By ZH Sailing Research | March 2026
Nanyang, a major city in central China’s Henan province, has crossed the 500-billion-yuan ($75 billion) GDP milestone, highlighting the growing role of inland cities in China’s economic expansion and domestic market development.
According to official data, Nanyang’s gross domestic product reached 516.8 billion yuan in 2025, marking the first time the city has surpassed the 500-billion-yuan threshold. The city recorded 6.5 percent economic growth, the second-fastest pace among Henan’s municipalities and counties.
Local officials say the next stage of development will focus on improving infrastructure, strengthening logistics capacity and enhancing the business environment in order to attract investment and stimulate consumption.
Wang Zhihui, Party secretary of Nanyang, said the city aims to better leverage both domestic and international markets as it deepens economic opening and encourages local companies to expand overseas.
The strategy aligns with national policy priorities outlined in China’s 2026 Government Work Report, which calls for accelerating the development of a unified national market and reducing local protectionism to improve economic efficiency.
Infrastructure and logistics expansion
A key pillar of Nanyang’s growth strategy is the expansion of integrated transport and logistics infrastructure.
Major projects include the development of the Tanghe River shipping corridor and the planned Nanyang–Xinyang–Hefei high-speed railway, which are expected to improve connectivity between central China and major economic hubs.
Local authorities aim to build a comprehensive transportation network combining air, rail, road and water transport, transforming logistics advantages into stronger industrial clustering and commercial activity.
Officials also plan to position Nanyang as a national logistics hub, including the development of regional logistics centers and cold-chain distribution bases to support agricultural and manufacturing supply chains.
Improving the business environment
In parallel, the city is pursuing reforms designed to create a more market-oriented and internationally aligned business environment.
Local authorities are expanding administrative reforms aimed at streamlining approvals, improving regulatory transparency and strengthening support services for enterprises.
These efforts have already led to rapid business formation. In 2025, 153,000 new market entities were registered, bringing the total number of businesses in the city to more than 1.06 million, ranking second in the province.
Expanding trade and cross-border commerce
Nanyang is also seeking to deepen integration with global trade networks.
The city is part of a national cross-border e-commerce comprehensive pilot zone and participates in the China (Henan) Pilot Free Trade Zone framework, providing policy support for trade facilitation and digital commerce.
Foreign trade activity is accelerating. The number of enterprises engaged in foreign trade increased 26 percent year-on-year, the fastest growth rate in the province.
Meanwhile, total retail sales of consumer goods reached 259.98 billion yuan in 2025, reflecting strong domestic demand as the city develops into a regional consumption hub.
Economists say inland provinces such as Henan have strong industrial foundations but need to continue attracting investment and improving business conditions to sustain long-term growth.
Su Jian, a professor at the Peking University, said regional economies should place greater emphasis on attracting both domestic and foreign investment while encouraging private enterprises to expand operations.
“Creating a highly competitive business environment that is market-oriented and aligned with international standards will be essential,” he said.
As China enters the 15th Five-Year Plan period (2026–2030), cities like Nanyang are expected to play a larger role in driving consumption growth, logistics development and inland economic opening.
Key Data
GDP (2025): 516.8 billion yuan
GDP Growth: 6.5%
Retail Sales: 259.98 billion yuan
New Market Entities (2025): 153,000
Total Businesses: 1.06 million
Foreign Trade Enterprises Growth: +26%
Market Implications
1. Inland cities becoming new growth engines
Central China’s large population and industrial base provide strong demand for consumption and manufacturing expansion.
2. Logistics infrastructure is a key development driver
Improved transport connectivity could accelerate industrial clustering and supply chain efficiency.
3. Cross-border e-commerce expanding trade channels
Pilot programs are enabling inland cities to participate more directly in global trade flows.
What Investors Should Watch
Development of logistics and transport infrastructure in central China
Expansion of cross-border e-commerce platforms
Policy support for inland economic opening
Investment inflows into manufacturing and supply chain sectors