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China Questions and Answers
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Q: In the early days of the reform and opening up, China decided to pursue the road of "common prosperity." But in fact, there is still a big gap between China's eastern and western areas in economic development and people's life. What are the causes for this disparity? In 2000, China proposed a strategy of developing the country's western regions. What is the emphasis of this strategy? In what aspects has the central government provided aid?

A: People who come to China can notice that there is a big gap between China's eastern and western areas in terms of economic development and people's life. There are historical and geographic reasons for this disparity, but it is also related to China's policy to develop coastal areas first. Since the economy in eastern and coastal areas has made substantial achievement during the past two decades, the central government proposed in 2000 to implement the strategy of developing western regions.

China's western areas include 10 provinces, autonomous regions and municipalities of Gansu, Guizhou, Ningxia, Qinghai, Shaanxi, Sichuan, Tibet, Xinjiang, Yunnan and Chongqing. These areas account for two thirds of the country's total territory and 22.8 percent of the total population. There are rich mineral resources in the western areas. The areas also have great advantages in terms of energy resources, water resources, fertile soil and tourism.
 
The aim of the strategy is to make breakthroughs within 10 years in the areas' infrastructure construction, ecological and the environmental protection and economic development. In the past five years the central government allocated a total of 960 billion yuan (US115.6 billion) in t forms of construction funds, financial transfer payments and special subsidies to the western regions.

These financial inputs have greatly pushed forward the economic and social development of the western areas. According to statistics, from 2000 to 2004, gross products of China's west increased an averse of around 10 percent annually, total investment in fixed assets up 20 percent and local revenue 14 percent. The gap in development pace between the western areas and national average was narrowed from 1.5 percent to 0.8 percent.
 
Of course, there are still many difficulties and problems in developing China's western areas. Despite the efforts during the past five yeas, the gap between China's western areas and eastern areas is still increasing. Although ecology and environment of western areas have been improved to some extent, the general trend of degradation is yet to be reversed. At the same time, inadequate infrastructure still greatly restricts economic and social development in the areas.
 
At present, the central government is seeking to establish long-term and stable government input channels and investment mechanism for the western areas. Promulgation of a special law is also under way to facilitate the overall social and economic development of the regions.

Unfavorable natural and ecological conditions, as well as inadequate infrastructure construction, hinder the development in west China. Pictured is a drought-stricken village in Gansu Province.

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