LOW CARBON TRANSFORMATION OF KUNSHAN INDUSTRIES AND POLICY PROMOTION: 1985- 2020

Abstract

Kunshan, one of China’s key industrial centers, has undergone a significant low-carbon transformation over the past three decades. This study examines the evolution of Kunshan’s industrial structure from labor-intensive manufacturing to high-tech and green industries, analyzing the role of government policies in driving this transition. Using enterprise registration and patent data from 1987 to 2020, we assess the impact of national, regional, and local policies on innovation and business development. Our findings reveal two key economic turning points: a surge in patent applications in 2008-2009, driven by R&D incentives, and a sharp increase in enterprise registrations in 2015-2016, facilitated by business-friendly reforms. Case studies of the Kunshan Development Zone and Yushan Town highlight the effectiveness of targeted policy interventions in fostering industrial upgrading. While Kunshan has made substantial progress, regional disparities in economic growth and challenges in balancing sustainability with industrial expansion remain. This study provides policy recommendations for sustaining Kunshan’s momentum toward a green and innovation-driven economy.