How a little Chinese island rose to global chemical dominance

中国制造

Economist

2025-11-04

7 分钟
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  • To catch a glimpse of China's industrial heft, visit Changxing Island in the country's north-east.

  • There, jutting into the Bohai Sea, is one piece of the machine:

  • a specialised petrochemical plant that opened in 2012 and has grown relentlessly ever since.

  • It represents, in condensed form, the powerful mixture that has fuelled China's dominance of global manufacturing:

  • policy directives, state support, local incentives and restless entrepreneurs.

  • For the rest of the world it is also a cautionary tale.

  • Hope springs eternal that China might rein in its excess capacity,

  • perhaps as a result of its "anti-involution" campaign,

  • the government's latest attempt to curb cut-throat competition among domestic producers.

  • But Changxing Island shows it is more realistic to expect another path—namely,

  • that other countries will find it ever harder to displace China in global supply chains.

  • This story could be told about almost any kind of factory or locale in China,

  • so sprawling is the country's manufacturing base.

  • Changxing Island, however, brings clarity to the analysis as a small place

  • that has gone from basically nothing to become an unheralded linchpin of global industry in little more than a decade.

  • Until the early 2000s Changxing was mostly farmland and fishing villages, administered by the nearby city of Dalian.

  • But it had a big selling point as China's only underused deepwater shoreline.

  • State planners wanted to kick-start it,

  • so they designated it as a special development zone focused on chemicals, promising a variety of benefits,

  • from streamlined approvals to subsidies, for companies that invested there.