THE WESTERN REGION.docx
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THE WESTERN REGION.docx
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THEWESTERNREGION
THEWESTERNREGION
href="#"> ThecenterofChina’seconomicgrowthisgraduallyshiftingwest.Inthenextfewdecades,China’swesternregionwillbemoreattractivetoinvestorsthantheeasternregion,andthewestwilloffermoreinvestmentopportunities,saidChenWei,aresearcherwithChinaMinzuSecuritiesCo.Ltd. Inthefirsthalfofthisyear,economicgrowthinthewesternregionwasbestdescribedasa“locomotive”thatdrovetherestofthecountry’seconomicgrowth.FiguresfromtheNationalBureauofStatisticsshowChina’seastcoastalregion’sGDPgrowthratesbecamesluggish,alllowerthan10percent,whilethecountry’swesthasmaintaineddouble-digitgrowthatanaverageof 13percent.InnerMongolia,thestarofthewesternregion,achievedeconomicgrowthof16.5percent,muchhigherthanthenationalaverageof9.6percent. “Theeconomicstatusofthewesternregionisexpectedtoincrease,”saidYaoHuiqin,ExecutiveDeputyDirectoroftheResearchCenterofWestChina’sEconomicDevelopmentattheNorthwestUniversityinXi’an,ShaanxiProvince.Yao’steam,incoop- erationwiththeChineseAcademyofSocialSciences(CASS),releasedtheAnnualReportonEconomicDevelopmentintheWesternRegionofChina(2011)onJuly24.Thereportsays,thewest’seconomicgrowthratewillcontinuetodrivenationaleconomicgrowth. Asthewesternregionrecordsastonishingeconomicprogress,questionsarebeingaskediftheeasterncoastalregionhasdepleteditscompetitiveadvantagesandifthefutureofChina’seconomicgrowthwillrelysolelyonthewesternregion. Newgrowthpoint Todeveloptheeconomyinlinewiththereformandopening-uppolicylaunchedinthelate1970s,theCentralGovernmentproposedtodeveloptheeastcoastalregionfirst.In1984,thegovernmentdesignated14citiesintheeast,includingDalian,Tianjin,Shanghai,WenzhouandGuangzhou,asopencoastalcities,offeringfavorablepoliciesdifferentfrominlandcitiesinordertoattractforeigninvestment. Thispolicyhasproventobetherightchoiceasmadeapparentbytheeconomicgrowthinthefollowing30years.ThreeeconomicbeltsaroundtheBohaiSea,theYangtzeRiverDeltaandthePearlRiverDeltahavebeenformedasthecoretopromotethenation’ssustainedandrapideconomicgrowth.In2008,theGDPintheeasternregionaccountedfor54.3percentofthenationaltotal,up10.9percentagepointssince1978. Duringthedevelopmentphaseinthepastthreedecades,manyeasterncitieshavedevelopedrapidly,suchasTianjin,Shanghai,GuangzhouandShenzhen,bringingaboutgreatsocialchanges. Withtheeast’srapiddevelopment,thecentralandwesternregionsfellbehindandtheregionaleconomicdisparityhasgrown.Largenumbersofmigrantworkersswarmedintoeastcoastalareaslookingforjobsinthenewlyprosperousregion.Thewidegapbetweentherichandthepoorhasalsoledtodisparitiesineducation,healthcare,housingandotheraspects,causingmoresocialconflicts. Sincethe1990s,theChinese Governmenttookstepstoassuagetheseproblems,mainlybyimplementingthewesterndevelopmentstrategy,byrevitalizingthetraditionalindustrialbasesinnortheastChinaandbypromotinginvestmentinthecentralregion.Thesepolicieshaveboostedthedevelopmentofcentralandwesternregions,raisingtheirmajoreconomicindicatorstoapproachtothoseoftheeasternregion. CASSfiguresshow,from2006to2010 theeconomicgrowthrateinthewesternregionwashigherthanthenationalaverage.Inthepastfiveyears,theaveragegrowthoftheGDPinthewesternregionwas13.9percent,whichwas0.9percentagepointshigherthanthenationalaverage. “Thewesternregionhaswitnessedsteadyandfasteconomicgrowthwithlessfluctuationsandsmallerpotentialrisksineconomicoperations,”saidtheannualeconomicdevelopmentreport. Justasthewesternregiondevelopsrapidly,theeasternareahasbeenmiredinturmoilfollowingtheglobalfinancialcrisisin2008. Sincetheeasternregionhasadoptedaneconomicgrowthpatternreliantonexportingprimarilyprocessedproducts,thetechnologicalleveloftheproductsislowandmostoftheindustriesarelabor-intensive.Lowproductpriceisthemajorweaponformakingprofits.Oncethemanufacturingcosts,suchaslaborandrawmaterials,increase,theeconomyintheeasternregionwilltakeahit. Aftertheglobalfinancialcrisisbrokeout,China’sexportsdecreaseddrastically.Tocopewiththecrisis,theUnitedStatesadoptedaquantitativeeasingpolicyandChinalauncheda4-trillion-yuan($586-billion)stimuluspackage.Thesepracticeshaveledtoaseriousexcessofmoneyininternationalanddomesticmarkets.Theacceleratedinflationhasnotonlydrivenpricehikesofrawmaterials,butalsoincreasedlaborcosts.Inaddition,theeasternregionhassufferedshortagesoflabor,electricityandlandinrecentyears. Forthesereasons,GDPintheeasternregionslowedandevendeclinedin2009.Fromthefirsthalfof2009,GDPgrowthratesinthewesternregionbegantosurpassthoseoftheeasternregion. Enterprisesheadwestward