Is the 2.0 Era of New Industrial Land in Dongguan Upon Us?

In late August, Dongguan City released the "Draft for Public Comment on the Revised Administrative Measures for New Industrial Land (M0) in Dongguan City."

The release of this “revised draft” signifies that Dongguan has entered the New Industrial Land (M0) 2.0 era.

When I saw this news, I suddenly had a question: We haven’t even fully grasped New Industrial Land 1.0 yet, and here comes 2.0?

In fact, traditional M1, M2, and M3 industrial land categories are generally limited to supporting single-function traditional manufacturing.

In contrast, new industrial land is the result of industrial land transformation—it is land capable of integrating new industrial functions such as R&D, creativity, design, pilot production, and pollution-free manufacturing, as well as related supporting services.

However, defining New Industrial Land solely in this way is clearly insufficient.

So, since the implementation of new industrial land, what role has it played in promoting local industrial development and attracting investment?

What Makes New Industrial Land “New”?

With the transformation and upgrading of traditional industry toward new technologies, collaborative production spaces, and integrated production spaces, new industrial land has seen rapid development.

Whether in terms of spatial layout, physical form, or land use duration, new industrial land differs significantly from traditional industrial land.

The most notable distinction lies in the contrast between singular and diverse approaches.

The integration of industry and urban development is a major trend. Taking Shenzhen as an example, the proportion of supporting facilities in the floor area of new industrial land (M0) is generally 30%, which is double that of traditional industrial land.

These include dormitories or rental housing, commercial facilities, and public service facilities.

This demonstrates that new industrial land better meets the requirements for compatible and mixed-use land development, as well as the supporting needs of both production and daily life.

Second, the land development intensity per unit area is higher for new industrial land.

In most regions, the floor area ratio (FAR) ranges from 2.0 to 5.0, which is higher than the 1.0 to 2.0 typical of traditional land use.

To a certain extent, new industrial land has become the focal point for many cities in addressing land resource issues.

On the one hand, it provides a basis for the demolition, reconstruction, and upgrading of a large number of old and inefficient industrial parks in cities, thereby accelerating urban renewal;

On the other hand, the increase in the maximum floor area ratio enables efficient and intensive land use.

In terms of land acquisition costs, new industrial land costs 20% to 50% of the price of office land in the same location.

The advantages of new industrial land include more comprehensive supporting facilities, greater flexibility in land grants, and relatively lower prices.

To ensure that new industrial land truly realizes its full potential, stricter regulations are in place regarding land use eligibility and post-allocation supervision.

Eligible industries must primarily consist of high-tech sectors, with higher standards and evaluation criteria regarding investment intensity, output value, tax revenue, and investment promotion.

During the production phase, local authorities must also closely monitor aspects such as production timelines, investment intensity, industrial orientation, energy conservation and environmental protection, and output intensity, enforcing strict oversight.

Industrial Upgrading: How to Achieve “1+1>2”

New industrial land has been in existence for quite some time and has been promoted and implemented in many regions. Although the names vary by location, their functional essence remains consistent.

In Guangzhou, Shenzhen, and Dongguan, it is called M0; in Beijing, M4; in Nanjing, M-Science; in Hangzhou, M-Innovation; and in Shanghai, C56...

The core of optimizing land policies is to ensure the rational and efficient use of every inch of land, leveraging land resources to drive industrial transformation and upgrading.

With the introduction of new industrial land, various regions have maximized land utilization, marking the beginning of industrial upgrading.

Many regions have leveraged new industrial land policies to carry out the "replacing old with new" strategy in industrial parks.

In 2020, Ganjiang in Jiangxi successfully auctioned off the province’s first M0 land parcel.

Originally, that area was zoned as industrial land (M2), primarily serving as traditional, low-efficiency land for medical logistics.

After being rezoned to M0, it was transformed into a first-class domestic translational medicine research institute—centered on translational medicine, with pharmaceutical R&D and production as its primary functions, and supported by corresponding service facilities—aiming to achieve a high degree of integration among industry, academia, and research.

Comparative studies have shown that the “replacing old industries with new ones” initiative in old industrial parks and factory buildings typically begins in city centers where traditional industries are concentrated and where the need for renovation is most urgent.

Combining “standard land” with “new industrial land” may well yield a “1+1>2” effect.

For headquarters projects, such as the construction of headquarters office buildings and R&D centers, only commercial and service land can be used.

However, since commercial and service land is significantly more expensive than industrial land, it is very difficult for third- and fourth-tier cities to attract such headquarters projects.

"New-type industrial land" resolves the restrictions that industrial land imposes on the construction of office buildings, R&D centers, dormitories, and other structures, reducing costs while enhancing the flexibility of land use.

The organic integration of “standard land” and “new industrial land” further unlocks greater potential for plots with “附加” conditions.

Yantai has launched the nation’s first “New Industrial Standard Land (M0).” In addition to meeting standard requirements such as per-mu investment and planning design conditions, enterprises on this land must also satisfy two specific metrics: the proportion of R&D expenditure and the proportion of R&D personnel.

This further stimulates regional R&D and innovation, creating a synergistic “1+1>2” effect.

Securing the land is just the beginning

New industrial land represents an attempt at refined land management.

In the past, for industrial park developers, securing land meant they were already halfway to success; but with new industrial land, securing the land is just the beginning of the story...

I once saw a company representative who, after securing an M0 project in City M, admitted, “I don’t know how to proceed with investment promotion.”

Indeed, to ensure industries take root and thrive, local governments enforce extremely strict oversight of new industrial land—from industry entry requirements to full lifecycle management.

For new industrial land, the investment promotion and operations following the development of the park present even more rigorous challenges.

Given the unique nature of new industrial land, many regions have targeted two specific groups for investment promotion.

One is the headquarters economy projects mentioned earlier, and the other is the R&D and headquarters of small and medium-sized enterprises.

It is not hard to understand that more favorable land prices are a key factor in attracting these two types of projects.

A new industrial land site in Shenzhen was initially positioned as a headquarters base for strategic emerging industries, primarily targeting SMEs.

Ultimately, 15 companies jointly bid for the land to construct headquarters office buildings, with R&D space accounting for 86% of the total area, and the remaining 14% allocated to supporting commercial facilities, canteens, and other amenities.

There are many such success stories in Shenzhen.

The preferential pricing of M0 land has helped Shenzhen retain a large number of local high-tech enterprises while also attracting high-quality companies from other regions to continuously establish operations there, achieving a high degree of industrial concentration.

This demonstrates that the significance of M0 extends beyond land policy; it also serves as a model of refined governance.