On September 11th, the State Council approved the “Comprehensive Reform Pilot Implementation Plan for Market-based Allocation of Factors in Some Regions of the Country”, and launched comprehensive reform pilots for market-based allocation of factors in 10 regions, namely, the Beijing Sub-center City, key cities in southern Jiangsu, Hangzhou-Ningbo-Wenzhou, Hefei Metropolitan Area, Fuzhou-Xiamen-Quanzhou, Zhengzhou City, Changsha-Zhuzhou-Xiangtan, the nine cities in the Guangdong-Hong Kong-Macao Greater Bay Area on the Chinese mainland, Chongqing City, and Chengdu City.
Such a major reform move will inevitably be accompanied by the reallocation of resources and the reshaping of rules, which means new opportunities.
I. What is the Marketization of Elements
The core of the document is just five words: “Marketization of Factors”.
What are “factors”?
In simple terms, they refer to basic elements such as human resources, land, capital, technology, data, resources and the environment.
And “marketization” means removing restrictions and allowing various factors to flow to places with higher efficiency and better benefits.
These ten pilot areas mainly focused on the market-oriented promotion of the six key elements.
1. Labor marketization.
For instance, to implement the household registration reform, allow the free movement of population, and ensure that public services follow the population.
2. Capital Marketization.
The core lies in enhancing the efficiency of capital in serving the real economy.
3. Land Marketization.
For instance, it is encouraged to utilize different types of industrial land in a mixed manner, to revitalize the existing land resources, and to promote the redevelopment of inefficient land through various means;
Regarding rural land, efforts will be made to expand the pilot program for the market entry of rural collective commercial land.
4. Marketization of Technology.
The state should ensure that the returns from technological innovation are greater than the risks. This should encourage both enterprises and individuals to engage in innovation.
For instance, granting researchers the ownership or long-term usage rights of their research achievements.
5. Data Marketization.
Public data should be gradually made accessible, and efforts should be made to promote its application innovation in scenarios such as smart cities and industrial internet.
6. Marketization of Resources and Environment.
The goal is to utilize market mechanisms to promote green and low-carbon development.
For instance, deepen the price reforms of resources such as electricity and natural gas, and expand green power trading, etc.
The core demand of this reform is to let the market make the decisions.
Remove all obstacles, and let price signals, competition mechanisms and the principle of efficiency become the fundamental criteria for determining the flow of resources.
II. Different Directions of the Ten Pilot Areas
Different levels
There are 10 pilot areas, and these pilot areas are designed in terms of size and are divided into different levels:
The lowest level is the Beijing Sub-City. It is merely one of the districts of the city, mainly referring to the Tongzhou District of Beijing.
Secondly,
Chengdu, Chongqing and Zhengzhou form a “complete city”.
Then,
The Hefei Metropolitan Area consists of a provincial capital city, Hefei, along with several county-level cities, counties or districts. Specifically, these include Wuhai City in Wuhu City, Shou County in Huainan City, Hengshan County in Ma’anshan City, Tongcheng City in Anqing City, Dingyuan County in Chuzhou City, and Jin’an District and Shucheng County in Lu’an City.
Then,
Hangzhou-Ningbo-Wenzhou, which includes Hangzhou, Ningbo and Wenzhou in Zhejiang Province; Fu’an-Xiamen-Qianzhuang, which includes Fuzhou, Xiamen and Quanzhou in Fujian Province; Changsha-Zhuzhou-Xiangtan, which includes Changsha, Zhuzhou and Xiangtan in Hunan Province. These are all small urban clusters composed of several cities.
The next level up is the key cities in southern Jiangsu, including Nanjing, Wuxi, Changzhou, Suzhou and Zhenjiang, as well as the nine cities in the Guangdong-Hong Kong-Macao Greater Bay Area (Guangzhou, Shenzhen, Zhuhai, Foshan, Jiangmen, Zhaoqing, Huizhou, Dongguan and Zhongshan). This is a larger urban cluster.
This choice was clearly carefully designed and considered.
2. Different Categories
The purposes and focuses of reforms in different regions vary, which also implies the “differentiation” of resources and opportunities.
The 10 pilot regions are classified into four major categories based on their geographical advantages, industrial foundations and policy orientations.
The first category:
The innovation-driven type that highlights the interaction between technology and industry, including the Beijing Sub-City, Chengdu City, and the Hefei Metropolitan Area.
The key focus of the reform is to break through the “technology – capital – industry” loop.
