In April, regions across the country entered a state of high alert due to the rapid spread of the pandemic.

The economic impact of the pandemic has once again made investment promotion a key focus and source of hope for regional economic recovery.

This month, the central government and various regions issued multiple policy documents aimed at facilitating a rapid economic recovery following the pandemic. Balancing both short-term and long-term development goals, these documents provide guidance for future investment promotion efforts in three key areas: market development, land reform, and institutional and systemic innovation.

Accelerating the Construction of a Unified National Market

In April, a major policy document was officially released, sparking widespread discussion across the country.

The document’s title, “Opinions on Accelerating the Construction of a Unified National Market,” signals that the “unified national market” is not just beginning but is being accelerated—indicating that the framework for such a market has already taken shape.

In summary, building a unified market requires, first and foremost, breaking down local protectionism and regional barriers to create a unified market for factors of production and resources.

In the past, the country suffered from a common “ailment”: prioritizing the interests of local enterprises. To protect local businesses, various policies were introduced to exclude foreign and out-of-town companies.

Take "Beijing Hyundai," "Shanghai Volkswagen," and "GAC Group" as examples: not only do these automakers bear regional names in their titles, but public buses and taxis in various regions are also predominantly their own brands.

However, as evidenced by the recent Shanghai COVID-19 outbreak, “putting all one’s eggs in one basket” has both advantages and disadvantages. While it can enhance the core competitiveness of industrial clusters in local and surrounding regions, it is not conducive to the healthy and sound development of the national market.

Market changes will inevitably lead to shifts in investment promotion strategies across regions.

As policies indicate, the investment attraction model reliant on preferential policies and land resources will become a thing of the past. In the future, specialized investment attraction that leverages regional industrial chains and helps enterprises “address their weaknesses” will become the mainstream.

In recent years, various regions have employed their own unique “tricks of the trade” to compete for talent, businesses, and resources.

However, moving forward, different regions will transition from a model of “competing for resources” toward “cooperation and mutual benefit” through measures such as jointly establishing off-site industrial parks, industrial relocation, and talent sharing.

Furthermore, less developed regions may no longer merely serve as one-sided recipients; they may even have the opportunity to compete with more developed regions for high-value-added segments such as R&D and sales.

The guidelines also highlight a crucial point: after optimizing resource allocation to the greatest extent possible, small and medium-sized enterprises (SMEs) will receive greater resource support and development opportunities.

The formation of a “unified national market” still requires significant effort. In the meantime, retaining local enterprises and attracting more “specialized, refined, distinctive, and innovative” enterprises will depend on collaborative efforts in specialized investment promotion and the optimization of the business environment. Those who can achieve these two goals will be able to gain a foothold in the larger market.

Land Reform to Boost Output Per Mu

As April draws to a close, Anhui Province has issued the "Interim Measures for the Comprehensive Assessment and Evaluation of Provincial-Level and Above Development Zones in Anhui Province (Revised)." Development zones across the province will focus on institutional and mechanism reforms and output per mu to improve quality, expand scale, and enhance efficiency.

The newly revised "Measures" emphasize the assessment of "output per mu" for provincial-level and above development zones, with the corresponding weighting significantly increased.

Anhui’s intensified emphasis on evaluating output per mu demonstrates the province’s determination and concrete actions toward industrial upgrading and high-quality development.

Previously, the Xiao County government innovatively launched the “Per-Mu Hero Loan” to help enterprises weather the development difficulties caused by the pandemic.

This effectively combines financial innovation with the real economy, addressing the "ailments" of low efficiency in industrial parks while improving resource allocation efficiency and resolving urgent needs faced by enterprises due to special circumstances. On the 8th of this month, Shenzhen also released the “Implementation Opinions of the Shenzhen Municipal People’s Government on Accelerating the Cultivation and Expansion of Market Entities.” The document explicitly states that land security for enterprises will be strengthened, state-owned enterprises will be encouraged to acquire and revitalize inefficient and idle industrial land, and pilot programs for the supply of high-quality industrial space will be launched to provide high-quality, customized industrial space through a “total cost plus minimal profit” model.

In fact, land scarcity is a common challenge faced by most economically vibrant cities.各地 are also implementing innovative reforms—such as “replacing old industries with new ones,” revitalizing and reclaiming land, and moving industrial operations into high-rise buildings—to enhance the “value” of land.

Land scarcity has long been a persistent issue in Shenzhen. To improve land utilization efficiency, the city has pioneered innovative land-saving approaches such as moving industrial operations into high-rise buildings and adopting a “lease-to-own” model. In 2021, the land utilization efficiency of Shenzhen’s national-level development zones stood out among 430 such zones nationwide, ranking first and second.

Accelerate Institutional and Mechanism Reforms in Investment Promotion

On April 21, Henan Province issued the “Henan Province 14th Five-Year Plan for the Development of Economic and Technological Development Zones,” outlining four key priorities for investment promotion.

Among these, measures to deepen management system reforms—including advancing the “Management Committee + Company” model, implementing a “large-department, flat-structure” management system, and gradually introducing term limits for leadership teams, a full-staff appointment system, and performance-based compensation—have drawn particular attention.

With the new wave of technological and industrial transformation, numerous issues regarding administrative affairs have come to light in regional economic development and investment promotion.

For instance, the increasing burden of economic targets and regional tasks has left frontline staff “eager but unable to deliver,” while talent recruitment faces constraints and distribution mechanisms lack flexibility.

Consequently, the 2016 Government Work Report explicitly called for “innovating the institutional mechanisms of development zones.”

As early as several years ago, many regions had issued documents regarding the reform of development zone systems and mechanisms; the Suzhou Industrial Park’s departmental system reform had even reached its “Version 2.0.” Judging by the results, the reform has had a significant positive impact on the development of development zones.

Following the implementation of reforms in Xinxiang, Henan, the work attitude of officials and staff has shifted from a passive “tell me what to do” mindset to a proactive “take the initiative” approach. The Economic and Technological Development Zone has improved its ranking in the comprehensive evaluation of national-level economic and technological development zones for three consecutive years. The High-Tech Zone has also risen eight places in the rankings among 169 high-tech zones for two consecutive years.

This demonstrates that institutional and systemic reforms in development zones are “people-oriented” and fundamentally transform the drivers of park development.

Conclusion

"Create new opportunities amid shifting circumstances; nurture opportunities for growth amidst crises."

Today, both domestically and internationally, we are in the midst of a period of transformation. If a region can seize opportunities during this process and dare to innovate and adapt, it will inevitably rise to prominence and forge a new path for development.