose ski trips to diversified, integrated experiences. As demand surges, the market is increasingly characterized by quality-oriented, personalized and multifaceted consumption.

Data from homestay booking platform Tujia showed that between Oct. 12, 2025 and March 30, 2026, bookings for ski-related homestays in Chongli rose by 60 percent year on year. Nearly 1/5 of these were long-stay bookings of seven days or more, reflecting a broader shift from short-term experiences to extended winter vacations.

Consumption upgrading in the sector is becoming increasingly evident. Ice-and-snow tourism has emerged as a new growth driver in service consumption, with spending gradually shifting from rigid expenses such as transportation and accommodation to more flexible categories including entertainment, wellness and cultural products. 

The customer base is also becoming younger, more family-oriented and more diverse. Those born after 1995 now account for 47 percent of ski ticket bookings on leading online lifestyle platform Meituan, making them the core consumer group.

The influx of younger travelers is reshaping ice-and-snow tourism trends. Ski fashion and social media-worthy resort shots are gaining traction online, boosting demand for winter travel photography services.

The report said that China’s ice-and-snow tourism products are evolving from being driven primarily by natural resources to a model powered jointly by innovation, technology and culture. The focus is shifting from creating high-quality individual products to building comprehensive, integrated product systems.

Han Yuanjun, a researcher at the China Tourism Academy, said that the deep integration of ice-and-snow tourism with multiple industries has created new consumption scenarios, enriched product offerings, and expanded the boundaries of the ice-and-snow economy.

The report also indicated that indoor ice-and-snow complexes are now the most active category for investment among capital-intensive tourism projects. Southern China emerged as the leading region for such investments in 2025.

Complementing indoor developments, outdoor destinations are pursuing distinctive paths. Many are tapping into local cultural resources to enhance appeal and competitiveness. 

For example, the Meihuashan International Ski Resort in Liupanshui, Guizhou province, showcases snowy slopes encircled by lush mountains, thanks to its unique low-latitude, high-altitude location. Such destinations in southern China are challenging the long-held perception that ice-and-snow tourism is exclusive to the north.

Across China, destinations are enhancing visitor experiences with thoughtful services. Many ski-town homestays now personalized touches like meal delivery and equipment maintenance, while hotels incorporate local culture through themed rooms and regional cuisine. Travel convenience is also improving; high-speed trains on the Beijing-Zhangjiakou line and in northeast China now provide streamlined transport for ski equipment.

Digital technologies are playing a key role in upgrading the sector. At many ski resorts, intelligent slope monitoring systems operate around the clock, providing real-time safety alerts. Some resorts have also introduced smart rental systems, allowing visitors to rent and return equipment simply by scanning a code with their phones.

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