Big domestic companies, banks and multinationals are rarely tempted to take a plunge in China's southwestern hinterland due to the lack of modern infrastructure, human resources and services.
But the mountainous province of Guizhou in Southwestern China, one of the poorest regions in the country, plans to change that.
It is pressing ahead with more opening-up policies and improved investment environment to drive economic growth while emphasizing environmental protection.
Government figures show the province's foreign trade jumped to a record high $6.63 billion last year, an increase of 35.7 percent over 2011, "a clear sign that Guizhou is opening up even faster than ever", according to local experts.
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Representatives from the provincial capital Guiyang and Zhongguancun, a high-tech hub in Beijing, at the signing ceremony for their partnership in September. Zhang Wei / China Daily |
Planners said they will boost development of infrastructure, modern logistics, transportation, healthcare and education, and build a sound and fair business environment to pave the way for foreign investment.
Though the province is limited by its natural landscape - 90 percent of the land covered by mountains and hills - and has a large population in poverty, Guizhou envisions great opportunities to attract more investment due to improvements in its transportation, said Zhao Kezhi, Party chief of the province.
Since the start of China's 11th Five-Year Plan in 2006, Guizhou has boosted infrastructure construction, especially transportation links. A comprehensive transport network has taken shape encompassing highways and waterways.
Guizhou's road network now makes it possible for the province's relatively small economy to integrate better with other parts of China and gain access to greater development opportunities.
By the end of 2012, Guizhou had a road network totaling 164,500 kilometers, 152,000 kilometers of which covered rural areas. The total expressway length reached 2,630 kilometers, whose access has expanded to 60 districts and counties.
In the first quarter of this year, the provincial authorities invested 16.03 billion yuan ($2.6 billion) in building roads, up 38.4 percent year-on-year.
In addition, Guizhou's development trend should be closely related to its advantages in natural environment tourism, Zhao said.
"Promoting economic transformation is not only the requirement of the central government, but also an urgent task for Guizhou's own development," he said.
To achieve economic transformation, Guizhou needs its own character and a green development path, said Zhao.
The cooperation with Zhongguancun, the high-tech hub in Beijing, has brought companies to the provincial capital Guiyang.
Last week, contracts for 106 projects worth a combined 46.5 billion yuan ($7.59 billion) were signed with both international and domestic large enterprises at the opening ceremony of a Zhongguancun industrial park in Guiyang.
"Cooperation with Zhongguancun doe not just mean industrial transfer. It also means complementing each other and finally obtaining win-win results," said Chen Gang, Party chief of Guiyang.
The way resources are used needs to be changed, Chen added.
"We must keep the idea of developing a recycling economy in mind throughout the entire process of production, business operation and management to optimize the allocation of resources and turn waste into treasure," he said.
His remarks coincide with the country's recent policies to drive growth through innovation and to promote progress in underdeveloped parts of China.
Last year, the State Council released a guideline to accelerate the development of Guizhou, including construction projects, increased government investment and tax breaks.
Liu Qinghe, a researcher with the Guizhou Academy of Social Sciences, said: "The benefit of Guizhou's opening-up strategies is obvious."
"Investment from both home and abroad has already greatly boosted local economy and employment."
In 2012, investment in the province rose by 35 percent and bank savings rose by 23 percent, the highest growth in the nation.
Companies in information technology, automobiles, heavy machinery and aviation now have a strong presence in Guiyang.
"But with limited resources, Guizhou still lags behind many regions in China, and if it wants to bridge the gap with other provinces, the key is to rely on technological innovation to develop its main industrial sectors," Liu said.
The province ranked second in the nation in per capita GDP growth last year and has set this year's growth target at 14 percent, the highest in China.
Guiyang's decision makers also place a priority on ecological protection and believe that choosing a suitable development path is the key to the city's future.
"While we are now running on a fast track, we need to be conscious of choosing an appropriate way in pursuit of growth," Chen said.
"Guiyang has advantages in its environment. While we are trying to catch up with more developed regions, anything that could damage the environment will be refused."
The province will focus on eco-friendly industries such as high-tech and modern manufacturing, he noted.
Li Zaiyong, mayor of the provincial capital, said "Guiyang needs more international companies with great influence in their respective fields.
"We will make sure this city provides what they need for expansion," said the mayor.
Contact the writers at [email protected], [email protected] and [email protected]
Zhao Kai contributed to the story.
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Launch ceremony of expert, investor and researcher tours of Guiyang. Provided to China Daily |
