China Strips Five Economic Zones of National Status

China’s Ministry of Commerce has removed five economic and technological development zones from the national-level sequence following poor performance in the country’s 2025 comprehensive development assessment, according to Sina News. The delisting marks the largest single adjustment in the history of the national-level economic development zone program, which began in 1984.

The Delisted Zones

The five zones removed from national-level status are Jiedong in Guangdong, Puyang in Henan, Hulunbuir in Inner Mongolia, Yingkou in Liaoning, and Daqing in Heilongjiang. The decision was made under the “Dynamic Management Measures for National Economic and Technological Development Zones,” which establish an entry-and-exit mechanism for the program.

Each zone faced distinct challenges. Jiedong, established in 1992 and upgraded to national level only in 2021, struggled to compete against established economic powerhouses in the eastern region. Puyang, despite recording 8% growth in industrial value-added and hosting more than 35 high-tech enterprises in 2024, ranked in the bottom five of its region in consecutive assessments. Hulunbuir, a border region with sparse population and a weak industrial base, could not meet the evaluation standards. Yingkou, with a 2023 GDP of 409.4 billion yuan and 5.1% growth, still ranked poorly within the eastern region. Daqing’s delisting reflects the broader transformation difficulties facing the old industrial base of Northeast China.

A Historic Shift

This is not the first time national-level zones have been delisted, but the scale is unprecedented. In 2020, Gansu’s Jiuquan Economic Development Zone became the first to be removed after 35 years of the program, a decision described at the time as a “red card” as reported by Sina News. The following year, Ningxia’s Shizuishan zone was delisted after consecutive bottom-five rankings, as 21st Century Business Herald detailed. Now, five zones have been removed simultaneously.

Under the assessment framework, zones ranked in the bottom five of their region are called in for talks and ordered to rectify. Those ranked in the bottom five twice within three consecutive years are placed on a downgrade candidate list and, after State Council approval, removed from the national-level sequence. Following the delisting, affected provinces are generally barred from recommending provincial-level zones for national-level upgrade for two years.

Performance of the National Program

Despite the individual failures, the national-level zone program remains a cornerstone of China’s economic strategy. In 2024, the 228 national-level economic development zones achieved total import/export of 10.6 trillion yuan and attracted $26.84 billion in actual foreign investment, with both figures accounting for nearly a quarter of national totals. The zones hosted over 110,000 foreign trade enterprises and more than 70,000 foreign-invested companies, generating 15.4 trillion yuan in GDP — 11.4% of the national total — while using less than 0.3% of the country’s land area.

Broader Reform Context

The national-level delistings are part of a wider restructuring of China’s development zone system. Liaoning province has been at the forefront, merging 21 provincial-level economic development zones since 2025 and reducing the total from 92 to 71 — a nearly 25% reduction, as Xinhua News reported. The province required that zones with poor growth, fiscal deficits, unreasonable planning, and persistently low rankings be firmly merged or abolished. Similar consolidation efforts have been underway in Guizhou and other provinces, driven by a 2023 central government directive to return development zones to their core economic functions.

Analysis and Implications

The simultaneous delisting of five zones signals a decisive shift in China’s approach to economic development zones, moving from quantity expansion to quality enhancement. As China.com analysis noted, the national-level zone list will no longer be an “honor roll” that only grows, but a “responsibility certificate” that must be protected with real achievements.

Notably, three of the five delisted zones are in Northeast China, highlighting the economic transformation challenges facing that region. While the evaluation system is designed to be uniform, zones in less-developed regions face inherent disadvantages compared to those in economically dynamic coastal areas. The Zijing report confirmed the delisting details, noting the assessment covered all 228 zones.

The Ministry of Commerce has stated it will continue to optimize the evaluation indicator system and improve the dynamic management framework. Analysts expect further delistings in future assessments if zones fail to improve, and provincial-level consolidation of development zones is likely to continue across China. For the five affected zones, losing the national-level title is a heavy blow — but also an opportunity to re-examine their positioning and development strategies.