Henan advances high-quality development through real economy

A worker checks the quality of titanium products in a workshop of Luoyang Hexin Titanium Co., Ltd. in central China's Henan province. (Photo by Zhang Yixi/People's Daily Online)

In the heart of central China, Henan province has made significant strides toward high-quality development, anchored firmly in the real economy. From major industrial hubs to advanced infrastructure projects, the province's development momentum is palpable across the central plains.

At a construction site in Luoyang, the second phase of Chinese battery giant CATL's facility is rapidly taking shape, with tower cranes punctuating the skyline. Meanwhile, in the Zhengzhou Airport Economy Zone, the hum of machinery fills the air as construction activities intensify to establish the Central China Medical Science District.

Henan has prioritized the real economy as the cornerstone of its economic strategy. By leveraging project development as a principal mechanism, the province has actively expanded effective investment and invigorated the drivers for stabilizing economic growth.

In 2024, Henan launched 16,800 major projects across various stages of development, encompassing contract signing, groundbreaking ceremonies, and production commencements. Among them, 9,718 projects pertain to advanced manufacturing. Key indicators, including fixed-asset and industrial investment, outpaced the Chinese national average, underscoring the province's economic momentum.

In the assembly workshop of CITIC Heavy Industries Co., Ltd. in Luoyang, central China's Henan province, workers are assembling mine hoist sheaves and other mining equipment bound for overseas markets. (Photo by Huang Zhengwei/People's Daily Online)

In Mengzhuang township, Huixian, construction is underway on a smart logistics hub for Chinese e-commerce giant JD.com. Two large warehouses have been completed, the main building has reached structural completion, and other auxiliary facilities are advancing at a steady pace.

With a total investment of over 600 million yuan ($83.32 million), the project encompasses six centers, two bases, and one headquarters. Construction commenced in 2024, with some facilities already operational, generating thousands of jobs.

"We are striking a balance between quick wins and long-term vision," said Tian Dongfang, director of the township's economic development office. "Our goal is to build a comprehensive logistics hub for northern Henan, with massive growth potential."

This equilibrium between short-term accomplishments and forward-looking planning underpins Henan's confidence in its development trajectory. The province maintains a strategic approach in the formulation and preparation of major projects.

"Henan always keeps a strong pipeline of major projects across key sectors. We maintain a reserve of at least 100 high-quality projects, revising the list every six months based on evolving needs," explained an official with the Development and Reform Commission of Henan Province.

The province has released its list of key construction projects for 2025, identifying 1,037 provincial-level projects with a combined investment of around 3.1 trillion yuan. It aims to complete investments totaling approximately 1 trillion yuan within the year.

Henan is also capitalizing on its intrinsic advantages to reinforce its development strengths. With a well-established industrial base, the province successfully attracted Chinese automaker SAIC Motor to build a new energy battery plant in Zhengzhou. Concurrently, the province is expediting the development of a 10-billion-yuan food industrial park in Luohe's Yancheng district, harnessing its abundant agricultural resources.

Innovation, infrastructure enhancement, and industrial transformation remain central to Henan's priorities. The province targets the production of 2 million vehicles in 2025, including 1.4 million new energy vehicles. Meanwhile, it is accelerating construction of major projects such as an ethylene production facility and a fluorosilicon materials complex in Luohe, alongside critical infrastructure projects including the Yellow River Crossing Project and Phase I project at Zhoukou Central Port.

While expanding its overall economic scale, Henan equally emphasizes the qualitative aspects of growth. By upgrading project structures, the province is elevating the standard of industrial development.

Tractors are assembled in a workshop of YTO Group Corporation, an agricultural machinery supplier based in Luoyang, central China's Henan province. (Photo by Zhang Yixi/People's Daily Online)

At Zhengzhou Hengda Intelligent Control Technology Co., Ltd., a manufacturer specializing in smart control systems for coal mining operations, research personnel now outnumber production workers by a ratio of five to one, resulting in a 67 percent increase in per capita productivity.

The company faced constraints such as limited growth capacity and low automation levels. To facilitate its development, the Zhengzhou Economic and Technological Development Zone designated the construction of a new facility for Hengda Intelligent Control as a key advanced manufacturing project, providing strong policy support and logistical facilitation.

"With more automated and digitalized equipment, we've been able to deploy our workforce toward research, development and services," said Lian Donghui, general manager assistant of the company.

"When planning and executing projects, our primary focus remains industrial development," said Chen Bo, director of the Henan provincial government's office for key project construction.

According to Chen, a single major project can serve as a catalyst for new growth, while a cluster of such projects can establish a new economic growth pole. The province actively encourages upstream and downstream businesses to co-locate in proximity to core projects, thereby accelerating cluster-based industrial development.

In Luoyang's Yibin district, a white freight truck loaded with new energy batteries departed the Phase I facility of CATL's Luoyang base. This flagship project has attracted nine affiliated enterprises along the industrial chain, which have signed agreements to establish operations in the vicinity. As a result, a large-scale new energy battery industrial cluster, with an expected output value of over 100 billion yuan, is rapidly emerging in the city.

High-quality, large-scale projects are providing a firm foundation for Henan's efforts to stabilize growth, improve its economic structure, and foster new growth drivers. In 2024, the value added of industrial enterprises above the designated size in the province rose 8.1 percent year on year. Fixed-asset investment grew 7 percent, while the value added of strategic emerging industries and high-tech manufacturing increased by 9.2 percent and 12 percent, respectively.