Guangzhou

Population: 10.05 million

At the heart of the Pearl River Delta, where many of China's factories are located, is Guangzhou. The per capita income of Guangzhou now exceeds $10,000, making the capital of Guangdong province one of the very first Chinese cities to reach developed city status. Guangzhou has traditionally relied on its auto, petrochemical, and electronics industries to power its economic growth. However, the rising costs of labor and oil, as well as the stronger yuan, have recently forced many factories around Guangzhou out of business. The provincial government has been pushing Guangzhou to shift to other industries, such as media, finance, and logistics. Federal Express (FDX) has already agreed to open its Asia-Pacific logistics hub in Guangzhou's Baiyun airport.