In county towns across the country, large and small, powerful industrial clusters—primarily composed of small manufacturing enterprises—have formed. United as one, they generate immense momentum and account for half of China’s economic output.
Currently, China has more than 1,800 counties and county-level cities, which account for 40% of the nation’s total economic output. Data shows that by 2020, the number of counties with annual GDP exceeding 100 billion yuan had reached 38. Behind this achievement lies the tremendous momentum generated by the clustering, development, and transformation of small and medium-sized industries.
Small Counties, Great Achievements
"China’s Magnesium Valley, the World’s Magnesium Capital"—Fugu County
Chinese magnesium products account for 95% of the magnesium supply in Europe and the United States and hold an 85% share of the global magnesium ingot market. In this context, Fugu County—which accounts for half of China’s total magnesium output—deserves special mention.
In recent years, as the nation advances its industrial restructuring, resource-based cities like Fugu County have begun exploring paths to transformation. Although nature has been generous, the overall quality of Fugu’s metallic magnesium industry remains low. The sector has yet to move beyond the primary stage of mass exporting magnesium ingots, resulting in low value-added along the industrial chain.
Currently, Fugu is expanding from the production of metallic magnesium into the downstream magnesium alloy industry. According to statistics, processing magnesium ingots into magnesium alloys reduces energy consumption while increasing the value-added per ton by 2,000 yuan. With government support, Fugu’s magnesium enterprises are actively collaborating with universities on technological upgrades and renovations to build a complete industrial chain spanning from raw materials to end products.
In May of this year, the China Magnesium Research and Development Center officially opened in Fugu, marking a new phase in the development of Fugu’s magnesium industry. This also demonstrates the Fugu County Government’s determination and efforts to build a hub for industrial science and technology innovation.
Hangji Town: “China’s Toothbrush Capital”
Hangji in Yangzhou is the world’s largest toothbrush manufacturing base, exporting to more than 80 countries and regions worldwide. Whether in five-star hotels or budget hotels, Hangji toothbrushes are ubiquitous; these unassuming brushes have even found their way into seven-star hotels in Dubai. According to statistics, driven by the toothbrush industry, Hangji’s per capita GDP stands at approximately 282,000 yuan—higher than that of Shenzhen.
As costs for raw materials, labor, and exchange rates rise, profit margins for ordinary toothbrushes are shrinking, making it urgent for Hangji enterprises to find new avenues for growth. Major companies in Hangji have begun exploring new directions, combining technological upgrades and the use of new materials to develop innovative products. One company’s specialty toothbrush, known for its rapid biodegradability and ability to effectively protect gum health even at low temperatures, has successfully made its way onto China’s polar research vessels, opening the door to a new world.
Hangji’s second entrepreneurial wave is shifting from being a “specialist” in toothbrushes to becoming an “all-rounder” in oral care, high-end personal care products, and epidemic prevention and disinfection. It is reported that to promote corporate transformation and attract talent, Hangji has established a technical renovation and innovation transformation support fund with a total scale of no less than 20 million yuan to empower the upgrading of the industrial chain.
Tonglu County: “China’s Medical Endoscope Industry Base”
Just as Germany has Tuttlingen, the “Global Capital of Surgical Instruments,” China has Tonglu County in Hangzhou, the “China Medical Endoscope Industry Base.” Tonglu is home to over 1,000 medical device companies, with its surgical instrument products accounting for more than 30% of the domestic market share.
The development of Tonglu County’s medical device industry began in the 1980s. At that time, there were only a few medical device companies, and due to a lack of technical support, their products were completely uncompetitive in the market.
To break this deadlock, one company took the lead, investing heavily to hire a team of optical experts to overcome technical barriers in the production process, thereby optimizing and upgrading its products. Seeing this, other companies followed suit, recruiting talent. From then on, Tonglu County’s medical device industry gradually got on track, forming an industrial cluster and embarking on a path of corporate and standardized business development.
Beyond this, there are many counties and towns across the country that you may never have heard of, yet you use the products they manufacture every day. These small towns quietly shoulder half the burden of China—and even the world—working behind the scenes yet making a tremendous impact...
