If faith had a color, it would surely be Chinese red!

Among the myriad colors, red is perhaps the one that best represents China in the eyes of most people.

From an investment promotion perspective, some regions are in full swing, glowing a deep crimson; others are thriving, shimmering like gold; while in some places, attracting investment is an uphill battle, yet the blue-ocean prospects are vast...

So, for investment promoters, based on investment momentum, what colors should the map of China display?

Red: Off the Charts

“In the 1980s, look to Shenzhen; in the 1990s, look to Pudong.”

Over the past four decades of rapid economic development in China, the Yangtze River Delta and the Pearl River Delta have been widely recognized as the country’s two most economically developed urban clusters.

They are also the regions with the highest investment heat and the reddest hues in the eyes of nearly all investment promoters.

From the perspective of industrial clusters, the Yangtze River Delta and the Pearl River Delta are undoubtedly the model “pioneers” in the development of domestic industrial clusters.

The Yangtze River Delta boasts a robust industrial cluster foundation: seven trillion-yuan-level and three 500-billion-yuan-level industrial clusters; listed companies in the integrated circuit and new energy vehicle sectors account for over 40% of the national total, while those in biopharmaceuticals and artificial intelligence make up nearly one-third...

At the same time, a layout has largely taken shape where manufacturing costs and transaction costs are well-balanced: Shanghai is a region with low transaction costs, while Jiangsu and Zhejiang are regions where manufacturing costs are reduced. Although Anhui’s overall industrial foundation is relatively weak, its provincial capital, Hefei, possesses first-tier research capabilities, leading other cities in Anhui to undertake industrial transfers and grow rapidly.

As China’s largest economy, Guangdong boasts not only Guangzhou and Shenzhen but also Foshan and Dongguan, which have successfully ranked among the top 20 industrial cities. Furthermore, the Guangzhou-Shenzhen-Foshan-Dongguan region has formed multiple world-class industrial clusters.

• Shenzhen’s strengths lie in information technology, biopharmaceuticals, and new energy;

• Guangzhou is the country’s largest automotive manufacturing hub, with industries such as artificial intelligence and next-generation display technologies gradually emerging as new growth drivers;

• Foshan’s strengths in smart home appliances, ceramic building materials, and equipment manufacturing are far ahead of the competition;

• Dongguan’s smart mobile device cluster and smart equipment industry cluster are at the “national-level” standard.

It is clear that in today’s era, where the strength of industrial clusters defines a city’s core competitiveness, the Yangtze River Delta and the Pearl River Delta are the undisputed leaders.

The investment promotion offices stationed in Shanghai and Shenzhen—which virtually every region maintains—serve as the strongest testament to this formidable strength. Investment promotion officials in these two regions are not only guides for attracting investment but also hands-on practitioners dedicated to serving enterprises.

Therefore, investment promotion personnel from various regions should not only go to attract enterprises but also learn the “service-oriented” and pragmatic concepts of advanced investment promotion and business environment development.

Orange: Sustained Momentum

The "orange" tier, while less prominent than the "red" tier, includes regions such as the Beijing-Tianjin-Hebei (BTH) region, the Chengdu-Chongqing region, and the Central Region.

The Beijing-Tianjin-Hebei region has always been one of the most economically dynamic urban clusters in the country. However, its current economic output accounts for less than 10% of the national total, while the Yangtze River Delta already accounts for one-quarter. This indicates that the potential of the Beijing-Tianjin-Hebei urban cluster has yet to be fully realized.

In terms of industrial clusters, as the coordinated development of Beijing and Tianjin deepens, manufacturing in Hebei has gradually integrated with that of Beijing and Tianjin, and cooperation among the three regions in fields such as biomedicine, automobiles, new energy, and high-end equipment is growing increasingly close.

Beijing possesses distinct advantages in talent and service platforms; Tianjin excels in scientific and technological support as well as production and R&D capabilities; and Hebei boasts a solid manufacturing foundation and a wealth of distinctive industrial clusters. Leveraging each region’s strengths and combining their respective advantages is the “key” to economic growth in the Beijing-Tianjin-Hebei region.

The Chengdu-Chongqing region has long been hailed as the “fourth pole” of China’s regional economy. It is the region in western China with the densest population, the strongest industrial foundation, the greatest innovation capacity, the broadest market potential, and the highest level of openness.

With the development of the China-Europe Railway Express, the Chengdu-Chongqing region has seen a significant increase in its level of openness and is gradually becoming the most important foreign trade base in central and western China.

