Page 120 - AmCham South China 2026 Special Report on the State of Business in South China

Yunnan
The economy
on China¡¯s southwestern
Located frontier, Yunnan covers an
2
area of 394,100 km and had a population of 46.6
million in 2024. Bordered by Myanmar, Laos and
Vietnam, Yunnan is emerging as a pivotal gateway
to Southeast Asia and South Asia. The China
(Yunnan) Pilot Free Trade Zone, established in
August 2019, supports the central government¡¯s
goal of accelerating the opening-up of border
regions. During the 14th FYP period, Yunnan¡¯s
high-quality development reached a new level,
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with GDP hitting RMB3.15 trillion in 2024 .
While traditional industries such as energy and
nonferrous metals continue to consolidate, new
advantages driven by ¡°green power + advanced
manufacturing¡± have accelerated. Externally,
Yunnan has deepened the construction of
ASEAN-oriented radiation centers, and the China-
Laos Railway ? a landmark Belt and Road project
? has become a strategic channel linking China to
Southeast Asia and Europe. In H1 2025, Yunnan¡¯s
foreign trade reached RMB127.4 billion , with
80
agricultural export continuing to lead.
Market highlights
As travel trends evolve, Yunnan has become an
attractive destination for long-term travelers. In
2024, the province¡¯s tourism revenue hit a record
RMB1.14 trillion, with 3.9 million long-stay visitors
? a 20.7% YoY increase . To keep pace with this
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trend, Yunnan is shifting from conventional
sightseeing tourism toward a more diverse,
experiential model. Over the next three years,
79 Government of Yunnan, https://www.yn.gov.cn/ztgg/
zfgzbgjd/cyjd/bgsl/202501/t20250115_308037.html
80 China.com, http://business.china.com.cn/2025-
08/06/content_43195571.html
81 Government of Yunnan, https://www.yn.gov.cn/
ynxwfbt/html/2025/zuixinbaodao_0123/7856.html
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the government plans to build 3,000 specially
designated villages offering wellness retreats,
cultural experiences, educational activities and
senior-friendly living options to meet the growing
demand for extended stays.
The electricity industry is another key economic
pillar of Yunnan, playing a central role in the
¡°West-East Electricity Transmission Project¡±. Since
the start of the 14th FYP, accelerated development
of solar and wind energy ? supported by favorable
policies ? has driven rapid growth in energy storage,
now a critical flexible resource in the power system.
The government has issued an implementation
plan for new-type energy storage and established
an integrated ¡°renewables + storage¡± model,
defining mechanisms for dispatch, shared
leasing and market participation. By leveraging
the capacity market to address project demand,
returns and operational challenges, Yunnan is
improving its business environment and enabling
the sector¡¯s transition from initial breakthroughs
to large-scale, high-quality development.
Thanks to its rich biodiversity, Yunnan
has achieved breakthroughs in biomedicine,
biomanufacturing and biotechnology services.
Kunming High-tech Zone is home to more than 80%
of the province¡¯s biomedical enterprises. Looking
ahead to the 15th FYP, the government plans to
accelerate the development of future industries
and promote integration and innovation in the
circular economy and low-carbon technologies.
The park economy will serve as a starting point
to empower the growth of new quality productive
forces and provide strong support for the
province¡¯s industrial transformation.
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