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CPS1196 Song X. et al.
                      Group A cities can be called service centers. They are the only group of
                  cities that have significantly higher proportions of the tertiary industries than
                  that of the secondary industries, and their industry composition remains stable
                  over  time.  This  group  includes  the  top  three  Chinese  cities  in  terms  of
                  economic importance: Beijing, Shanghai, and Guangzhou. Also included are
                  four provincial capitals of the border provinces: Haikou, Harbin, Hohhot, and
                  Urumqi. This result suggests that these cities play the role of service centers in
                  each  of  their  own  regions  that  are  either  geographically  or  culturally
                  independent from the national economy.


















                       Figure 1: Normalized weights of secondary and tertiary industries for group A cites

                      Group B cities can be called deindustrializing cities. These cities used to
                  heavily  rely on the secondary industries as  the economic engine, but their
                  service industries are growing rapidly in recent years. Coastal cities that have
                  been  the  export-driven  manufacturing  centers  are  in  this  group,  including
                  Shenzhen, Xiamen, and Hangzhou. It is interesting that quite a few central and
                  western China cities such as Xi'an and Guiyang are in this group too.



















                       Figure 2: Normalized weights of secondary and tertiary industries for group B cites.




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