China has the world’s second-largest economy in terms of nominal GDP, totaling approximately US$9.3253 trillion according to the National Bureau of Statistics of the People’s Republic of China. If purchasing power parity (PPP) is taken into account (US$14.9614 trillion), China’s economy is again second only to the United States. Its PPP GDP per capita is US$10,253, while nominal GDP per capita is US$6,853. Both cases put China behind around ninety countries (out of 183 countries on the IMF list) in global GDP per capita rankings.
Beijing is among the most developed cities in China, with tertiary industry accounting for 73.2% of its gross domestic product (GDP); it was the first post industrial city in mainland China. Beijing is home to 41 Fortune Global 500 companies, the second most in the world behind Tokyo, and over 100 of the largest companies in China. Its overall economic influence has been ranked number 1 by PwC. Finance is one of the most important industries. There are 751 financial organizations in Beijing generating revenue of 128.6 billion RMB, 11.6% of the total financial industry revenue of the entire country. That also accounts for 13.8% of Beijing’s GDP, the highest percentage of any Chinese city. Beijing’s nominal GDP is 1.37 trillion RMB. Its per capita GDP is 78,194 RMB. Beijing’s nominal GDP is 1.19 trillion RMB (US$174 billion). Its GDP per capita is 68,788 RMB (US$10,070). Beijing’s primary, secondary, and tertiary industries are worth 11.83 billion RMB, 274.31 billion RMB, and 900.45 billion RMB respectively. The Beijing central business district (CBD), centered on the Guomao area, has been identified as the city’s new central business district, and is home to a variety of corporate regional headquarters, shopping precincts, and high-end housing. Beijing is increasingly becoming known for its innovative entrepreneurs and high-growth startup companies. This culture is backed by a large community of both Chinese and foreign venture capital firms, such as Sequoia Capital, whose head office in China is in Chaoyang, Beijing. Though Shanghai is seen as the economic center of China, this is typically based on the numerous large corporations based there, rather than for being a center for entrepreneurship.
As one of the world’s leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade. The currency, Hong Kong dollar, is the eighth most traded currency in the world. Hong Kong was once described by Milton Friedman as the world’s greatest experiment in laissez-faire capitalism, but has since instituted a regime of regulations including a minimum wage. It maintains a highly developed capitalist economy, ranked the freest in the world by the Index of Economic Freedom. It is an important centre for international finance and trade, with one of the greatest concentrations of corporate headquarters in the Asia-Pacific region, and is known as one of the Four Asian Tigers for its high growth rates and rapid development. The Hong Kong Stock Exchange is the seventh largest in the world, with a market capitalisation of US$2.3 trillion. Hong Kong raised 22 percent of worldwide initial public offering (IPO) capital, making it the largest centre of IPOs in the world and the easiest place to raise capital. The Hong Kong dollar has been pegged to the U.S. dollar since 1983. The Hong Kong Government has traditionally played a mostly passive role in the economy, with little by way of industrial policy and almost no import or export controls. Market forces and the private sector were allowed to determine practical development.