1. 2 1. Infrastructure and Logistics 2. Economic Growth 3. Education and Social 3

1

China’s Go West Policy

Chongqing 重庆

Chengdu 成都

2

China Development

3

Key Focus Areas of the Go West Policy

1. Infrastructure and Logistics2. Economic Growth3. Education and Social

4

Go West Policy Making larger and faster developments. Creating

more ideas, enlarging reforms and unifying the west. Science and education is a strategy to accomplish these goals.

Vastly improving infrastructure as well as environmental protection.

Develop science, education and health care. Enhance construction funds to the western regions. Infrastructural improvements will focus on water

conservation, transportation, energy and resource development.

Taking emphasis on supporting the poor. More natural forest protection will be implemented. Speed up the process of implementing modern

enterprises.

5

Go West Policy Continued

Establish tax incentives to attract businesses to the west.

Expand foreign investment in agriculture, water conservation, ecology, transportation, energy, municipal administration, environmental protection, minerals, traveling as well as engineering research.

Expand foreign economic trade. Improving lifestyles to attract foreign and east coast

workers. Continue compulsory education for the poor. Investing in college constructions in the west. Improve cultural and ethical statuses. Promoting minority regions for development.

6

Who is affected?

Chongqing Municipality ( 重庆 ) Inner Mongolia Ningxia Hui Auto. Regions ( 宁夏回族自治区 ) Gansu ( 甘肃 ) Guizhou ( 贵州 ) Sichuan ( 四川 ) Yunnan ( 云南 ) Tibet ( 西藏 ) Xinjiang Uygur Auto. Regions ( 新疆维吾尔自治

区 )

7

8

Benefits of the West

There are abundant natural resources, cheap labor, cheap land and large economic potential.

The western region borders 10 countries, allowing for economic opportunities.

Western China accounts for 77% of available water in the country. However, only 1% of that is utilized by the west.

9

Chongqing ( 重庆 )Age Demographics

2005 2015 20250%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

60+40 to 5925 to 3915 to 240 to 14

Source: Asian Demographics, 2006

10

Sichuan ( 四川 )Age Demographics

2005 2015 20250%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

60+40 to 5925 to 3915 to 240 to 14


11

Yunnan ( 云南 )Age Demographics

2005 2015 20250%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

60+40 to 5925 to 3915 to 240 to 14


12

Guizhou ( 贵州 )Age Demographics

2005 2015 20250%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

60+40 to 5925 to 3915 to 240 to 14


13



14

Chongqing ( 重庆 ) Rural – Urban Population Demographics


15

Sichuan ( 四川 ) Rural – Urban Population Demographics


16

Yunnan ( 云南 ) Rural – Urban Population Demographics


17

Guizhou ( 贵州 ) Rural – Urban Population Demographics


18

Infrastructure Development in West China

Expanding the transportation network such as railways, airports, electricity grids, etc… Improvements in Infrastructure will make transferring products and raw materials from the east to the west more convenient, and vise versa.

19


The Chinese government has spent about 1 trillion RMB for improvements in transportation, water conservancy facilities, energy resources and telecommunications services for western China.

20


From 2000 to 2005 the Chinese central government has contributed 460 billion Yuan (55.4 billion USD)in infrastructure for the western regions. Plus over 500 billion Yuan (60.2 billion USD) more for additional subsidies.

21


70 new infrastructural projects have been commenced such as hydropower plants and telecommunications networks.

226,000 Kilometers of highways and more than 4,000 kilometers of railways have been built in western China since 2000.

22


89.5 % of villages are now connected to highways.

99% of townships in western China have power supplies.

Clean water is accessible to 36 million rural people.

23


By 2011, 6.67 billion USD will be spent on West China’s air infrastructure. (airports, etc.)

China’s economic stimulus package will spend 4 trillion RMB in 2008-2010 on infrastructure, economy, education, env-ironment, etc.

24

Source: ACMR, 2006

25

Chongqing and Energy

Chongqing has ½ of the country’s total natural gas reserves.

70% of Chongqing’s energy production is coal, but coal reserves are very limited.

Hydropower only accounted for 15% of the total electricity demand in 2005.

Chongqing is planning to construct nuclear, wind and solar power stations.

