Provincial Industrial Sectors’ Q3 Reports: Is It Central China’s Time to Shine? – 36Kr

Provincial Industrial Performance Report: Q1-Q3 Analysis

Alignment with National Strategy and Sustainable Development Goals

As the 14th Five-Year Plan progresses, an analysis of economic data from the first three quarters reveals a significant acceleration in China’s industrial transformation. This shift is closely aligned with the national strategic objective of building a modern industrial system, as outlined in the 15th Five-Year Plan proposal. The emphasis on advanced manufacturing and a robust real economy directly supports the achievement of several Sustainable Development Goals (SDGs), particularly SDG 9 (Industry, Innovation, and Infrastructure) and SDG 8 (Decent Work and Economic Growth).

Overall Industrial Growth Overview

• National Average Growth: The national average for above-scale industrial added value growth was 6.2%.
• Provincial Performance: 21 provinces exceeded this national average, indicating widespread industrial momentum.
• Top Performers: Among the top ten provincial economies, eight surpassed the national growth rate.

1. Henan: 8.4%
2. Hunan & Shandong (tied): 7.8%
3. Hubei: 7.7%

Anhui, while outside the top ten economies, demonstrated exceptional industrial growth of 8.8%, positioning it as a strong contender for future economic prominence. Conversely, regional disparities are evident, with Jilin’s growth at 8.4% starkly contrasting with Liaoning’s 2.2%, the lowest in the country.

Section 1: Innovation as a Catalyst for Sustainable Industrialization (SDG 7, SDG 9, SDG 11)

The Role of New Energy Vehicles (NEVs)

The transition to sustainable energy and transport systems, central to SDG 7 (Affordable and Clean Energy) and SDG 11 (Sustainable Cities and Communities), is a primary driver of industrial innovation. The New Energy Vehicle (NEV) sector has emerged as a critical engine for growth, reshaping provincial industrial landscapes and advancing SDG 9 by fostering innovation and building resilient infrastructure.

Provincial Case Studies:

• Henan Province

  Henan’s industrial growth of 8.4% was significantly propelled by its automotive industry, which grew by 20.0%. The NEV sector was a key contributor:

  • The industrial added value of the NEV industry increased by 19.3%.
  • The broader NEV industry chain saw its added value grow by 26.2%.
  • Strategic emerging industries, influenced by NEV development, grew by 11.6%.
  • Attraction of key enterprises like BYD and CATL has fortified the local clean energy ecosystem.

• Anhui Province

  Anhui exemplifies how early investment in sustainable industries yields significant dividends. Its leadership in the NEV sector has driven its overall industrial added value growth to 8.8%.

  • Anhui has become a national leader, producing 1.2163 million NEVs in the first three quarters, ranking first in the country.
  • This industrial strength has enabled Anhui to historically enter the ranks of “national industrial provinces,” demonstrating a successful model for achieving sustainable economic growth (SDG 8) through targeted innovation (SDG 9).

Section 2: Modernizing Traditional Industries for Responsible Production (SDG 9, SDG 12)

Transformation of Industrial Bases

For provinces with established industrial foundations, the focus is on transformation and upgrading to align with SDG 12 (Responsible Consumption and Production) and SDG 9. Shandong and Hunan, both major industrial provinces, have demonstrated strong growth by modernizing their core sectors through digital and intelligent transformation.

Provincial Strategies:

• Shandong and Hunan

  Both provinces achieved an industrial growth rate of 7.8%, driven by the equipment manufacturing industry.

  1. Shandong: Equipment manufacturing grew by 12.0%. The province is leveraging artificial intelligence to upgrade key sectors, with a goal to create over 50 benchmark application scenarios by 2027. The digital transformation coverage rate of its industrial enterprises has reached 95.1%.
  2. Hunan: Equipment manufacturing grew by 11.4%. Key enterprises are pursuing strategies of globalization, digital transformation, and low-carbon development, contributing to improved corporate efficiency and profitability across 37 of 39 major industries.

  These efforts reflect a commitment to transforming traditional industries, which constitute approximately 80% of the national manufacturing sector, into modern, efficient, and sustainable systems.

Section 3: Addressing Regional Disparities and Ensuring Inclusive Growth (SDG 8, SDG 9)

Contrasting Trajectories in Northeast China

The divergent paths of Jilin and Liaoning highlight the challenges and opportunities in ensuring inclusive and sustainable industrialization across all regions. While both are traditional industrial bases, their recent performance illustrates the critical importance of adapting to new economic drivers.

Comparative Analysis:

• Jilin Province: A Model of Recovery and Diversification

  Jilin’s industrial added value grew by 8.4%, driven by a diversified strategy that supports sustainable growth.

