China GDP: city in eastern Anhui province facing ‘win or die’ situation after economy failed to grow in 2021

Bengbu city had set a gross domestic product (GDP) growth target of 8.5 per cent last year compared to the national goal of ‘around 6 per cent’

But while China posted a full-year growth rate of 8.1 per cent, Bengbu’s economy did not grow last year as all its major indicators missed their targets by a large margin

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Bengbu city had set a gross domestic product (GDP) growth target of 8.5 per cent last year compared to the national goal of “around 6 per cent.” Photo: Reuters

Published: 10:15pm, 21 Jan 2022Updated: 4:15am, 22 Jan 2022

A city of just over 3 million people in China’s eastern province of Anhui is facing a “win or die” situation after the former fishing village reported no economic growth in 2021 despite a strong push to transform its economy.

Bengbu city had set a gross domestic product (GDP) growth target of 8.5 per cent last year compared to the national goal of “around 6 per cent.”

But while China posted a full-year growth rate of 8.1 per cent, Bengbu’s economy did not grow last year as its retail sales, fixed asset investment, manufacturing and service industries all missed their targets by a large margin.

The pressure of a stalling economy, development dislocation, and structural imbalance, has become prominent, and it has reached the critical moment of to win or die

Zheng Shanjie

“Since last year, Bengbu city has made new achievements in promoting innovation and development, strengthening the city industry by industry and reforming and opening up,” said Anhui’s provincial party secretary Zheng Shanjie earlier this week after a meeting with local officials.

“However, the pressure of a stalling economy, development dislocation and structural imbalance, has become prominent, and it has reached the critical moment of to win or die.”

Bengbu had already warned earlier this month that an “unsustainable industrial transformation and upgrading” and problems of verifying statistics and poor data quality meant the growth rate of major economic indicators was lower than expected.

“Slow progress is no progress,” Zheng added in comments published by the Anhui Daily on Wednesday, while he also urged local government officials to urgently upgrade Bengbu’s old industries.