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China’s old industrial cities race to reinvent themselves in rapidly changing economy

Once China’s answer to Pittsburgh, steel hub Panzhihua faces same challenge as other old industrial cities: how to avoid ‘rust belt’ decline

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Illustration by Lau Ka-kuen
Mandy Zuoin Panzhihua, Sichuan province
Few areas of China reflect the country’s decades-long economic transformation more vividly than its cities. Rapid development has made villages into dense urban landscapes and already sizeable metro areas into some of the world’s largest population centres. As the rate of urbanisation slows and the country transitions into a new economic era, we explore how select Chinese cities are navigating the change. Read the rest of our series here.
Once a remote industrial powerhouse forged deep in the mountains of western China, the former “steel capital” Panzihua is trading blast furnaces for wellness resorts as it pushes to align with the nation’s shift from rapid urbanisation to a more “people-centred” model.

Built in the 1960s on the upper reaches of the Yangtze River, the city in Sichuan province drew workers from across the nation to fuel China’s industrial ambitions. Six decades later, its economy, once mirroring Pittsburgh’s in the United States, still relies on the iron ore buried in its hills – home to Pangang Group, western China’s largest steel enterprise – even as it pursues a cleaner, more diversified future.

Today, Panzhihua has a population of about 1.2 million, a broader range of industries and a greener environment. Named after a type of kapok flower, the city is working to avoid a “rust belt”-style decline – though the transition is not without challenges. According to researchers and local residents, it continues to grapple with a narrow industrial base, limited innovation capacity and difficulties attracting talent.

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