(Yicai) May 19 -- Shanghai and the neighboring provinces of Anhui, Jiangsu, and Zhejiang have inked a pact to jointly beef up key industries and supply chains in the Yangtze River Delta region, with the goal of turning local advantages into more resilient, higher-value industrial ecosystems.

The agreement signed by the four local governments emphasizes more coordinated regional manufacturing, a complete supply chain layout for key industrial clusters, and joint efforts to drive collaborative innovation across the region, according to a document seen by Yicai.

The essence of collaborative innovation in Yangtze River Delta region is to put enterprises at the heart of innovation, use regional integration as the foundation, and pool science, industry, talent, and capital together to foster cutting-edge outcomes and stronger competitiveness in high-end industries, an official with the Shanghai’s economy and informatization commission told Yicai.

The agreement lays out joint action on building complete supply chains in the region for large aircraft, shipbuilding and offshore engineering, new energy vehicles, and new materials, while also speeding up the commercial deployment of smart connected NEVs, the low-altitude economy, embodied artificial intelligence, satellite internet, and other cutting-edge technologies.

In addition, the pact supports the creation of supply chain innovation alliances bringing together companies, industry associations, universities, and research institutes across the region.

The key emerging technology sectors for deeper cooperation include integrated circuits, biomedicine, NEVs, AI, industrial software, embodied AI, the low-altitude economy, and biomanufacturing, according to the document.

The region’s shipbuilding industry shows how the Yangtze River Delta can compete as a coordinated cluster rather than as separate local markets, according to Deng Yan, executive dean of the Shanghai Yangtze-Delta Advanced Manufacturing Institute.

In addition to its leading shipbuilding capacity, the effective coordination and division of labor among companies  along the regional supply chain also boots the competitiveness of the entire industry, Deng told Yicai.

For example, design and assembly of the world's largest liquefied natural gas carriers is done in Shanghai, while most of the core components and materials come from Jiangsu and Anhui, with maintenance and modifications mainly handled in Zhejiang, he said.

The regional shipbuilding sector has effectively developed a division of labor in which Shanghai handles general assembly and integration, Jiangsu focuses on construction, Zhejiang specializes in repairs, and Anhui mainly develops new energy-powered vessels, Deng pointed out.

Collaboration between Shanghai, Anhui, Jiangsu, and Zhejiang is driving the Yangtze River Delta region to transition from being the "super factory" of the global shipbuilding industry to a "world-class hub for innovation and capacity collaboration" that has control over high-end ship designs and the discourse on green regulations, Deng noted.

The four partners also agreed to jointly promote the rollout of cutting-edge tech uses, co-build cross-regional public service platforms for key industries, support industry innovation alliances in major sectors, and work together to commercialize research results within the region.

They aim to create a unified cross-provincial communication platform and regularly connect upstream and downstream firms across the regional supply chain more precisely and efficiently.

Editors: Tang Shihua, Martin Kadiev