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Conventional wisdom holds that the high competitiveness of the newspapers in Beijing and Shanghai is due to fast economic development in these cities. This research, however, finds that the degrees of newspaper competitiveness in Beijing and Shanghai do not relate positively to their GDP growth rates. While Shanghai's GDP outranks Beijing, the newspaper business in Beijing outgrows Shanghai. This paper argues that under the current Chinese management system, economic impact upon newspapers' development is limited. Only after the government management over media is reformed, can economic factors become a decisive force behind newspapers' innovation and advertising competitiveness. [ABSTRACT FROM AUTHOR]