Summary of Key Points
This news article focuses on the "dynamic management" of national-level economic and technological development zones (referred to as "national-level economic development zones"). In 2025, five such zones will be removed due to poor performance in evaluations, marking the most significant action of its kind in history. The state has long established a system that promotes competition and elimination based on merit, and local authorities are also streamlining provincial-level economic development zones. In the future, national-level economic development zones will no longer be considered "lifetime golden badges"; they must shift towards high-quality development, relying on innovation and industrial strength rather than past policy incentives.
1. Five Economic Development Zones to Be Replaced: Two Clear Messages
The zones that will be removed include Jiedong in Guangdong, Puyang in Henan, Hulunbuir in Inner Mongolia, Yingkou in Liaoning, and Daqing in Heilongjiang. The reason is simple: they scored low in the evaluations. This is the largest number of zones to be eliminated since the establishment of national-level economic development zones, conveying two key messages:
- Message 1: National-level economic development zones are not a guaranteed success. In the past, obtaining this status might have meant permanent recognition, but now annual assessments determine their fate; previously, three zones (Jiuquan, Shizuishan, and Suihua) were also removed.
- Message 2: These zones must pursue high-quality development. Those with weak innovation capabilities and poor regional development effects do not meet current standards and must transform or face elimination.
2. Dynamic Management Has Been in Place for Some Time: Competition as the Norm
The state did not suddenly implement this policy; it had already established the necessary frameworks:
- In 2021, the Ministry of Commerce issued evaluation methods to clarify the scoring criteria.
- In 2023, new dynamic management measures were introduced, explicitly incorporating the concept of zones being able to enter or exit the program.
The purpose of these systems is to make economic development zones more dynamic—no longer just focusing on growth in numbers, but on which zones can truly achieve high-quality development. As a result, four provincial-level zones were upgraded to national-level status in 2024.
3. Local Authorities Are Also Streamlining: From Competing for Status to Focusing on Quality
The state's dynamic management policies have influenced local authorities, who are downsizing their economic development zones:
- Liaoning: The number of provincial-level economic development zones has been reduced from a peak of 92 to 43, a reduction of more than half. The principle is to eliminate those with poor performance, financial deficits, chaotic planning, or long-term underperformance.
- Inner Mongolia: No new development zones will be established, and existing ones with similar industries or close locations will be merged or abolished if they show no improvement in output or projects.
This indicates that local areas have moved from a focus on obtaining status to evaluating the quality of their economic development zones. Quantity is no longer the priority; quality is key.
4. The New Mission of National-Level Economic Development Zones
In May 2025, the Ministry of Commerce assigned new tasks to national-level economic development zones:
- No Longer Relying on Policy Incentives: These zones can no longer rely on special policy benefits to attract businesses, as a unified national market is being established, reducing the significance of such differences.
- Changed Evaluation Criteria: The focus has shifted from mere economic output (e.g., GDP) to five key areas: openness to the outside world, technological innovation, green development, coordination, and quality of development.
- Promoting New Productive Forces: Zones are encouraged to develop high-end industries (e.g., new energy vehicles), green technologies (environmental protection), and digitalization (smart connectivity). In other words, they must become centers for innovation rather than merely recipients of policy support.
5. Healthy Competition Leads to Improvement: Pressure from Elimination Spurs Progress
The elimination process is not negative; it drives improvement in the remaining zones:
- Pressure Turns into Motivation: The remaining zones will place greater emphasis on innovation and high-quality development to avoid being eliminated.
- New Entrants Are Promising: The four provincial-level zones that were upgraded in 2024 (Guangzhou Huadu in new energy vehicles and smart connectivity, Jiangxi Guixi possibly related to new materials, Chongqing Fuling in industrial clusters, and Shenyang Finance and Commerce in financial services) all represent sectors aligned with high-quality development.
In the future, economic development zones will increasingly resemble "industrial hubs" with clear divisions of labor and comprehensive support systems, effectively driving regional growth.
In summary, the inclusion and elimination of national-level economic development zones is a positive trend. It directs resources towards areas that can truly drive economic progress, shifting China's economy from quantitative expansion to quality improvement. For the general public, this means a healthier economy and more competitive industries.