Summary of Key Points
Recently, the provinces of Jiangxi and Shanxi have successively proposed the "provincial capital leadership" strategy, which is a continuation and upgrade of the national trend of "strengthening provincial capitals" that emerged in previous years. Unlike the previous focus on merely making the provincial capital more powerful, the "provincial capital leadership" strategy emphasizes the role of the provincial capital as a leader in driving the overall development of the province. Currently, the economic prominence of most provincial capitals (as measured by the proportion of GDP contributed by the provincial capital) is on the rise, but the prominence of some cities (such as Taiyuan) has declined, and their economic growth rates have slowed down. The key to the "provincial capital leadership" strategy is to avoid formalism and ensure that policies are effectively implemented to stimulate the intrinsic momentum of the provincial capital, thereby truly achieving a situation where the provincial capital becomes a driving force for the entire region.
I. From "Strengthening Provincial Capitals" to "Provincial Capital Leadership": A Change in Focus
The previous approach of "strengthening provincial capitals" was more about individual efforts to make the capital itself stronger, with goals such as increasing GDP to 700 billion yuan or having a population of over 10 million. This approach could lead to concerns about one city becoming too dominant. The new "provincial capital leadership" strategy, on the other hand, is more about coordinating the development of the entire province, with the goal of not only making the provincial capital stronger but also using it to drive the development of the whole region.
Why the change in approach? On one hand, although some provincial capitals have grown, their ability to drive regional development has not been evident. On the other hand, there is a need to avoid the issue of one city dominating the region, and instead, emphasis is placed on coordinated development. As stated by the central guidance team, efforts should not be limited to the provincial capital itself; the entire province should benefit from the development initiatives.
II. National Proportions of Provincial Capital GDP: Most Are Rising, but Some Are Falling
- Most Provinces Are Making Progress: Among the 27 provincial capitals, the proportion of GDP contributed by the provincial capital has increased in most cases. For example, the proportions in Yinchuan, Guiyang, Fuzhou, and Shenyang have risen by more than 2 percentage points. In Changchun, Yinchuan, and Xining, this proportion has even exceeded 50%, meaning that half of the province's GDP comes from the provincial capital. Fuzhou has even achieved its GDP target for 2025 (over 25%) ahead of schedule, while Guiyang, although its proportion is slightly lower, has seen a significant increase in population (by 680,000 in five years), indicating its strong attractiveness.
- Some Cities Are Facing Challenges: The proportions of GDP contributed by the provincial capital have decreased in 12 provinces, with Taiyuan, Lanzhou, and Urumqi experiencing declines of more than 2 percentage points. Xi'an and Kunming have also seen a 1-percentage-point decrease. For instance, Taiyuan's GDP growth rate was 9.2% in 2021, but it has been negative for three consecutive years (from 549.4 billion yuan to 538.2 billion yuan), which is why the "provincial capital leadership" strategy is needed to address the situation.
III. Outcomes of the "Strengthening Provincial Capitals" Strategy: Some Have Succeeded, While Others Have Not
- Successful Examples: Fuzhou has not only met its GDP targets but also seen rapid growth; Guiyang has seen a rapid increase in population, indicating its strong attractiveness. Shijiazhuang, which was previously considered less prominent, has seen its proportion of GDP rise from 16% to 17.55% and is making progress.
- Challenging Examples: Taiyuan has experienced significant economic fluctuations and negative growth; the declining proportions of GDP contributed by Lanzhou and Urumqi suggest that previous strategies to strengthen provincial capitals may not have addressed the key issues, or that the industrial foundations were not solid enough.
IV. The Core of the "Provincial Capital Leadership" Strategy: Action Is Needed, Not Just Empty Statements
The central guidance team has specifically emphasized three things to avoid:
1. Avoiding mere formality: Meetings and documents should not be followed up without actual action.
2. Ensuring policies are implemented: Policies must be translated into concrete projects and initiatives that affect businesses.
3. Adapting to local conditions: Policies should not be copied mechanically; they need to be tailored to the specific circumstances of each province (for example, Nanchang should leverage the opportunities provided by its comprehensive reform zone, while Taiyuan should stimulate its own intrinsic momentum).
In other words, action is required—Nanchang needs to build a stronger industrial foundation, and Taiyuan needs to revive its reputation as a vibrant city. Both goals can only be achieved through practical actions, not just empty slogans.
V. Why the "Provincial Capital Leadership" Strategy Is Necessary
According to Chen Yao, vice president of the China Regional Economics Association, regional development requires a "cluster effect" before it can have a "driving effect." Provincial capitals have the most resources (policies, talent, and funding), and by strengthening them, they can attract more resources (such as businesses and talent) and then drive the development of the surrounding areas. For example, some provincial capitals in the central and western regions (such as Chengdu and Wuhan) have been able to drive the development of their entire provinces. If provincial capitals do not thrive, talent will likely migrate to larger cities, preventing the region from developing. Therefore, the "provincial capital leadership" strategy is not an optional approach; it is essential to first strengthen the provincial capital to activate the entire region.
Conclusion
The "provincial capital leadership" strategy is not a rejection of the idea of strengthening provincial capitals; rather, it represents an upgrade of that approach. The goal is not only to make the provincial capital stronger but also to use it as a driving force for the entire province. For Jiangxi and Shanxi, this strategy is crucial for reversing economic declines and enhancing the competitiveness of their provinces. For the whole country, it is a necessary step towards coordinated regional development. After all, only a strong provincial capital can serve as the engine that drives the development of the entire region.