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Government Documents
Government Documents
UPDATED: January 21, 2010 NO.45 NOVEMBER 12, 2009
Toward Greater Development and Opening up of Western China
Address at the Second Western China International Cooperation Forum by Wen Jiabao, Premier of the State Council of the People’s Republic of China, in Chengdu, Sichuan, October 16, 2009
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Ladies and gentlemen,

Dear friends,

Today, in this beautiful season of autumn, friends from across the world are gathered in Chengdu to discuss ways to promote opening up, cooperation and development of western China. On behalf of the Chinese Government, I would like to extend a warm welcome to all the distinguished guests and I sincerely wish this Forum and the Western China International Economy and Trade Fair a great success!

Western China, with its vast landmass, large population, beautiful landscape and rich resources, borders 14 countries and has a great potential for development. Ten years ago, the Chinese Government made a major strategic decision to implement the Western Development Strategy with a view to changing the backward outlook of western China, building a moderately prosperous society in all respects, improving national land development pattern, promoting balanced regional development, expanding the scope of opening up both internally and externally, and fostering new economic growth areas. Over the past 10 years, the Chinese Government has been scaling up support for the western region through planning guidance, policy support, financial input, project development and human resources exchanges. We have provided over 3.5 trillion yuan in transfer payment and special subsidies to the western region and earmarked more than 730 billion yuan from the Central Government's fiscal resources to construction projects in the region. These efforts have led to enormous achievements in economic, social and cultural development and ecological conservation in western China, a region that is experiencing faster growth, better quality of development, greater changes in the urban and rural outlook and more benefits to the people than at any period in history.

—Significant increase in overall economic strength. Between 2000 and 2008, the western region's gross domestic product (GDP) grew from 1.66 trillion to 5.82 trillion yuan, representing an average annual growth rate of 11.7 percent. Local fiscal revenues increased from 112.7 billion to 515.9 billion yuan, up by 19.6 percent annually. Fixed asset investment jumped from 611.1 billion to 3.58 trillion yuan, growing by 22.9 percent each year. All these figures are higher than the national average.

—Major breakthroughs in infrastructure development. Over the past 10 years, the western region's highway mileage has increased by 888,000 km, including 13,900 km of expressway, and its railway mileage by over 8,000 km. The number of civil airports has grown to 79, taking up 49.4 percent of the country's total. A host of landmark projects, including the Qinghai-Tibet Railway, west-to-east gas transmission project and west-to-east electricity transmission project have been completed and put into operation. And the development of major water conservancy, energy and telecommunication projects is in full swing.

—Stronger protection of the environment. We are conscientiously implementing a range of major ecological projects in western China, including returning farmland and grazing land to forest and grassland, virgin forest protection, dust storm reduction projects to protect the environment of Beijing and Tianjin, land management and water pollution treatment project in the Three Gorges reservoir areas and conservation of the waterhead areas of the Yangtze River, Yellow River and Lancang River. Our comprehensive environmental protection efforts have achieved initial success and a series of pilot projects on circular economy are making steady progress. The western region today enjoys clearer sky, greener land, cleaner water and a better environment for development.

—Notable progress in protecting and improving people's well-being. Education, healthcare, culture, employment and social security programs are all moving forward in the western region, and people's living standards continue to rise. In 2008, urban per capita disposable income and rural per capita net income increased by 105 percent and 74 percent respectively from the 1999 levels. Rural poor population was down by 9.54 million and poverty occurrence rate declined by 1.6 percentage points. The living and working conditions of people of all ethnic groups have improved significantly.

—Rapid growth of competitive industries. There has been sound momentum in the development of the energy and chemical industries, the exploitation and processing of the rich mineral resources, the processing of local agricultural and animal husbandry products, equipment manufacturing, hi-tech industries and tourism. A number of highly competitive well-known brands and enterprises have come into being. Chengdu-Chongqing, Guanzhong, Beibu Gulf and other major economic zones are fast becoming strategic areas in leading and stimulating the development of the entire western region.

—Deepening reform and opening up. The reform of state-owned enterprises has made good progress and the non-public sector has grown at a faster pace. Nearly 200,000 businesses from eastern China have invested a total of over 2.2 trillion yuan in the western region. In 2008 alone, the western region utilized $6.62 billion of overseas investment and its import and export volume reached $106.8 billion. Reform and opening up have become a major driving force behind the accelerated development of the western region.

