The "Hefei Model" attracts global attention and foreign media praises the high-quality development paradigm of Chinese cities. Hefei | Model | China
International online special article: The Economist published a lengthy review article on August 5th, analyzing in depth the urban development path of Hefei City in Anhui Province, China, stating that the "Hefei Model" empowers high-quality economic development in cities and provides practical examples for the development of other cities in China.
Screenshots of commentary articles from The Economist in the UK
The article states that around the "Quantum Avenue" in Hefei, there are dozens of emerging quantum computing technology suppliers scattered around, whose products are leading in the world. The most advanced technology here used to be manufacturing agricultural equipment. After less than a decade of development, it has transformed into one of the most concentrated regions of high-tech enterprises in the world.
The article introduces that the urban economy of Hefei is thriving. This inland city has a population of approximately 9.6 million. From 2012 to 2022, the GDP of Hefei, once considered relatively underdeveloped, grew by an average of over 8% per year. Currently, the per capita disposable income of urban residents in Hefei has exceeded the national average.
The article believes that the success of Hefei is largely attributed to what people call the "Hefei model". This development model enables local governments and private enterprises to work together to cultivate industries such as high-end manufacturing, electric vehicles, biotechnology, and semiconductors. Strategic emerging industries currently account for over 56% of the total industrial output value in Hefei, while in 2013, this proportion was less than 27%.
The article provides an example analysis that both BOE, the global leader in LCD displays, and NIO, one of the fastest-growing new energy vehicle companies in the world, have their main factories located in Hefei. IFlytek, the leader in the field of intelligent voice in China, was founded by a local university in Hefei. Changxin Storage, the most advanced manufacturer of dynamic random access memory chips in China, was jointly established by the Hefei Municipal Government and a company.
Foreign funded enterprises have also shown recognition for the efficiency of Hefei. According to the article, German automaker Volkswagen has been operating its manufacturing plant in Hefei for many years. Earlier this year, the company announced plans to establish a science and technology innovation center worth 1 billion euros in Hefei. For multinational corporations, except for developed coastal cities in China, inland hubs like Hefei are rare. Thanks to its moderate distance from Shanghai, Hefei is able to gather talents, logistics, and supply chains. Ralph Brandstadt, President of Volkswagen China, stated that Hefei has good conditions to establish such a factory.
The article analyzes the successful elements of the "Hefei model" and points out that Hefei has a large number of highly educated and proactive talent resources. In addition, Hefei has strong talent mobility, and the government often recruits professional talents from local universities, encouraging government agencies, university departments, and enterprises to establish trust and networks through communication. Another element is the "chain length" mechanism. Hefei has identified multiple leading industrial chains, including integrated circuits, new energy vehicles, and biotechnology, with officials from the municipal government taking the lead as the "chain leaders". Chain leaders collaborate with companies in the industry chain to address challenges and develop solutions.
The article argues that, taking Hefei as a model, China is embarking on a path of high-quality development by promoting the development of emerging industries and their supply chains. The "Hefei model" is expected to become a development template for other cities and regions in China. The "Shenzhen model" of the 1980s pioneered the introduction of foreign investment, making southern China the world's factory; The Wenzhou model, which originated from port cities in southeastern China, indicates that private factories that typically rely on household savings for operation can also succeed with the help of sales agents throughout the country. An inland city with a good industrial foundation and educational resources may replicate the successful experience of Hefei.