Related News

Home » Business » Economy

Regional governments vow to form closer links

CHINESE regional governments have decided the best way to combat the fallout of the financial crisis is to forge closer links and seek growth openings as an integrated whole in line with the central government's policy to boost domestic demand.

Government officials participating in the five-day Pan Pearl River Delta regional economic forum and trade fair last week in Nanning, capital of Guangxi Zhuang Autonomous Region, agreed to continue to forge closer ties with each other to fuel the economy.

Officials came from Hainan, Yunnan, Hunan, Guangdong, Jiangxi, Fujian, Sichuan and Guizhou provinces, and Guangxi as well as Hong Kong and Macau.

Su Chang, chief analyst at Beijing-based CEBM Group, believes that exports will no longer contribute as much to China's economy when the world economy recovers from the downturn.

"A change in the development model is urgently needed," Su said. "China's economic growth should be more dependent on domestic demand."

Weakening exports slowed growth in the world's third-largest economy to 6.1 percent in the first quarter year on year.

Meanwhile, Guangdong's gross domestic product grew at a slower pace of 5.5 percent and Hong Kong's fell 7.8 percent.

The delta members met to spur investment flow and to boost their markets amid the crisis. During the forum, they signed deals on more than 600 projects worth 226.1 billion yuan (US$33.07 billion).

"The global economic turmoil will deepen its impact on Hong Kong's economy," Hong Kong Chief Executive Donald Tsang said last Wednesday.

"But the situation is better than other export-led economies such as Japan, Republic of Korea and Singapore because of Hong Kong's close ties with the Chinese mainland," he said.

Tap to grow

Tsang pledged to further tap the mainland market for growth. The other delta governments also noted the impact of the global economic turmoil was widespread and deep, and cooperation was the only way out.

Yunnan Vice Governor Gu Chaoxi said the domestic market should be boosted more.

The members called for the expansion of rail and road networks and agreed to cooperate in finance and tourism.

China's State Council last Wednesday approved a plan to build eastern Jiangsu Province into a transport hub and an industrial base.

A report released by the central bank last month said that China's economy had seen signs of recovery, but the foundation was still not solid and regional economic development would be a new growth point.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend