In 2011, competitiveness of China's eastern cities declined relatively, Economic Information Daily reported on Tuesday, citing a report released by Chinese Academy of Social Sciences (CASS).

According to China Urban Competitiveness Report by the National Academy of Economic Strategy under CASS, Shanghai is a typical example. In 2011, for the first time, the city's comprehensive competitiveness was exceeded by Beijing and came in fourth place after Hong Kong, Taipei and Beijing.

Ni Pengfei, director of Urban and Real Estate Economic Research Office of National Academy of Economic Strategy, Chinese Academy of Social Sciences (CASS), noted that, according to the data of the sixth national census, the Shanghai resident population increased over the previous year by 3.9 million. It is a significant factor affecting Shanghai's ranking data.

Most significantly, Shanghai and some eastern cities have entered a critical restructuring period and the transfer of industries is the main cause of declining competitiveness, Ni added.

Moreover, the report showed that, in some cities in the eastern region, the high housing prices have directly impacted on the cities' competitiveness enhancement.

In 2011, Wenzhou, Zhejiang province dropped out of the top 50 most competitive cities. The private lending crisis seen in the city was closely related to years of keen investment in real estate.

Gao Peiyong, an academician of CASS, believes the full range of the transformation and upgrading shows that China's economic development has come to a new stage as the reforming and opening-up policy going deep.