A province with one of the strongest economies in China is now
targeting the export industry in a mass restructuring move to
heat up its business climate.
Jiangsu Province
was once known for its pioneering township enterprises - mostly
collectively owned companies which started up in rural areas
and became a major element of the economic structure.
It is now making
its local economy even more export-orientated in order to
keep up its momentum and continue as one of the strongest
provinces in the country. Restructuring the economy and opening
up to outside investors are the most important measures the
province needs to take to achieve its set goal for the 10th
Five-Year Plan (2001-05), said Hui Liangyu, secretary of the
Jiangsu provincial committee of the Communist Party of China.
The past five years
have seen Jiangsu experience its fastest development since
the opening-up and reforms of the late 1970s.
Local statistics
indicate that the provincial GDP has increased at an annual
rate of 11 percent, reaching an estimated 850 billion yuan
(US$102 billion) by the end of last year from 515.5 billion
yuan (US$62.1 billion) in 1995. The per capita GDP increased
from 7,290 yuan (US$878) in 1995 to 11,700 yuan (US$1,409)
in 2000, much higher than the average national level.
In restructuring
the local economy, Hui revealed that the emphasis will be
to shift from the more traditional industry sectors to high-tech
industries.
Jiangsu's export-orientated
economy has been developing with an unprecedented speed.
More than 34,000
joint ventures and solely foreign-funded companies, including
110 of the world's top 500 companies, have invested in various
industrial sectors.
The total value
of the province's exports and imports between 1995 and 2000
has been increasing at an annual rate of 22.5 percent. This
is expected to reach US$45 billion by the end of the year,
using US$32.3 billion of foreign funds.
Exports and imports
currently make up about 30 percent of the province's GDP,
and the actual use of overseas funds accounts for 20 percent
of the total social fixed asset investment.
The improvement
of infrastructure facilities is also an important factor in
accelerating development, Hui said.
Jiangsu now boasts
a total of 1,000 kilometers in expressway roads, which link
the province with major national road networks and enable
economic exchanges and cooperation with regions along it.
Jiangsu has also
benefited considerably from its location in the Yangtze River
Delta, close to Shanghai, the country's financial center.
Many of the multinational
companies in Shanghai have set up their research and development
processing bases in Suzhou and Wuxi, where there is an abundant
supply of talented people and advanced technology.
Such a solid industrial
foundation is conducive to Jiangsu's economic development,
and many new industrial sectors have built up alongside traditional
industries, which have been renovated at the same time.
Pillar industries
currently include textiles, machinery, electronics, petrochemicals,
biomedicine, information technology and building materials.
Hui reiterated
that the role played by township and village enterprises in
developing the economy should not be underestimated.
In the mid-1980's,
township companies began to mushroom in southern areas of
the province, such as Suzhou, Wuxi, Kunshan, Changzhou and
Zhangjiagang, gaining strong momentum after a decade's development.
They make up 66 per cent of the total industrial value of
the province.
Hui said he was
confident that within the new five-year plan period, Jiangsu
would be "a strong province with affluent people."
The secretary said
Jiangsu was steadily making preparations for China's impending
entry to the WTO and looking forward to the challenges and
opportunities it would present.
A good investment
environment and improved services will remain the major attractions
for overseas investment, the secretary said, adding that more
areas will be open to foreign investors, especially in high-tech
sectors.
To ensure sustainable
prosperity for the province, urbanization will be another
major task, Hui said
(China Daily 01/03/2001)
|