Lighters made in Shaodong, Hunan Province, are exported in bulk to Africa; Anji in Zhejiang Province turns a simple tea leaf or bamboo into an ecological commodity; Kunshan and Jiangyin in Jiangsu Province have surpassed the 500 billion yuan ($70 billion) GDP mark … This dynamic illustrates the diversity and vitality of the county economy in China, which is becoming an important lever for high-quality development.

Counties are the basic unit of the national economy and an essential link between urban and rural areas. According to the National Development and Reform Commission (NDRC), there are currently 1,866 counties or county-level cities in China, covering almost 90 percent of the land area. They are home to more than half of the population and contribute 38 percent of the country’s GDP.

A new report published by CCID Consulting, China’s largest research, consulting and IT outsourcing service company, on 23 July shows consistent economic growth at the county level, with their total GDP rising sharply from 31.6 trillion yuan ($4.4 billion) in 2015 to 48.3 trillion yuan ($6.7 billion) in 2023. More than a third of the top 300 SME clusters identified at the national level are located in counties.?

This year’s Government Work Report emphasises the importance of developing the economy in counties, building on local strengths and promoting the emergence of new quality productive forces. Many counties have succeeded in capitalising on their own resources to develop comparative advantages and become national reference points. The upscale nature of this economy has thus become an essential lever for rural revitalisation and the promotion of shared prosperity.

Specialisation and development of clusters

The growth of county economies is based on their ability to specialise and structure integrated industries. According to Gao Guoli, director of the China Centre for Urban Development under the NDRC, the key to success lies in the precise definition of a specific sector and the development of industrial clusters.

The county of Xinfeng in Jiangxi Province is a good example of this. The formerly agricultural area, known for its citrus fruits, has established itself in the electronics industry and founded 19 listed companies. By investing in this promising sector since the early 2000s, Xinfeng has laid the foundations for a truly state-of-the-art industrial zone. Today, the county has become the leading centre for the production of printed circuit boards in the province.

Another notable example is Liyang in Jiangsu Province, which has positioned itself in the battery value chain by bringing together more than 70 companies in this sector, including several national market leaders. The county now leads the national rankings in terms of the size of the sector and the completeness of the industrial chain.

Some counties have even become major players in very specific industrial niches. Danyang, Jiangsu Province, produces more than half of all spectacle lenses worldwide. Jinjiang, Fujian Province, has long produced a fifth of the world’s sports shoes. Xingcheng, Liaoning Province, is a major player in the global swimwear market, and Caoxian, Shandong Province, dominates the show costume segment.

For Liu Jinxiang, an expert at the Heilongjiang Research Centre for the Theoretical System of Socialism with Chinese Characteristics, this dynamic can be explained in part by the relocation of production activities from the major urban centres to more areas in counties. Faced with this opportunity, counties need to organise themselves quickly, invest in infrastructure, improve services and create an environment conducive to entrepreneurship to welcome this new industrial wave.

This also applies to Changsha County, which is relying on the economic resources of the provincial capital Changsha City to develop a world-class construction machinery industrial cluster. Also on China’s borders, several counties have evolved from a secondary role to an important link in the “dual transport system” stimulated by the port industry and cross-border cooperation, especially in Xinjiang and Yunnan.

Innovation and new trends

Technological innovation is now at the centre of many counties’ strategies. They are striving to develop local innovation ecosystems and reorganise their production structures to become more competitive. As Fu Guirong, secretary of the CPC Yuyao Committee, said, “Innovation must remain the main driving force to develop new quality productive forces adapted to local conditions.”

The digital economy plays a key role in this. In Nan’an in Fujian Province, Jomoo’s smart factory is almost entirely automated, with robots carrying out all the work on the assembly line. In Changle in the same province, Changyuan Textile has developed a highly automated workshop where only a few technicians are needed to monitor dozens of machines.

The digital transformation is also having an impact on the agricultural sector. Sheyang in Jiangsu Province has utilised the most advanced technologies – the Internet of Things, big data, and artificial intelligence – to improve the efficiency of its rice production. This county is now a national benchmark for growing quality rice. Its integrated farming model has even been exported to Tanzania, where it benefits thousands of local producers.

In Hebei Province, Qiuxian has opted for the development of e-commerce. By selecting the products best suited to online sales, the county is boosting its local industry through targeted marketing strategies.

Tourism is also becoming a growth driver for the counties. Public policies and the introduction of themed tourism routes are intended to reinforce this trend. The improvement of transport and visitor infrastructure is also making a contribution.?

Some regions are characterised by their innovative approaches. Fanshi in Shanxi Province is focusing on the integration of sports and tourism in order to boost local consumption. Anxi in Fujian Province has developed tea tourism that combines cultural heritage and sensory experiences to attract visitors.

From smart manufacturing and innovative agriculture to cross-border cooperation bases, China’s counties present diverse answers to the challenge of achieving high-quality development. Their vitality reflects both the adaptability and the resilience of the broader Chinese economy.