Regional economy

Apart from driving domestic spending, China will promote balanced economic development between regions. The Chinese Government recently released a series of policies concerning support for economic development among different regions. Developing regional economies was one of the topics of discussion among NPC deputies and CPPCC members.

When joining a panel discussion with deputies from Tianjin Municipality during the NPC session, Chinese President Hu Jintao called for Tianjin to take advantage of Chinese Government support to accelerate the development and opening up of the Binhai New Area.

The more than 300 proposals from CPPCC members in this area included strengthening support for areas with old revolutionary bases, areas with large ethnic minority populations, border areas and poverty-stricken areas; promoting the development of the west region; speeding up development along the Bohai Economic Rim and on the Western Straits Economic Zone; and enhancing regional cooperation in the Yangtze River Delta and the Guangdong-Hong Kong-Macao region.

Delegates and political advisors also discussed development of the Efficient Eco-Economic Zone in the Yellow River Delta and the Blue Economic Zone on the Shandong Peninsula; construction of the Eco-Economic Zone around Poyang Lake; and development of the Jilin-Changchun-Tumenjiang Regional Development Zone in north China's Jilin Province.

"Only when every region plans its industrial layout in line with the Central Government's regional outlines can the country achieve a rational layout for its overall industries, which will help avoid the problems of overcapacity and redundant projects," said Tan Haojun, a Xinhua commentator.

'Labor pain'

In the long term, transformation of the economic growth mode is vital for the healthy development of China's economy. However, adjusting and optimizing the economic structure means that some enterprises will close down due to their backward production technology, high pollution and high energy-consuming projects.

"Transformation of the economic growth pattern will bring about 'labor pain,'" said Zheng. More problems are expected to come forth. Some laid-off workers will need re-employment, and more investment will be needed in order to develop technology-intensive, knowledge-intensive and labor-intensive industries, according to Zheng.

"But I believe that reshuffling of enterprises and adjustment of the investment structure will lay a solid foundation for China's future economic development, and China's economy, based on this foundation, will achieve sustainable, stable and fast development. The pain therefore is worth it," Zheng said.