Joint economic zone attracts $84b in investment

Less than a year after the Taiyuan-Xinzhou integration plan was announced, investors have flocked to the two cities for new development opportunities.

Those coming recently include Beijing-based Huaxia Green Energy that agreed to launch an energy equipment project in Xinzhou; Shanxi-based Huayang Group that pledged to launch projects for producing degradable plastics, aerogel and other new materials in Taiyuan; and Jiangsu-based Jolywood Solar Material Technology that announced it is to build a high-purity polycrystalline silicon project in Taiyuan.

The urban integration program of the two cities was proposed last year.

In March 2021, the State Council released a guideline for the 14th Five-Year Plan (2021-25), requiring Shanxi to foster a city cluster in its central region.

Grasping the historic opportunity, the Shanxi Committee of the Communist Party of China and the Shanxi provincial government made a plan to promote the development of the Taiyuan-Xinzhou Integrated Economic Zone in the month that followed.

According to the plan, the integrated zone will comprise a number of economic zones and industrial parks in the two cities.

The Taiyuan-Xinzhou integrated zone is also designed to host industries relocating from the Beijing-Tianjin-Hebei region, where an integrated regional development plan is in place.

The integrated economic zone in Shanxi will mobilize resources in both cities to build industrial clusters focusing on new materials and advanced equipment manufacturing, and foster new engines for the province's economic development, according to the plan.

The plan also defined the industrial development of the two cities. Taiyuan is to focus on such sectors as the headquarters economy, high-end commerce, finance and advanced manufacturing; Xinzhou will highlight industries including eco-friendly cultural tourism, modern agriculture, semiconductors and new materials.

The Promotional Center for the Development of the Taiyuan-Xinzhou Integrated Economic Zone was founded on Dec 29, marking when the operation of the zone began officially.

The zone's two operational centers in Taiyuan and Xinzhou were established on Dec 29 and 30 respectively.

Soon after this, officials from the two cities arranged trips to Beijing and Tianjin municipalities and Hebei province for investment promotion. They have also traveled to other parts of the country to attract investors.

Based on their efforts, the officials predicted that more than 480 projects will be launched in the Taiyuan-Xinzhou Integrated Economic Zone, with investment totaling 533.7 billion yuan ($84.13 billion).

The two cities continued to hold business promotional events this year, with the latest being a farm produce exhibition in Xiong'an New Area in Hebei province.