26

Guizhou and Energy

Part of the“west-to-east” electricity transmission project.

Their largest market is energy, which accounts for one-third of the economic output.

95% of all power plants are coal powered.

Guizhou has the sixth largest water resource in the country, which could be used in hydro power plants.

27

Yunnan and Energy Yunnan is the eighth most abundant in

coal in the country. For the past decade hydro-electricity

has consisted for 53-60 percent of all produced energy.

Kunming is known as the “solar capital”, because 30% of the city runs on solar power.

Yunnan is currently working on developing solar, wind, geothermal and biomass resources.

28

Sichuan and Energy

Sichuan is the country leader in hydropower.

There is an abundant supply of natural gas, but the region is low in oil.

Sichuan’s coal reserves only make up for 3% of the country’s total coal reserves.

Companies from Spain and the UK have invested 20 billion RMB into developing biodiesel.

29

Infrastructure Statistics 2007

Gansu

(甘肃

)

Tibe

t (西藏

)

Yunn

an (

云南)

Guizh

ou (

贵州)

Chong

qing

(重庆

)

Sich

uan

( 四川)

-

2,000

4,000

6,000

8,000

10,000

12,000

Length of Paved Roads (km)Number of City BridgesLength of City Sewage Pipes (km)

*From China Statistical Yearbook 2008

Source: China Statistical Yearbook 2008

30

Number of Private-owned Vehicles

Gansu

(甘肃

)

Sich

uan

( 四川)

Tibe

t (西藏

)

Yunn

an (

云南)

Guizh

ou (

贵州)

Chong

qing

(重庆

)0

200000

400000

600000

800000

1000000

1200000

1400000

20002007

Source: China Statistical Yearbook 2001 and 2008

ehsu

http://www.stats.gov.cn/tjsj/ndsj/2008/indexeh.htmhttp://www.stats.gov.cn/english/statisticaldata/yearlydata/YB2001e/ml/indexE.htm

31

Infrastructure in Chongqing

As of now, there are three major railroad lines that run through Chongqing.

By 2017, there should be a Chongqing-Shanghai high-speed railway

Chongqing Mayor, Huang Qifan, has said that in the next four years, Chongqing will build the same length of railway lines as Chongqing has in the last fifty years.

32


Chongqing’s Jiangbei International Airport continues to increase its variety of available transports to countries.

33


The Yangtze river provides Chongqing with another way of transportation to other cities in China.

34

TEU Transportation

TEU stands for “Twenty-Foot Equivalent Unit.”

Chengdu opened a new air cargo facility in 2006 that is five times the size as the previous cargo facility. It is the largest in the South-western region.

The newly constructed Shanghai-Chongqing expressway has cut traveling from weeks to almost three days.

35

Barge capacities have risen from 3,000 dwt (deadweight tonnage) to 10,000 dwt in Chongqing.

The annual river traffic volume in Chongqing will rise from 10 million to 60 million tons due to larger capacity barges.

Costs in transporting goods by barge will decrease to 1/3 of the current cost.

TEU Transportation

36

The Cost of Going West

Chongqing-Shanghai

Distance (km)

Transit Time

(Days)

Cost (US$, TEU)

Road 2,150 3-4 1,540

Rail 2,250 7-10 550

Barge 2,400 8-10 (12-13

upriver)

320

Source: Deloitte & Touche “The Yangtze River transport corridor”

37


By the end of 2010, 1,600 km of highway will have been built in Chongqing. Eight new bridges will have also been constructed by then.

Chongqing-Zhangjiang

Chongqing-Shanghai

Chongqing-Chengdu

0 10 20 30 40

Time to Travel on Highways

Current Previous

Hours

The construction of a 350 km/h high-speed railway linking Chongqing to Chengdu is projected to open in 2012

38

Total Length of Highways (Km)

-

50,000

100,000

150,000

200,000

250,000

20002007


39

Number of Hospitals by Region

Gansu

(甘肃

)

Sich

uan

( 四川)

Tibe

t (西藏

)

Yunn

an (

云南)

Guizh

ou (

贵州)

Chong

qing

(重庆

)0

200

400

600

800

1000

1200

20002007


ehsu

http://www.stats.gov.cn/english/statisticaldata/yearlydata/YB2001e/ml/indexE.htmhttp://www.stats.gov.cn/tjsj/ndsj/2008/indexeh.htm

40

Highway Accident Mortality Rates

Year Deaths per 10,000 Vehicles

2002 37.50

2003 30.70

2004 18.30

2005 14.51

2006 10.83

2007 9.26


41

Side Effects to Improved Infrastructure

China is switching to Natural Gas as the main energy source.

