China strengthens the inner regions

September , 2012

In order to stimulate the economic growth of the country, slowed down by the international economic crisis and some elements of endogenous weakness of the economy itself, the Dragon has announced an investment plan of extraordinary dimensions to promote the development of the western regions inside.

The economic organization of China, from a spatial point of view, can be described as a de facto federalism, so that each region can be considered as an autonomous economic entity; in addition, the country has always been characterized by a profound disparity in contribution of different regions to the formation of the national product: in China, in fact, about 60% of GDP is produced in the eastern region, about 23% is due to the central region and the rest of the western region.The provinces of the eastern region are, therefore, those to whom we owe the greater the economic development of China. In the context of the international crisis, however, the Governing authorities have decided to focus on strengthening the western inland areas, considering such behavior a key factor for ensuring the continued economic growth of the country .
“The economic growth of the provinces of Shanxi, Anhui, Jiangxi, Henan, Hubei and Hunan, is of strategic importance within the regional development programs in the country.”

Wen Jabao

Chinese Premier

The State Council has, for this reason, approved a new plan to promote the development of the central regions, in some economic sectors identified as priorities, such as the production of grain, energy, raw materials and high value added manufacturing. Investments have set themselves the objective of enabling the improvement of the living conditions of the population, in terms of infrastructure and make those areas more attractive to foreign investors. In the wake of such an intervention, the city of Changsha, capital of Hunan province, has already announced a total investment in infrastructure to 829 billion yuan (about 105 billion euros). The announcement has already had the desired effect in terms of calling the attention of foreign investors: the Fiat Group has, in fact, collected the Chinese urge to invest in the region, which has already built a new production plan.