Emerging cities: one step further

More and more Chinese cities are appearing in AT Kearney's annual ranking of the development potential of major business cities. From just 7 out of 60 in 2008, they now number 27 out of the 130 cities surveyed by the consultancy firm. This compares with just 12 American cities. And yet it's paradoxicalNone of them feature in the top 25. Not even Beijing, 39^e despite all the head offices in the Chaoyang district and the dynamic Zhongguancun technology park, where Chinese high-tech gems Baidu, Lenovo and Xiaomi rub shoulders with Google, Sony and Microsoft R&D centres and the technicians of a host of innovative SMEs. Even less Shanghairanked 51^e despite the attractiveness of its free trade zone and the thousands of companies represented in its Pudong business district.

These two leading megacities are a long way behind Singapore, Stockholm, Prague and Nagoya. light years China's weight in the global economy. So where do they fall short? Certainly not in the capacity for innovation of a country at the cutting edge of artificial intelligence and information technology, which has given birth to giants of the new economy such as Huawei, Alibaba and Tencent, the parent company of instant messaging service WeChat and social network Weibo. The prospects for its huge marketwhich are still promising, are not in question either. "The economy is stabilising, but the reservoir of growth is still very large. That's why it's still essential to have a presence in China.says Vincent Raufast, of French consultancy EY. In the coming years, we will see a relatively steady increase in the attractiveness of Chinese business districts."

Is China self-sufficient or does it need us?
That's the whole point.

Bruno Lunghia partner at PwC Société d'Avocats

However, among the limits to this mad growth, the first is the country's governance, which is a little dirigiste, and more certainly the new emphasis on well-being. "When you look at the weather forecast for the day, and we're not talking about sunshine or rain, but about dust in the air, it's not so much a question of the sunshine or rain, but of the dust in the air. not very reassuringsays Bruno Lunghi of PwC. Candidates for expatriation are sensitive to this criterion, and even more so the younger generations".

The seductive power of Chinese cities still needs to be perfected if they are to retain international talent in the same way as New York, London or San Francisco. But in the end, Does China really care? "That's the whole pointsays Bruno Lunghi. Is it self-sufficient or does it need us? What we are experiencing with Hong Kong is a desire to bring a city that was turned outwards inwards. Historically, China has tended to be inward-looking."

Beyond this particular point, China's major regional metropolises present some of the problems encountered by many emerging metropolises. With the exception of security, as we all know, these cities are heavily guarded. Overcrowding, pollution, traffic jams: it's an understatement to say that MexicoSao Paulo, Mumbai or Lagos do not offer the same quality of life as Berlin, Stockholm and Copenhagen. This is a clear barrier to their attractiveness, both to millennials and to executives who are more committed to their family lives, and who do not make a move to these cities a priority in their professional careers.

High-tech ecosystem

As a result, it is taking a long time to catch up with the leading cities in the global economy. Despite the incredible ecosystem of technology start-ups Mumbai, Bangalore, Delhi and Hyderabad only feature in the 90th percentile.^e in AT Kearney's Global Cities Outlook. The same applies to the major Latin American hubs. "Mexico City's economic potential is incredible when you consider the connections it enjoys with the North American market. However, the business climate and way of life are sometimes difficult, despite the fact that the main areas are perfectly secure."says Bruno Lunghi of PwC.

Similarly, while openness to the outside world and access to finance are strategic if development is not to be hampered, Africa still attracts only a small proportion of the world's foreign investors. limited number of international investors. Yet business districts are springing up all over the continent, in Lagos and Johannesburg, the two key cities in sub-Saharan Africa, but also in Nairobi, Kigali, Abidjan... Clusters of innovative start-ups are being set up around digital payment or renewable energies. "But this remains at local level. We need facilitators to create an ecosystem that will enable these initiatives to be scaled up.." And put the lie to Georges Clémenceau and his perfidious phrase about these countries of the future, which will remain so for a long time to come.