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Wuxi test: China's industrial policy on the ground

LMS
By Warwick Powell|en.wuxi.gov.cn|Updated: September 14, 2026

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A bird's-eye view of Wuxi. [Photo provided to en.wuxi.gov.cn]

Western narratives about Chinese industrial policy often repeat the same ideas: State-led, inefficient, and unsustainable. But then you look at a mid-sized manufacturing city like Wuxi, and the data reveals a more complex story.

Take three data points. First, the Qingming Bridge Historical and Cultural Block: digital technologies are transforming ancient culture into immersive experiences, attracting nearly 30 million visitors a year.

Second, the National Digital Film Industrial Park: former factory buildings have been converted into a virtual production hub, generating more than 8 billion yuan ($1.19 billion) in annual output and gaining international recognition.

Third, Xuelang Town: 3.5 square kilometers of land has been developed into an AIoT innovation base, where the Xuelang Cloud industrial internet platform connects more than 520,000 industrial devices.

The pattern isn't accidental. It's a purposeful approach: redesign traditional resources using technology and verify results with data.

Two observations.

First, this is industrial policy with measurable results — rare enough to be noteworthy. Second, the underlying logic isn't "government knows best". It's more pragmatic: create the conditions, let innovation find its footing, then measure and scale what works.

The true test is sustainability. Will this momentum continue as China's economy rebalances? That's the key question to watch — not from a desk in Washington or Brussels, but on the ground in cities like Wuxi.

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