BEIJING, Mar.6 (APP): In the evolving landscape of China’s economic development, Hefei has emerged as a transformative city that has quietly but decisively reshaped its economic identity.
From an industrial backwater to a technological powerhouse, the city has strategically positioned itself at the forefront of international trade and investment, leveraging unique industrial advantages to drive unprecedented growth.
Around 2015, Hefei embarked on a deliberate economic reinvention. Local and provincial governments implemented a strategic approach to attract high-tech industries, with the University of Science and Technology of China (USTC) serving as a critical cornerstone of this renaissance. Where traditional manufacturing once dominated, the city began cultivating advanced sectors like electric vehicles, semiconductor chips, and sophisticated robotics.
In 2024, Hefei achieved a significant milestone by surpassing 257.2 billion yuan in exports, representing a 10.6% year-on-year growth 3.5 percentage points higher than the national average. Mechanical and electrical products dominated the export portfolio, accounting for 80.3% of total exports with 206.54 billion yuan, marking a 13.2% increase.
Notably, emerging industries like new energy vehicles, lithium batteries, and solar cells—dubbed the new three products —saw export values reach 34.84 billion yuan, a remarkable 31.2% year-on-year growth, CEN reported on Thursday.
Luo Yunfeng, mayor of Hefei, and a deputy to the 14th National People’s Congress highlighted the city’s comprehensive approach to international engagement. “We’re not just expanding our reach,” he stated, “But strategically developing our global connectivity.”
The city has made significant strides in global connectivity by opening the Hefei-Shanghai automotive roll-on/roll-off shipping line, securing 240-hour transit visa-free access, launching seven new international passenger and cargo routes, and expanding China-Europe freight train service to over 900 trips.
Foreign investment has emerged as a pivotal force in Hefei’s economic transformation. In 2024, the city expanded its global investment landscape by signing 64 key foreign investment projects—a 56% year-on-year increase.
Global corporations have taken notice of Hefei’s potential. Volkswagen’s China division has centralized its pure electric vehicle development in the city, with the company’s second global research and development center currently under construction.
The city’s international appeal is further evidenced by attracting 20 new Global Fortune 500 enterprises, including Alstom and Standard Chartered Bank, thereby crossing the milestone of 100 such companies. It has also become home to the China headquarters of international firms like Australia’s Fortescue Energy and South Korea’s Magna, underlining the city’s growing attractiveness to multinational corporations.
Luo emphasized the city’s commitment to supporting enterprises going global. To achieve this, Hefei organized overseas marketing teams that visited 14 countries, and successfully attracted over 15 global Fortune 500 companies.
Companies like Gotion High-tech have already demonstrated the potential of this strategy, establishing a global footprint across Europe, Africa, and the Americas. With nearly 10 billion yuan in overseas investments, the company has implemented localized production in Germany, the United States, Indonesia, Thailand, and India.
“Hefei is positioned at the intersection of multiple national strategies,” Luo explained, including the Yangtze River Delta Integration, the rise of the Central Region, and the development of the Yangtze River Economic Belt.
His vision is clear: “We will benchmark against international standards, making the most of every opportunity and pushing forward with determination.”
As China continues to develop its open economy, Hefei stands as a compelling model of innovative, strategic economic development—a city that has not just participated in global innovation, but actively shaped it.