Opportunities for Investment Promotion

Recognizing Regions That Have Built Up Strength Over Time

With a bundle of belongings and an umbrella, they head to Hunan to become business owners, and upon arrival, they hear the greeting, “Cousin.”

Wherever there is a market, there are people from Jiangxi. When Jiangxi is mentioned, one thinks of Ganzhou, the “Kingdom of Rare Earths”; Shangrao, the “City of Optics”; and Yichun, the “Lithium Capital of Asia.” Focusing on major projects, there’s Foxconn, CATL, Geely, Gree… Hasn’t Jiangxi worked hard enough this year? It’s not that it lacks presence; it’s just that observers are too impatient.The successive arrival of major projects proves one simple truth: “Good things take time.” Now, with the “Central Triangle” integration on the agenda, Jiangxi’s pace of attracting investment is sure to accelerate even further.

Stepping on the Gas Without Rushing

A city’s development journey is intertwined with industrial planning and industrial revenue. In this process, local development evolves rapidly; there are no fixed statuses, models, or mindsets. Often, “high-potential stocks” have even more room to break through and swim against the current. Jiangxi is precisely such a “high-potential stock.” In 2021, its GDP approached 3 trillion yuan, with a growth rate of 8.8%. Notably, industrial revenue is growing at a rapid pace, making Jiangxi a rising star in industrial development across central and western China.Last year, revenue from industrial enterprises above designated size exceeded 4 trillion yuan. This marked the first time Jiangxi surpassed Hunan, moving up to 12th place nationwide. Crucially, the gap with Anhui and Shanghai is not significant. If this high growth rate can be sustained, it is not impossible for Jiangxi to overtake these two provinces in the coming years. It must be said that behind Jiangxi’s dazzling “report card” lies the provincial capital Nanchang’s pioneering efforts to optimize its industrial structure.As early as 2018, compared to surrounding cities, Nanchang was still dominated by traditional industries, and the cultivation of new growth drivers was still in its infancy. When Jiangxi proposed the “Greater Nanchang” initiative, Nanchang began establishing national-level platforms for emerging industries, such as the National LED Center and the 5G Industrial Park, laying the foundation for industrial transformation and upgrading. The economic benefits of this transformation are directly reflected in GDP growth rates. Nanchang once maintained a growth rate above 9.0% for 13 consecutive quarters.This demonstrates that the core of Jiangxi’s development lies in the leadership of a strong provincial capital. Amid Nanchang’s rapid growth, another milestone has been reached: the GDP of all 11 prefecture-level cities in Jiangxi has surpassed 100 billion yuan. Closely following Nanchang are the “Big Four”—Ganzhou, Jiujiang, Yichun, and Shangrao—which will also become key nodes in Jiangxi’s development. Thus, Jiangxi’s rise is now a foregone conclusion.

Never Play a Good Hand Haphazardly

Jiangxi has always carried a certain “invisibility”—neither in the east nor the west, neither coastal nor bordering another country. Yet, Jiangxi can be described as naturally occupying the center stage. To the south lies Guangdong, to the east Zhejiang and Fujian, to the west Hunan, and to the north Anhui and Hubei, effectively forming a “Ring of Jiangxi Economic Circle.” When the eastern coastal regions opened up, Jiangxi was left out. When the Western Development Initiative was launched, Jiangxi was not included. By the time the Central China Rise Strategy took effect, Hunan and Hubei were developing rapidly, but Jiangxi—with its weak foundation and low starting point—continued to quietly adjust its “hand.” Last year, a major initiative by Jiangxi drew significant attention: the province invested 320 billion yuan to construct the Zhejiang-Jiangxi-Guangdong Canal. Overnight, news of this “Grand Canal of the Century” went viral. Some observers believe the canal will serve as a “link” between the Yangtze River Delta and the Pearl River Delta, and for Jiangxi, it represents a “game-changing move.” Thus, this massive project involving colossal investment clearly demonstrates that Jiangxi is “quietly accomplishing great things.” Why is the province investing so much effort in river transportation? The reasons are “high cargo volume, low risk, and low energy consumption.” According to estimates, the cost of water transport is half that of rail transport, one-fifth that of road transport, and one-twentieth that of air transport. The opening of the canal will mean that northern Jiangxi will be closely linked to the Yangtze River Delta economic zone, while the south can accelerate its integration into the Guangdong-Hong Kong-Macao Greater Bay Area, helping the province better accommodate industrial relocation from these two major economic regions. Once the canal opens, the Pearl River Delta’s new energy vehicle industry may establish production bases in Jiangxi. The two core components of new energy vehicles are electric motors and batteries; one relies on rare earths, while the other cannot function without lithium resources. Coincidentally, Jiangxi possesses all these resource advantages. Electronics and information technology factories from the Yangtze River Delta may also relocate to Shangrao. Dongguan produces a wide range of products such as mobile phones and cameras, but the biggest bottleneck is lenses. Although not as scarce as chips, lenses are the face of electronics and information technology products. Shangrao is home to China’s largest optical lens production base, accounting for 60% of the global market with a total output value exceeding 100 billion yuan. Furthermore, Jiangxi is a major source of migrant workers for cities in the southeastern coastal provinces, boasting a high proportion of skilled professionals. Additionally, with relatively low land and labor costs, the province is well-suited for labor-intensive enterprises to establish operations. Overall, Jiangxi possesses significant development potential, and it has been effectively leveraging its “transportation, resource, and industrial” advantages one after another.

