Common Prosperity Through Coordinated Development

Coordinating Regional Development

Su Yongqiang began his apprenticeship at the Blast Fan Factory in Shenyang, Northeast China at the end of 1969, when he was 16 years old. Under the planned economy at that time, the country’s total industrial output value was no more than RMB 30 million.

BMW Brilliance Automotive Tiexi Plant in Liaoning Province was approved as a national 4A tourist attraction on May 10, 2017, setting a precedent for industrial tourism in China.

In 2004, the central government initiated policies to revitalize old industrial bases in the Northeast. It involved moving many of Shenyang’s state-owned enterprises from the old eastern area to the new, relatively untapped western regions. It also entailed upgrading factories’ equipment, including that of the Shenyang Blast Fan Factory, which later became one of the country’s leading equipment manufacturing enterprises.

Last year, President Xi Jinping proposed a new path towards revitalizing the Northeast, one whereby equipment manufacturing takes top priority. Innovated systems are needed to drive technical refurbishment and promote industrial upgrading, according to Su Yong-qiang, now president of the Shenyang Blast Fan Group Limited.

As the pioneer of China’s reform and opening-up, the eastern region has led China’s economy for over 30 years, and witnessed economic miracles. However, certain problems occurred there as a result of the country’s rapidly growing economy. Dwindling resources, greater population density, and economic benefits at the cost of the environment, combined to underline the pressing need to shift excess and outmoded industries to the underdeveloped central and western areas. These underdeveloped regions have favorable land and labor resources, but poor transportation and scant infrastructure. The government therefore proposed such campaigns as the Western Development Strategy and Revitalization of the Old Industrial Bases in Northeast China to promote a balanced regional economy.

Over the last two years, the Chinese government has advocated three major national strategies to promote regional development, namely, the Coordinated Development of the Jing-Jin-Ji Region (Beijing-Tianjin-Hebei), the Yangtze River Economic Belt, and the Belt and Road Initiative.

The Yangtze River Economic Belt, which covers 11 provincial regions along the middle and lower reaches of the Yangtze River, promotes regional advancement through green development and capacity transfer. At present, the problem of sharing resources and technology is being solved through inter-provincial cooperation. For example, the Zhangjiang Yangtze River Delta High-tech Park in Shanghai, China’s easternmost cosmopolis, has broken the traditional local administrative mode to become the first integrated pilot zone. This makes it possible for Shanghai and Zhejiang Province to draw on each other’s strengths and share their resources. The“enclave economy” helps to gather industries and extend the industrial chain to surrounding areas. Located on the north shore of the central Yangtze River Basin in Xishui County, Huanggang City has absorbed the industries transferred from Huangshi City, opposite the Yangtze River.

The Yangtze River Economic Belt strictly limits petrochemical and coal-related industries and pollutant discharges. Having rejected chemical industries, Xishui County built its Boutique Kiwi Fruit Garden in an eco-town on Shiniu Mountain to explore high-tech agricultural projects. Marketing approaches including fruit trees online adoption and online booking rouse enthusiastic customer responses.

The coordinated development of the Jing-Jin-Ji Region, or greater capital region including Beijing, Tianjin, and Hebei Province, signifies that China’s regional economic development has become function-oriented. Beijing transfers its non-essential functions to promote the capital’s integration into surrounding towns and to develop city clusters. China is thus promoting regional development by transforming and upgrading industries in large and medium-sized cities as well as the hinterland.

The 13th Five-Year Plan also targets certain areas with depleted resources, declining industries, and environment degradation, and set out to support them.

According to Du Chuanzhong, professor from the College of Economic and Social Development at Nankai University in Tianjin, in the new era, China will lay more emphasis on all-round development in its regional development, and endeavor to narrow the gap between regions.