The second category:
The key pioneering regions with strong economies in the east, including key cities in southern Jiangsu, Hangzhou-Ningbo-Wenzhou, Fuzhou-Xiamen-Qingdao.
The common feature is that the private economy is well-developed, and there is an urgent need for the deep integration of the digital economy with the real economy.
Therefore, the reform priorities of these regions are to promote the construction of industrial internet platforms, the marketization of data elements, the reform of industrial land use, and the development of marine economy, etc.
The third category:
Inland cities in the central and western regions with comprehensive exploration capabilities, including Zhengzhou, Changsha-Zhuzhou-Xiangtan, and Chongqing.
The common feature is that they are all typical cities in the central and western regions. Their pilot policies are comprehensive and balanced. They mainly base on their own characteristics to explore the direction of comprehensive reforms for different types of cities in the central and western regions, and set an example for many relatively less developed areas.
The fourth category:
Special policy-oriented policies for the Guangdong-Hong Kong-Macao Greater Bay Area, including the nine cities within the Greater Bay Area.
This region is adjacent to Hong Kong and Macao, highly open, and generally has a high degree of internationalization. It is the most suitable for cross-border flow of elements and institutional-type opening-up.
The key points of reform naturally include cross-border data flow, cross-border finance, cross-border technology, and the interconnection among Guangdong, Hong Kong and Macao.
3. Why are there no entries for Shanghai and Shandong?
Regarding Shanghai,
in fact, “there is no great necessity” because the “marketization of factors” level in Shanghai is already very high, and it is not a typical reform city.
Regarding Shandong,
It, along with the Suzhou-Nantong-Yangtze River Delta urban agglomeration and Hangzhou-Ningbo-Wenzhou, etc., are all major manufacturing regions.
The difference is that Shandong has a relatively strong “industrial inertia” in its heavy industry and its digital economy is not very developed. Therefore, it is not very typical.
III. Future Development Suggestions for Element Reform
Reconfiguration of the development logic
The current pilot projects are the prototypes of the future.
The core of the market-oriented reform of elements is to make the key elements such as talents, land, capital, technology, data and resources “come alive” and “move” at all levels.
The policies currently being implemented in the pilot areas are precisely the reform directions that may be gradually rolled out nationwide in the coming years.
This means that by observing these “policy windows”, we can get a glimpse of China’s future development picture in advance.
So for individuals and enterprises, this provides a rare perspective for decision-making:
That is, we can predict the future flow of factors and industrial opportunities based on the policy orientation of the pilot areas. The pilot areas are like “laboratories” for reform, and the successful models developed here are likely to become national standards.
Therefore, paying attention to the policy dynamics of the pilot areas is equivalent to having the “code” to understand the future economic trends.
In conclusion, this reform goes far beyond a regional policy document. It is a reshaping of the development logic, fundamentally changing the rules of the game in the business world.
Specifically, in the past, enterprises and investors tended to focus more on “local benefits” such as tax incentives, land prices, and subsidy policies. In the future, the allocation of resources will be determined more by the efficiency criteria of the market rather than the preferences of local governments.
For both enterprises and individuals, the logic of decision-making will shift from “seeking policy niches” to “identifying efficiency hotspots”.
That is, to find regions and industries that can most attract and efficiently utilize advanced elements, such as talents, technologies, and data.
In fact, this is also a deeper and more sustainable way of optimizing the business environment.
2. Opportunities for Ordinary People
As ordinary people, we can attempt to seize opportunities from three perspectives.
First, from the perspective of geographical dimensions,
we focus on the new value of “hubs” and “platforms”, particularly for three types of cities or regions.
First of all, there are physical hub cities.
For example, Zhengzhou and Chongqing. The free flow of resources will initially benefit those natural transportation hubs and logistics centers.
The value of these cities will upgrade from “a place where resources pass through” to “a place where resources are concentrated”.
Related modern service industries such as logistics finance, trade, data, and supply chain management may experience explosive growth. Therefore, students in Zhengzhou and Chongqing are advised to pay more attention to opportunities in areas such as multimodal transport service providers, supply chain fintech platforms, and commodity trading platforms.
Secondly, there are rule-based hub regions.
For instance, the Guangdong-Hong Kong-Macao Greater Bay Area. Their core value lies in becoming a “rule converter” that connects the mainland with the global market.
Any enterprise that can provide solutions in areas such as cross-border data flow, cross-border finance, mutual recognition of professional qualifications, etc., is likely to gain significant opportunities.
