Summary in Plain Language
The old notion that, to earn a lot of money, one had to go to the Yangtze River Delta or Pearl River Delta, while inland cities could only provide cheap labor and raw materials, no longer reflects the reality of China's economy. In recent years, many cities in the central and western regions, as well as in the north, which were previously labeled as having backward industries and experiencing population outflows, have caught up through new sectors such as renewable energy, computing power, and new materials. These cities have not only outperformed many traditional coastal cities in terms of GDP and fiscal growth but have also established complete industrial chains locally, allowing millions of workers to find high-paying jobs without having to leave their hometowns. Local governments have also moved away from relying on land sales and central subsidies for their finances. China's economy has shifted from a situation where the coastal areas dominated to one where multiple regions are developing evenly. This is no longer just a policy slogan; it's a real and ongoing change.
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Detailed Explanation
1. Don't be fooled by the slight decline in overall proportions: The era of coastal dominance is truly over
Many people still argue that the decline in the northern region's GDP share (by just 0.1 percentage points) proves that the inland areas' rise is an exaggeration. However, this minor fluctuation does not conceal the broader structural shift. Ten years ago, most of the top GDP growth rates came from coastal cities, while inland and northern regions struggled. Now the situation has reversed: Tangshan, which used to rely heavily on the steel industry, has seen its GDP growth rate stabilize at 6.2% over the past decade, ranking first among the top ten northern cities. By 2025, four of the top five GDP growth rates in the country will come from central and western regions. Golmud in Qinghai has achieved a growth rate of 10.8% thanks to its lithium industry from salt lakes, and the fiscal revenues of Jiuquan and Jinchang in Gansu have increased by nearly 50% or even doubled in five years, breaking the stereotype that western cities rely entirely on central transfers.
China's economic growth is no longer driven solely by the coastal areas; instead, it's spread across multiple cities. These inland cities, like catfish in a pond, have forced the coastal cities to upgrade their industries, thereby revitalizing the entire national economy.
2. This industrial transfer is not about shedding burdens; it's about moving entire industrial chains inland
Some wonder why there hasn't been more of a stir with previous industrial transfers to inland areas. The difference is that in the past, coastal companies only moved low-tech, low-value-added assembly lines to inland areas, leaving the core research and development, foreign trade orders, and high-tax revenues in the east. Inland areas gained few benefits beyond the assembly jobs, which meant young people had to move to the coast. Now, when leading companies move inland, hundreds of supporting businesses follow, with research and development, production, and supply chains all set up locally, creating many technical, supply chain management, and operational positions. A typical example is Yibin: before, it was known mainly for its Wuliangye liquor; after CATL (a leading battery company) settled there, over 120 battery-related companies followed, producing all the necessary materials locally. Yibin's new energy industry is growing at over 20% annually, and its GDP has nearly doubled in six years, freeing it from relying on the liquor industry.
3. The most tangible benefit for ordinary people: no longer need to leave home to work in the coast
This change in the economic landscape significantly affects population mobility. More than 60% of migrant workers used to cross provinces to work in the coast; now, twice as many find jobs within their own provinces. For example, in Henan, out of over 30 million rural workers, 18.54 million stay within the province, and in Sichuan, less than half work outside the province. The reason is clear: a technical job in the battery industry in Shenzhen pays 8,000 yuan per month, but after deducting rent and living expenses, only 2,500 yuan remains; in Yibin, the same job pays 6,000 yuan, with 3,200 yuan left after deductions. Working locally not only allows for more savings but also keeps families together. This has also created new business opportunities; for instance, someone selling snacks near a BYD factory in Zhengzhou earns a stable 13,000 yuan per month, which is much more comfortable than working in a factory on the coast.
4. This turnaround is not a short-term trend: inland cities have developed the ability to generate their own revenue
Many worry that these inland cities' impressive growth rates might be temporary. However, the fiscal growth of these cities comes from real industries. For example, Jinchang and Jiuquan's industrial taxes have increased by over 80% in five years, and their county-level revenues have more than tripled. Even small border towns like Tacheng are thriving. The tax growth of these inland cities has outpaced that of ordinary coastal cities for several years, reversing the trend of a widening financial gap between the inland and coastal areas. This development is sustainable and not based on temporary policies.
5. A sober reality: the idea that inland areas will completely surpass the coast is exaggerated, but choices have increased
It's important to note that the overall pattern of stronger southern and northern, eastern and western regions remains. The south has 20 trillion-yuan cities, while the north has only 9. High-end finance and internet companies are still dominated by the coast. Most inland cities that haven't seized new industrial opportunities still face population outflows and financial pressures. Even within the north, there are cities like Taiyuan with negative GDP growth and Shenyang with only a 2% growth rate. However, the most significant change is that the outdated notion that all young people must go to the coast to earn money is no longer valid. Ordinary people now have more options, with local cities offering stable jobs and decent incomes while allowing them to support their families.
In summary, while the overall imbalance between the north and south, and between the east and west, persists, the reality is that people have more choices about where to work. This economic restructuring brings significant benefits to ordinary people, providing stable jobs and better opportunities for family life.