Upgrading inefficient industrial parks has sparked vigor and vitality of economic development in Zhongshan City, one of the leading manufacturing bases in south China's economic powerhouse of Guangdong Province.
The city of Zhongshan, one of the four fastest-growing economies in Guandgong in 1990s, faced a challenge as vast swathes of land were occupied by inefficient industrial parks.
In January 2022, the city started to upgrade these under-performing industrial parks, the most pressing attempt for transformation since China adopted the policy of reform and opening up in 1978.
"Only after the land is vacated, can we realize the industry transformation and upgrading," said Chen Huidong, deputy manager of the upgrade project of industrial parks in Zhognshan.
Zhongshan, situated on the western banks of the Pearl River leading to the South China Sea, has sold 70 percent of its land plots each measuring 10 mu (0.67 hectare) in size and 50 percent of those under 5 mu. The average plot ratio of single-layer zinc- and iron-made workshops, which measured about 112,000 mu, was less than 0.65.
Due to spatial constraints, the city saw an industrial investment growth lower than other cities in the Pearl River Delta in affluent South China region during the decade-long period from 2012 to 2021.
"We want to develop, but there is no space. So, we could do nothing about it. The only way out is to re-adjust the industrial park," said Yang Qiaoying, deputy general manager of Zhongshan City Xuele Kitchen Appliance Co., Ltd.
To address spatial limitations that have hindered its industrial growth, Zhongshan established a command center for the industrial park upgrade, setting up a team for each town and sub-district, working out tailored policies, and deploying nearly 500 young officials to the frontline.
"They took the lead to negotiate with stakeholders, including rights holders, manufacturers and principal tenants. In just two months, the city completed land acquisition and project startup, which is highly efficient," said Han Wenhui, executive director Chengyi Holdings.
The industrial park upgrade in Zhongshan has paved the way for new spaces, new ecosystems, as well as new projects. This transformation has catalyzed a new phase of growth.
"The production capacity has doubled, and the industrial park upgrade is a key factor that drives the company's rapid new growth," said Pan Yejiang, chairman and president of home appliances company Vatti.
"We moved back to Dachen after the industrial park upgrade. We've benefited a lot from it. Foreign businessmen would give a thrumb-up after seeing it," Yang said.
The revitalization effort has not only breathed new life into stagnant collective lands, but has also bolstered the vigor and vitality of the local economy, enlarging the wallets of local villagers.
"The industrial park upgrade has enabled our village to achieve economic goals of doubling our income within three years and quadrupling income within five. The two industrial parks have provided jobs to about 700 villagers," said Luo Huanhui, secretary of the Communist Party Committee in Waisha, a village in Shenwan Town, Zhongshan.
After nearly 1,000 days of relentless efforts, Zhongshan has successfully put over 42,000 mu of inefficient industrial land into better use, attracting 993 new enterprises and facilitating expansions for 738 local businesses.
In 2023, industrial investments in Zhongshan surged by 47.3 percent year on year, making it the second fastest-growing city in Guangdong.
Industrial park upgrade sparks economic vitality in south China city
