China will continue to cope with the imbalanced development of
its coastal and hinterland regions, a senior official with the
National Development and Reform Commission (NDRC) said on Friday at
the Summer Davos in Dalian.
Zhang Xiaoqiang, vice minister of the NDRC, said the Chinese
government will continue to use policy leverage to narrow the gap
between different regions.
"The overall development in the central and west regions,
particularly in service sector, has lagged far behind that in the
east," Zhang said at the Inaugural Annual Meeting of the New
Champions hosted by the World Economic Forum.
China initiated the western development strategy in 2000, and
has been offering incentives and preferential policies to encourage
foreign investment in the west, but the investment into these areas
only accounts for about ten to 12 percent of the total foreign
investment in the country.
Chinese Premier Wen Jiabao said at the opening session of the
Dalian meeting that the government will give stronger support to
rural and other underdeveloped areas, speed up the development of
social programs, and gradually reverse the widening gap between
agriculture and industry, between town and country, and among
different regions so as to ensure coordinated economic and social
development.
"Apart from setting up policies and creating the legal
environment, China will invest more to improve the infrastructure
and public service in the remote west," Zhang said.
The government input in the infrastructure of the central and
western areas has been gradually increasing. The government will
earmark 100 billion yuan from 2006 to 2010 to renovate countryside
roads. About 90 percent of the fund is planned for the central and
western areas.
Meanwhile, the central government has increased spending on
education and health in the underdeveloped provinces and
regions.
"In a certain period to come, top priority will be given
improving the infrastructure in those areas, including energy,
transportation, electricity, health and ecological environment,"
Zhang said.
The provinces need to seize the opportunity of global industrial
restructuring to attract labor-intensive industries. Larger cities
can seek opportunities to develop the service sector, Zhang
added.
(Xinhua New Agency September 8, 2007)
