The news regarding the “2024 National High-Tech Industrial Development Zone Development Report,” released by China’s Ministry of Industry and Information Technology, clearly demonstrates the progress of China’s technological innovation in the global economy. The report reaffirms the crucial role that National High-Tech Industrial Development Zones (hereafter referred to as High-Tech Industrial Zones) play in China’s technological advancement, industrial competitiveness, and global economic strategy. This article examines the current state and future prospects of these zones based on the report’s findings.
The Rapidly Expanding Economic Scale of High-Tech Industrial Zones
In 2024, the GDP of High-Tech Industrial Zones reached 19.3 trillion yuan (approximately 397.6 trillion yen), reflecting a 7.6% year-on-year increase. The fact that nominal GDP growth is being sustained at this level indicates that the high-tech industry is functioning as a growth engine for China’s economy. Additionally, it is noteworthy that corporate R&D expenditures and the number of invention patents held in these zones account for about 50% of the national total. This underscores that High-Tech Industrial Zones are not merely production bases but are emerging as central hubs of technological development.
High-Tech Industrial Zones as the Core of Innovation
According to the report, approximately 25% of China’s total R&D personnel are concentrated in High-Tech Industrial Zones, and corporate internal R&D expenditures have increased by 4.3% to approximately 1.2 trillion yuan. This suggests that technological innovation at the corporate level is thriving, with private enterprises actively driving technological development alongside government-led R&D initiatives.
Furthermore, the number of provincial-level and higher research and development institutions has exceeded 35,000, marking a fivefold increase since 2010. This data serves as evidence that China has rapidly expanded its R&D investment over the past decade, strengthening its technological capabilities.
The Competitiveness of Enterprises in High-Tech Industrial Zones
The report states that High-Tech Industrial Zones are home to 33% of China’s high-tech enterprises, 46% of “specialized, refined, distinctive, and innovative” (专精特新) small and medium-sized enterprises (SMEs), and 67% of unicorn companies. Notably, “specialized, refined, distinctive, and innovative” SMEs are strongly supported by the government as key drivers of technological innovation. The growth of these enterprises is expected to further enhance China’s industrial competitiveness in the future.
A Dominant Position in the AI Sector
High-Tech Industrial Zones also play a significant role in the AI (artificial intelligence) sector. According to the report, approximately 60% of China’s publicly listed AI-related companies and about 50% of AI unicorn companies are concentrated in these zones. This high degree of concentration suggests that AI industry growth is advancing with strong government support, which will further strengthen China’s competitiveness in the digital economy.
Future Prospects and Impact on the Global Market
The report indicates that China is intensifying its industrial policies centered on technological innovation. In particular, the concentration of AI and R&D institutions forms the core of China’s digital strategy, and continued growth in this sector is expected.
However, in relation to the global market, technological competition is likely to intensify. As technological hegemony battles continue with major countries such as the United States and Europe, how China’s High-Tech Industrial Zones integrate into international markets will be a key issue. Especially amid potential tightening of export restrictions on semiconductors and AI technologies, the ability of Chinese enterprises to establish independent technological capabilities will be put to the test.
Conclusion
China’s National High-Tech Industrial Development Zones are no longer just manufacturing bases but are now serving as central hubs of technological innovation. It will be important to closely monitor how these rapidly growing High-Tech Industrial Zones compete in international markets and continue to generate new technologies in the future.