Entrepreneurial city shifts gears amid evolving economic landscape

When discussing energy storage, Chi Tongsheng, a resident of east China's coastal city of Longkou, is so familiar with the emerging technical field that many might mistake him for an engineer.

What's even more surprising is that Chi, currently serving as the board chairman of Shandong Dejin New Energy Science and Technology Co., Ltd., used to run a property developer for roughly a decade before starting the current company about five years ago.

"At that time, we foresaw a turning point in the real estate market, so we decided to shift to a new industry offering broader growth prospects," Chi said.

Due to its strong competitive edge in the niche market, the company has experienced rapid growth. Its energy storage cells and equipment have garnered popularity not only among domestic clients but also in 55 overseas markets.

"Green electricity, energy conservation and emission reduction are the future of the energy industry. As China's economy undergoes a green transformation, the industrial and commercial energy storage market presents huge potential for development," Chi said.

Chi's transition to a different field is not an isolated case in Longkou, a city renowned for its longstanding entrepreneurial culture. Longkou has been rated as the most economically developed county-level region in Shandong Province and stands out among China's 2,800-plus county-level regions, contributing to the vitality of the world's second-largest economy.

Out of the more than 20,000 enterprises in Longkou, those related to automobile parts have emerged as a pillar industry for the local economy.

The city has some 180 automobile and auto part manufacturers, with total assets exceeding 15 billion yuan (about 2.11 billion U.S. dollars), and most components for a car can be sourced from suppliers in Longkou.

Shandong Longji Machinery Co., Ltd., a leading brake disc manufacturer based in Longkou, has been a pioneer in the local auto part industry. Once mainly serving oil-fueled vehicles, the company has made investments in producing products for new energy vehicles (NEVs) in recent years.

"The traditional automobile industry has contributed a lot to Longkou's industrial growth. Now, with the rapid development of NEVs, the entire industrial chain in the city is exploring transformation and upgrading to manufacture products featuring more high-end, intelligent and green elements," said Chi Naizun, deputy head of the local industry and information technology bureau.

The automobile and auto part industry is one of the 10 emerging sectors on the local government's agenda to stimulate fresh economic growth.

"We have implemented the industrial chain-chief mechanism for each of the 10 industries, and a specific office within the government has been set up to cater to the needs of related enterprises," Chi Naizun said.

In addition to the manufacturing sector, the city's tourism market players are also charting new courses to seize emerging opportunities.

In December, Nanshan Tourism Group Co., Ltd. opened a ski resort, the first of its kind in Longkou and the largest one in Shandong Province. Covering 160,000 square meters, the ski resort has added year-round attraction to the coastal city while also capitalizing on China's burgeoning winter travel and sports economy.

"The enthusiasm of locals as well as tourists for skiing has surpassed our expectations. Many people specifically asked whether the resort is open during the Spring Festival holiday," said the ski resort's general manager Wang Bin, noting that the resort might receive more than 50,000 visits during the snow season this winter.

During the local annual "two sessions," Longkou emphasized increased efforts to boost advanced manufacturing, expand modern services and improve services for market entities.

"The orientation of development will determine the focus of our pooled efforts, and the needs of enterprises will be shared tasks for us," the city noted in its government work report for 2024.

County-level economies make up the foundation of China's economic well-being, said Chen Wenling, chief economist at the China Center for International Economic Exchanges.

"The robust county economies, especially those leading pioneers, will endow China's economy with great potential and space for long-term sustainable growth," Chen added.