Sources of economic growth are well understood. Successfully translating that knowledge into sustained high rates of growth is harder to achieve. Relatively few countries have done so. Of those, China—with an unmatched average GDP growth rate of 10 percent between 1978 and 2008—stands out.

At the crux of China’s success lie two cities: Beijing, the powerful hinge of the Bohai region, and Shanghai, the economic axis of the thriving Yangtze River Delta. The performance of these two megacities, along with a handful of other urban regions, will determine China’s economic fortunes in the decades to come. Can their momentum be sustained? Can the growth rates of the past be continued into the future?

Two Dragon Heads explores the contrasting development options available to Beijing and Shanghai, and it proposes strategies for each city based on the current and acquired capabilities of each, the experiences of other world cities, the emerging demand in the national market, and likely trends in global trade. Its fi ndings, which are supported by a wealth of research, will be of particular interest to policy makers, urban planners, business people, and researchers.

This is a fascinating book about the future development paths of the 'twin capitals' of China: the political capital of Beijing and the commercial capital of Shanghai. The authors weave economic growth, urban development, and technological innovation into a seamlessly coherent and cogent analysis. The book not only offers important insights and lessons for the development of other megacities in China, but also has long-term implications for many developing countries undergoing similar transitions.