This explains why leading enterprises such as Foxconn, the Rare Earth Group, and CATL have chosen to establish operations in Jiangxi.

Ultimately, competition outweighs cooperation

Jiangxi happens to be one corner of the “Central Triangle.” Whether to prevent the siphoning effect or to accommodate the layout of emerging industries, the leading cities of Hunan and Hubei must take the initiative to join hands, leveraging the collaborative and sharing capabilities of central cities to drive the development of secondary cities. This is akin to a sports match: winning the championship is nearly impossible without a “team” of star players.Similarly, head-to-head competition between individual cities is a thing of the past; regional cooperation and connectivity are precisely where Jiangxi must focus its next steps. After all, the most stable structure of a triangle is one where each side and corner supports the others. In recent days, the concept of the “Central Triangle” urban cluster has once again entered the public eye. It refers to the Middle Yangtze River Urban Cluster, which includes Hunan’s “3+5” urban cluster, Hubei’s Wuhan Urban Circle, and Jiangxi’s Poyang Lake Urban Cluster—a total of 31 cities. Just yesterday, the full text of the “14th Five-Year Plan Implementation Scheme for the Development of the Middle Yangtze River Urban Agglomeration” was officially released. This signifies that the starting gun has officially been fired for China’s “fifth growth pole.” As early as six years ago, the “Central Triangle” was the frontrunner for the title of “Fourth Pole,” not Chengdu-Chongqing. It may seem as though it got up early but missed the late-night bus. In reality, this is not the case. As a “latecomer,” it has advanced experience to draw upon, access to trend analyses from various experts, and the ability to attract industries from all directions. At the same time, it can benchmark against other urban clusters’ models for introducing emerging industries. For Jiangxi, the most critical task is to define its positioning and adjust its industrial structure. Leveraging industries that got an early start—such as aviation, building materials, ceramics, and textiles—along with the non-ferrous metals sector, which possesses unique advantages, and the traditional Chinese medicine industry, a standout within the biopharmaceutical sector, each represents a key area for development. Furthermore, this will test the foresight and open-mindedness of policymakers, and even a bit of luck is involved.Hefei’s bet on NIO also happened to coincide with the eve of the new energy vehicle boom. The development of Jiangxi’s VR industry has long been a key strategic priority, included in the province’s “2+6+N” Action Plan for High-Quality and Leapfrog Industrial Development, and is gradually transforming from virtual technology into a tangible industry. However, there is still a long way to go before the VR industry’s “first-mover advantage” can be transformed into a “leading advantage.” So, what else is Jiangxi lacking?

What is missing is the resolve to drive it forward with full force and the unwavering commitment to implementation.

Conclusion

Not every province is blessed with unique advantages or surrounded by an aura of privilege. So what is the path to economic development for these regions? They must build on their existing strengths, strive for upward upgrading, and proceed with steady and solid steps. They must seize opportunities to choose the right sectors, attract the right projects, and time their moves carefully. By continuously embracing urban clusters and always keeping in mind that the nation is a single, interconnected system, they can carve out their own genuine path forward.