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'Go-west' speeds up in next five years
By Fu Jing (China Daily)
Updated: 2005-01-16 23:07
A senior cabinet official said China will continue to plunge huge investments
into western regions over the next five years to develop it into an investment
magnet for both domestic and overseas investors.
The money will be used to build up local infrastructure and improve the
ecological environment, said Li Zibin, deputy director of the Office of the
Leading Group for Western Region Development at the State Council.
"We need an additional five years to turn western China into an ideal zone
for investors from home and abroad," he said.
Li made the remarks in an exclusive interview with China Daily on the eve of
the fifth anniversary of the country's launch of its "go-west" strategy. Western
China boasts rich natural resources and a cheap labour supply.
Sources close to the State Council said China's highest leadership will
organize a high-level meeting soon to mark the anniversary and highlight its
intentions of investing heavily in the region.
Li said the next five years are very important for China to make further
improvement in environmental protection, communications and poverty relief in
western China.
Vice-Premier Huang Ju recently pointed out that the western development
strategy would still be one of China's top priorities.
During an inspection tour in the Guangxi Zhuang Autonomous Region at the
beginning of this month, Huang urged governments at all levels to continue to
speed up economic and social development there.
China initiated its western development strategy in 1999 to help the
relatively backward area, which includes 12 provinces, autonomous regions and
Chongqing Municipality, catch up with East China.
The vast western regions cover half of the nation's territory and are home to
one-fourth of its population, producing about 65 per cent of the nation's total
average gross domestic product (GDP).
A series of preferential policies, including more governmental investment,
preferential tax rates and flexible policies, are included in the strategy. All
efforts have gradually paid off and the average annual GDP rate in the area has
stood as high as 10 per cent during the 2000-04 period. But that in 1999 was
just 7.2 per cent.
Education improves
Meanwhile, Li said compulsory education and poverty relief endeavours also go
well. By 2007, all students in the region can accept nine-year compulsory
education and about 20 million rural people stricken by absolute poverty can
have basic food, clothing and shelter.
He said business opportunities are huge in the west and the government should
try hard to reform the functions to provide better services for investors and
create a sound investment surrounding.
Statistics indicate that about US$10 billion in foreign direct investment has
poured into the western region during past five years and a total of 10,000
businesses from eastern and coastal regions have invested funds in the region.
He said most corporate giants in the Fortune 500, including Toyota, Motorola,
Shell, BP and General Motors have entered the region.
For further expansion and development in the region, a sound legal framework
is also essential, said Li, who is also the vice minister of National
Development and Reform Commission.
He said China is drafting a law regulating measures and activities in
promoting the western region and the law-making National People's Congress
Standing Committee has included the legislation in its five-year
plan.
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