Cities have to be confronted by global competition in the face of globalization. Thus, how does one define the competitiveness of a city and how should it be measured? The objective of this article is to identify the factors for a city to develop into a core competitive one in the global society, while providing results as to how this can be achieved. Based on the current national and city competitiveness index, the paper outlines the factors of city competitiveness, and reiterates the importance of establishing connections between them for constructing a flexible and interrelated index. Furthermore, more leverage should be given to the characteristics of a city so that its comparative advantages would be more notable. Finally, the paper also gives suggestions to how city competitiveness indexes can be constructed.