Through hundreds of efforts like these, China's reputation as the world's Urban Lab will soon eclipse its fame as the world's Factory Floor.

The timing of this shift is urgent given the need for many Chinese cities to develop new economic master plans in light of rising labor costs and falling exports.

Some of the thriving Pearl River Delta cities that led China's growth miracle such as Dongguan risk becoming ghost towns. As well, while China excels at allocating enormous resources to mega-infrastructures, there is a danger to the homogenous repetition of city construction models at a time when cities need to stand out from the sameness amidst fierce competition for talent and investment.

Building what we call "identity capital" is therefore much more than marketing, and cannot rest in the hands of tourism promoters. It must be conceived and managed at the top level of urban authorities in mayors' offices. Together with competent and expert partners, mayors can design policies, actions and innovations that modernize with distinction.

Nowhere is urban identity more heavily embodied or expressed than in the citizenry. So along with competent governance, efficient services, high-quality infrastructure and a good climate for investment, cities must devote attention to building intelligent, healthy, proud and productive populations.

All of these attributes together constitute the foundations for radiant appeal - and all may be pursued in a manner that channels China's traditional values of balance, respect and flow.

A multitude of rising cities throughout China will inevitably compete with each other for visibility, visitors and capital. In doing so they will also project great collective dynamism that will win admirers worldwide. At the same time, the Chinese cities with the strongest identity influence will become the ambassadors and the gateways to the great, diverse nation they comprise.

So make no mistake: China's urban identity race is on, and the winners are far from pre-destined.

Parag Khanna, chief strategist at Thrilling Cities Group and director of the Hybrid Reality Institute, is the author of The Second World, How to Run the World, and Hybrid Reality.

JT Singh, managing director at Thrilling Cities Group, is an urban explorer and leading generation thinker about the value and impact of 21st century cities.