  • Key industries such as pharmaceuticals (17.1%), information (15.0%), and petrochemicals (11.0%) showed double-digit growth.
  • High-end manufacturing saw significant gains, with NEV production up 9.5% and urban rail vehicle production up 54.7%, contributing to SDG 11.
  • Increased industrial investment lays a foundation for future resilience and sustained economic growth (SDG 8).

• Liaoning Province: The Challenge of Transformation

  Liaoning’s industrial growth of 2.2% reflects its struggle to transition from old to new economic drivers. The province’s heavy reliance on traditional fuel-powered vehicles, which saw a production decrease of 10.1%, has constrained its economic performance.

  • The automotive manufacturing sector’s added value decreased by 5.4%.
  • Downward pressure on traditional sectors like metallurgy and petrochemicals further hampered growth.
  • In response, Liaoning has formulated plans to integrate artificial intelligence into key industrial clusters, including intelligent connected vehicles and advanced equipment, in an effort to revitalize its industrial base and align with the principles of SDG 9.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth

  The article extensively discusses economic growth, focusing on Gross Domestic Product (GDP) growth rates and industrial added value across various Chinese provinces. It highlights efforts to increase economic productivity by shifting towards higher-value industries, which is central to achieving sustained and inclusive economic growth.

• SDG 9: Industry, Innovation and Infrastructure

  This is the most prominent SDG in the article. The text centers on industrial development, the transformation of industrial landscapes, and the push for innovation. It details the growth of specific sectors like new energy vehicles, equipment manufacturing, and the adoption of technologies like artificial intelligence and digital transformation to build a “modern industrial system.”

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries.

   The article directly addresses this target by reporting on the GDP growth rates of various provinces. For example, it mentions Henan’s GDP grew by 5.6% and Shandong’s and Hunan’s GDP growth rates were 0.4 and 0.2 percentage points higher than the national average, respectively. This reflects the national and sub-national focus on sustaining economic growth.

2. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors.

   The article provides numerous examples of efforts to achieve this target. The shift towards “strategic emerging industries” like new energy vehicles in Henan and Anhui, and the “digital and intelligent transformation” in Shandong and Hunan, are clear strategies for technological upgrading and focusing on high-value-added sectors to boost economic productivity.

3. Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in accordance with national circumstances, and double its share in least developed countries.

   The core theme of the article is the industrial development across Chinese provinces. The national plan to “maintain a reasonable proportion of the manufacturing industry” and the detailed analysis of “above-scale industrial added value” growth rates directly relate to raising the industry’s contribution to the GDP. Anhui’s announcement of having “historically entered the ranks of ‘national industrial provinces'” exemplifies this focus.

4. Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending.

   The article highlights the upgrading of technological capabilities. Shandong’s plan to “cultivate 20 basic-level artificial intelligence large models” and implement “12,000 technological transformation projects” is a direct effort to enhance technological capabilities. Similarly, the focus on innovation in the new energy vehicle sector and the “digital and intelligent transformation” of traditional industries in Hunan and Shandong are practical applications of this target.

5. Target 9.b: Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities.

   The national 15th Five-Year Plan proposal to build a “modern industrial system with advanced manufacturing as the backbone” and provincial plans like Liaoning’s “Implementation Plan for Promoting the Innovative Development of Artificial Intelligence” demonstrate a policy environment that supports domestic technology development and innovation to drive industrial upgrading.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Annual growth rate of real GDP: The article explicitly provides GDP growth rates for several provinces. For instance, “Henan’s GDP… a year-on-year increase of 5.6%” and Liaoning’s GDP increased by “4.3%”. This is a direct indicator for Target 8.1.
2. Manufacturing value added as a proportion of GDP: The article’s central metric is the “above-scale industrial added value growth rate.” It states that 21 provinces outpaced the national average of 6.2% and gives specific figures for Henan (8.4%), Anhui (8.8%), and Liaoning (2.2%). This serves as a direct indicator for Target 9.2.
3. Proportion of medium and high-tech industry value added in total value added: The article implies this indicator by detailing the growth rates of specific high-tech and strategic industries. For example, “the added value of Henan’s strategic emerging industries in the industrial sector increased by 11.6%,” and in Hunan, the “electronic information manufacturing industry increased by 14.8%.” These figures measure the shift towards higher-value, technologically advanced sectors, relevant to Targets 8.2 and 9.5.
4. Manufacturing output/production volume: The article provides specific production numbers for the new energy vehicle (NEV) industry. It mentions, “Henan produced 487,000 new energy vehicles” and “Anhui produced… 1.2163 million new energy vehicles.” This data can be used as an indicator of industrial output in a key innovative sector.

4. Summary Table of SDGs, Targets, and Indicators

Source: eu.36kr.com