Yangtze River Delta region solidifies role as highland for high-end manufacturing

(Illustration: Liu Rui/GT)

The 7th High-level Forum on Integrated Development of the Yangtze River Delta, held on Saturday in Nanjing, East China's Jiangsu Province, unveiled an advanced manufacturing cluster alliance for the Yangtze River Delta region. In strategic sectors such as semiconductor materials, Shanghai, Jiangsu, Zhejiang, and Anhui are collaboratively driving advanced manufacturing clusters with competitive advantages toward achieving world-class status, the Jiefang Daily reported on Sunday.

This initiative is a meaningful step forward in advancing the coordinated development of the Yangtze River Delta's advanced manufacturing sector - particularly in vital fields such as artificial intelligence (AI), integrated circuits (ICs), and electric vehicles. It will boost the region's industrial competitiveness and solidify its role as a highland for high-end manufacturing and technological development both in China and globally.

After years of integrated regional development, the Yangtze River Delta has further solidified its position as one of China's most dynamic, open, and innovation-driven regions.

It leads the nation in scientific and technological innovation and industrial cluster development, and serves as a pivotal link in the global industrial chain.

The Yangtze River Delta region had established 26 national-level advanced manufacturing clusters, making up 32.5 percent of the national total, according to the Jiefang Daily.

The Shanghai Securities News in March reported that the region's industrial scale in ICs represents approximately three-fifths of the national total, while AI accounts for one-third of the national total.

The region's foreign trade in 2024 reached a record high, with total imports and exports accounting for 36.5 percent of the national total, demonstrating its strong position in China's global trade. The region also saw substantial growth in exports of high-end equipment and mechanical and electrical products.

The Yangtze River Delta has already formed a development pattern where traditional industries, strategic emerging industries, and future industries are integrated. The three provinces of Jiangsu, Zhejiang, Anhui and the municipality of Shanghai each possess distinct industrial advantages.

The 26 national-level advanced manufacturing clusters in the region cover sectors such as large aircraft, biomedicine, ICs, new materials, and high-end equipment. Of these, Jiangsu has 13 clusters, Zhejiang has seven, Shanghai has five, and Anhui has one, according to the People's Daily.

Through the establishment of the advanced manufacturing cluster alliance, the Yangtze River Delta region is expected to fully leverage the comparable and complementary advantages of each area to build a broader industrial and supply chain collaboration network. Such continuous efforts to further strengthen integrated coordination in scientific and technological innovation and industrial innovation are expected to cultivate more leading innovative enterprises, and accelerate the development of a modern industrial system.

In the face of external technological competition and restrictions, such efforts to jointly cultivate world-class advanced manufacturing clusters and contribute to accelerating the new industrialization and building a modern industrial system will help address similar bottlenecks faced by upstream and downstream enterprises in the industrial chain, further driving the development of the industry.

For instance, for ICs, Shanghai's chip design and overall advantages, Zhejiang's design skills, Jiangsu's packaging and testing, and Anhui's wafer manufacturing can work closely together to enhance the stability and resilience of the industrial chain.

Shanghai, the center of the Yangtze River Delta, is accelerating its transformation to a global innovation hub. This shift is drawing more patient capital into technological innovation into the Yangtze River Delta region.

For instance, Shanghai has established a future industries fund with a total scale of 10 billion yuan ($1.4 billion). Jiangsu has a 50 billion yuan fund for strategic emerging industries, according to the Xinhua News Agency. Zhejiang's and Anhui's special funds to boost advanced manufacturing and tech-driven enterprises are also attracting increasing investments, according to media reports.

The Yangtze River Delta region's capacity to utilize foreign capital is also increasing due to its improving business environment, innovation strength, and global connectivity. As China continues to promote high-level opening-up and restructure its economy toward services, sustainability, and innovation, the region is expected to remain a magnet for high-quality foreign investment and a gateway for global capital into China.

By further optimizing innovation transformation processes and fostering an open innovation ecosystem, the Yangtze River Delta is well-positioned to strengthen its efforts in building world-class industrial clusters, playing an increasingly central role in global economic and technological competition.

The author is a reporter with the Global Times.