Central and local governments accelerate the development of manufacturing clusters.
2026-03-11
Manufacturing clusters are set to receive even stronger policy support! According to reports, China will accelerate the refinement of top-level design for fostering and developing manufacturing clusters, draft and release relevant policy documents, and launch a special initiative to promote the development of manufacturing clusters. At the same time, the government will fully leverage the role of its investment funds to swiftly cultivate a number of manufacturing clusters that are internationally competitive.
Manufacturing clusters are set to receive even stronger policy support! According to reports, China will accelerate the refinement of top-level design for fostering and developing manufacturing clusters, draft and release relevant policy documents, and launch a special initiative to promote cluster development. At the same time, the government will fully leverage the role of its investment funds to swiftly cultivate a number of manufacturing clusters that are internationally competitive.
The Ministry of Industry and Information Technology plans to identify national-level manufacturing cluster development candidates through a competitive selection process and provide them with prioritized support. Meanwhile, multiple regions—including Jiangsu, Hunan, Anhui, and Shenzhen—will further introduce measures to foster and support manufacturing clusters, increase fiscal investment such as special funds for building strong manufacturing provinces, expand diversified financing channels, and accelerate the development of key national manufacturing hubs.
Cluster development is a core pillar in building China into a manufacturing powerhouse and an intrinsic requirement for enhancing regional competitiveness. Last year, the Ministry of Industry and Information Technology promptly launched initiatives to foster manufacturing clusters, adopting a competitive selection process. Focusing on key areas such as next-generation information and communication technologies, integrated circuits, and construction machinery manufacturing, the ministry identified 44 clusters nationwide as priority targets for cultivation and support, while also leveraging third-party social organizations—cluster-development promotion agencies—to accelerate the development and maturation of these clusters.
Driven by a series of innovative and favorable policies, manufacturing clusters that have attained a certain level of competitiveness are now emerging, shifting enterprise agglomeration from “physical addition” to “chemical integration.” These clusters are playing a positive role in accelerating regional collaborative innovation, enhancing the stability and competitiveness of industrial and supply chains, and promoting integrated development among large, medium, and small enterprises.
In addition, the ability of leading enterprises to drive collaborative innovation has become even more pronounced. Within the Xuzhou construction machinery industry cluster, XCMG has joined forces with more than ten universities and research institutes to establish the Jiangsu Provincial Innovation Center for High-End Construction Machinery and Core Components, which has so far undertaken over 30 R&D projects on core components. While filling critical technological gaps, the center has also emerged as a key platform for the innovation and upgrading of small and medium-sized enterprises. Meanwhile, in the burgeoning field of the industrial internet, the Hanyun Industrial Internet Big Data Platform has connected over 670,000 industrial devices and more than 180 industrial apps, providing specialized services to over 330 large, medium, and small enterprises across sectors such as core components, defense manufacturing, port operations, and construction machinery.
In Shenzhen, where emerging industries are thriving, a new-generation information and communications cluster has fostered a robust ecosystem that enables seamless collaboration and integrated development among large, medium, and small enterprises. Led by key players such as ZTE, CSOT, and SMIC, the cluster has incubated numerous high-tech firms specializing in advanced electronic materials and other cutting-edge technologies, giving rise to a cohort of “specialized, refined, distinctive, and innovative” SMEs. Since the beginning of this year, despite the challenges posed by the pandemic, the cluster has demonstrated remarkable resilience, with the local localization rate for critical products reaching 50%. Moreover, most components, raw materials, and equipment can now be supplied promptly within a one-hour delivery radius, making the cluster a pivotal force in ensuring the stability of key industrial and supply chains across Shenzhen and the broader Guangdong–Hong Kong–Macao Greater Bay Area.
“At present, China’s manufacturing sector is at a critical juncture in its transformation from large to strong. Establishing an industrial development pattern characterized by distinctive features, complementary advantages, and a rational structure, and fostering a number of internationally competitive manufacturing clusters, are crucial levers for upgrading the modernization of industrial and supply chains and building a modern industrial system. They also represent an important avenue for promoting inter-regional collaboration and supporting the establishment of the new development paradigm of dual circulation.”
A relevant official from the Planning Department of the Ministry of Industry and Information Technology stated in an exclusive interview with reporters. He also pointed out that many industrial clusters currently exhibit weak collaborative innovation capabilities, with most of their technological capabilities positioned at the lower end of the global value chain, resulting in prominent imbalances and inadequacies. Therefore, it is necessary to ground efforts in China’s national conditions and explore innovative approaches—both in terms of concepts and methods—to foster manufacturing clusters and promote high-quality development of the manufacturing sector.
Looking ahead to the 14th Five-Year Plan period, China will accelerate the planning and development of manufacturing clusters. During this period, the Ministry of Industry and Information Technology will further refine top-level design, expedite the issuance of policy documents to promote the cultivation and development of manufacturing clusters, and launch special initiatives for cluster development. It will also speed up the establishment and deployment of national manufacturing innovation centers, build collaborative innovation platforms involving industry, academia, and research, provide support for tackling common key technologies across industries, and foster a group of high-quality enterprises with global competitiveness. Relying on market-based mechanisms and leveraging the role of government investment funds, the ministry will further advance the cultivation of manufacturing clusters and build a modern industrial system. In addition, the ministry will timely convene a final round of evaluations for manufacturing clusters, continuing to employ a “racehorse” approach to select the best among the 44 candidate clusters, identify national-level manufacturing cluster development targets, and provide them with prioritized support.
Many regions, including Hunan, Anhui, Shanghai, and Shenzhen, are set to further refine their policy frameworks in light of the 14th Five-Year Plan period. According to reports, Hunan is currently drafting the “Guiding Opinions on Fostering and Developing Manufacturing Clusters in Hunan Province,” with key focus areas including construction machinery, rail transit equipment, and electronic information. Shenzhen has stated that it will systematically map out the direction, pathways, and specific modalities for cultivating manufacturing clusters in the city’s 14th Five-Year Plan for industrial development. Fiscal and financial support will also be stepped up. Special funds earmarked for building strong manufacturing provinces in Anhui, Hunan, Hubei, and other regions will be further expanded, while active mobilization of social capital will also be pursued.
“Building a nationwide network of manufacturing clusters can effectively enhance regional coordination and innovation, thereby supporting high-quality spatial development in the effort to build China into a manufacturing powerhouse,” said Hou Yanquan, Director of the Regional Development Research Office at the Planning Institute of the China Academy of Information and Communications Technology. “During the 14th Five-Year Plan period, it is essential to further strengthen top-level design, formulate a comprehensive blueprint for cluster development, and explore a tailored policy toolkit to support such development. At the same time, local governments should adopt a cautious and pragmatic approach in pursuing a full-industry-chain development model, focusing on key links within one or several specific industrial chains based on local conditions, strengthening, supplementing, and smoothing these chains, and fostering a regional innovation ecosystem to help China’s manufacturing sector enter a new stage of development.”
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