Over four decades since their inception, China’s national economic development zones have grown into strategic pillars of both foreign investment and industrial innovation. As of 2024, the country has established 232 such zones, collectively hosting over 60,000 foreign-invested enterprises, and contributing nearly a quarter of national foreign trade and FDI. Now, with a new wave of policy measures, these zones are being reshaped into engines of high-tech growth and next-generation productivity.

“These zones have consistently remained at the forefront of China’s opening-up journey,” said Ji Xiaofeng, an official from the Ministry of Commerce, during the China Economic Roundtable hosted by Xinhua News Agency.

A New Focus: From Factory Floors to Innovation Labs

Originally established to attract foreign capital and expand exports, national economic development zones are now being repositioned to drive breakthroughs in strategic emerging industries—from next-generation IT and advanced materials to biotech, green energy, and aerospace.

In 2024, these zones accounted for ¥16.9 trillion (US$2.36 trillion) in regional GDP. They are also home to more than 85,000 national-level high-tech enterprises, representing over 18% of China’s total. The zones have become essential ecosystems for companies at the cutting edge of industrial transformation.

Real Cases: Suzhou’s Twin Engines of Foreign Investment and Tech Leadership

One of the most prominent examples is Suzhou Industrial Park, which has ranked first among China’s national economic development zones for nine consecutive years, according to the Ministry of Commerce.

Japanese electronics giant Panasonic—among the earliest foreign entrants into China—now operates three subsidiaries in the park. According to Zhao Bingdi, President of Panasonic China, the zone’s “location, industrial chain integration, and policy clarity” have enabled the company to scale efficiently. “We’ve gained far more than just local advantages—Suzhou has supported our expansion across China.”

Meanwhile, domestic firm Suzhou HYC Technology Co., Ltd. has grown from a small repair business into a global leader in flat panel display and semiconductor testing. The company’s chairman, Chen Wenyuan, said that when they set up their semiconductor division, they named the R&D group “Team of Qomolangma”—evoking the spirit of climbing Everest—as a reflection of their ambition to tackle the industry’s hardest problems. Their deep investment in R&D has earned them a national high-tech enterprise title and the distinction of being the first listed company on China’s STAR Market from their segment.

Policy Backing: A Blueprint for High-Quality Growth

To accelerate this transformation, the Ministry of Commerce released a new work plan in May 2025 focused on encouraging innovation and industrial upgrading in these zones.

Key provisions include:

• Support for collaborative innovation between companies, universities, and research institutions

• Incentives for digital and green transformation in traditional industries

• Funding channels for future industries, including incubation and pilot programs

• Experimentation with new management models to streamline zone governance

By aligning policy with enterprise-level innovation, the zones aim to offer a more agile, supportive environment—particularly for companies involved in R&D-intensive sectors.

“The zones are evolving into platforms not only for industrial production, but also for cultivating new quality productive forces,” said Ji.

Emerging Momentum: Smart Manufacturing in Nanjing

In the Jiangning Economic Development Zone in Nanjing, Sciyon Wisdom Technology Group has built a smart factory that meets Industry 4.0 standards. The company specializes in industrial AI and automation solutions, and offers highly customized technologies to clients in manufacturing, utilities, and logistics.

“Our future efforts will focus on expanding industrial AI applications to help more enterprises upgrade from digital operations to intelligent systems,” said Zhong Congqing, the company’s brand manager.

What This Means for Global Business Decision-Makers

For foreign investors—particularly those in advanced manufacturing, automation, semiconductors, clean energy, and life sciences—China’s national economic development zones are no longer just entry points. They are becoming integrated innovation ecosystems with the infrastructure, policy support, and talent to scale sophisticated operations.

Why it matters:

• Reliable frameworks for long-term strategic investment

• Access to co-development opportunities with local innovators

• Proximity to specialized industrial clusters and logistics

• Supportive policies for digital and green transformation

These zones offer global firms a platform not only to manufacture and export, but to innovate, experiment, and grow—with clear government backing and growing emphasis on international collaboration.

As Panasonic’s Zhao put it, “We have been witnesses to—and beneficiaries of—China’s evolving economic model. As the country shifts toward high-quality development, we remain committed to growing alongside it.”