Tsinghua University, proposed two ways to solve the capital shortage problem in the western development drive:

One is to cultivate a currency and capital market in the west. This is an important way of solving the fund shortage in developing the west. China now has a total deposit volume of 6,000 billion yuan in urban and rural areas. If such a fund could be introduced to the central and western regions by the currency and capital market and put into effective use, the fund shortage for western development could be greatly relieved.

The other is to establish a western development fund. It is a feasible and practical way of solving the western development fund shortage to impose a "western development tax" on the eastern coastal provinces. The western development fund will be mainly used for handling environmental pollution, improving the ecological environment, the development and usage of water resources, complementing the work of returning farmland to forests on the Loess Plateau, construction of old revolutionary areas and poverty alleviation.

Wei Jie also put forward some other suggestions, as follows: 1) Regulate the direct financing so as to promote the healthy development of the direct financing market. 2) Cultivate institutional investors. 3) Properly allocate financial resources and fully represent the industrial policies of the country. 4) Encourage local governments to issue medium- and long-term securities to raise capital for municipal construction. 5) Properly lead and regulate internal fund-raising in medium-sized and small enterprises. 6) Accelerate the development of the commercial bills business within certain regulations. 7) Establish industry investment funds, especially venture investment funds, in accordance with the national industrial policy. The collected money should be invested in the development and utilization of high technologies and the technological innovation of enterprises so as to promote industrial upgrading and cultivate a new economic growth point.

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