The Land Once Inhabited by Xiongnu, Xianbei, and Khitan... The Secret Behind China's Richest City

Rapid Growth Thanks to Premium Wool 'Cashmere'
Abundant Underground Resources Including Ceramics, Natural Gas, and Coal
Surpassing Beijing and Shanghai to Become the Top Wealthy District Again

The city of Ordos, located in the grassland area of Inner Mongolia, China, has transformed into the "Dubai of China." It is reported to have surpassed even the capital Beijing and the economic hub Shanghai in terms of per capita Gross Domestic Product (GDP).

Local media, including China News Network, reported on the 30th (local time) that Ordos' per capita GDP in 2022 reached 256,908 yuan (approximately 49 million KRW). This is about three times the national average per capita GDP of China (85,698 yuan, approximately 16 million KRW), and it also surpassed Beijing (190,000 yuan) and Shanghai (180,400 yuan), the economic and commercial centers of China.

Inner Mongolia is an autonomous region in northern China. It borders Mongolia and covers a total area of 1.18 million square kilometers. The region is a blend of rivers, mountain ranges, and plains, and has historically been influenced by various nomadic peoples such as the Xiongnu, Xianbei, Khitan, Jurchen, and Mongols. Approximately 25 million people live on this vast land, resulting in a very low population density.

The hair obtained from mountain goats and goats living in high-altitude areas becomes "cashmere," a premium clothing material known as the "jewel of fibers." The photo is unrelated to specific expressions in the article.
[Image source=AP Yonhap News]

Among the largest cities in Inner Mongolia, Ordos has a resident population of 2.2 million, which is only one-tenth of Beijing's population. By Chinese standards, it is not a very large city. Nevertheless, it is reported to enjoy high economic growth rates thanks to abundant underground resources and agricultural products, especially the high-quality wool known as "cashmere."

According to the media, the cashmere produced by nomads in this region who graze sheep amounts to 3,300 tons annually. This accounts for half of China's total production and two-fifths of the world's production.

Cashmere, used as material for luxury clothing, silk, and carpets, is limited in supply because it can only be harvested from mountain goats living in high-altitude areas. It is traded at high prices, often called the "jewel of fibers."

Only a few countries produce cashmere, including Afghanistan, China, Mongolia, and the Kashmir region of India. Recently, the supply chain has been disrupted due to the Taliban government taking power in Afghanistan, a major cashmere producer, and the border dispute between China and India has also affected wool production in Kashmir, causing prices to soar further. The average price per kilogram surged from $120 (approximately 156,000 KRW) in 2020 to $220 (approximately 287,000 KRW) last year.

Underground resource mining site in Neimenggu, China
Photo by Reuters Yonhap News

Moreover, Inner Mongolia has deposits of 6.5 billion tons of kaolin, used in porcelain, cosmetics, and ceramic raw materials, which is considered the highest quality kaolin in China. Additionally, Inner Mongolia is rich in energy resources. Its coal and natural gas reserves account for 17% and 33% of China's total, respectively.

Thanks to these abundant resources, the local government of Inner Mongolia implements much more generous welfare policies compared to other regions in China. For example, since 2010, it has introduced a "12-year free education system." While China's compulsory education period is nine years, covering elementary and middle school, this region offers tuition-free education up to high school.

The media described this by saying, "Ordos, once a barren land covered with deserts and grasslands, has become the 'Dubai of China,' envied even by the economic hub cities of the eastern coast and southern regions."

This content was produced with the assistance of AI translation services.