Recently, I read an article in The Economist titled "China’s Last Boomtowns Show Rapid Growth Is Still Possible," which highlights the impressive performance of small county-level cities in China. Among these, Yueqing stands out, offering valuable insights into achieving and sustaining rapid economic growth.
Yueqing's success is attributed to several key factors, which provide valuable lessons for the revitalization of Rust Belt cities in the U.S.
First, Yueqing's rapid development is deeply rooted in its entrepreneurial spirit and history. The city's businesses have evolved from producing basic components to more sophisticated and valuable electronic products. This transformation reflects a broader cultural and historical context that supports entrepreneurship and innovation.
Second, Yueqing benefits from its strategic geographic location near the port city of Wenzhou, which facilitates easy access to international markets and resources. This geographic advantage enhances trade and attracts investment.
Third, local government policies have played a crucial role in nurturing the city's industries. Officials have actively helped factories upgrade their production capabilities and shift to higher-value products. Effective government intervention, focusing on resource mobilization and establishing connections, has bolstered local businesses.
Fourth, policymakers in Yueqing have encouraged local enterprises to collaborate with nearby universities, fostering innovation and technological advancements. This partnership has enabled local businesses to surpass foreign competitors and become leaders in various tech fields.
A Chinese saying goes, 他山之石, 可以攻玉 (Tā shān zhī shí kě yǐ gōng yù) meaning: "The stones from other mountains can polish our jade." This saying emphasizes learning from other's experience in order to improve oneself.
The Rust Belt cities in the U.S., characterized by deindustrialization and economic stagnation, can learn some lessons from Yueqing's experience: such as, cultivating entrepreneurship and encouraging an entrepreneurial culture and supporting startups, identifying and exploiting geographic advantages, boosting government policy supporting local industries, establishing strong ties with local universities and research institutions to foster innovation and technological advancements and help local businesses stay competitive in the global market.
Yueqing's rise serves as a testament to the potential for rapid growth and economic transformation, even in smaller cities. By adopting similar strategies, Rust Belt cities in the U.S. or any place or individuals have the hope of thriving, revitalization and sustainable development.
The key is 他山之石, 可以攻玉, learn from other's experience for all who want self improvement.