China’s Next Potential Boom Spot: The Places People Overlook

Delivery personnel for JD.com, a Chinese e-commerce company, sorting packages in Liangduo in eastern China. Online shopping has expanded into less developed parts of the country as incomes have risen. Credit Photographs by Yuyang Liu for The New York Times
Delivery personnel for JD.com, a Chinese e-commerce company, sorting packages in Liangduo in eastern China. Online shopping has expanded into less developed parts of the country as incomes have risen. Credit Photographs by Yuyang Liu for The New York Times
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China’s Next Potential Boom Spot: The Places People Overlook

Delivery personnel for JD.com, a Chinese e-commerce company, sorting packages in Liangduo in eastern China. Online shopping has expanded into less developed parts of the country as incomes have risen. Credit Photographs by Yuyang Liu for The New York Times
Delivery personnel for JD.com, a Chinese e-commerce company, sorting packages in Liangduo in eastern China. Online shopping has expanded into less developed parts of the country as incomes have risen. Credit Photographs by Yuyang Liu for The New York Times

One crisp October morning, Han Youjun got into his silver delivery van and left this small town in eastern China. Within minutes, his van brimming with boxes of every size and shape, he was rumbling through rice paddies, down narrow village lanes and past modest farmhouses, deeper and deeper into China’s vast hinterland.

In the past, delivery drivers like Mr. Han would have had little reason to travel so far. China’s boom over the past four decades made its crowded metropolises wealthy. Much of the rest of the country, especially farming communities like those surrounding Liangduo, in the eastern province of Jiangsu, remained relatively poor.

But more and more, the benefits of China’s economic miracle are penetrating into smaller cities and countryside hamlets — as Mr. Han, a 32-year-old deliveryman for JD.com, an online retailer, knows all too well. The 70 packages crammed into his van that day were double the amount he usually hauled only 18 months earlier.

“The workdays have been getting longer,” he said.

China needs spenders in those places. The government is trying to shift the country’s growth engine away from its traditional dependence on factories and building things. Those old growth sources are no longer dependableand require more and more costly debt.

Thanks to China’s digital revolution, advances in farming and billions of dollars spent on thousands of miles of new highways and railways, Chinese people away from the biggest cities are responding. Many of China’s more remote areas are catching up to rich metropolises and connecting to the broader economy in ways they had not before, with potential long-term benefits for the Chinese economy and the world.

In the prefecture that contains Liangduo, Yancheng, locals’ wallets are fattening more quickly than the national rate, and their household spending — which surged 8 percent per person in 2016 — outpaced the rises in Beijing and Shanghai.

Signs of that new prosperity can be seen at Auto City, a jumble of ramshackle, boxy buildings in Yancheng where Toyota, Ford and just about every other major brand compete for customers. Zhou Zhengguo, owner of a dealership for the Chinese automaker Geely, expects to sell 2,000 cars this year, four times more than just two years ago.

“Most people who bought cars were private businessmen,” Mr. Zhou said. “Now working-class people buy, too.”

Those who live in China’s less developed places could be crucial to the next stage of China’s development.

Robin Xing, an economist at Morgan Stanley, believes consumer spending in places like Yancheng’s urban center will continue to outperform bigger cities. As a result, two-thirds of all additional private consumption growth will come from these less developed areas through 2030.

“We do expect them to catch up, to narrow the income gap with the large cities,” Mr. Xing said.

Businesses are looking at such areas in a new light. New highways and high-speed railways make relocating factories and other operations into smaller cities easier, allowing companies to take advantage of their lower costs. Industrial output in Yancheng expanded more quickly than the national rate last year.

The gains are not limited to the hinterland’s main towns. Farms are becoming bigger, more efficient and more lucrative.

In Xinling, a nearby village, Luo Jianhai, 37, is typical of a new breed of farmer-entrepreneur. He has steadily expanded the farm where he tills rice and wheat by renting land from his neighbors. He also invested in two new tractors, which he lends out to other farmers who need them to work their own larger plots. Over the past three years his annual income has increased seven times, to $100,000, and his spending has quadrupled, mainly on higher-quality clothing for his three children and a new, $17,000 car from a General Motors joint venture.

His improved lifestyle, Mr. Luo said, “is the difference between being poor and having money.”

Nearby, Cheng Zhiguo, 47, also enlarged his farm this year, increasing his net income to about $23,000 — five times greater than just three years ago. His reward: his first car, a Hyundai, bought in August.

Such change is luring urban entrepreneurs such as Zhou Jian. Mr. Zhou, a 33-year-old resident of Nanjing, a major city in eastern China, figured that large-scale farming would also need more money. In 2013, he founded Nongfenqi E-Commerce Company, which helps arrange loans for farming families from banks and other lenders.

Nongfenqi has since arranged about $150 million in loans, opened more than 100 offices spread around rural China and hired 800 employees. “The upgrading of the market allows businesses like us to serve these big farmers,” Mr. Zhou said.

Such opportunity has attracted JD.com. Over the past three years, JD.com has more than doubled its army of deliverymen, many aimed at reaching into rural towns and villages.