The western region today enjoys economic growth, social progress, ethnic unity and stability in the border areas. It's becoming an important ecological security shield, a reservoir of strategic resources and the frontier of opening up in the border areas. This has laid a solid material and technological foundation for the western region to speed up economic and social development and close the development gap with the eastern region. It has also broadened the market space for China to further expand effective domestic demand and advance reform, opening up and modernization. What has happened proves that the strategic decision of the Chinese Government to develop the western region is a correct one.

Ladies and gentlemen,

Dear friends,

Since the beginning of last year, the western region has suffered the double blow of a devastating natural disaster and the international financial crisis. While comprehensively implementing the package plan in response to the financial crisis, the Chinese Government has continued to firmly press ahead with the Western Development Strategy. Over 43 percent of the Central Government's investment to boost domestic demand is allocated to projects essential to people's livelihood, infrastructure development, ecological conservation, industrial rejuvenation, technological innovation and post-disaster reconstruction in western China. It has generated more local and non-public investment in the western region. In the first half of this year, GDP in western China grew by 11.8 percent. Urban fixed asset investment rose by 42.1 percent, local government revenues increased by 12.8 percent and total sales of consumer goods grew by 19 percent. All these figures were higher than the national average. It is particularly worth mentioning that major progress has been made in rehabilitation and reconstruction since the Wenchuan earthquake. Schools, hospitals, factories, villages and towns have been rebuilt on the debris. The strong and heroic rescue and relief operation, together with the great spirit of the Chinese nation and the noble spirit of international humanitarianism it has demonstrated, will be remembered as a glorious chapter in the history of China and the human civilization.

While continuing to enjoy sound economic and social development, the western region is also confronted with some persistent structural and institutional problems and the impact of the international financial crisis is being felt more acutely. Not long ago, the Chinese Government issued the Opinions on Countering the International Financial Crisis and Maintaining Steady and Fairly Rapid Economic Growth in the Western Region. The purpose is to give even bigger support for development in western China. The western region has broad space for further development and enormous growth potential. The Opinions are aimed at making full use of these advantages, so that the region can make greater contributions to stability and recovery of the national economy. First, we will build major transport hubs and passageways that connect China with the rest of the world. Focusing on this objective, we will speed up the construction of a modern infrastructure system which is forward-looking, fully-functional, safe and highly efficient. Second, we will support the western region in vigorously adjusting its industrial structure so that local competitive industries, hi-tech industries and emerging strategic industries will grow in a coordinated manner. Third, we will step up effort to protect and improve the eco-environment. We will actively promote clean, circular and safe development and build industrial, construction and transport systems featuring low carbon emissions. Fourth, we will accelerate the development of social programs with a special emphasis on improving people's well-being. We will take concrete steps to solve outstanding problems in education, healthcare, employment and social security. And we will endeavor to improve public services offered by the government. Fifth, we will strengthen human resources development. We will attract high-level professionals from home and abroad to the western region to start up projects and businesses. We will train people with various skills to meet the urgent needs of economic and social development in western China. Sixth, we will continue to deepen reform and opening up, and work for broader and bigger exchanges and cooperation between the western region and the rest of China and the world at large at a higher level. The Chinese Government will gradually increase the scale of transfer payment to the western region. We will continue to give it preferential treatment in making new investment to boost domestic demand. We will follow through on and improve policies regarding taxation, finance, land, environmental protection and industrial development to create more enabling market conditions for faster development and opening up in the western region.

We will mark the 10th anniversary of the Western Development Strategy in January 2010. We are now working on policies to advance the strategy in a new decade. I want to assure you here that the Chinese Government will not waver in its resolve, alter its policy or slacken its efforts in implementing the strategy. This is because the level of development in the western region will determine the pace of China's overall modernization, and the level of its opening up will determine the depth and the breadth of the opening up of the whole country. We will bear in mind the big picture at home and abroad and put the promotion of development and opening up of the western region in an even higher strategic position. We will strive to turn the western region into a major cluster of modern industries, a model of coordinated urban and rural reform and development and a champion in fostering a conservation culture. In this way, we will make western China a new growth area of overarching and strategic importance!