China is the leader in CO2 emissions. Many power outages have occurred due

to growing power demands. Even though there are efforts to decrease

pollution, a growing urban population will pose as a threat to the environment.

China’s Renewable Energy Law looks to help the environment

42

Environment in West China Part of the plan is cultivating land into

forests, and forest protection. By the end of 2004, local people had

planted 11.3 million hectares of trees on barren land.

One of the projects in the Go West policy was to plant trees on 7.71 million hectares of barren hills and wasteland.

5.65 million hectares of farmland are planned to be converted into forests.

43

Environment in West China

Currently, China contains 16 of the world’s 20 most polluted cities.

2 of the 16 cities in China are located in the Western regions(Shizuishan 石嘴山 and Jincheng 晋城 ).

44

Chongqing Environmental Aspect

The Chemical oxygen demand was reduced by 10% from 2003 to 2008.

SO2 emissions were reduced by 15% from 2003 to 2008.

A three-year plan to remove and rebuild old, and decaying buildings has been put into affect.

Living conditions for 90,000 residents in Chongqing were improved.

The Chongqing government invested 2.06 billion RMB in planting trees on 2 million mu of barren land.

45

Chongqing Environmental goals in 2009

A second set of industrial waste water treatment will be promoted in the Three Gorges reservoir.

The Chongqing government will initiate a campaign in making Chongqing the national forested city.

Encouraging 100 upgrading projects in energy-saving and pollution-reducing technology.

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48

Economic Growth Encouraging the western region to

magnetize foreign investment, technology and expertise.

The government is also encouraging businesses on the east to invest in western regions.

Bringing in management and techniques from the east and internationally to Western China.

Chongqing currently has trade connections with more than 140 companies and 3,700 joint ventures.

49

30,000 local companies from the east have moved to the western regions.

The government has encouraged foreign investors to invest in industries of energy and chemicals, finance, mining, production of agricultural by-products, manufacturing, hi-tech, and tourism in 2007.

Since 2000 western China has had an average economic growth rate of 10.7% annually.

Economic Growth

50

Economic Growth

Nokia, Motorola, Ericsson, Suzuki, Ford, Honda, Intel.

Intel Corp. invested around 450 million USD in Chengdu, as a result computer sales have reached as high as a 45% growth each year.

Chongqing ranks as the 2nd highest in economic growth(2006-08). 1st in (2009-10).

51

Chongqing 2005 Top Export Destinations

USA39%

Japan22%

Vietnam15%

Hong Kong12%

Germany12%

Source: China Customs Info, 2006

52

Sichuan 2005 Top Export Destinations

USA28%

Hong Kong23%Japan

20%

South Korea14%

In-donesia

14%


53

Yunnan 2005 Top Export Destinations

Hong Kong28%

Japan25%

Vietnam19%

Myanmar16%

USA12%


54

Guizhou 2005 Top Export Destinations

Japan36%

Hong Kong18%

USA17%

Vietnam15%

South Korea14%


55

Gross Domestic Product

Definition: The country’s overall economic performance

GDP can be calculated in three ways:

1. Product – The output sum of all classes of enterprises

2. Income- The profit sum of all classes of enterprises

3. Expenditure: GDP = Private Consumption +Gross Investment + Government Spending +(Exports – Imports)

56

China GDPGDP At Current Market

Prices (USD 100 million)

GDP Real Growth Rate over the Preceding

Year (%)

2000 1691 8

2001 1666 0.5

2002 1638 1.8

2003 1586 3.0

2004 1659 8.5

2005 1778 7.1

2006 1900 7.0

2007 2072 6.4


58

GDP Per Capita

2001200220032004200520062007 -

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Guizhou ( 贵州 )

Yunnan ( 云南 )

Chongqing ( 重庆 )

Sichuan ( 四川 )


60

Tax Incentives in Western China

Currently the majority of China’s businesses are on the east coast. In order for China to gain domestic and foreign investments in western China, their must be incentives for enterprises to invest in the west. The Chinese government has set special tax incentives in western China to lure enterprises into the region.

