According to a report in China Daily on March 8th…
Northwest China’s Gansu Province is accelerating the transformation of its traditional industrial base as local authorities seek to modernize the regional economy and support higher-quality growth.
Speaking during discussions linked to the annual session of the National People’s Congress, Gansu governor Ren Zhenhe said the province is pursuing an industry-driven development strategy centered on upgrading traditional sectors, strengthening industrial supply chains and cultivating competitive manufacturing clusters.
“As a traditional industrial base, transformation through innovation is imperative,” Ren said, noting that the province is working to integrate technological upgrades, green manufacturing and digital tools across key industries.
Transforming Traditional Industries
Over the past several years, Gansu has launched hundreds of industrial upgrade projects annually, aimed at modernizing legacy sectors such as mining, metals processing and heavy manufacturing.
Since 2021, roughly 300 industrial transformation projects have been initiated each year, promoting smart manufacturing and energy-efficient production across factories.
Green transformation has become a central component of the province’s strategy. By the end of 2025, energy consumption per unit of industrial output had declined by more than 13 percent, while water usage per unit of output also fell steadily.
Digital technologies are playing an increasing role in this transition. Industrial internet platforms, 5G connectivity and smart production systems are being adopted to link factory equipment and production lines, helping manufacturers improve efficiency and reduce emissions.
Rather than replacing traditional industries, officials say the goal is to move them up the value chain through technological upgrading.
Resource Industries Remain Strategic
Gansu has long served as one of China’s key resource-producing regions, with abundant mineral and energy reserves.
The provincial government is now seeking to convert these natural advantages into higher-value industrial capacity by expanding exploration and downstream processing.
New rounds of mineral exploration are under way, particularly for gold and other strategic metals. Production of key materials such as copper, silver and nickel has increased in recent years, reinforcing the province’s position as an important national resource base.
These efforts have helped support the formation of several advanced manufacturing clusters. Gansu currently hosts two national-level advanced manufacturing clusters and 14 provincial-level clusters.
One of the province’s most prominent industrial groups focuses on nickel-copper-cobalt new materials, which has been recognized nationally as a characteristic industrial cluster for small and medium-sized enterprises.
By 2025, advanced manufacturing clusters generated more than 900 billion yuan ($130 billion) in industrial output, contributing nearly 90 percent of the province’s industrial growth.
Digital Economy and Data Infrastructure
Alongside industrial upgrading, Gansu is positioning itself as an emerging hub for China’s digital infrastructure.
Under the national East Data West Computing initiative, the data-center cluster in Qingyang has attracted more than 370 companies involved in the digital economy.
Total computing capacity in the cluster is expected to exceed 150,000 petaflops by 2026, supporting data-intensive sectors including artificial intelligence, cloud computing and big-data services.
Officials say the expansion of computing infrastructure is intended to help inland regions participate more actively in China’s rapidly growing digital economy.
Expanding Strategic Emerging Industries
Looking ahead, Gansu plans to further expand emerging sectors including hydrogen energy, advanced energy storage, the low-altitude economy and commercial aerospace.
Authorities also say they will continue improving the business environment to attract private investment and strengthen market-oriented reforms.
The broader goal, according to provincial leaders, is to create a more resilient and diversified economic structure that supports China’s long-term modernization strategy.