The population of Hefei has witnessed its top-tier industrial growth and the potential of a provincial capital city. In the recently released population data of major cities in the Yangtze River Delta region, all 11 cities in Zhejiang achieved positive population growth, standing uniquely nationwide. Notably, the permanent population of Hangzhou increased by 146,000 in 2023, ranking first in Zhejiang Province and pushing the city’s total population over the ten million mark. This achievement has propelled Hangzhou into the ranks of the top ten mega-cities. Meanwhile, the populations of Wenzhou and Ningbo increased by 82,000 and 79,000, respectively.
Jiangsu Province also published its population data, with the permanent population in this region increasing by 110,000 in 2023, an uptick from the previous year. Nonetheless, the population growth of Nanjing and Suzhou showed a declining trend. Nanjing’s population increased by only 55,900 in 2023, a decrease from the 67,700 increase in 2022; Suzhou saw an increase of 47,400 in population this year, down from 63,200 in 2022.
Notably impressive is the rapid progress of Hefei. Data indicates that in 2023, Hefei’s permanent population reached 9.853 million people, an increase of 219,000 from 2022, marking a growth rate of 2.3%. Since 2020, Hefei has added 483,000 people to its population, with a growth of 1.813 million since 2013. To be more specific, the city’s population growth over the past three years has been as follows: an increase of 95,000 in 2021, 169,000 in 2022, and a substantial rise to 219,000 in 2023.
This increase not only places Hefei at the forefront in the Yangtze River Delta region but also holds the potential to become the fastest-growing city in terms of population nationwide. Although the final results await the publication of data from cities like Shenzhen, Guangzhou, and Changsha, which saw rapid growth in the previous year, it seems that Hefei has already surpassed Nanjing in 2020, overtook Ningbo in 2021, and surpassed Wenzhou in 2023, becoming the fourth largest city in the Yangtze River Delta region after Shanghai, Suzhou, and Hangzhou, with a total population poised to enter the ten million club.
So, what exactly has made Hefei so ‘formidable’? The answer lies in the sustained and robust industrial development of Hefei. Compared to other cities, Hefei carries no historical burden, is youthful and vibrant, dares to be enterprising, and has a unique vision. Relying on its gathered “core screen auto integration” and “intelligent cluster for life” among eight emerging industrial systems, Hefei shows tremendous future potential. It’s precisely because of closely following current industrial trends that Hefei has seen a drastic acceleration in economic growth. As one of China’s fastest-developing cities in the past decade, Hefei has escalated its efforts in industrial development, successfully facilitating an economic transformation from a quietly unnoticed city in the Jianghuai region to an eye-catching, powerful contender in the Yangtze River Delta.
Industrial prosperity is the foundation of a city’s economic growth and population increase; without industrial development, economic vitality cannot be stimulated, and without industrial opportunities, a city cannot attract and retain talent and residents.
With the growth of population, it often reflects the competition of industries. In the past decade, Hefei City has made bold investments in industrial layout with its keen vision and decisiveness. It has ultimately not only achieved an economic and industrial leap but also won the honor of “Best Venture Investor”.
Since the strategic concept of “building the city through industry” was proposed in 2005, Hefei started exploring the development path of emerging industries. The key to the success of this process was the successful attraction and cooperation with BOE Technology. In 2007, when BOE Technology was affected by the financial crisis and sought government financial support, Hefei City promised, despite many doubts, to use one-third of that year’s fiscal revenue to invest in BOE. This investment laid the foundation for the domestic first 6th generation LCD panel project, marking the starting point of the “Transformation of Hefei”.
At that time, the fiscal revenue of Hefei City was only 30 billion RMB, but the government contributed 6 billion, with an additional 3 billion from strategic investors. Even if there was less than the expected contribution from strategic investors, the government would solve the remaining funding problem through loans. The subsequent performance of BOE has been very rewarding, as the company not only constantly upgrades itself and develops into a leader of the global screen display industry but also has attracted over 70 supporting enterprises to settle in Hefei, thus boosting the development of the entire semiconductor industry. As a result, Hefei is at the commanding heights of the screen display industry.
