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The Chinese government's approval for Tianjin's development zone is not only a boon to this port city in north China but also a call for greater national efforts to pursue sustainable development through bold reforms.

By officially designating Tianjin's Binhai New Area as an experimental zone for comprehensive reform, the central government is attempting to create a new growth engine rivaling Shenzhen in south China and Shanghai in east China.

By pioneering reforms over the past two decades, these two cities have served as powerful locomotives for regional and national economic development.

Now, it is time for the country to foster new economic powerhouses.

Geographically, a new bridgehead of reforms in northern China will help balance the pace of regional development across the country's coastal areas.

On the one hand, the development of Binhai New Area will naturally promote the growth of Beijing and Tianjin municipalities, Hebei Province, and areas around the Bohai Sea.

On the other hand, a modern gateway to north China, which is also a manufacturing and research base and an international shipping and logistics centre, will enable the country to better tap the growth momentum of the economies in northeast Asia.

Apart from the obvious benefits related to the new development zone's location, the more compelling reason for the Chinese government to approve the plan is a strong desire to speed up key reforms.

By allowing Binhai to pilot key reforms related to financial services and the capital market, the country is bracing itself for the challenges its opening-up brings about.

Though details of experimental schemes to be launched in the new development zone are still not available, it is fairly certain that experiences gained here will be of great value to the entire country.

For instance, it is reported that experimental schemes in Binhai will cover areas such as venture capital, foreign exchange administration and offshore banking.

As the country's banking sector is to be fully opened to foreign competitors very soon, Tianjin's trial of major financial reforms is more than needed.

The success of Shenzhen and Shanghai in boosting regional progress has already demonstrated the necessity and feasibility of accelerating economic growth through bold reforms.

Tianjin's new development zone is both a result of and a new test of that strategy.

Let us wish Tianjin well as it embarks on these bold reforms.

The success of the new area will encourage policy-makers across the country to press ahead with reform issues at hand.

(China Daily June 8, 2006)