Technology, Science to Keep Jiangsu in Front

Shao Zongwei

East China's traditional industrial powerhouse of Jiangsu Province is increasing its reliance on science and technology to maintain its vanguard role in the nation's development.

"Jiangsu's economy has entered a restructuring stage," said Governor Ji Yunshi in an interview with China Daily. "A positive and active strategic restructuring will give Jiangsu a new edge in competition in the 21st century."

The mushrooming of township enterprises and joint ventures, focusing on labour-intensive processing industries, has brought the provincial economy on in leaps and bounds over the past two decades.

Known as the "south Jiangsu paradigm," similar development of township enterprises has been emulated by many of China's rural areas. However, many of the small township firms ultimately found themselves incapable of competing in the market due to their low productivity. Many also found themselves up against an array of similar competitors as uncontrolled duplication of projects ran rampant.

Restructuring of Jiangsu's economy has transformed the outlook of the township sector. Invigorated through injections of technology and re-organization of their management, the township sector started to emerge from the red last year, according to Ji.

He said the province was focusing on large enterprises and groups to improve their ability to develop new products, expand assets and enter the international market.

The province's past star performers, such as the textile, machinery, automobile and electronics industries, are all infusing science and technology into their development.

Meanwhile, Jiangsu plans to explore new areas such as information technology, biochemistry, new medicines and new materials.

The province aims to increase its GDP by 10 percent this year, 3 percent higher than the national target.

"This is not an easily met goal," said Ji, adding that his colleagues had been urged to view the challenge as a chance for development.

For this coastal province bent on developing an export-oriented economy, the prospect of China entering the World Trade Organization (WTO) is also a great challenge.

"WTO accession presents difficulties to Jiangsu," said Ji. "But it also portends opportunities."

Exports contribute one-third of Jiangsu's GDP, which was 720 billion yuan (US$86.7 billion) in 1998.

Even the Asian economic crisis has failed to affect Jiangsu's export growth. Last year, its exports increased by 11 percent to US$15.65 billion, while export growth nationwide plunged to less than 1 percent.

(China Daily)


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