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Central province to build new economic zone

By Hu Yang (chinadaily.com.cn)
Updated: 2010-09-20 16:26

Professor Li Yining of Peking University speaks during the symposium on how to develop the "central economic zone" in Beijng, Sept 18, 2010.[chinadaily.com.cn]

A new economic zone, which is being planned by Central China's Henan province to boost the development of the nation's populous central region, should be listed as China's national strategy, top economists said.

The "central economic zone" includes Henan province and its bordering areas in neighboring provinces such as Shandong, Anhui, Hebei and Shanxi, and the area plays a vital role in linking China's rich coastal areas in the east and the underdeveloped western area.

A draft plan to build this economic zone has been submitted to the National Development and Reform Commission, China's economic planner, Henan Deputy Governor Li Ke told reporters during a symposium. He expressed confidence about the draft's approval.

The two-day symposium, held by Peking University, the China Center for International Economic Exchanges and the China Regional Economy Association in Beijing from Sept 18 to 19, is attended by officials from Henan and aimed at soliciting suggestions from top economists and members of China's think tank on the specific strategy guiding the area's future development.

Experts attending the symposium agreed that the "central economic zone" should be included in China's 12th Five-Year Plan (2011-2015). "The central area, as a new growth point, could support China's economy to grow at a fast speed for another 10 to 20 years," said Zheng Xinli, deputy director of the economic committee of the Chinese People's Political Consultative Conference (CPPCC), the nation's top policy advisory body.

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As a transportation hub, the central area, especially Henan province, links China's major economic engines such as the Pearl River Delta, Yangtze River Delta as well as areas around Beijing with the western area, China's strategic development focus.

The central area is also one of China's grain bases, and boasts a large bulk of the population.

Professor Li Yining of Peking University suggested that the area could use more private capital through encouraging private enterprises and a third market could be established in Zhengzhou, capital of Henan province.

The professor also emphasized the need to increase the income of rural residents so that the domestic demand could be expanded. Henan has a large number of rural residents.

China has seen more manufacturing companies moving their plants to or setting up new plants in the country's interior from coastal provinces as factory owners try to cut costs.

A $100 million Foxconn factory began production in August in Henan province, as the Taiwanese high-tech giant moves its production facilities to inland China. It will mainly produce Apple's iPhone, according to an agreement between Foxconn and the government of Zhengzhou.