In 2016, Hefei cooperated with GigaDevice to build the Hefei ChangXin project, which specializes in DRAM foundry services. By 2021, Hefei ranked sixth in the competitiveness ranking of integrated circuits in China; at the same time, output of terminal products such as smartwatches, color TVs, and laptops occupied top positions domestically and globally. Additionally, Hefei’s reception of the University of Science and Technology of China has brought not only a highly ranked academic institution at home and abroad but also the title of National Science Center to the city, with quantum computing becoming a calling card of Hefei.
Following this, Hefei seized the era’s opportunity in new energy vehicles. In 2019, when NIO was in difficulties and unsuccessful in seeking financing, Hefei offered a helping hand. In 2020, the two sides signed a bet agreement, and NIO’s China headquarters settled in Hefei, allowing the city to seize the opportunity of a new era. After cooperation with NIO, Hefei also promoted the industrial upgrade of the local car brand JAC.
Hefei has currently implemented over 50 industrial projects related to new energy vehicles, gathering companies such as NIO, JAC, Guoxuan High-Tech, Haitian Drive, and JT Energy, establishing a complete industrial chain covering whole vehicles, key components, applications, and support services. Hefei’s grand blueprint for the future of new energy vehicles: by 2025, to build a world-class automobile industry cluster, with new energy vehicle output value reaching 300 billion RMB, production capacity reaching 1.5 million vehicles, accounting for over 50% of the city’s total car production and a national share of over 25%, cultivating a series of internationally known brands. Overall, Hefei has indeed become a heavyweight competitor in the new energy vehicle race.
The driving force of the industry has become an accelerator for rapid economic development and has also driven rapid population growth, which is fully demonstrated in the practice of Hefei.
Hefei’s economic strength significantly enhanced, boasting remarkable GDP achievements. In recent years, Hefei’s economic growth rate has been eye-catching. In 2015, Hefei’s GDP volume exceeded the important milestone of 500 billion yuan. By 2020, just after a mere five years, Hefei’s GDP had doubled. Furthermore, by 2022, Hefei’s GDP soared further, surpassing 1.2 trillion yuan and reaching a historic new high of 12013.1 billion yuan.
Population growth contributes to the provincial capital, Hefei’s contribution is outstanding. The rapid increase in Hefei’s population, driven by its industrial development, also benefits from its strategic position as a strong provincial capital. Most mainland Chinese cities follow the development model of strong provincial capitals, and Hefei in Anhui province has done the same. Over the years, Anhui has adhered to this development path and has achieved significant results. Economically, Hefei’s primacy reached 26.9%, meaning that over one-quarter of Anhui province’s GDP is concentrated in the city of Hefei. In terms of regional comparison, Hefei’s economic scale is 2.7 times that of Wuhu.
- Firstly, in terms of leading the development of the whole province, the rise of Hefei has greatly promoted the overall progress of Anhui province. Data shows that in the decade from 2013 to 2022, Anhui province has risen three places in the national ranking, from 13th to 10th, with its ascent speed ranking second among all provinces in the country.
- Secondly, it led to a large influx of population. For example, Changsha had the highest population growth in 2022, but the entire Hunan province actually reduced its population by 180,000. In contrast, as a strong provincial capital, Hefei’s population increased significantly, attracting numerous talents and residents to move in.
Strong provincial capital model versus balanced development, which is better? From the current situation, although Anhui province faced a population decline in 2023, reducing by 60,000 people, Hefei city still maintains a strong population growth momentum. This shows that the strong provincial capital model, which sucks in the population of the entire province, is showing its effects. However, there is no absolute superiority between the strong provincial capital model and the balanced development model; each has its advantages, and it all depends on adaptability. For inland provinces, a strong provincial capital often favors the growth of the capital itself and the concentration of population, preventing the outflow of talents to other regions.
