Small cities located on the periphery of large cities have long faced challenges such as difficulties in economic development and population loss, especially in China. The concentration of a few super-large cities in China has hindered the growth of per capita income in most small cities and led to a widening income gap between cities. In addition, studies have shown that central cities can have a polarizing impact on surrounding areas thereby hindering economic growth. To address these issues, this paper examines Baoding, a small city close to the capital, Beijing. Through literature and policy research, we analyse how Baoding can take advantage of the Beijing-Tianjin-Hebei integration policy and pursue its urban development in the presence of neighbouring large cities. By providing theoretical suggestions the research contributes to Baodin’s urban development through five potential industries: healthcare, automotive, electronics, digital, and tourism. Furthermore, we emphasize the practical contributions such as: the importance of higher education as a key driver of sustainable development for the city. Based on our analysis, we suggest that Baoding’s strategic development direction should be aligned with Beijing’s needs while recognizing that such alignment is merely a means to an end. The goal of urban development should always be to improve the living standards and well-being of citizens.