China looks to its west for economic revival

0 CommentsPrint E-mail Global Times, August 3, 2010
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History can sometimes repeat itself, only in different ways.

Ten years ago, facing the threat of a deflation characterized by economic slowdown and slumping prices triggered by the Asian financial crisis, China launched an ambitious "western development strategy" by pumping huge sums of money into its expansive but underdeveloped western area.

And now, noting that the shrinking overseas markets and sluggish domestic consumption are sapping China's economic growth, Beijing is turning to the western territories for revival again, calling on the whole nation to set out for a second phase of the western development strategy.

Beijing seems to be telling the same story about a decade later, but the government is expecting a totally different ending.

"When China started the campaign of developing the western hinterlands 10 years ago, policymakers set their eyes on alleviating poverty in the western area and narrowing down the growth gap between the western area and the coastal area," said Wang Xiaogang, director of the Sichuan Economic Development Research Institute, a local government think tank.

"This time, the central government is aiming at restructuring China's regional economies and realizing a sustained national economic growth based on local markets and domestic consumption."

But Chinese leaders are looking even further ahead this time.

They envision the continuation of the "go west" campaign as a stepping-stone in reestablishing the pivotal place China once held in the world.

"To carry on the western development strategy further is … a very important task, which is concerned with the well-being of the whole nation … the long-term peace and stability of the country and the grand revival of Chinese civilization," said Chinese President Hu Jintao on July 5 in his keynote speech for pushing forward the western development strategy.

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