Mudanjiang's economy has traditionally been based on forestry, chemicals, and machinery manufacturing. The surrounding forests of the Changbai Mountain range provide abundant timber resources, supporting a substantial wood processing industry including paper mills and furniture manufacturing.
Tourism has become an increasingly important economic driver. Jingpo Lake, Snow Town, and the volcanic geological sites attract millions of domestic tourists annually, particularly during the summer vacation season and the winter snow season. The local government has invested heavily in tourism infrastructure including hotels, roads, and visitor facilities.
Agriculture in the region focuses on soybeans, corn, rice, and specialty products such as black fungus, ginseng, and forest mushrooms. The city is one of China's largest production bases for edible fungi.
Mudanjiang's position near the Russian border has also fostered cross-border trade, with Suifenhe port handling substantial volumes of goods moving between China and Russia. The city has developed border trade zones and logistics facilities to support this growing economic sector.