Ladies and gentlemen,

Dear friends,

The extremely severe international financial crisis is driving major adjustments and changes in the international economic and political landscape, but peace and development remain the main themes of our times, the trend toward economic globalization and regional cooperation continues to move forward, and the future will be shaped by the scientific and technological revolution. The Chinese Government will firmly adhere to the basic state policy of opening up. We will speed up effort to improve our open economic system featuring close interactions between home and abroad, win-win progress, security and efficiency. We will give strategic priority to the western region in our development and opening-up endeavor in the new era. We will promote all-round cooperation between the western region and neighboring countries to contribute to the common development and prosperity of China and all countries of the world. To this end, I would like to put forward the following proposals:

First, deepen energy and transportation cooperation. The western region of China and our neighboring countries are highly complementary in energy and resources and there is a solid foundation for cooperation and bright prospects for development. We will build on the achievements in energy and resources cooperation with neighboring countries and explore new areas and ways to expand our cooperation. We will also encourage international energy enterprises to participate in energy projects in the western region, including energy efficiency enhancement, coal-mine hazards prevention and control and coal-bed gas development. The Chinese Government will vigorously develop major international transport routes through its southwest and northwest. We look forward to reaching consensus with countries concerned on a new Eurasia land bridge, so that together, we can plan for and build a bridge of international business ties, a bridge of people-to-people and cultural exchanges, and a bridge of friendship and cooperation.

Second, deepen economic, trade and investment cooperation. The western region of China has over 100 ports of various types. Together, they form a comprehensive port system in the border areas. The Chinese Government supports border areas in western China in further expanding economic and trade exchanges with neighboring countries, including trade among border inhabitants. We will develop international cooperation centers and border development and opening-up zones. We will step up exchanges and cooperation in infrastructure. We will streamline procedures and lower the access threshold with regard to the scope and quota of imports and exports, licensing management and personnel exchanges. We will make proper planning for the development of major recipient areas of industrial relocation and demonstration parks. We will encourage foreign investment in hi-tech industries, advanced manufacturing, modern agriculture and modern services industry in western China. The western region of China and the neighboring countries boast rich tourism resources. We should work together to develop premium transnational tourism products and a tourism corridor showcasing ancient civilizations of the world. We welcome friends from all countries to the western region and other parts of China for sight-seeing and vacation, so that they can feel for themselves China's progress and investment environment.

Third, deepen cooperation in energy conservation and environmental protection. The Chinese Government takes very seriously the issue of climate change. We actively support the western region in carrying out international cooperation with neighboring and other countries in energy conservation and environmental protection. We encourage the introduction of advanced technologies, equipment and managerial expertise. We support joint endeavors to develop and use new and renewable energies. We will intensify cooperation in pollution treatment, ecological rehabilitation, land reclamation, disaster prevention and water and soil conservation. And we encourage foreign investment in the development of a green and circular economy. China has already made, and will continue to make earnest efforts to tackle climate change. We are ready to work with the international community to achieve positive outcomes at the Copenhagen Conference.

Fourth, deepen regional and international cooperation. Progress has been made in recent years in the bilateral and multilateral cooperation between the western region of China and the neighboring countries. The Chinese Government welcomes the full completion of the China-ASEAN Free Trade Area next year as scheduled. We will continue to deepen and expand business cooperation with members of the Shanghai Cooperation Organization (SCO). We will actively push forward Lancang-Mekong Sub-region cooperation. We will ensure the success of the China-ASEAN Expo in Nanning, Guangxi Zhuang Autonomous Region, the Western China International Economy and Trade Fair and the China-South Asia Business Forum. We will further strengthen and deepen regional financial cooperation. We will set up and improve the China-ASEAN Fund on Investment Cooperation. We will provide credit support to SCO member states. And we are involved in the development of an East Asian regional foreign exchange reserve pool. We call on all countries of the world to enhance coordination on macroeconomic policies, resolutely oppose trade and investment protectionism, and work for balanced and win-win outcomes that benefit all parties at the Doha Round negotiations at an early date, and build a more equitable and reasonable new international economic order.

Ladies and gentlemen,

Dear friends,

The western region of China has entered a new phase of all-round development and opening up. With bright prospects for development, it is an ideal place for investment. We welcome people with vision from home and abroad to invest and start businesses in western China and we will, as always, give them support. Here you sow the seeds of hope. Here you will harvest a bright future.

Thank you.

Source: www.fmprc.gov.cn



 
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