China sees Pittsburgh as role model for industrial transformation, eyeing hi-tech shift from rust-belt roots

Through decades of revitalisation efforts, the US city of Pittsburgh reversed its fortunes and became a destination for advanced manufacturing

But for Jilin and other Chinese provinces to become hi-tech hubs, some experts say US technology will be indispensable

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A Chinese state official recently said in Jilin province that Pittsburgh’s economic renaissance following the collapse of its steel industry nearly four decades ago could serve as a model for China’s state-dominated old industrial base. Photo: AP

Published: 8:00pm, 25 Jul 2021Updated: 8:26am, 26 Jul 2021

China’s old northeastern rust-belt province of Jilin is looking for a bit of inspiration in the US city of Pittsburgh – the one-time steel capital that gradually transformed into a hub for advanced technology companies.

This type of economic transformation forms a key part of President Xi Jinping’s dual-circulation strategy, which aims to cut China’s dependence on overseas markets and technology in its long-term development – a shift brought on by a deepening rift with the US.

In a round-table discussion with dozens of American business executives on July 8 in Jilin’s capital, Changchun, Xiao Weiming, an official with the National Development and Reform Commission (NDRC), said Pittsburgh’s economic renaissance could serve as a model for China’s state-dominated old industrial base.

“Typical old industrial cities in the United States, such as Pittsburgh, through decades of hard work and efforts, vigorously develop diversified industries such as advanced technology, medical care, education and finance, and have achieved a magnificent turnaround,” Xiao said.

“On the one hand, we actively learn from the United States and other countries to promote old industrial bases; make adjustments based on experiences and practices in their transformations; learn from each other’s strengths, and build on the reality of the old industrial bases in northeast China,” he said.

Jilin, which borders both Russia and North Korea, is a key agricultural province and also a major developer and manufacturer of China’s high-speed Fuxing bullet trains. It is also synonymous with the production of Hongqi luxury cars – the beloved marque of former revolutionary leader Mao Zedong. Hongqi is produced by state-owned carmaker FAW.

Foreign investment remains an important gateway for Chinese companies to access new technology. Changchun, sometimes referred to as the “Detroit of China”, is stepping up to expand to new energy vehicles and biochemicals, pivoting from traditional auto manufacturing and petrochemical production. However, it needs heavy capital investment to develop new industries, while competition with other cities for foreign investment is intensifying.