China speeds up development in central region to cope with financial crisis

Julia Lizama

Julia is a Media Analyst Intern at Wokai's Beijing Office.

The central government announced recently that they are pursuing new efforts to push development in central China. Central China includes the provinces of Shanxi, Henan, Hunan, Hubei, Jiangxi and Anhui, which is home to nearly 28 percent of China’s total population. The Central region is significant not only in terms of demographics, but also in terms of economy as well. In 2008, the combined GDP of the six provinces accounted for nearly a fifth of China’s total GDP (19.3%). In anticipation of a worsening financial crisis ahead, the Government announced one key step to sustain the region’s economy.

Plans are underway to improve transportation networks, such as expanding the railway network up to 34,000 kilometers by 2020. I would say that the move is a smart one, given that the region’s industries (such as mining and human labor) heavily rely on land networks. The 25 airports in the region will all be upgraded by 2010 as well. This way, the improved links with major economic hubs in the East may dampen the effect of the financial meltdown on (let alone boost) their industries by facilitating the flow of goods. Moreover, it’s safe to say that improved linkages normally bring about benefits beyond ease of transportation and increased flow of goods. As more goods and people go in and out of the region, it is likely for more services to make their way into the region as well. Perhaps the influx of manufactured goods (from the raw materials that they produced) can finally reach the most remote areas of the region. Perhaps teachers, nurses and doctors can arrive from the highway. Who knows? A migrant worker can return to his family 2 hours earlier than before. The officials held similar goals in anticipation, expressing that the improved networks can bring in more tourists to the area. None of these unforeseen benefits are guaranteed, of course, but improved transportation network is the first step toward heading in a brighter direction.

Source: Xinhua News Agency