Once seen as a relatively modest node on China's economic map, Lanzhou is steadily reinventing itself into a regional investment magnet. The 31st China Lanzhou Investment and Trade Fair (Lanzhou Fair), which opened on Sunday in Gansu Province, exemplifies this transformation—both in ambition and scale.

With participation from over 2,000 domestic and international enterprises, including delegations from more than 20 countries such as Germany, Indonesia, and Iran, as well as 18 Chinese provinces and the Hong Kong SAR, this year's fair positions Lanzhou at the intersection of international capital, industrial cooperation, and strategic connectivity.

Record Investment Commitments Reflect Sustained Momentum

Data from the Gansu Economic Cooperation Center show that Lanzhou's investment promotion efforts are more than ceremonial. Of the 1,325 projects signed during the 30th Lanzhou Fair, 1,052 have already commenced construction—a 79.4% activation rate—mobilizing a cumulative capital inflow of 245.3 billion yuan (approx. USD 34.2 billion). Notably, 528 of these projects have already been completed and put into operation, reflecting not only speed but a maturing investment implementation ecosystem.

In terms of scale and quality, Lanzhou is leading its province. In 2024, the city ranked first in Gansu for both the number of large-scale projects—those exceeding RMB 1 billion and RMB 10 billion—and for total contracted and received investment. For 12 consecutive months, Lanzhou has retained the top spot in the province for actual capital inflow contribution.

Behind these figures lies a strategy that targets high-value industrial clusters. Between 2023 and mid-2024, Lanzhou signed 902 new investment agreements, with a total value exceeding 3.2 trillion yuan. Of these, nearly 100 were with Fortune 500 companies and listed firms, totaling over 101.9 billion yuan. The city's emphasis on attracting “leading, large-scale, and strategic” enterprises is shaping its evolving identity as a competitive inland investment destination.

New Energy, Materials, and Cross-Border Trade in the Spotlight

The current fair features over 30 forums and trade events spanning priority sectors such as new energy equipment, digital technology, aerospace, advanced materials, and agritech. Four thematic exhibition zones emphasize Silk Road international cooperation, regional integration, consumer goods, and Gansu-specific industries.

Among the largest deals unveiled this year are 1,181 investment projects valued at over 650 billion yuan (USD 90.9 billion), with a noticeable uptick in green tech, agricultural processing, and data-intensive industries. This reflects both investor interest in decarbonization and Gansu's intent to rebrand itself as a modern industrial province.

Indonesia, the guest country of honor, brought 16 companies showcasing traditional exports including batik, food, and coffee, while also expressing interest in deepening bilateral ties in renewable energy and agri-tech. Ambassador Djauhari Oratmangun underscored the shared potential in cultural tourism and green cooperation—areas where Lanzhou's ecological edge and location could be further leveraged.

Why It Matters for International Investors

While many foreign investors remain focused on China's coastal cities, Lanzhou's case offers a compelling counterpoint. The city is deploying what may be termed a "deliberate decentralization" strategy—redirecting high-quality investments inland through active local government engagement, streamlined project execution, and favorable policies. This mirrors national trends encouraging balanced regional growth and diversified capital flows.

For banks, trade insurers, and cross-border service firms, Lanzhou offers emerging opportunities in structured project finance, joint ventures, and compliance advisory—particularly in sectors such as renewables, infrastructure, and agrifood supply chains. International law and accounting firms may find growing demand for legal structuring, tax advisory, and ESG reporting services as the fair continues to internationalize.

Moreover, Lanzhou's location on the China-Europe freight corridor enhances its relevance to logistics, bonded warehousing, and cross-border e-commerce strategies.

Local Execution, Global Aspiration

A granular look at district-level preparation reveals a coordinated push. Chengguan District alone curated over RMB 13 billion worth of potential deals focused on emerging industries. Meanwhile, Honggu District has designed a RMB 5 billion investment matrix centered on value-chain reinforcement and innovation-driven growth. Firms such as Fangda Carbon and FaFaxinmai are among those expected to showcase industry-leading products, reinforcing local sector depth.

The fair is more than a commercial event—it is a narrative of Lanzhou's pivot to high-quality development. For global business leaders navigating risk-adjusted returns in an evolving China, understanding these sub-national dynamics is increasingly essential.

From Trade Fair to Trade Platform

Since its inception in 1993, the Lanzhou Fair has evolved from a provincial showcase to a national-level platform with global visibility. The consistency in follow-through—illustrated by the high project activation rate—and the fair's scale-up in international participation signal a maturing investment environment. What Lanzhou offers is not just cost arbitrage, but a growing ecosystem where scale, infrastructure, and policy alignment converge.

As China diversifies its growth poles beyond megacities, Lanzhou's rise may serve as a case study for international investors seeking first-mover advantage in second-tier urban economies. With an investment portfolio that increasingly aligns with sustainability and innovation, the city stands poised to turn its once-inland isolation into strategic connectivity.