In 2024, China’s economy has had a stable start and is making steady progress towards high-quality development. As China’s economy transitions to a new stage of high-quality development, it is not only consolidating its traditional advantages such as its large economic scale and complete manufacturing sectors but also forming new advantages that inject new impetus into economic development.

"The large number of metropolises and urban agglomerations are becoming a new advantage for China’s economic development," said Lu Ming, a member of the National Committee of the Chinese People’s Political Consultative Conference, Distinguished Professor at the Antai College of Economics and Management of Shanghai Jiao Tong University, and Executive Dean of the China Development Institute, in an interview with People’s Daily (Overseas Edition). He noted that as traditional drivers of economic growth weaken, growth must rely on improving production efficiency. The concentration of large-scale populations and industries in metropolitan areas and urban agglomerations is conducive to promoting innovation and improving resource allocation efficiency, thus becoming a new driver of economic development.

Today, China has the world’s largest number of metropolises and urban population. The growing concentration of urban agglomerations is accumulating new strength for China’s economic development.

Urban agglomerations are not only areas of industrial concentration but also hubs of innovation. In recent years, many multinational companies have set up R&D centers in China, choosing metropolises at the heart of urban agglomerations. This is a reflection of the vibrant innovation in China’s metropolises.

According to Lu Ming, the development of central cities will have a comprehensive impact on production, consumption, and the spatial pattern of urban agglomerations. China’s numerous metropolises and urban agglomerations also benefit from factors such as China’s huge population and economic modernization. In the future, the population will continue to concentrate in metropolitan areas and urban agglomerations, injecting constant vitality into economic development.

As a reference, high-income countries have an average urbanization rate of over 80%. In contrast, China has great potential for development in terms of both the speed and quality of urbanization.

The growth of the urban population will not only drive consumption growth but also stimulate investment demand in various aspects such as urban infrastructure and public service facilities. It is estimated that for every one percentage point increase in China’s urbanization rate, per capita capital stock will directly increase by 3.5%, which translates to about 6.6 trillion yuan in new investment demand. It is also estimated that if the urban population and rural migrant population can obtain equal public services, China’s consumption demand could increase by nearly 30%.

In conclusion, China’s numerous metropolises and urban agglomerations, benefiting from factors such as China’s huge population and economic modernization, are becoming a new advantage for the country’s economic development. As the population continues to concentrate in metropolitan areas and urban agglomerations, it will inject constant vitality into economic growth.