According to 2010 GDP numbers, the Tianjin Binhai New Area (BNA) is set to displace Shanghai Pudong area. And Qu Hualin, vice president of the Tianjin Airport Economic Zone, says the BNA has scored better in all aspects economic standing – overall GDP, total value of industrial output.

The BNA’s GDP for H1 2010 was RMB225bn – a significant 26% increase from the same period last year.  In 2009, the BNA attracted approximately US$10bn of foreign capital while Shanghai Pudong figures was approximately half of that – US$5.5bn.

In line with the economic growth in Tianjin, lawyers say that there has been a significant increase in non-contentious work. “The increasing corporate engagements are evidential of the business activity in Tianjin. We have seen an influx in PE fund establishments, pre-IPO investments, business restructuring, real estate, and shipping work,” said Li Bin, Grandall Legal Group’s Tianjin-based partner.

While Tianjin gears up its economic standing, some lawyers contest its ability to truly stand up against China’s financial hub. “Governmental policies and stimuluses have been the propellant of Tianjin’s growth today. But Shanghai, especially in terms of the legal industry, still has a much stronger foundation. Both in terms of the legal infrastructure and having a pool of talent, Tianjin still has a long way to go,” said Scott Guan, managing partner of Shanghai Jade & Fountain Law Firm.

Despite Tianjin’s young economy, the region has brought about work for firms in the first-tier cities. Jade & Fountain has noticed a good amount of PE funds work coming out of Tianjin. The firm recently set up its Beijing office and, according to Guan, a branch in Tianjin is possible.

“The national competition between two cities is always very interesting: you see, Tianjin issues new policies to push its economic growth and then Shanghai tries to compete by introducing similar policies. Shanghai is feeling the heat, but ultimately the competition is good for all industries,” said Guan. ALB

Related stories:

• Jade & Fountain adds two partners, prepares for Beijing launch (13 April 2010)
• Guantao establishes Tianjin office with local lateral hires (5 August 2009)
• Tianjin 2010 (26 August 2010)