The company is actively involved in the industrial transfer from the eastern region, leveraging local labor and natural resources while continuously advancing infrastructure development. Major transportation routes and internal connectivity are being improved, and with energy advantages and complementary growth strategies in place, the central and western regions are emerging as a new engine for China's economy. This shift not only supports sustained economic growth but also opens up vast opportunities for national economic transformation and upgrading.
In the past, the eastern region was the driving force behind China’s economic expansion. However, this trend has gradually changed in recent years. Since 2008, the central and western regions have outperformed the east for five consecutive years. In the first three quarters of this year, investment in the central region grew by 23.4% year-on-year, and in the west by 23.0%, both surpassing the 18.8% growth rate in the east. Industrial output in the central region increased by 10.5%, and in the west by 11.0%, significantly higher than the 8.9% in the east.
Experts suggest that the industrial gradient transfer plays a key role in the rapid development of the western region. Zhao Hong, director of the Economic Research Institute at the Beijing Academy of Social Sciences, highlights that favorable resource conditions, combined with national policies such as the Western Development Strategy and the Rise of the Central Region, have created more policy-driven opportunities for these areas.
As the eastern region faces rising labor and land costs, what was once considered a disadvantage in the central and western regions is now turning into an advantage. By taking on industrial transfers, these regions are making full use of their human resources and natural wealth, injecting new vitality into their economies.
"Accepting industrial transfer is not just about necessity," said Liang Hui, county magistrate of Liangcheng. "It requires strategic investment." Yucheng County, with over 30 years of experience in diamond micro-powder processing, invested 1.5 billion yuan in 2010 to attract Henan Power New Materials Group, filling a gap in diamond single crystal synthesis and providing raw materials for over 150 local enterprises.
Today, Yucheng’s diamond micronized powder accounts for over 70% of the national market share. Similar developments are taking place in other counties—superhard materials in Shangcheng, refrigeration in Minquan, textiles in Xiayu, and more. A growing regional industrial chain is reshaping the economic landscape of the central and western regions, proving that they are no longer just recipients of industry, but active contributors to China’s future economic growth.
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