The Industrial Economy Serves as Ballast in Determining the Status of Major Economic Provinces
Statistics show that the top five provinces in China in industrial added value are exactly the same as the top five provinces in GDP. The National Bureau of Statistics released recently the industrial added value data of each province in 2019. In addition to the above ranking results, some changes in trends are also noteworthy after comparing the data over the years. Among them, Shandong, which ranks the third and once kept pace with Guangdong and Jiangsu, has a small advantage over Zhejiang, which ranks the fourth, while the gap between its industrial added value and that of Guangdong and Jiangsu is widening. In 2019, Shandong's industrial added value was only 14.5 billion yuan more than that of Zhejiang, and it is likely to be surpassed by Zhejiang in the future. Some analysis points out that Shandong has a high proportion of traditional industries and heavy and chemical industries such as coal and steel are prominent, but its emerging industries are far behind the emerging industries of Guangdong, Jiangsu and Zhejiang. From the perspective of the characteristics of industrial development, Shandong’s economy has an obvious characteristics of "elephant economy", with super-large enterprises occupying a dominant position and many large enterprises are engaged in production of the whole industrial chain, lacking the division of labor and refinement of the industrial chain, which affects the industrial transformation and upgrading. Another focus province is Fujian, which ranks sixth, and its industrial added value is130 billion yuan more than the three north-eastern provinces combined. The reason is that Fujian, located in the southeast coast, took the lead in integrating into the global industrial chain and becoming a part of it after the reform and opening up. However, China's advantage in the international industrial chain is mainly reflected in the manufacturing sector, so Fujian's manufacturing industry develops particularly fast. In contrast, northeast China, dominated by energy and chemical industries, is not fully integrated into the global industrial chain. The characteristics of planned economy are still distinctive, the market is mainly domestic, and the production scale is limited. On the other hand, in the international competition, the pillar raw material industry in northeast China has declined, and many cities have lost their economic development vitality. From the above facts and follow-up observations, the trend of industrial development in all parts of China is highly similar to the performance of macro economy. It is not accidental that industrial added value and GDP rank the same. It also fully proves that industry is the ballast stone that determines the status of a big economic province.