“Building a rural logistics network is one of our most important strategies,” said Wang Hui, JD.com’s head of delivery services. “With consumption developing in rural areas, we hope we can catch this opportunity to expand our business.”

That chilly morning in Liangduo, where the delivery station opened last year, a giant JD.com truck squeezed down a cluttered central street to disgorge hundreds of packages, which were sorted and carried to customers by nine full-time delivery personnel. The station is intended to help introduce residents to how e-commerce works. Next door, a merchant transformed his appliance shop into a JD.com outlet, where farmers, often unfamiliar with e-commerce, can test products available online and place orders.

It’s an “online-to-offline” experiment to educate these new consumers in online shopping. The delivery station “is not just a logistics center,” said the JD.com manager in Liangduo, Ye Huanglong. “Anyone can come in and ask questions.”

Not all rural regions are advancing as quickly as Liangduo. Hu Bingchuan, deputy researcher at the Rural Development Institute of the Chinese Academy of Social Sciences in Beijing, fears companies may discover, at least for now, that their profits from countryside customers do not match their efforts to chase them.

“Most rural areas are not that successful yet,” he said. “E-commerce platforms won’t be able to copy their success in cities to rural regions.”

The future, though, holds promise. One of Mr. Han’s first stops is at the home of Han Aifeng, a farmer. She ordered cartons of milk, which, she said, make for a convenient refreshment when tending her fish-farming ponds.

The milk is among China’s most expensive brands, but Ms. Han, 64, can now afford it. Her husband works at a furniture factory, while she has increased the family income by raising crayfish and selling them in the local marketplace.

In all, the household’s annual income doubled in the past two years, to about $30,000, and Ms. Han’s spending on food and other goods has increased as well, much of it ordered online, using her smartphone. Discarded delivery boxes for pomelo, rice wine and yogurt are stacked on top of old rice hulls in a corner of her home’s courtyard.

“I used to have to ride an electric bike to the market when I needed to go shopping,” Ms. Han said. “Now people bring everything to my door.”

The New York Times



Moody’s Establishes Regional HQ in Riyadh, Deepening Presence in Region

(FILES) Signage for Moody's Corporation is displayed at their headquarters at 7 World Trade Center on March 18, 2025 in New York City. (Photo by ANGELA WEISS / AFP)
(FILES) Signage for Moody's Corporation is displayed at their headquarters at 7 World Trade Center on March 18, 2025 in New York City. (Photo by ANGELA WEISS / AFP)
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Moody’s Establishes Regional HQ in Riyadh, Deepening Presence in Region

(FILES) Signage for Moody's Corporation is displayed at their headquarters at 7 World Trade Center on March 18, 2025 in New York City. (Photo by ANGELA WEISS / AFP)
(FILES) Signage for Moody's Corporation is displayed at their headquarters at 7 World Trade Center on March 18, 2025 in New York City. (Photo by ANGELA WEISS / AFP)

Moody’s Corporation announced that it has established its regional headquarters in Riyadh, reflecting ongoing commitment to support the development of the Kingdom’s capital markets and economy.

“This investment aligns to the Kingdom's Vision 2030 initiative and underscores its dynamism and growth,” Moody’s said in a statement this week.

The new regional headquarters marks an expansion of Moody’s presence in Saudi Arabia, where the company first opened an office in 2018, and reflects its longstanding commitment to the Middle East.

“The headquarters will strengthen Moody’s engagement with Saudi institutions and enable broader access to Moody’s decision grade data, analytics and insights,” said the statement.

“Our decision to establish a regional headquarters in Riyadh reflects our confidence in Saudi Arabia’s strong economic momentum, as well as our commitment to helping domestic and international investors unlock opportunities with our expertise and insights,” said President and Chief Executive Officer of Moody’s Rob Fauber.

“We are well positioned to provide the analytical capabilities and market intelligence that investors and institutions need to navigate evolving markets across the Middle East,” the statement quoted him as saying.

Mahmoud Totonji will lead the regional headquarters as General Manager.


Saudi Arabia Launches First Endowment Fund for Environmental, Water and Agricultural Sustainability

The launch of the Namaa Endowment Fund (Asharq Al-Awsat)
The launch of the Namaa Endowment Fund (Asharq Al-Awsat)
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Saudi Arabia Launches First Endowment Fund for Environmental, Water and Agricultural Sustainability

The launch of the Namaa Endowment Fund (Asharq Al-Awsat)
The launch of the Namaa Endowment Fund (Asharq Al-Awsat)

Saudi Arabia has launched its first endowment fund dedicated to advancing environmental, water and agricultural sustainability, reinforcing efforts to strengthen the Kingdom’s non-profit sector and long-term development.

Minister of Environment, Water and Agriculture Eng. Abdulrahman Al-Fadhli on Tuesday inaugurated the Namaa Endowment Fund at the ministry’s headquarters, in the presence of senior officials and stakeholders.

The fund is designed to support economic and social development goals, address community needs, increase the non-profit sector’s contribution to GDP, and promote sustainable management of environmental, water and agricultural resources.

Al-Fadhli said the fund represents a new model of institutional endowment work and a practical mechanism to expand developmental impact while ensuring the sustainability of non-profit initiatives.

