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Beijing Continues to Lag Behind Shanghai for Business and Expats

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The long-running rivalry between Beijing and Shanghai continues to slide into irrelevance as the latter builds on its success as China's top city for doing business and attracting expats.

Out of the 193,000 work permits China issued to foreign nationals over the last eight months, approximately one-fourth (43,000) were given to expats residing in Shanghai, an amount over twice of those given to Beijing expats (21,200).

Beijing popularity among new work permit holders even came behind second-place Guangdong Province, which was issued 33,000 of the newly unified visas that prioritized applicants in a letter-grading system.

Beijing was also ranked behind Shanghai and the Guangdong capital of Guangzhou in the annual Forbes China list of the top 10 Chinese cities to do business. The bronze finish demonstrates that Beijing has been advancing up the list over the years, rising from last year's fourth place and from its seventh place in 2015 as a result of its urban size and labor market. And yet, it remains a dull choice.

READ: Survey: Expats Prefer Shanghai Over Beijing

For six years running, Shanghai has been named the most attractive city for expats according to some 20,000 expat respondents in an annual survey. With 57 percent of expats saying they came to China for job opportunities and then 72 percent claiming they are satisfied with their jobs, its clear that fewer expats prefer Beijing, which was named as their sloppy second choice for 2017.

But, as it has the pride of being the capital of China, Beijing has announced a new policy to help make it a more alluring expat destination with last December's plans to reform the R visa. However, the policy is only directed at making it easier to attract "high-end, top talent" that doesn't apply the non-elite.

But, fear not, the reforms are all going according to plan. Party official Zhang Jianguo called the reforms "an important measure for thoroughly implementing socialism with Chinese characteristics in the new era."

So take that, Shanghai. This rivalry isn't over yet.

More stories from this author here.

E-Mail: charlesliu1 (at) qq (dot) com
Twitter: @Sinopath

Images: China Daily, Ask Ideas

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