However, the Chengdu-Chongqing region still faces developmental shortcomings. While the model of mutual support and coordinated leadership between the dual hubs of Chongqing and Chengdu offers clear advantages in attracting talent and resources, significant disparities in industrial development levels persist across the region.

Nearly 70% of the leading manufacturing enterprises above designated size in Chongqing and Chengdu operate in the same industry. This implies intense competitive pressure due to industrial homogeneity, which is detrimental to regional innovation. How to accelerate efficient division of labor and differentiated competition through a “market-driven, government-guided” approach is the top priority for future development.

In March of this year, upon the release of the “14th Five-Year Plan Implementation Plan for the Development of the Middle Yangtze River Urban Agglomeration,” there was widespread consensus that the development of the nation’s “fifth economic tier”—the Middle Yangtze River Urban Agglomeration—had once again accelerated.

For the integration of the “Central Triangle” urban agglomeration, strengthening the radiating and driving force of central cities is the top priority.

Wuhan, the Changsha-Zhuzhou-Xiangtan (CZX) region, and Nanchang—each metropolitan area has its own strengths. Establishing a spatial layout of “three cores, three circles, three belts, and multiple nodes” is the inevitable path for the development of the “Central Triangle” urban cluster.

Yellow Investment Rising Star

Is the yellow region slightly inferior to the orange region? Yes and no.

The reason it “is” is that it is a fact that investment momentum in the Northwest and Northeast regions lags behind the five urban clusters mentioned above. An investment promotion official from the Northwest once joked, “Our investment promotion efforts rely entirely on the spirit of Marxism.”

The reason it is “not” is that since the beginning of this year, both corporate site selection trends and policy directions have begun to shift toward the Northwest and Northeast regions.

Heilongjiang was once a pivotal old industrial base in China, but due to the outflow of talent and industries in recent years, it has lost its former glory.

However, in May of this year, six major internet giants—Huawei, Baidu, JD.com, Tencent, ZTE, and CAS—all arrived in Heilongjiang with the common goal of building a digital economy industry.

It is often said that “behind population mobility lies the division of labor within industrial chains.” The arrival of these industry leaders will undoubtedly play a crucial role in fostering Heilongjiang’s digital economy and retaining talent.

This year, the "Catalogue of Industries Encouraging Foreign Investment (2022 Edition) (Draft for Public Comment)" released by the central government also mentioned that foreign investment in the northeastern region of central and western China will continue to be encouraged.

Compared to the eastern coastal regions, the central, western, and northeastern regions still have significant room for utilizing foreign investment; attracting foreign capital can further unleash the potential for regional foreign investment utilization.

Investment promotion personnel should closely follow the direction of leading enterprises and policies to adjust their investment promotion priorities. On one hand, they should focus on advantageous and distinctive industries; on the other hand, they should strengthen investment promotion efforts in new sectors.

Green: A Cut Above the Rest

Green, distinct from red, orange, and yellow, often symbolizes picturesque landscapes and vibrant vitality. When people think of southwestern regions like Yunnan, Guizhou, and Guangxi, they are filled with a sense of serenity and longing.

The cultural and tourism industry is one of the leading sectors in the provinces and cities of the Southwest, but due to the nationwide restructuring of the industrial landscape and the impact of the pandemic, this industry has suffered significant setbacks.

To achieve high-quality economic development, various regions are also exploring the development of advanced manufacturing, internet application industries, and information technology and service sectors.

Take Guizhou as an example: from the “West-to-East Power Transmission” initiative to the “East Data, West Computing” strategy, Guizhou has seized these opportunities.

On the one hand, this has optimized Guizhou’s power and energy structure. New energy industries, represented by wind and solar power, have emerged from scratch, and thanks to its abundant hydropower resources, Guizhou has become one of China’s major hydropower hubs.

On the other hand, Guiyang’s forward-looking development of the big data industry has made the Guiyang-Gui’an area one of the regions with the highest concentration of ultra-large data centers globally. The dual advantages of the big data industry and the power sector have positioned Guizhou as a pivotal hub for the “East Data, West Computing” initiative.

Today, the philosophy that “lucid waters and lush mountains are invaluable assets” has been deeply integrated into the development strategies of various regions. As a representative of “lucid waters and lush mountains,” the Southwest must not only preserve this natural greenery but also pursue the upgrading and transformation of its industrial structure.

Conclusion

The character of each region is never easily defined. So, in your eyes, what does the color distribution of the map of China look like? We welcome your comments and private messages.