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China's Industrial Parks: A Blueprint for Economic Transformation in Developing Countries

2025-11-13   

Since the reform and opening up, the Chinese economy has continued to develop rapidly and achieved remarkable achievements that have attracted worldwide attention. From 1979 to 2018, the average annual growth rate of China's Gross Domestic Product (GDP) reached 9.5%, and it became the world's second-largest economy in 2010. The rise of China's economy has not only attracted widespread global attention, but also sparked in-depth discussions on the driving mechanisms behind it: how did China achieve such a rapid transformation? What key factors have played a fundamental role? In this historic transformation, strategic economic zones and industrial clusters have played a key supporting role, and their development trajectory not only engraves the code of China's economic transformation, but also provides vivid samples for the economic transformation of developing countries. From ice breaking experiments to global benchmarks: the growth trajectory of China's industrial parks. The development of China's special economic zones and industrial clusters has always been closely linked to the pace of reform and opening up. In 1978, the curtain of China's reform and opening up was lifted, allowing foreign investment to enter and laying the foundation for the establishment of special economic zones. In 1980, with Shenzhen becoming the first special economic zone, special economic zones such as Zhuhai, Xiamen, and Shantou emerged. With policies such as tax exemption and land discounts, they quickly attracted a large amount of foreign investment and transformed into centers for foreign investment in the electronics and manufacturing industries. The establishment and development of special economic zones have laid a solid foundation for the start of China's industrial parks and become an important cornerstone for promoting the construction of parks from exploration to standardized development. In the 1990s, China entered a period of rapid industrialization, and the concept of industrial parks was extended in China. National level economic and technological development zones and high-tech industrial development zones have been successively laid out, with a focus on technology research and innovation transformation. In 1994, the Suzhou Industrial Park, established through cooperation between China and Singapore, became a model for the development of optoelectronic technology; The Pudong area of Shanghai has formed a financial and technological center, driving the transformation of Chinese industries from labor-intensive to technology intensive, and China has gradually become the "world's factory". By the early 2000s, China had developed into the center of global manufacturing. The industrial park is rapidly expanding nationwide, and the industrial layout is moving from low-cost manufacturing to diversified fields. Industries such as biotechnology, pharmaceuticals, information technology, and renewable energy are flourishing in the park. In 2001, China's accession to the World Trade Organization accelerated the process of economic globalization in China. With the increasingly prominent environmental issues, green industrial parks have emerged, and cities such as Tianjin and Suzhou have become new highlands for green industries; Industrial parks in Hangzhou, Shenzhen and other places focus on innovation and research and development, gathering a large number of start-ups and cutting-edge technology companies, leading China's industries towards high-quality development. Diversified ecology and characteristic empowerment: The engine role promotes economic development and transformation. Special economic zones and industrial clusters play an indispensable role in promoting the structural transformation of the Chinese economy. The economic special zones established in the early days, as important practice carriers of reform and opening up, not only provided experimental platforms for the promotion of the new economic model nationwide, but also spawned a series of policy changes with broad impact. They have achieved significant results in driving GDP growth, creating employment, expanding exports, attracting foreign investment and other key areas. At the same time, they have become an important hub for advanced technology transfer and modern management practices, effectively promoting the overall leap of China's industrial level. China's industrial parks are diverse and rich in types, each with its own unique positioning and characteristics, forming a development matrix that covers a wide range and complements each other's functions, like precision gears that interlock and promote economic transformation and upgrading. Among them, the role of national high-tech industrial development zones in reshaping China's innovation system is particularly profound. In 2024, the R&D investment and the number of invention patents owned by enterprises in national high-tech zones will account for about 50% of the country's total. National high-tech zones have gathered 33% of high-tech enterprises, 46% of specialized and new "little giant" enterprises, and 67% of unicorn enterprises, becoming an important force in promoting economic growth. At the same time, among the 232 national level China Economic and Technological Development Zones, 85000 high-tech enterprises have gathered, accounting for 18.3% of the country's total, achieving a foreign trade import and export volume of 10.7 trillion yuan, accounting for 24.5% of the country's total. The actual utilization of 27.2 billion US dollars of foreign investment accounts for 23.4% of the country's total; In addition, export processing zones and free trade zones attract foreign investment and promote exports through policy incentives, and various types of parks work together to promote industrial upgrading. Industrial parks play a key role in promoting rapid economic growth, accelerating industrialization, and enhancing global competitiveness in China, effectively driving employment expansion, technological progress, and foreign investment agglomeration. In terms of economic growth, as of 2024, 178 national high-tech industrial development zones in China have achieved an output value of over 19 trillion yuan (approximately 2.62 trillion US dollars), contributing about 14% of the country's GDP. The economic weight of special economic zones is more prominent, with their GDP accounting for 22%, absorbing about 45% of the country's foreign investment, and their export volume accounting for as high as 60%. In addition, there will be as many as 59000 new foreign-funded enterprises added throughout 2024, and China's attractiveness as a global investment destination remains undiminished. Economic and technological development zones and other carriers have played an important role in this regard. In terms of employment, various industrial parks have created millions of jobs. Among them, in 2024, national level economic development zones will achieve a regional GDP of 16.9 trillion yuan, while the number of employed people in "four up" enterprises such as large-scale industrial enterprises and service industry enterprises will exceed 24 million. Nowadays, from production line positions at Foxconn in Zhengzhou to high-end research positions in Zhongguancun, Beijing, it provides employment platforms for talents at different levels, fully demonstrating its value in economic and social development. At the regional development level, coastal cities such as Shenzhen and Shanghai have achieved rapid growth through industrial parks, while parks in central and western cities such as Chengdu and Chongqing have effectively helped narrow the regional development gap and