Jinhua shows sustainable economic path

Jinhua, a city in the heart of Zhejiang province, is transforming and upgrading its industries while fostering new ones to drive high-quality development, the city's Party Secretary Zhu Chonglie said.

In 2022, the Zhejiang Provincial Committee of the Communist Party of China designated Jinhua as a "high-level, inland open hub". In response, the city has developed a robust private economy, with 2 million market entities.

In recent years, Jinhua has deepened its participation in the Belt and Road Initiative, developed new trade models such as cross-border e-commerce and accelerated its opening-up efforts. Last year, the city's exports reached 771.92 billion yuan ($106.62 billion), an increase of 16.4 percent year-on-year, contributing 32.1 percent to Zhejiang's growth and accounting for 3 percent of China's total.

This year, the Government Work Report mentioned the issue of involution, proposing a comprehensive correction to unhealthy, involutional competition. The term refers to destructive price wars between companies and the homogenization of products within an industry.

Zhu highlighted the economic impact of such competition and outlined steps the city government has taken to foster a more sustainable economic cycle. He noted that involutional competition, particularly in price-cutting, erodes corporate profits and household incomes. Addressing the issue requires systemic reform to reshape the industrial ecosystem and cultivate new growth drivers, he said.

Jinhua is promoting technological and industrial innovation through the Zhejiang Central Science and Technology Innovation Corridor, which connects universities, platforms, enterprises and industrial chains. Last year, the city launched 15 provincial sci-tech initiatives to support more than 1,000 major projects with a combined investment of 1 trillion yuan, established 25 joint research and development centers and led the province in terms of R&D investment and high-tech industry investment growth.

Also last year, a key technological innovation and application project for the edible and medicinal fungi industry chain, developed by Zhejiang Shouxiangu Pharmaceutical Co, won top honors at the National Science and Technology Progress Awards. In 2024, Jinhua was named one of China's top 50 innovative cities, with its innovation capability index rising 16 places.

The city has also strengthened its open economy through the Yiwu International Trade Comprehensive Reform Pilot Zone and the China-Europe freight train network, helping enterprises tap into the markets of countries involved in the BRI.

Last year, the number of import and export enterprises in Jinhua surpassed 17,000, up 10.3 percent year-on-year.

The city has also improved its business environment by enhancing municipal coordination, value-added services, fair competition and enterprise support.

Jinhua has introduced a "double chain" drive mode, pairing a government-led industrial chain leader with industry-led chain owners. The government supports enterprises with innovation, market expansion and problem-solving, while leading enterprises spearhead industry-wide innovation collaborations.

Jinhua's leaders and major enterprises are working together to develop an innovation ecosystem centered on 10 key industrial chains, including new energy vehicles. In the electric vehicle sector, Leapmotor has received strong support, with 38 related enterprises clustered in Jinhua and the local procurement ratio for components and parts exceeding 40 percent.

"The cultivation of new quality productive forces is a long-term task," Zhu said. "We will persist in transforming and upgrading traditional industries, nurturing emerging ones and planning for future industries to promote high-quality development."