Therefore, friends in the Guangdong-Hong Kong-Macao Greater Bay Area can pay more attention to opportunities in cross-border legal services, data compliance, cross-border wealth management, certification and standard service institutions, etc.
Finally, there are innovation-driven regions.
For instance, Beijing, Hefei, and Chengdu have made breakthroughs in the mechanism for the transformation of scientific and technological achievements. This will accelerate the conversion of the “knowledge density” in these regions into “industrial density”. Therefore, if we want to seek opportunities in Beijing, Hefei, and Chengdu, we should pay more attention to the operation of technology transfer service platforms, intellectual property operation, concept verification centers, and pilot production bases. There will be opportunities in these fields.
Second, from the perspective of the industry,
embracing the reconfiguration of elements that are “digital” and “green”.
Firstly, as data transforms from resources into assets and then into capital, it will give rise to a completely new industrial ecosystem.
This is not only an opportunity for the IT industry, but also an opportunity for traditional industries to re-establish their competitiveness.
Therefore, for tech entrepreneurs and practitioners in industrial digitalization, it is worthwhile to pay more attention to data governance and compliance services, as well as vertical industry data application solutions, especially in the fields of industrial internet, smart cities, and data asset assessment.
Secondly, the marketization of green elements such as resources and the environment will also lead to a revaluation of value. Carbon quotas, water usage rights, and pollution discharge rights, etc., will transform from “constraint indicators” to “tradable assets”, which will completely change the cost structure and competitive landscape of high-energy-consuming industries.
Therefore, for investors who are focused on the green sector, it is recommended to pay special attention to new entities and industries such as energy conservation and environmental protection technology service providers, carbon asset management companies, green certification institutions, and environmental rights trading platforms.
Finally, the reform of land elements will activate the existing space. The mixed utilization of industrial land, the redevelopment of existing land, and the entry of rural collective land into the market will provide more spatial carriers for urban renewal, rural revitalization, and the development of emerging industries.
Therefore, the integrated operation of park operation developers, urban renewal service providers, rural cultural tourism and modern agriculture will all have a significant increase in available space.
Thirdly, from the perspective of the group,
it is possible to grasp the identity transformation of “new citizens” and “new farmers”.
The free flow of labor will eventually lead to the breaking down of the household registration barriers and the equalization of public services, enabling hundreds of millions of “new citizens” to truly establish themselves in cities. During this process, there will be a huge demand for consumption upgrades, with significant increases in education, healthcare, and elderly care services. At the same time, the evaluation system based on skills and contributions will bring long-term benefits to the vocational education and skills training sectors.
The revitalization of rural factors will also create new opportunities. The revitalization of rural land and homesteads will enable a group of “new farmers”, namely entrepreneurs with capital, technology and market knowledge, to engage in modern agriculture and rural industries.
Therefore, if we want to start businesses and develop in rural areas, it is recommended to pay more attention to opportunities such as the provision of smart agricultural technology, brand building of agricultural products and e-commerce services, and personalized experience services for rural tourism.
Inspiration
Three principles for personal choices
If an individual wants to secure greater benefits of the times in the field of employment,
they should integrate their career planning with the regions and industries that are concentrating on advanced elements.
When observing a city, one should increasingly focus on its “mission”.
When choosing a city, do not merely focus on the total GDP. Instead, you should also consider what national-level pilot tasks the city is undertaking. Are they related to manufacturing upgrading, inland opening up, or international rule alignment?
The “mission” of a city often determines which industries and talents it will most need and be most supportive of in the next five to ten years.
These are the “definite opportunities” that we can identify. This is a thinking dimension for you to grasp the employment benefits.
2. When choosing a track, it is necessary to ensure that it aligns with the flow of the “elements”.
The essence of the market-oriented reform of elements lies in enabling the free and efficient flow of key elements such as talents, capital, technology and data.
Therefore, the track we should choose should be the one where these elements are acceleratingly converging.
For instance, in the Guangdong-Hong Kong-Macao Greater Bay Area, the fields related to cross-border finance, technology finance, data traceability, international standard setting, and spatial intelligence are the “hotspots” where these elements are concentrating their influx.
3. Pay attention to the changes in the “soft environment”.
In addition to the tough industrial policies, attention should also be paid to reforms in soft environments such as the “residence permit system”, “green land use model”, “medical security”, “equal rights for renting and purchasing”, and “humanistic construction”.
If a city starts to pay attention to the soft environment, it indicates that it is wealthy enough.
And only when it truly cares about people can it attract more people.
Post time: Oct-04-2025