Gansu Province's Industrial Upgrade Strategy Enhances Economic Growth

Northwest China's Gansu Province is on a transformative journey to revamp its industrial base as part of a broader initiative to modernize its economy and stimulate high-quality economic growth. Governed by Ren Zhenhe, a deputy at the 14th National People's Congress, Gansu is deploying an industry-driven development strategy designed to innovate and strengthen traditional sectors.

Ren emphasizes the necessity for innovation within traditional industries, stating that transformation is critical for progress in Gansu. The province aims to bolster leading enterprises, enhance industrial chains, and cultivate robust industrial clusters, all while pioneering the development of strategic emerging industries that modernize their industrial framework.

During the period of the 14th Five-Year Plan (2021-2025), Gansu’s GDP reached an impressive 1.37 trillion yuan (approximately $197.9 billion) by last year. The province has outpaced the national economic growth rate since 2022, showcasing its persistent momentum. Ren revealed that Gansu intends to maintain this upward trajectory by leveraging its manufacturing capabilities while accelerating structural changes to enhance competitiveness.

In pursuing this transformation agenda, Gansu has initiated around 300 upgrade projects yearly, emphasizing a shift toward intelligent and environmentally friendly development practices within its traditional sectors. This green transformation has become integral to Gansu's industrial evolution. By the close of 2025, energy consumption per unit of industrial output is projected to drop by 13.5%, with a corresponding decline in water usage per production unit.

Digital advancements are bolstering this transition towards greener economies. The integration of equipment and production systems through industrial internet platforms, combined with advancements in 5G and smart manufacturing, is helping local factories enhance efficiency while reducing emissions. Rather than outright replacement, Gansu is striving to upgrade traditional industries and elevate them up the value chain.

Resource industries, which have historically supported the local economy, are also undergoing a comprehensive restructuring. With its rich endowment of energy and mineral resources, Gansu is intensifying exploration and production while enhancing value-added processing. According to Ren, the aim is to convert “Gansu resources” into tangible “Gansu strengths.”

The province has recently launched an initiative for mineral exploration, with a focus on developing its gold resources and upgrading metal industries—such as silver and copper—resulting in steady increases in the output of essential metals and energy products. This strategic approach is reshaping Gansu into a pivotal national resource base.

These efforts have culminated in the establishment of robust industrial clusters. Gansu currently boasts two national-level advanced manufacturing clusters and has nurtured an additional 14 provincial-level ones. Notably, its nickel-copper-cobalt new materials cluster has received recognition as a national characteristic industrial cluster that benefits small and medium-sized enterprises. By 2025, these advanced manufacturing clusters are projected to generate over 900 billion yuan in output, contributing an impressive 88% of the province's overall industrial growth.

Innovation is becoming a focal point in Gansu's industrial transformation. The province is enhancing research into core technologies across major industrial supply chains, particularly within State-owned enterprises. Ren articulated the commitment to achieve breakthroughs in critical technological sectors and advance the integration of technological and industrial innovation. Investment in key technologies is paving the way for the development of advanced, internationally competitive technologies and products, reinforcing Gansu's unique significance in bolstering China's strategic scientific and technological agenda.

Moreover, digital infrastructure is positioned as another vital pillar in the modernization of Gansu’s economy. Under the “East Data, West Computing” initiative, the Qingyang data center cluster has attracted over 370 enterprises linked to the digital economy. Anticipated total computing capacity is expected to exceed 150,000 petaflops by 2026, facilitating the growth of AI and other data-driven industries.

Looking ahead, Ren indicated that Gansu will persist in merging digital advancements with real-world economic practices, while also advancing strategic emerging sectors such as hydrogen energy, new energy storage, low-altitude economies, and commercial aerospace. The province is committed to cultivating a competitive business environment, ensuring conducive conditions for market-oriented and law-based operations. Ultimately, Gansu aims to achieve resilient and high-quality development, contributing significantly to the national drive toward modernization.