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Jiangsu Strives to Keep Strong
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 -- 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 the fastest development since the opening-up and reforms of the late 1970's.
Local statistics indicate that the provincial gross domestic product (GDP) has increased at an annual rate of 11 per cent, 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, adding vigorous force to the province's overall economic development.
The total value of the province's exports and imports between 1995 and 2000 has been increasing at an annual rate of 22.5 per cent. 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 per cent of the province's GDP, and the actual use of overseas funds accounts for 20 per cent 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 kilometres in expressway roads, which link the province with major national road networks and enable economic exchanges and co-operation with regions along it.
Jiangsu has also benefited considerably from its location in the Yangtze River Delta, close to Shanghai, the country's financial centre.
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 World Trade Organization (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)
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