Haikou was China's best-performing city in 2021, according to the Milken Institute's Best-Performing Cities China index.
The capital of Hainan province jumped 19 spots to top the list of first- and second-tier cities ahead of Guangzhou, Xi'an, Shanghai and Beijing.
The city of Chuzhou topped the list of third-tier cities.
The most populous city in Hainan is also an essential point in 21st-century China's Maritime Silk Road, which played a critical role in international trade in China.
Haikou has been driven by activities from Hainan's first free trade port, in addition to several industrial projects across the region, exemplifying the Chinese government's efforts to facilitate provincial international free trade and investment in key locations of the country's diplomatic strategy One Belt, One Road initiative, according to the Milken Institute.
"This year's index highlights the successes China is achieving through its regional development strategy, shifting the burden of economic output away from highly developed regions like the Greater Bay Area," said Perry Wong, managing director of research at the Milken Institute, and author of the report.
"This year's top-performing cities reflect China's strong commitment towards reducing economic disparities between regions for broader-based, long term growth," he added.
Chuzhou, adjacent to the capital of Anhui Province of Hefei, was the best-performing third-tier city in this year's index. The city is leveraging by closely integrating itself into the Nanjing Urban Agglomeration, located along the Yangtze River delta. Five of the top 10 third-tier cities in 2021 are all located within the Anhui province.
Haikou is home to Hainan’s first free-trade port. Xinhua
Ashley Alder gave the stark warning at an online forum. BLOOMBERG