provided solid support for balanced regional development. At the level of green transformation, the layout and breakthroughs of industrial parks in green industries such as clean energy intuitively demonstrate the strong momentum of China's green development. In 2024, the clean energy sector will not only account for over 10% of the country's GDP, but also have an investment of 6.8 trillion yuan (approximately 940 billion US dollars), which is inseparable from the support of industrial parks for green technology research and development, green enterprise clustering, and green industry chain construction. From this, it can be seen that industrial parks, in driving the process of urbanization, not only promote the agglomeration of population towards industrial centers, drive the coordinated development of consumption, housing, and service industries, but also cultivate abundant fiscal revenue for the country, promote the formation of stable trade surplus, and become an important force supporting China's sustainable development and green transformation. The success code and challenge breakthrough: China's wisdom on the road to transformation. In the process of building economic zones and promoting industrial expansion, the characteristics of China are mainly reflected in the gradual pragmatic experimental path, firm national will, and efficient government participation. The experience accumulated from this model has important reference value for the development of Chinese furniture. The successful password of this model is reflected in the multi-level synergy: at the level of strategic implementation, the development direction is anchored through high-level overall planning and high-level planning, the regional vitality is released by virtue of high-quality policy empowerment and independent security mechanism, the supply of public goods is strengthened to consolidate the foundation of development, the public-private collaboration is promoted, and overseas Chinese forces are united to gather multiple joint forces, so as to ensure the controllable development path with goal guidance and timing benchmarking. At the execution level, market supervision is used to regulate competition order, ensure policy transparency, and enhance execution efficiency by improving the quality of the value chain and promoting value-added. Deep cultivation of STEM fields and promotion of technological iteration are carried out, supplemented by extensive networking to cultivate high-quality talents. Although China's special economic zones and industrial parks have made significant achievements in the process of industrial expansion, they still face multiple challenges on the path of sustainable development. There are common issues faced by both parties, such as deep integration into the global value chain, maintaining the sustainability of export-oriented growth, addressing resource and environmental constraints, optimizing institutional mechanisms, and strengthening education and social governance. There are also specific problems such as adjustments to preferential policies for small special zones, regional development convergence, and industrial chain disconnection, insufficient horizontal linkage, and shortage of technical talents in industrial expansion. At the same time, there is a problem of low efficiency in resource allocation in industrial parks due to scattered investment; In the process of development, we are facing increasing environmental pressure, weakening cost advantages of traditional industries, and relying on foreign enterprises to limit local creativity; In addition, there are also areas that need to be improved, such as land security, sustainability of capital investment, and adaptation to changes in the global trade environment. In the face of challenges, China is shifting its focus towards promoting transformation through a series of key policies: steadily building a growth model centered on knowledge and technology, strengthening the role of domestic demand and consumption as growth engines, promoting the continuous upgrading of existing economic zones and industrial systems through innovation, strictly adhering to environmental standards and deepening institutional reforms, and actively adapting to its changing global role. In just a few decades, China's unique development path has become an important practical example of global economic development in the 21st century. Against the backdrop of complex and ever-changing global situations, China, as an important engine driving global economic recovery, has not only written its own development miracle in the construction of special economic zones and industrial expansion, but also provided a "Chinese solution" for developing countries to learn from through challenges and responses. Experience sharing and path inspiration: The transformation of developing countries draws on the development experience of Chinese industrial parks, providing important inspiration for the economic transformation of developing countries and helping the world explore the path of transformation together. Developing countries can learn from the Chinese model to establish industrial parks and attract foreign companies to invest through measures such as tax incentives and simplified approval processes. This not only attracts labor-intensive enterprises to settle in, creating a large number of employment opportunities for low skilled workers, but also brings advanced technology and management experience, driving the growth of local enterprises. For example, Shenzhen started from a fishing village and gradually developed into a global manufacturing center based on the planning and construction of industrial parks, creating a large number of job opportunities to help thousands of people achieve poverty alleviation; The Hawasa Industrial Park in Ethiopia focuses on the textile and clothing industry, successfully attracting international brands to settle in and enhancing export capabilities. Such industrial parks can also help developing countries shift from the "raw material export" model to the "product manufacturing" model, achieve industrial chain upgrading, and Vietnam has become an important exporter of electronic products by establishing industrial zones. The Sihanouk Special Economic Zone, jointly established by China and Cambodia, focuses on clothing, footwear, and automotive parts, as well as Nigeria's Laki Free Trade Zone and Indonesia's Morowali Industrial Park, which have made progress in learning from China's practices. The successful experience of China's industrial park development model has also spread to a wider region through the "the Belt and Road" initiative, promoting the construction of many international industrial parks, many of which are assisted by Chinese state-owned enterprises, providing technical and management support for relevant countries, and further promoting the integration of China's development experience with the reality of other countries. In the process of learning from others, developing countries need to prioritize the improvement of infrastructure such as transportation and energy in the early stage, providing solid support for the development of industrial parks; At the same time, industrial park planning should be based on one's own comparative advantages; By establishing public-private partnerships and improving incentive mechanisms, we aim to enhance management efficiency and resource utilization efficiency; Increase investment in education and training, strengthen local talent reserves, and provide intellectual support for industrial development. At the same time, in order to enhance industrial autonomy, it is necessary to reduce imports

Edit:Yi Yi Responsible editor:Li Nian

Source:Outlook New Era

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