Why_the_Yangtze_River_Delta_Is_Powering_Growth_in_the_Chinese_Mainland

Why the Yangtze River Delta Is Powering Growth in the Chinese Mainland

Spread across Shanghai and its neighboring provinces of Jiangsu, Zhejiang and Anhui, the Yangtze River Delta covers just 4% of the Chinese mainland’s land area yet is home to 17% of its population and generates nearly a quarter of its economic output.

A National Strategy Takes Shape

In November 2018, Chinese President Xi Jinping elevated integrated development of the delta to a national strategy at the First China International Import Expo in Shanghai. Since then, Xi has made repeated visits and led key meetings to steer the region toward a modern economic system with higher standards for reform and opening up.

Seamless Supply Chains in Action

A single new energy vehicle now showcases the delta’s synergies: chips and software from Shanghai; batteries from Changzhou in Jiangsu; and die-casting equipment from Ningbo in Zhejiang—all within a four-hour drive. This tight network underpins the region’s ranking as the world’s second-largest metro cluster by GDP at $4.65 trillion in 2024, trailing only the Boston–Washington corridor.

Innovation as the Engine

Recognizing long-term, high-quality growth, Xi has pushed cross-region collaboration in tech and industry. In late 2023, stakeholders from Shanghai, Jiangsu, Zhejiang and Anhui launched a Yangtze River Delta science and technology innovation community. Their 2024 action plan includes a joint fund, a shared legislative framework and 29 collaborative research projects—from millisecond-level intelligent 6G to advanced materials.

By mid-2024, the delta hosted 26 national advanced manufacturing clusters—32.5% of the mainland total—spanning large aircraft, biomedicine and high-end equipment. R&D intensity climbed from 2.81% of GDP in 2018 to 3.34% in 2023. Internationally, Shanghai-Suzhou and Nanjing ranked fifth and ninth in the 2024 Global Innovation Index’s top tech clusters, cementing the region’s role as a global innovation hub.

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