Ma Kai, head of the State Development and Reform Commission, Li
Zibin, in charge of western development, and Zhang Guobao, in
charge of northeast China revitalization, talked about the latest
development strategies for the two regions at a press conference
held in the Great Hall of the People Monday morning.
The western development strategy was launched in 1998. Since
then, with enormous investment from the central government, great
changes have taken place in western China, said Li.
However, the 12 provinces and autonomous regions that make up
the region are still fraught with problems. Harsh natural
conditions and distinctive historical factors mean that it is
likely to take generations for some areas to catch up.
“We will continue to strengthen infrastructure construction and
environmental protection, sharpen up the industries in which we
hold advantages and deepen reforms to improve the investment
environment,” Li said.
He added that the government plans to enact a law on the
promotion of western development this year, which will provide
another boost. A team is currently working on the draft, a complete
version of which is now in sight.
Northeast China faces different problems. The region, made up of
Liaoning, Heilongjiang and Jilin provinces, has abundant natural
resources, integrated heavy industries, solid infrastructure and a
strong pool of human resources.
The strategy for revitalizing the northeast was first proposed
by Premier Wen Jiabao in October, seven months after he took
office.
Zhang Guobao said that the central government will implement
preferential policies for the old industrial base. “One is to
convert the production value-added tax (VAT) into consumption VAT,
which will give a big lift to manufacturing, including the
high-tech sector, petrochemicals, shipbuilding, automobiles and
farm produce processing.”
However, the key to development of the northeast is a systemic
overhaul, including adjusting the structure of state-owned
enterprises and piloting joint-stock systems for them, Zhang
noted.
Premier Wen Jiabao said in his government report that China must
steadfastly push forward the development of the western region,
revitalize northeast China and other old industrial bases, promote
the development of the central region and encourage faster
development in the eastern region.
“The eastern, central and western regions should better
interact, complement and support each other, and develop together,”
he stated.
The government is also set to reduce the developmental disparity
between urban and rural areas. The gap has widened continuously for
the past 20 years despite China’s double-digit economic growth.
The government now has decided to rescind the agricultural tax
within the next five years and subsidize farmers directly. About 10
billion yuan (US$1.2 billion) will be given to farmers from the
grain risk fund this year.
(China.org.cn by staff reporter Tang Fuchun, March 9, 2004)