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BIZCHINA / Center

China to address coastal-hinterland imbalance

(Xinhua)
Updated: 2007-09-08 14:16

China will continue to cope with the imbalanced development of its
coastal and hinterland regions, a senior official with the National
Development and Reform Commission (NDRC) said on Friday at the Summer
Davos in Dalian.

Zhang Xiaoqiang, vice minister of NDRC, said the Chinese government will
continue to use policy leverage to narrow the gap between different
regions.

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"The overall development in the central and west regions, particularly in
service sector, has lagged far behind that in the east," Zhang said at
the Inaugural Annual Meeting of the New Champions hosted by the World
Economic Forum.

China initiated the western development strategy in 2000, and has been
offering incentives and preferential policies to encourage foreign
investment in the west, but the investment into these areas only accounts
for about ten to 12 percent of the total foreign investment in the
country.

Chinese Premier Wen Jiabao said at the opening session of the Dalian
meeting that the government will give stronger support to rural and other
underdeveloped areas, speed up the development of social programs, and
gradually reverse the widening gap between agriculture and industry,
between town and country, and among different regions so as to ensure
coordinated economic and social development.

"Apart from setting up policies and creating the legal environment, China
will invest more to improve the infrastructure and public service in the
remote west," Zhang said.

The government input in the infrastructure of the central and western
areas has been gradually increasing. The government will earmark 100
billion yuan (US$13.3 billion)?from 2006 to 2010 to renovate countryside
roads. About 90 percent of the fund is planned for the central and
western areas.

Meanwhile, the central government has increased spending on education and
health in the underdeveloped provinces and regions.

"In a certain period to come, top priority will be given improving the
infrastructure in those areas, including energy, transportation,
electricity, health and ecological environment," Zhang said.

The provinces need to seize the opportunity of global industrial
restructuring to attract labor-intensive industries. Larger cities can
seek opportunities to develop the service sector, Zhang added.

(For more biz stories, please visit Industry Updates)

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