Changzhou Expands Openness Through Global Industrial Integration

Deep News
2025/12/08

In the vast deserts of Saudi Arabia and the rolling mountains of Brazil, two mega energy projects are advancing at full speed—both backed by Chinese enterprises. Against the backdrop of rising anti-globalization sentiment and accelerated restructuring of global supply chains, expanding high-level openness is not only crucial for urban competitiveness and industrial resilience but also profoundly shapes a city’s role in global division of labor. As a powerhouse in manufacturing, Changzhou has adopted a dual strategy of "bringing in" and "going global," carving out a path of embedded openness that deeply integrates into global industrial chains.

**Global Expansion: From Products to Standards** In recent years, as the Belt and Road Initiative deepens, Chinese companies have gained prominence worldwide with their products, technologies, and solutions. In 2019, Changzhou-based NR Electric Co. took China’s ultra-high-voltage technology abroad, participating in Brazil’s Belo Monte ±800kV UHVDC project. By 2024, the company secured another milestone—the ±600kV HVDC upgrade for Brazil’s Itaipu Dam, marking a leap from overseas greenfield projects to high-end retrofitting markets.

Currently, NR Electric is executing Saudi Arabia’s SEC Phase III energy storage project (2.5GW), one of the world’s largest under-construction energy storage initiatives, injecting Chinese momentum into global energy transition. "What we deliver to over 70 countries is not just power equipment but a comprehensive Chinese energy solution," said Li Lei, Director of NR Electric’s Engineering Service Center.

Beyond exporting products, Changzhou firms are ascending to "standards export." NR Electric spent four years leading the formulation of IEC/TR 63259:2022, an international standard for water-cooling systems in power electronics, filling a global gap. Similarly, Changzhou Xingyu Automotive Lighting’s ISO-standardized anti-fog coating technology for vehicle lamps set a new benchmark.

Liu Dian, Associate Researcher at Fudan University’s China Institute, noted that Changzhou’s approach reflects an upgrade from factor export to rule-making. "Exporting ‘China Solutions’ shifts firms from trade to holistic services, while leading international standards marks a transition from rule-takers to rule-setters, enhancing global value chain influence," Liu said.

**Tech M&A: Embedding in High-End Chains** Changzhou’s enterprises are also reverse-embedding critical technologies into local manufacturing through overseas acquisitions. For instance, Cotesa (China) Composite Co., now the sole Airbus- and Boeing-certified carbon fiber composite developer outside AVIC, achieved this by acquiring Germany’s Cotesa GmbH in 2018.

Ma Lin, Cotesa China’s General Manager, stated the acquisition was pivotal in bridging the tech gap and entering civil aviation supply chains. Today, Sino-German R&D teams collaborate on next-gen aircraft composites. Similar cases, like Hengli Hydraulic’s takeover of Germany’s HAWE, underscore Changzhou’s strategy: leveraging foreign tech to elevate local industries.

**Foreign Investment Magnet** Changzhou’s "two-way openness" ecosystem attracts global players. Swiss firm Ypsomed’s first Asia-Pacific production base in Changzhou, operational since June 2025, exemplifies this. "Changzhou offers everything for success: industrial base, talent pipelines, and forward-thinking governance," said Ypsomed’s GM.

The city hosts over 3,000 foreign firms, including 205 projects by 105 Fortune 500 companies. Its six provincial-level international cooperation parks lead Jiangsu Province. From January–September 2025, Changzhou’s utilized FDI hit $994 million, up 23.9% YoY, ranking first in growth province-wide.

Liu Dian attributed Changzhou’s FDI appeal to its industrial ecosystem and strategic platforms, which foster tech spillovers and clustering effects. "Its长三角 location, complete supply chains, and precise policies make it a prime FDI destination," he added.

**Policy-Driven Openness** From January–October 2025, Changzhou’s foreign trade surged 14% YoY to RMB305.32 billion ($42.7B), with exports up 17.2%. "New Three" exports (NEVs, PV, lithium batteries) skyrocketed 119%, becoming a core growth driver.

This success stems from the government’s shift from "investment promotion" to "ecosystem building." Changzhou enhanced financial support, subsidizing overseas projects, loans, and services, with 2024 subsidies ranking second province-wide. It also organized 11 "going global" events and 40+ international exhibitions, expanding trade ties to 200+ countries.

Looking ahead, Liu suggested Changzhou focus on innovation and global value chain ascension: "Boost R&D in smart manufacturing and green energy, leverage international parks for tech collaboration, and nurture homegrown multinationals to strengthen industrial chain resilience."

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