The lighting industry in Zhongshan Ancient Town, Guangzhou, accounts for 70% of the domestic lighting market share;
The lens industry in Danyang County-level City, Zhenjiang, accounts for nearly 50% of global lens production;
Luggage products from Baigou Town in Baoding are exported to over 130 countries and regions;
Gaoyang County in Baoding is a world-class towel production base;
Cao County’s coffins dominate 90% of the Japanese market;
The violin industry in Huangqiao Town, Taixing, accounts for over 30% of the global market...
These industrial clusters, large and small, are scattered across “hidden” county seats and townships, and through their own efforts, have made themselves known to the nation and even the world.
The Common "Philosophy" of County-Level Economies
Industrial Transformation and Upgrading Is Imperative
Most county towns face the dilemma of having loose economic and transportation ties with central cities, lacking distinct locational advantages, and suffering from inadequate infrastructure and industrial support systems. To bring about change, a localized and gradual approach to industrial upgrading is the preferred strategy.
By leveraging the development experience and accumulated resources of their existing specialty industries, localities are strengthening technology-driven innovation and introducing automated equipment. This approach not only aligns with the national policy of dual control of energy consumption and emissions but also enhances production efficiency, transforms growth drivers, upgrades the industrial structure, and ultimately boosts corporate profitability.
Looking at Tonglu County’s development trajectory, they first addressed gaps in core technologies by attracting talent, thereby enhancing industrial capabilities and manufacturing standards. Subsequently, they integrated digital and intelligent equipment and platforms into production, establishing a scalable, customized innovation model that has strengthened the competitiveness of the region’s medical device products.
Seeking Change and Innovation Is Not Always a Safe Bet
Today, artificial intelligence, new energy, and integrated circuits have become hot sectors for investment promotion. Every region is championing emerging industries, and this trend has also swept into county-level areas. However, even if a county seizes the opportunity presented by emerging industries, without sufficient talent reserves and capabilities in technological innovation, the ultimate results will likely be less than ideal.
Taking one step at a time, prioritizing stability over chasing the latest trends, may be a more suitable approach for county-level areas. In this context, the expansion and development of major cities become a key direction for industrial transformation in these regions. When central cities relocate industries to surrounding areas, it not only optimizes the allocation of resources among cities but also brings new development opportunities to the surrounding regions.
County towns nestled within the Yangtze River Delta region possess abundant land resources and a relatively solid industrial foundation. Moreover, they are better positioned to absorb industrial transfers and benefit from stronger economic spillover effects. Consequently, driven by the synergy of urban clusters, the complexity of their industrial technologies has significantly increased.
Transition from Traditional Manufacturing to Service-Oriented Manufacturing
Traditional manufacturing focuses on the production process, whereas service-oriented manufacturing emphasizes enhancing service inputs and outputs. For example, this involves transitioning from a focus on processing and assembling products to a “manufacturing + services” model, and shifting from primarily selling products to offering “products + services.”
Currently, for the manufacturing sector, the value added of the product itself is decreasing, while value is increasingly reflected in upstream and downstream design and sales. This requires enterprises to expand into upstream and downstream segments of the industrial chain, extend the industrial chain, and move toward higher value-added activities. Transitioning toward service-oriented models can help manufacturing enterprises expand their profit margins and reshape their competitive advantages.
However, for enterprises in county-level regions, enhancing independent innovation capabilities and expanding talent pools remains relatively challenging. This necessitates cooperation from local government departments to assist enterprises in attracting talent and improving innovation capabilities. Talent-sharing models currently being implemented in Anhui and other regions, such as “Sunday Engineers” and “Cloud Engineers,” have also become a reference for many areas seeking to attract high-caliber talent.
Conclusion
Today, counties and townships across the country are pursuing industrial restructuring and transformation. Technological upgrades, the relocation of industries from more advanced regions, and the shift toward service-oriented manufacturing are all viable growth paths with proven success models.
The rise of county-level industries not only drives local employment and economic development but also injects boundless vitality into China’s pursuit of balanced development and common prosperity. Regional development in China is not limited to the “siphon effect” of major cities; at this very moment, countless ordinary people in county towns are building their own industrial “giants” through hard work, ingenuity, and perseverance.
