A recent study conducted by the Milken Institute has revealed that Guiyang, a low-key inland town in Guizhou province, stood out against Shanghai and Tianjin as China's best performing city economically.

The inland city rose from the 11th position last year to the first position, according to the report which was released on Monday.

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"Its performance in the growth of jobs, wages, GRP and FDI are all among the top 10. Despite its location in the less developed southwest, the city has benefited from the central government's effort to bridge the gap between the coastal and inland regions," the institute noted.

The report paid great attention to the One Belt, One Road initiative (OBOR) as a factor that has led to an increase in investment and stimulated the city's economic growth.

According to Perry Wong, the managing director of research at the Milken Institution, Guiyang has both legal and geographical advantages.

"The government's plans as well as the geography, favor the region," said Wong. "When we look at the low base of the economy, because this is one of the slightly, if you will less developed first tier cities, and we look at upside potential."  

Another Chinese city performing well economically is Shenzhen after it rose from 10th in 2015 to fourth in 2016. Shanghai and Tianjin remained second and third in the ranking.

Dalian was the only City in the Northeast region of China that showed signs of performance.

Tagschina, Milken Institution, Guiyang, OBOR