Attheendofthisyear,theapparelproductionbaseinAnhuiProvinceinvestedbyTedelonHoldingGroupCo.Ltd.willstartoperation.AccordingtoplansmadebyWangPeihuo,PresidentofTedelon,inthefutureallthegroup’sproductionwillbetransferredtocentralandwesternregions. TedelonisalargeapparelenterpriseheadquarteredineastChina’sZhejiangProvince.Wangsaidthereasonforthecompanytogowestwardisthatincreasingcostshaverestrictedthedevelopmentofenterprisesincoastalareas. GuangdongProvinceishometoalargenumberofsmallandmedium-sizedtextileenterprises.Afteranalyzingcostdisparitiesbetweensoutheastcoastalareasandcentralandwesternregions,LiuYueping,ChairmanoftheGuangdongClothingIndustryAssociation,foundthatcostsofapparelenterprisesinGuangdongare30percenthigherthanthoseincentralandwesternregions. Liusaid,affectedbylaborshortageandincreasingcosts,textilecompaniesineastcoastalareashavebeentransferringtoprovincesincentralandwesternregions,suchasJiangxiandSichuan. OnJune28thisyear,ChinaNational TextileandApparelCouncil(CNTAC)and16textilecompaniesjointlyreleasedasocialresponsibilityreport.SunRuizhe,ViceChairmanofCNTAC,saidtheindustrialtransferisself-motivated,sincethewesternregioncanofferbetterlaborresources,thusreducinglaborcosts. Sunsaidtheeast-to-westtransferoftheChinesetextileindustryisnotsimplyatransferofproductioncapacity,butprojectsanoveralladvancementoftheindustry’stech- nologies,humanresources,environmentandsocialresponsibilities. Besidestextileandapparelenterprises,labor-intensivecompaniessuchastoymanufacturersandshoemakersarealsoseekingtogowestward.XiongXiaokun,alightindustryresearcherwiththeCIConsultingIndustrialResearchCenter,saidthesetransfersrepresentageneraltrendandwilleffectivelypromotetheeconomicdevelopmentincentralandwesternregions. Theindustrialtransferwasnot“omnipotent,”Xiongsaid.Relatedsupportingfacilitiesincentralandwesternregionsarenotyetsound,whichwillaffectcorporatedevelopmenttosomeextent. Besideslaborcosts,companiesalsoneedtotakeissues,suchasmarketatmosphere,intoaccount.Theyshouldalsoconsidertheapproachoflocalgovernments,butmostimportantly,whethertheindustrialchainsarecomplete.Iftheindustrialchainsarenotcomplete,companieswillalsofacecostpressures. Xiongsaidtherearethreemajordifferencesbetweentheeasternregionandthecentralandwesternregions: completenessofrelatedsupportingfacilities,marketconcentrationandcoverageofmarketingchannels. Theindustrialtransfer,whichhasjuststarted,hasreceivedthesupportoftheChineseGovernment.InSeptember2010theStateCouncil,thecountry’scabinet,issuedGuidingOpinionsontheCentralandWesternRegions’UndertakingofIndustrialTransfer,whichsaysthattofurtherimprovetheinvestmentenvironmentinthecentralandwesternregionsandguideandsupportorderlyindustrialtransfer,localgovernmentscangrantnecessarypolicysupportinaspectsoftaxation,finance,investmentandlanduse. Eastseeksbreakthroughs Theeasternregionwillneveracceptaslowereconomicgrowthratethanitswesternregionalcounterpart.Ithopestoseekbreakthroughsbystrengtheningintegrationofresourcesandinnovationofsystemstorealizeneweconomicgrowth. Localofficialsarefullyawareofthe difficultiestheeastfacesinitseconomicdevelopment.TheCentralGovernmentseesthistoo.Tochangethesituation,theeasternregionhasbeenconsideringanindustrialtransformationsince2006.Inspiteofnumerousinvestigationsandseminarsonthistopic,localofficialsstillcannotmakeuptheirminds.Sinceindustrialtransferwillaffectthelocaleconomy,noofficialiswillingtosufferthesekindsofsetbacksduringhisorhertenure. Theglobalfinancialcrisisforcedcentral andlocalgovernmentstoswitchgears,replacingthe30-year-oldstrategythat“theeastcoastalareadevelopsfirst”with“theeasternregiondevelopsbetter.” In2009,thePearlRiverDelta,where GuangzhouandShenzhenarelocated,steppedoutthefirststepoftransformation.OnJanuary8,2009,theNationalDevelopmentandReformCommission(NDRC)issuedtheOutlineofPearlRiverDeltaRegionalPlanonReformationandDevelopment(2008-20).Newdevelopmentideasareofferedtothisregionwithalargenumberoflabor-intensivemanufacturing
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