China’s national economic development zones are poised to play an increasingly pivotal role in driving industrial and technological innovation, following the introduction of a comprehensive set of policy measures aimed at fostering new quality productive forces within these zones. This strategic move builds on more than four decades of development since the first national-level economic development zone was established in Dalian, Liaoning province, in 1984, and reflects the zones’ enduring significance in advancing China’s openness and innovation landscape.
By 2024, China had expanded the network of these zones to 232 across the country, collectively generating a regional GDP of approximately 16.9 trillion yuan ($2.36 trillion) and accounting for nearly a quarter of the nation’s foreign investment and foreign trade volume. These zones host over 85,000 high-tech enterprises, representing more than 18 percent of such businesses nationwide, and serve as vibrant clusters for strategic emerging industries including next-generation information technology, new materials, high-end manufacturing, marine economy, biomedicine, aerospace, and new energy sectors.
Key industrial players within these zones offer illustrative examples of their transformative impact. Suzhou HYC Technology Co Ltd, located in the Suzhou Industrial Park in Jiangsu province, exemplifies this trajectory. Having evolved from a repair business, it has become a global leader in flat panel display testing and semiconductor technologies. The company’s chairman, Chen Wenyuan, highlighted their semiconductor division’s moniker, “Team of Qomolangma,” symbolizing the lofty ambition to conquer challenges in semiconductor testing much like scaling the summit of Mount Everest. Suzhou HYC’s commitment to sustained research and development investment has earned it recognition as a national high-tech enterprise and a pioneer listed on China’s sci-tech innovation board.
Similarly, Nanjing Sciyon Wisdom Technology Group in the Jiangning economic development zone has embraced Industry 4.0 standards through its smart factory, which integrates advanced automation and intelligent technologies to deliver customised products and services. The company’s brand manager, Zhong Congqing, underscored plans to intensify research in industrial AI and aid enterprises in transitioning from digitisation to intelligent smart manufacturing.
To further bolster these zones, China’s Ministry of Commerce unveiled a detailed work plan earlier this year aimed at deepening reform, innovation, and high-quality development anchored in a high-standard opening-up strategy. The plan promotes the formation of national major industrial and technological innovation platforms, encourages collaboration between leading enterprises and academic or research institutions, and supports participation in national key projects such as technology transformation and manufacturing sector upgrades. It also prioritises the digital intelligence and green technological upgrading of traditional industries alongside the establishment of incubators and pilot zones for future emerging sectors.
In addition, the plan stimulates more diversified and innovative foreign trade and investment strategies. It elevates foreign-funded projects in priority fields such as integrated circuits, advanced equipment manufacturing, and biomedicine, explicitly including these in the list of major foreign investment initiatives. The policy supports the creation of bulk commodity trading centers, international logistics hubs, and global distribution centres within qualified zones, further reinforcing the zones as platforms for international cooperation under multilateral and bilateral frameworks. These frameworks include new frontiers like green development, the digital economy, and the marine economy.
Officials like Ji Xiaofeng from the Ministry of Commerce emphasise that the zones will foster synergy between scientific and industrial innovation, promoting industrial incubation platforms and building complete chains for product certification, large-scale production, and technological application. The zones are expected to lead in carrying out technological upgrades and large-scale equipment renewals that accelerate the transformation of traditional industries and drive the development of strategic new sectors.
Beyond domestic innovation, the zones are increasingly geared towards attracting foreign investment and deepening global engagement. By leveraging trade promotion platforms and organising delegations to international investors and financial institutions, these zones are designed to enhance their competitive edge within the global technology landscape. This approach aligns with China’s broader ambition, as outlined in its “2025 Action Plan for High-Tech Zones,” to cultivate world-class innovation hubs through supportive policies such as government-backed R&D funds, tax incentives, technology transfer optimisation, and sandbox regulatory environments for frontier technologies like AI and biotechnology.
China’s national economic development zones thus stand at the forefront of a transformative wave, blending scientific innovation with industrial dynamism to set new benchmarks for economic growth and technological advancement. They are not just engines of China’s domestic economic strategy but are also shaping the country’s position as a global leader in high-tech industries. As these zones continue to evolve, they embody the nation’s commitment to innovation-driven development and its vision for future industry competitiveness on the world stage.
Source: Noah Wire Services
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