


Similarly, Hefei, the capital of Anhui province, is sometimes categorized as a third-tier city because of its weak domestic growth. Yet, some rankings would label Suzhou and Wuxi as second-tier cities because of their economic growth and despite the fact that they are not capitals.

To give you a general idea, Beijing, Shanghai, Shenzhen and Canton are unanimously classified as first-tier cities, while second-tier cities are generally provinces’ capitals. To begin with, there is no official definition of what is a first, a second, a third and a fourth-tier city in China. This article thus gives you the keys to better understand this aspect of China, and the resultant opportunities for your businesses. While being a useful analytical tool to understand China’s society, the definition of tiers is actually not so obvious and requires that we stop for a while and think about it. It is more and more common to see economic analyses regarding China make use of this urban classification. A May 2018 report by Morgan Stanley asserts that the future of China’s growth (by 2030) will lie within lower-tier cities (namely the third and fourth-tier).
