Under the effects of external shocks and growth transition, most of China’s provinces, municipalities and cities experienced slowing economic growth with significant regional differentiation: for instance, Liaoning Province registered an economic growth rate of -1.3% in the first half of 2016 and Shanxi and Heilongjiang grew by less than 6%, while only four provinces and municipalities grew by over 9%, including Tianjin, Jiangxi, Chongqin and Guizhou. In 2016, only four or five provinces may reach or exceed the growth rate of 2015. 

According to Economic Blue Paper Summer Edition: China’s Economic Growth Report (2015-2016), except that western region outperformed central and eastern regions in terms of development outlook and living standards, China’s eastern region outperformed in all other indicators including growth, sustainability and government efficiency. Given the growing regional differentiation, the Chinese government should promote industrial restructuring and create “economic belts” to balance regional development. 

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