Corporate taxes of enterprises in the government-encouraged areas, are reduced to 15% in the 2001-2010 period.

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New enterprises may be allowed income tax reduction or exemption if that enterprise takes on services transport, power, water conservancy, postal service, broadcasting and television and etc.

Special agricultural taxes will not be placed for ten years on projects that involve cultivating land into forestry.


62

The ASEAN-China free trade agreement, which was signed in 2001, will remove tariffs on 7000 products by the year 2015. The ASEAN countries consists of Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.


63

Exports

Source: China Statistical Yearbook 2004, 2005, 2006, 2007, 2008

2003 2004 2005 2006 20070

10

20

30

40

50

60

70

80

Anhui ( 安徽 )

Fujian ( 福建）Shandong ( 山东 )

Hubei ( 湖北 )

Chongqing ( 重庆 )

Sichuan ( 四川 )

Year

$U

S B

illion

64



65

Education

Education is one of the major goals in Western China.

One advantage is that labor is cheaper. However, quality of workers need to be taken into consideration.

If the educational level in the west meets the east, more enterprises would move toward the west.

Improving education in the fields of science and technology for better product development.

66

Education

More than 7,000 primary and middle school buildings have been reconstructed.

The policy will raise the average years of education.

The central government will spend 6 billion RMB on civil works, teacher training and minority education.

In 2006, rural students in some regions of Western China received free education, along with free textbooks.

67

Education in Chongqing

As a result from a social program, 3.7 million students were a part of free compulsory education, up to age 13, in urban and rural areas.

The proportion of students making the transition from Junior middle schools to Senior high schools rose each year.

The net enrollment rate of higher education rose to 24.5%.

Primary and middle school teachers in rural schools were given 200 Yuan a month in subsidies beginning in October, 2008.

68

Chongqing Educational Goals for 2009

Make school condition improvements for underdeveloped schools.

Increase support for poor students in both rural and urban regions.

High school enrolment will increase by speeding up the high school enrollment rate to 88%

Have 700,000 college students and 13 colleges located in the University Town.

Encourage reforms to reduce the heavy work load that students currently have.

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Number of Primary Schools by Region (2002 and 2007)

Source: China Statistical Yearbook 2003, 2008

Gansu

(甘肃

)

Sich

uan

( 四川)

Tibe

t (西藏

)

Yuna

n ( 云南

)

Guizh

ou (

贵州)

Chong

qing

(重庆

)0

5000

10000

15000

20000

25000

30000

20022007

70

Junior Middle School Educational Attainment

Gansu

(甘肃

)

Guizh

ou (

贵州)

Yunn

an (

云南)

Tibe

t (西藏

)

Chong

qing

(重庆

)

Sich

uan

( 四川)

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

20022007


Evan

recalculate with double percentage

71

Senior Secondary School Educational Attainment

Gansu

(甘肃

)

Guizh

ou (

贵州)

Yunn

an (

云南)

Tibe

t (西藏

)

Chong

qing

(重庆

)

Sich

uan

( 四川)

- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000

20022007


Evan

recalculate with double percentage

72

College and Higher Level Education Attainment

Gansu

(甘肃

)

Guizh

ou (

贵州)

Yunn

an (

云南)

Tibe

t (西藏

)

Chong

qing

(重庆

)

Sich

uan

( 四川)

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

20022007


Evan

recalculate with the double percentage

73

2000 2001 2002 2003 2004 2005 2006 2007 -

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Number of Students Enrolled in Regular In-stitutions of Higher Education in Chongqing

Year

Stu

den

ts

Evan

Don't know if I should keep it

74

Illiterate Population for Ages 15 and Older

Gansu

(甘肃

)

Guizh

ou (

贵州)

Tibe

t (西藏

)

Yunn

an (

云南)

Sich

uan

( 四川)

Chong

qing

(重庆

)05

1015202530354045

TotalMaleFemale

Perc

en

tag

e o

f p

op

ula

tion


75

Educational Overview of the Go West Policy

The government is providing education to both rural and urban communities

Billions of RMB have been spent on school buildings

The quality of education must improve in order for Western Chinese workers to compete for jobs.

