China's property woes and U.S. sanctions have hit some cities hard

China’s property struggles and U.S. sanctions have had a significant impact on some of its cities, while others are benefiting from Beijing’s push in the tech sector, according to the Milken Institute’s best performing cities China index. The index compares economic vibrancy and growth prospects of China’s large- and mid-sized cities. Hangzhou, home to Alibaba and other tech companies, ranked first in this year’s rankings. Conversely, Zhuhai and Dongguan dropped in rankings due to a slump in real estate and U.S. sanctions, respectively. The impact of geopolitics on exports affected cities like Zhengzhou negatively, while Hefei and Wuhan fared better. The institute’s research pointed to Hangzhou’s success as a hub for e-commerce, manufacturing, and finance.