Developed in partnership with the General Authority for Awqaf, the fund aims to build assets commensurate with its ambitions, enabling higher returns and a wider impact over the long term.

It will pursue carefully structured investments that balance financial performance with developmental outcomes, with the potential to own or benefit from real estate assets that can be used by non-profit organizations.

Encouraging Private-Sector Participation

Al-Fadhli added that the ministry, in cooperation with the General Authority for Awqaf, the Capital Market Authority and AlAhli Capital, will support the fund and encourage contributions from the private sector, business leaders and the wider public.

Contributions will be made through a licensed digital platform under strict financial governance. He called on all segments of society to contribute in support of sustainable development across the environment, water and agriculture sectors.

Namaa will finance endowment initiatives within the ministry’s ecosystem, including the non-profit institutions Reef, Morooj and Saqaya. Its focus areas include water provision and conservation, afforestation, biodiversity protection, vegetation cover, the circular economy, sustainable agriculture and irrigation, and reducing food loss and waste.

Emad Alkharashi, Governor of the General Authority for Awqaf, announced an initial contribution of SAR100 million, describing it as a foundation for a sustainable endowment model.

He said the fund combines the legacy of endowments with modern investment practices to protect natural resources, strengthen food security and ensure lasting developmental impact.

Alkharashi added that the partnership with the ministry maximizes results and positions the fund as a model for directing endowments toward high-impact, long-term priorities through a transparent, well-governed institutional framework.


Makkah Gears Up for Ramadan with Tourism Drive, Record Hospitality Growth  

Tourism Minister Ahmed Al-Khateeb and other officials during his inspection tour on Tuesday. (Asharq Al-Awsat)
Tourism Minister Ahmed Al-Khateeb and other officials during his inspection tour on Tuesday. (Asharq Al-Awsat)
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Makkah Gears Up for Ramadan with Tourism Drive, Record Hospitality Growth  

Tourism Minister Ahmed Al-Khateeb and other officials during his inspection tour on Tuesday. (Asharq Al-Awsat)
Tourism Minister Ahmed Al-Khateeb and other officials during his inspection tour on Tuesday. (Asharq Al-Awsat)

Saudi Arabia’s Ministry of Tourism has raised the readiness of Makkah’s hospitality sector to its highest level ahead of the holy month of Ramadan, stressing that serving pilgrims and visitors remains a top national priority.

Makkah is preparing to receive worshippers and visitors amid a marked expansion in hospitality capacity. The city now has more than 2,200 licensed accommodation facilities, reflecting growth of 35 percent over the past year. The number of licensed hotel rooms has exceeded 380,000, up 25 percent, while total domestic and inbound tourism spending is projected to surpass SAR 143 billion ($38.1 billion) in 2025.

The wider Makkah region recorded unprecedented performance indicators last year, both in visitor numbers and tourism spending, underscoring sustained growth and operational readiness.

Total domestic and international visitors exceeded 50 million, marking a 14 percent increase compared with 2024.

Tourism Minister Ahmed Al-Khateeb announced the figures during an annual inspection tour on Tuesday, stressing that the indicators reflect a major expansion in accommodation capacity and record growth in visitor numbers.

The tour included inspections of temporary lodging facilities designated for pilgrims, part of a proactive plan to increase capacity during peak seasons, alongside early preparations for the upcoming Hajj.

Vision 2030 targets surpassed

Official data has shown that Saudi Arabia has exceeded its Vision 2030 targets for the Umrah. The number of pilgrims arriving from abroad rose from 8.5 million in 2019 to more than 18 million in 2025, surpassing the original goal of 15 million by 2030.

A number of hotels surrounding the Grand Mosque in Makkah. (General Authority for Awqaf)

Service quality indicators improved as well, with pilgrim satisfaction reaching 94 percent, exceeding Vision 2030 benchmarks.

Workforce development kept pace with demand, as the number of licensed tour guides rose to more than 980, a 23 percent increase.

Masar Mall project

Al-Khateeb announced a joint financing agreement between the Tourism Development Fund and the Arab National Bank with Hamat Holding to support the Masar Mall project. The development carries a total cost of SAR 936 million (about $250 million).

The project is expected to become the largest shopping center in Makkah with the capacity to accommodate around 20 million visitors annually.

Its location near the Haramain High-Speed Railway station and a direct pedestrian link to the Grand Mosque are expected to strengthen the city’s commercial and tourism infrastructure.

Jeddah: Gateway to pilgrims

Meanwhile, Jeddah continues to consolidate its position as a complementary destination to Makkah and a primary gateway for pilgrims, while also expanding its role as a coastal tourism hub.

The city welcomed more than 13 million domestic and international visitors in 2025, a 10 percent increase from 2024. Tourism spending reached SAR 28 billion ($7.47 billion), up 6 percent year on year.

Jeddah’s hospitality sector also expanded, with more than 500 licensed facilities and over 33,000 licensed rooms.

The city is currently developing 46 tourism projects valued at SAR 21 billion ($5.6 billion) and expected to add more than 11,000 hotel rooms and further strengthen its tourism infrastructure and economic value.