The annual National People’s Congress and Chinese People’s Political Consultative Conference (the “Two Sessions”), as China’s most important platforms for political participation and deliberation, attract widespread attention from all sectors of society. The open days held by various delegations during the “Two Sessions” are regarded as a “window” through which local regions reveal their specific strategic directions and address pressing public concerns.

Here, Xiao Chuan will explore the signals revealed during this year’s delegation open days to find answers regarding future development.

01

Questions on Development

How do you view the responsibilities and commitments regarding the integration of the Yangtze River Delta?

Respondents: Shanghai, Anhui

“As the integration of the Yangtze River Delta has been elevated to a national strategy, what exactly Shanghai, Jiangsu, Zhejiang, and Anhui are doing has become one of the most closely watched topics during the Two Sessions.”

In the integrated development of the Yangtze River Delta region, Shanghai serves as the leader, while Jiangsu and Zhejiang also shoulder their respective responsibilities.Once upon a time, an article titled “How Did Shanghai Miss Out on Internet Opportunities Over the Years?” went viral, and voices predicting Shanghai’s decline were constant. Today, with the construction of the new zone in the Shanghai Free Trade Zone, the launch of the STAR Market on the Shanghai Stock Exchange and the pilot registration system, and the planned commencement of operations for some of Tesla’s production lines by year-end… Shanghai has proven through action that its leading position remains unshakable.

The birth of the G60 Science and Technology Innovation Corridor has gradually sparked a “chemical reaction” in scientific and technological innovation collaboration among cities.Among the nine cities, major milestones—such as the successful establishment of the fusion reactor’s main host system, the national acceptance of the steady-state strong magnetic field, and the “artificial mini-sun” (fully superconducting tokamak) setting a world record — have made Hefei one of the cities with the strongest innovative DNA . In 2017, Hefei became the second Comprehensive National Science Center after Shanghai. By maximizing its strengths , Hefei is accelerating its development through strategic differentiation.

02

The Question of Transformation

How Can Resource-Rich Provinces Achieve a Spectacular Transformation?

Respondents: Shandong, Shanxi

“Shandong and Shanxi are both major provinces with a long history, boasting the enduring legacies of Confucian and Mencian culture as well as the Jin merchant culture. Today, as they stand at a critical juncture of transformation, they share the historic mission of driving high-quality development.”

As a major economic province on the eastern coast, Shandong has already set out on the path of transforming old and new growth drivers. In January 2018, the State Council approved the establishment of the Shandong Comprehensive Pilot Zone for the Transformation of Old and New Growth Drivers.One year later, the share of traditional industries in Shandong’s industrial structure has dropped from 70% to 65%, with heavy and chemical industries accounting for 68% of traditional industries. Riding the momentum of this transition, Shandong’s economy has fully recovered, providing a highly valuable reference for other provinces seeking to “make room for new industries.”

Shanxi, another province rich in traditional resources, has long been striving to shed its label as the “coal giant.” In 2018, the industrial structure of provincial state-owned enterprises in Shanxi accelerated its optimization, with the share of operating revenue from the coal industry dropping by 5 percentage points within a single year. Provincial state-owned enterprises have placed greater emphasis on their core businesses; among the seven provincial coal enterprises, four no longer consider coal their primary business.

03

The Question of Function

What should future urban functions focus on?

Respondents: Beijing, Chongqing

“For a city, identifying its proper positioning is essential for pursuing long-term development. In recent years, the relocation of non-capital functions has become a key priority for Beijing. Meanwhile, Chongqing continues to leverage its hub advantages to achieve comprehensive openness.”

In 2018, Beijing’s total population decreased by 165,000, with the central urban area alone seeing a reduction of over 400,000. Urban and rural construction land was reduced by 34 square kilometers, and the total construction area decreased by more than 12 million square meters. Approximately 2,600 general manufacturing enterprises were shut down or relocated, and over 680 markets and logistics centers were relocated or upgraded.Efforts were made to relocate some universities and medical resources to new urban districts, with over 30,000 faculty and students transferred. At the same time, the city’s labor productivity improved, and its total economic output reached a new milestone of 3 trillion yuan.

Chongqing, another municipality directly under the central government, has taken the lead in establishing a cooperative framework among western provinces and municipalities to advance the construction of the “New Land-Sea Corridor.” For Chongqing, breaking free from the “constraints of its inland location” requires a focus on opening up to the outside world . Among the megacities in the western region, only Chongqing possesses the comprehensive transportation advantages of road, rail, air, and water transport, and has pioneered new models of cooperation for the development of international logistics corridors nationwide. With these advantages, Chongqing’s future looks promising.

04

The Question of Growing Pains

How should we view the “growing pains”?

Respondent: Tianjin

“Every city goes through phases of rapid urbanization, industrialization, and investment growth. Similarly, it is inevitable to encounter a period of growing pains marked by economic stagnation or even decline. Tianjin is undoubtedly going through this phase.”

Since proactively “squeezing out the water,” Tianjin’s “sluggish” economic growth has been widely discussed. However, although Tianjin’s economic growth rate hit bottom in the first quarter of 2018, the second quarter was better than the first, the third quarter was better than the second, and the fourth quarter was better than the third. At this critical juncture of industrial transformation and upgrading, while it temporarily affects current GDP growth and fiscal revenue growth, the GDP has become greener, and the quality of fiscal revenue has improved.Tianjin, which benefits from the coordinated development of the Beijing-Tianjin-Hebei region, has encountered “growing pains” ahead of schedule. By accepting criticism, drawing on the best practices of others, and overcoming today’s growing pains, the city is actually paving the way for a brighter future.