China’s growing economy may be hurt by the quality of Chinese workers.

While College and higher level educational attainment is growing, all other levels of educational attainment are stagnant. This may also hurt China in the long run.

76

Conclusion

77

Challenges to the Go West Plan

Between 2000 and 2005, the West has only drawn in 2 billion USD a year, while Shanghai alone was able to attract more than twice that amount.

The infrastructure has not developed to the level of luring many foreign enterprises.

Importing and exporting to the east coast causes problems because of proximity issues.

Natural surroundings, such as mountains, also make connections to the east coast difficult.

78

Challenges to the Go West Plan

Labor is cheaper in the west, but less qualified as well.

Lack of foreign lifestyles. Areas such as Xinjiang and Tibet,

that have a large minority population, will be difficult to utilize if ethnic conflicts do not lessen.

79

Progress In the West The overall economy of the west is growing. There is more government spending on education than

before. Enterprises are starting to become more

environmentally friendly in the western regions. The government is appropriating large sums of money

into improving infrastructure. Transportation is improving rapidly, allowing imports

and exports to be shipped easily to and from the western regions.“If Chongqing can keep its momentum up, in 10 years

it will be like Shanghai today.”-Huang Qifan,

Mayor of Chongqing

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80

Is It Working?

Infrastructure is improving rapidly.

Barge shipping creates larger business. opportunities.

Development of reusable energy sources.

GDP and FDI are raising. Large foreign industries

are investing in Western regions of China.

Higher education is improving, while secondary schools are lagging behind.

Work quality is an issue.

Limited resources will become a factor as the country is modernizing.

Pros

Cons

81

Bibliography

国务院关于实施西部大开发若干政策措施的通知. Rep. no. Plan. 国务院, 2001. Print. 中华人民共和国中央人民政府门户网站. Web. 22 Oct. 2009. <http://english.gov.cn/>. "China Statistical Yearbook 2008." Web. 22 Oct. 2009. <http://www.stats.gov.cn/tjsj/ndsj/2008/indexeh.htm>. Chongqing Municipal Government. Web. 22 Oct. 2009. <http://english.cq.gov.cn/>. "Ministry of Education of The People's Republic of China." Web. 22 Oct. 2009.

<http://www.moe.edu.cn/english/index.htm>. National Development and Reform Commission (NDRC) People's Republic of China. Web. 22 Oct. 2009.

<http://en.ndrc.gov.cn/>. "PepsiCo Opens Green Beverage Plant in China | GreenerBuildings.com." News on Green Buildings, Green

Architecture, Green Cities and Facilities Management | GreenerBuildings.com. Web. 22 Oct. 2009. <http://www.greenerbuildings.com/news/2009/06/29/pepsico-opens-green-beverage-plant-china>.

"Western Region Development." China Window - China's home on the web. Web. 04 Nov. 2009. <http://www.china-window.com/china_market/china_industry_reports/western-region-developmen.shtml>.

"Gross domestic product -." Wikipedia, the free encyclopedia. Web. 01 Dec. 2009. <http://en.wikipedia.org/wiki/Gross_domestic_product>.

Kemenade, Willem Van. China's New Monuments of Superpower Status. Rep. 2003. PowerPoint. Benedetti, Robert. Chongqing and Chengdu, The Face of China's "Go West" Movement. Publication. SIP Project

Management. Print. China Strategic Development Partners, Building Business Relationships; East and West. Rep. China SDP, 2004.

Print. July 2006 Hongju, Wang. Report on the Work of Chongqing Municipal Government. Rep. Chongqing: Chongqing Municipal

People's Government. Print. January 8, 2009 China Briefing: The China Tax Guide. 3rd ed. Hong Kong: Asia Briefing Ltd., 2008. Print. China Briefing: Business Guide to West China. 1st ed. Hong Kong: Asia Briefing Ltd., 2008. Print 投资重庆(Invest in Chongqing). Web. 05 Jan. 2010. <http://www.investincq.com/cjwen/shownew.asp?

id=1177&bm=0305>.

Documents

1. 2 1. Infrastructure and Logistics 2. Economic Growth 3. Education and Social 3