MAIDEN FLIGHT: The first flight of Tibet Airlines, the first airline company in Tibet, awaits passengers at the Lhasa Gonggar Airport on July 26. The flight is bound for the Alikunsha Airport in Tibet's Ali Prefecture (WANG JIANHUA)

Western Strength

The economy of China's western region is expected to grow by 13 percent this year, higher than the nation's average, said the Western Blue Book 2011 published on July 24.

The book, China's first evaluative report on the economic quality of the western region, reviewed and analyzed economic growth in western areas since the implementation of the country's strategy on the development of western regions in 2000.

It said local economies in China's western regions have been developing rapidly and the living standards of local residents have greatly increased over the past 11 years.

The book also summarized the main obstacles barring economic growth in west China and suggested several policy changes and additions in accordance with the problems facing west China's economies.

Loans to Water Facilities

The Agricultural Development Bank of China said on July 26 it loaned 15.5 billion yuan ($2.4 billion) to construct water facilities in the first half of this year.

The amount was higher than that of the same period in previous years. The full year amount is expected to exceed 30 billion yuan ($4.62 billion).

The bank said it is negotiating with the Ministry of Water Resources to sign a strategic cooperation contract in this area, aiming to establish a long-term cooperation mechanism to back the government's plan to improve water facilities.

Bank of Tibet

The China Banking Regulatory Commission (CBRC) announced on July 24 that it has given a nod of approval for a regional bank in the Tibet Autonomous Region, with initial capital of 1.5 billion yuan ($233 million).

The bank will be the first regional corporate bank and also the first equity commercial lender to operate in the autonomous region. It will be registered in Lhasa, the region's capital.

The bank will strengthen financial services in Tibet and provide financial support for local small and medium-sized enterprises, as well as for projects that will improve the livelihood of local residents, the CBRC said.

The CBRC did not give a detailed timetable for the bank's establishment.

Logistics Expenses Up

China's expenditures on logistics services totaled 3.7 trillion yuan ($570 billion) in the first half of 2011, an increase of 18.5 percent year on year, the China Federation of Logistics and Purchasing and the China Logistics Information Center said.

The growing spending is attributed to rising costs for raw materials, fuel, labor and loans, as well as inefficient capital by logistics companies.

The spending accounted for 18 percent of the country's gross domestic product (GDP).

A report on China's logistics from KPMG, a global accounting firm, said the country's ratio of logistics spending in GDP is well above the average level in developed countries, where it is typically lower than 10 percent, as inefficient operation and inadequate transportation capacity have troubled China's logistics development.