After Covid-19 sweeps the country’s east, with pressure from the United States, China decided to open the development path to a vast, rich Western energy.
Beijing 17/5 today announced the latest details of the “Western” plan, in the context of which it prepares the post-Covid-19 world, which is said to be less friendly with China.
Although senior government officials have declared the world’s second largest economy to continue to open, the new plan they are pushing back into inner direction, focusing on the vast domestic market.
“Strengthening efforts to drive Western regional growth is an important decision, given to meet the requirement to develop balance between the regions, and to coordinate the interests in general, both domestic and foreign”, the guide issued by the cabinet, National Institutes and the Central Committee of the Chinese Communist Party announced there are passages.
The plan includes a series of new traffic infrastructure initiatives for the western regions of the country, such as the Sichuan-Tibet Railway Project, or the high-speed rail line along the Yangtze River, and many airports, reservoirs and irrigation projects.
The Chinese government will also develop new energy projects, such as the underground facilities containing oil and gas, while encouraging industrial projects to redirect to the West instead of moving abroad.
Beijing has launched a similar plan in the western Development strategy name in 1999, spanning over 10 provinces, occupying 3/4 country territories and 1/4 population. However, this plan delivers unclear outcomes in the goal of diminishing uneven growth across regions.
At the end of 2018, after nearly two decades of implementation of the plan, the contribution to the national economic output of the western China provinces increased by 1.8%, up to 20.5%. In spite of this, the gap between the region and the eastern provinces remained increasingly extended in terms of gross domestic product (GDP), budget revenues and trade, according to the 12th month’s analysis of the Yongxiu Bai, Northwestern University professor, China.
However, during the Covid-19 devastated the country, the western provinces were able to perform better economic recovery. China’s first quarter GDP was reduced by 6.8% over the same period last year when investing in fixed-ramp assets, headed by the eastern provinces such as Guangdong and Zhejiang. Meanwhile, the economic situation in the western region, including Xinjiang, is relatively lightly affected.
The new “West” plan recognized the importance of the Western China region in meeting the poverty reduction target at the end of this year’s government. The area will also contribute to help the country “more flexible when conducting strategies”, writing plans.
Economic self-motivation is the long-term goal of China. When relations with the cold Soviet Union in the years 1950, Mao Zedong, the Chinese leader then decided to move many industrial projects of the country to the mountains, in order to take the risk of war.
However, this policy was largely stalled after the leadership of Deng Xiaoping concentrated the market reform 4 decades ago. The new kick in investment in inland development reflects the strategy of the close-up chairman, that China should be more autonomous about the core technologies, food production and consumer demands.
China is facing a big challenge to maintain the role in the global value chain. Export of the country to the first 4 months off 9%. China’s position in the international supply chain was also threatened when the US President Donald Trump sought to blame them for the Covid-19.
“The disruptions and economic losses that the crisis causes globally will alter the motivation of the globalization process. Most Western governments will want to reduce China’s dependence on essential commodities, “said Steve Tsang, Chinese expert in London, England.
The “West” plan also highlighted the need to promote the Belt initiative and the path he initiated, aiming to expand China’s international influence, through its network of infrastructure projects and trade links with Asian, European and African countries.
The inland western provinces are located on the eastern end of this modern-era “Silk Road”. The “West” plan also aims to expand the transport links to Europe and Southeast Asia.
“The context outside of China is experiencingA pronounced changes even before the epidemic, such as the conflict of trade between Beijing and Washington. China will rely more on domestic demand for future growth. After all, they still own the world’s largest market “, Tang Jianwei, director of research at the China Bank for communications, the recipient.
Pearl (According to SCMP)