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Central provinces to get boost

0 CommentsPrint E-mail Global TImes, August 27, 2010
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China's central regions have long been neglected, but a new plan aims at boosting per capita GDP up to 36,000 yuan ($5,294.59) within 5 years, double the average in 2008.

The National Development and Reform Commission (NDRC) has announced a specific outline for the development of the country's central provinces, which include Shanxi, Anhui, Jiangxi, Henan, Hubei and Hunan Provinces.

The announcement proposed to establish six major city clusters in the area, which would be the main focus for the Central China economic development strategy.

"It is high time to transfer the focus to central China after years of fast development in the east," Wang Xiaoguang, a researcher with the Chinese Academy of Governance, Thursday told the Global Times. "Central China is a huge market, and also a new development opportunity for the already slowing economy."

"East China is losing its advantages in manufacturing due to soaring labor costs. To transfer the labor-intensive industry to the central provinces would be a great idea. China could still keep its cheap labor advantage," Wang added.

The central six provinces are the most populated areas in China. The population of the six provinces, plus the nearby Shaannxi Province, Gansu Province, and Ningxia Hui Autonomous Region, would account for about half of the total population.

"To develop the central provinces is crucial to boost the domestic demand. This would be a new driving force for the economy," said Wang.

The new strategy aims to build the area into a base of grain, energy and machinery production of the country.

The strategy also plans to make the area a transportation hub.

"The new strategy is a boost for the publicly listed companies in the area," the Xinkuai Newspaper cited Li Daxiao, director of the research institution at Yingda Securities.

"This would surely be a stimulus for the stock market, and fully making use of the capital market could bring money to the development of the area," said Wang.

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