Many people say that the "qiang" in "Su Daqiang" refers to overall strength.

Especially in terms of county-level economies, Jiangsu boasts 21 counties with GDP exceeding 100 billion yuan, giving it an absolute advantage in both "quantity and quality."

Not only that, but Jiangsu has become the province with the highest net inflow of enterprises, mostly attracting companies relocating from emerging industries.

A large volume of corporate relocations reflects high mobility of regional production factors and strong economic vitality; a consistently high net inflow of enterprises demonstrates the effectiveness of investment promotion measures.

On the surface, industrial relocation appears to be a natural phenomenon. In reality, however, investment promotion is the proactive model driving this shift.

In terms of investment promotion, the “Jiangsu Model” is closely linked to the recruitment, investment, and cultivation of science and technology innovation enterprises.

01 Net Inflow of Enterprises: Leading the Pack

Recently, a set of data caught my attention.

Between 2019 and 2023, over 3,000 technology-based small and medium-sized enterprises relocated to Jiangsu from other provinces.

Among these, Jiangsu’s state-owned investment platforms made direct investments in 1,499 and indirect investments in 3,320 tech startups.

It is evident that Jiangsu’s success in attracting over 3,000 enterprises from other provinces is inseparable from its effective recruitment strategies.

Looking back at this year’s National People’s Congress and Chinese People’s Political Consultative Conference, the central government has assigned a new task to Jiangsu:

to accelerate the development of internationally competitive strategic emerging industry clusters, making Jiangsu a key hub for fostering new-quality productive forces.

As a major economic province with the second-highest GDP in the country and a solid foundation for the development of strategic emerging industries, Jiangsu has both the responsibility and the capability to strive to fulfill the aforementioned national tasks.

Data shows that the primary sources of enterprises relocating to Jiangsu are Beijing and Shanghai.

Of the 644 companies relocating from Beijing, 53.7% settled in Nanjing; of the 482 companies relocating from Shanghai, 44.8% settled in Suzhou.

An analysis of relocation patterns reveals that the Beijing-to-Nanjing route is the most active “relocation route.” Among all high-tech enterprises relocating from Beijing, 52% chose Nanjing.

As for Shanghai, high-tech enterprises prefer key surrounding cities such as Suzhou and Nanjing, with relocation to nearby areas generally considered the top choice for companies.

These two factors clearly explain the primary reasons for the influx of relocating enterprises into Jiangsu.

In recent years, Jiangsu Province has demonstrated strong appeal to technology-based enterprises by leveraging its industrial resources and infrastructure for high-tech industries. The continuous influx of these enterprises has consistently injected new momentum into the region’s industrial development, creating a virtuous cycle that promotes long-term and stable economic growth.

The title of “High-Tech Enterprise” is one of the highest honors for Chinese technology companies and represents the most authoritative recognition of a company’s research and development capabilities.

Therefore, the large-scale relocation of high-tech enterprises will significantly boost the growth of emerging industries in Jiangsu Province, giving the regional economy a powerful boost.

02 High-Tech Enterprises Relocating to Nanjing

This wave of corporate “mass migration” is largely no longer the superficial “registration-only” relocation of the past, but rather a comprehensive relocation that involves “everything from the skin to the bones and the very soul” of the business.

Generally speaking, corporate relocations are always handled with great care, and high-tech enterprises weigh the pros and cons even more carefully.

Why are more than half of the high-tech enterprises leaving Beijing quietly heading to Nanjing?

First, Beijing served as the original ecosystem that incubated these high-tech enterprises, so even when “leaving,” they seek a city with a similar environment.

Due to the "relocation of non-capital functions," many companies have been barred from entering the city, with over 10,000 registration applications rejected to date.

Among the companies that have relocated, the majority are engaged in scientific research, technical services, and commercial space activities. This implies that their development relies heavily on access to university and research resources.

Based on this, the strengths of Beijing and Nanjing in higher education, research, and academia align perfectly; Nanjing is essentially a “mini-Beijing.”

In Nanjing, technological innovation has become a widely shared consensus.

