Governor touts Silk Road growth

By Du Juan in Xi'an (China Daily) Updated: 2015-09-24 08:00

The Terracotta Warriors of the Qin Dynasty (221-206 BC) in Xi'an, the capital city of Shaanxi province. Zhang Yanlin / for China Daily

What's next in your plan?

Lou: China's economic structure is geared to meet the demand for improving people's lives, which will bring opportunities to Shaanxi. In the past, China was an export-oriented economy, which was beneficial for the coastal provinces. The new consumption-oriented economy has given Shaanxi a big chance to develop a logistics industry based on its geological advantage.

The government will use this opportunity to construct infrastructure to connect the country.

Shaanxi has invested more than 90 billion yuan ($14 billion) in transportation infrastructure over the past two years. So far, we have 5,000 km of expressways in the province. During the 13th Five-Year Plan period (2016-2020), we plan to build another 1,500 km of expressway and 3,500 km of railways.

We will cooperate with the China Railway Group, the nation's railway operator, to build Xinzhu station into the biggest logistics distribution center along the new Silk Road.

In terms of air transportation, we have 24 international airlines, a big improvement compared to previous years. Shaanxi is a big manufacturer of aircraft. However, we should raise our air service level, which still lags behind some other provinces, to maximum our central geological advantage.

In addition, the government is trying to make the province more convenient for international trade. We are seeking approval to establish a Silk Road free trade pilot zone. Consumers can now buy Australian milk powder in Xi'an. It may seem like a small thing, but it actually is significant because much work was needed to achieve this for a province that is far from either the coast or another country. I'm happy to see this progress.

How did Shaanxi attract Internet giant Alibaba to invest in the province and sign a strategic cooperation agreement in August, and what's next?

Lou: I am an old friend of Ma Yun, who is the founder of Alibaba Group. Since I worked for the Ministry of Industry and Information Technology for years, I've seen Alibaba's creation and growth.

Ma Yun didn't come to Shaanxi to invest when I became the governor of the province. For a businessman, it's not rational to make an investment decision based on personal involvement.

He brought his management team to Xi'an and signed the agreement with Shaanxi in August, which means that Shaanxi is ready for such an investment.

Mobile communication is developing rapidly in Shaanxi with 4G technology. The Internet speed in the province is good enough for cross-border e-commerce, which will provide opportunities to Internet companies such as Alibaba.

Samsung, the National Population and Family Planning Commission, National Weather Service and National Bureau of Statistics all chose Xi'an as the location of their data centers.

When we provide business opportunities to IT companies, they also bring good business models to the province. The benefits are mutual.

I heard a story, which impressed me, about how e-commerce will change farmers' lives. In the small county of Shanyang, in Shaanxi, farmers are selling agricultural products online. Their organic eggs can be sold at 36 yuan a kilogram, which greatly improved the farmers' incomes. The local government spared a building and hired college students to help those farmers set up online stores. The project is win-win. Farmers get their products sold at a better price and college graduates work at a startup business, which can equally fulfill their dreams.