China is currently witnessing the emergence of various resource-based cities, which can often be described as double-edged swords. While some cities benefit from their resource-rich status, experiencing rapid growth thanks to natural endowments such as oil and minerals, others struggle as resources dwindle, leading to economic downturns. Cities like Daqing, Hegang, and Yulin are prime examples of this phenomenon, which has gained attention due to their reliance on industries like coal and steel.
Recent economic trends indicate a significant shift within these resource-based cities. Newly minted "resource cities" are redefining their identities, often by transitioning from traditional industries to new, innovative sectors. The development of new energy and new materials is leading the charge, helping these cities to adapt and thrive even as their traditional resource bases begin to recede.
According to the Ministry of Industry and Information Technology, the list of winning advanced manufacturing clusters for 2024 includes many innovative hubs located within third-tier cities, leveraging their natural resources. This opens doors for cities to pivot and sustain itself through new value-driven industries.
One standout case is Heihe, which was thrust back under public scrutiny after the release of controversial reports about its low property prices. This city is abundant in coal reserves, which once allowed it to flourish. But as the coal industry's decline has set in, Heihe finds itself at a crossroads, challenged to redefine its economic foundations. The 2013 classification of Heihe, marking it as a declining resource city, intensifies the urgency for strategic shifts.
Contrast this with Baotou, known as the "Steel City". While Baotou faced similar pressures, it turned its focus toward rare earths and advanced materials, gradually shifting from traditional production to innovative techniques. By doing so, Baotou secured its designation as one of the country’s advanced manufacturing clusters, making significant advances in the fields of rare materials as demand surges for applications such as electric vehicles and high-tech manufacturing.
Each of China’s resource-based cities displays potential for transformative growth, but they must act wisely. For example, Gansu’s Jinchang has been able to capitalize on its rich mineral deposits to become the center of nickel-copper-cobalt new materials. By shifting to advanced material production and joining manufacturing clusters, cities like Jinchang have seen exponential growth, with GDP increases reported at 11.5% and 19.3% over recent quarters.
Similarly, Yunnan, home to numerous precious metals, has successfully constructed its new materials sector, focused on sustainable and renewable applications. With projected growth rates nearing 1,000 billion Yuan, it exemplifies how resource cities can successfully evolve without relying solely on their original economic drivers.
While the traditional resource economic model continues to fade, the transition to sectors driven by new materials and smart technologies presents these cities with valuable opportunities. More cities like Guizhou and Qinghai are now recognizing the necessity to pivot to more sustainable resources within their geographic constraints.
The integration of new energy sources like wind and solar power presents another avenue for growth. Cities leveraging their resource-richness to establish advanced manufacturing clusters are also tapping directly client needs—providing lithium needed for batteries or rare metals for electric cars, solidifying their market position.
All resources have limitations, so adapting is imperative. Policymakers must create conducive environments for innovation and entrepreneurship to cultivate new industries. These transitions could be supported with strategic government programs and investment, helping to diversify economic bases and provide stability.
The future of resource-based cities may lie with their ability to embrace new opportunities, maximizing technological advancements, and fostering collaborations with leading sectors.
Chinese cities such as Daqing and Baotou have demonstrated remarkable potential, yet they also face substantial challenges. Long-term strategic planning and investment will determine whether these cities can continue thriving or become shadows of their past glory.
Another pressing concern is the demographic trends impacting these cities. For example, data suggest continuous population outflows from Hunan, mainly to developed regions like the Greater Bay Area. Addressing this challenge involves creating the conditions for sustainable growth within the cities themselves. Providing jobs, fostering education and skills, and enhancing the quality of life could make these cities more attractive to residency and counter population decline.
Overall, the transformation of resource-based cities is not solely guided by their natural resources but also requires visionary leadership and policies aimed at innovation and adaptability. Only by focusing on resilience and embracing novel economic paradigms can they secure their respective futures and contribute to the national economy.