Since 2018, Nanjing has focused its first New Year’s meeting and the Municipal Party Committee’s “Document No. 1” on the theme of “Innovation City” for four consecutive years. Top leaders have traveled to universities such as Tsinghua and Peking University to recruit talent, and innovation promotion events have been held at both institutions.

Secondly, the nature of the local industry determines how steadily and how far relocating enterprises can go.

The local industrial structure and distinctive industrial characteristics are also key factors in determining whether a company should relocate.

Nanjing has vigorously promoted the development of distinctive industries and established a series of influential science and technology innovation systems.

In addition, Nanjing boasts a comprehensive startup support system.

This includes technology business incubators and accelerators, which effectively provide enterprises with a range of support—such as space, funding, and mentorship—thereby reducing startup risks and attracting a large number of high-tech enterprises to settle in Nanjing.

These advantages and future development potential undoubtedly offer high-tech enterprises broader prospects for growth.

Furthermore, looking at the representative field of artificial intelligence, Nanjing is the city that has attracted the largest number of AI-related high-tech enterprises.

Among them, enterprises operating in the mid-to-upstream segments—such as those dealing with data resources and AI development technologies—prefer Nanjing for its abundant scientific and educational resources.

Data shows that by 2023, the scale of Nanjing’s software and information technology services sector had exceeded 800 billion yuan, ranking first in the province and among the top nationwide, steadily moving toward the trillion-yuan target.

When it comes to attracting outside enterprises, Nanjing also emphasizes a pragmatic approach. Behind the aggressive drive to attract high-tech enterprises lies a re-examination of industrial development, the establishment of a strategy to build a city strong in industry, and the promotion of a high concentration of industrial innovation resources.

03 Accounting for Nearly Half of the Nation’s Total: Foreign Investment in Jiangsu

Recently, the shortlist announcement for the “2024–2025 Framework Agreement Procurement of New Energy Vehicles for Party and Government Agencies, Public Institutions, and Organizations in Jiangsu Province” was published:

— The Tesla Model Y has been included in the Jiangsu Provincial Government’s new energy vehicle procurement catalog.

We observe that including foreign-invested new energy vehicles in the government procurement list is a first in the country and represents a major breakthrough.

Regardless of whether actual procurement takes place, what does inclusion in the local government procurement list signify?

First, it demonstrates that China will continue to implement high-level opening-up on a broader scale, in wider fields, and at a deeper level.

Second, it signifies that the government is reducing its intervention in the microeconomy to ensure that the decisive role of the market in resource allocation is fully realized.

Third, the Tesla Model Y has met national standards and requirements for vehicle data security.

There is an even more important reason why Tesla has been included in the local government’s procurement list this time.

The general consensus is that domestic and foreign-invested enterprises should be treated equally when participating in large-scale equipment upgrades, government procurement, and bidding processes.

Data shows that China has a total of 450,000 foreign-invested enterprises. Among them, Jiangsu Province alone accounts for as many as 210,000, representing nearly half of the nation’s total. In the county-level city of Kunshan alone, there are 30,000 foreign-invested enterprises, while the city of Suzhou has over 90,000.

In 2023, Jiangsu’s actual utilization of foreign investment reached 25.34 billion yuan, making it the only province in the country to exceed 25 billion yuan.

Among the top 10 cities in terms of FDI utilization, Jiangsu alone accounted for three spots. They are: Suzhou with 6.905 billion yuan (fifth nationally); Nanjing with 4.94 billion yuan (eighth nationally); and Wuxi with 4.12 billion yuan (tenth nationally).

Taking Jiangsu—the province with the highest volume of foreign investment—as an example, the establishment of a number of high-quality projects, such as those by Airbus, Bosch, SK Hynix, General Electric, and Honeywell, has enabled Jiangsu to continuously build momentum for growth in emerging industries such as equipment manufacturing, integrated circuits, and electronic products.

Whether it involves corporate relocation or the establishment of foreign-funded enterprises, the primary concern remains the local industrial resource endowment.

The “Jiangsu Model” also bears the hallmarks of industrial chain-based investment promotion. Whether a city can foster a rich cluster of upstream and downstream enterprises within the supply chain—thereby helping companies reduce costs or secure orders—is another major factor that significantly boosts its appeal in attracting investment.