In 2017, with the implementation of its overall strategy for the development of its regional economies, China gradually achieved stronger coordination of such development. Positive results have been seen in the areas of the Belt and Road Initiative, in efforts to ensure the coordinated development of the Beijing-Tianjin-Hebei region, and in the development of the Yangtze River Economic Belt; the Regional Innovation System is being improved over time, with the growth of regional economies becoming more reliant on innovation; the management of the environment by regional players has been strong, and governance in this respect continues to improve; efforts to alleviate poverty in various regions have taken on diverse forms, and decisive progress has been made in the fight against poverty; and change in multiple dimensions has occurred within the development of various regional economies. According to the Report delivered at the 19th National Congress of the Communist Party of China (CPC), at present China is still in an important period of development where strategic opportunities are present, and is also in a critical period in terms of its efforts to transform its developmental path, optimize its economic structure, and shift to other growth engines. After a long period of hard work, we have entered a new era with regard to socialism with Chinese characteristics. The main contradiction in our society has been transformed into the contradiction between the people’s ever-growing needs for a better life and unbalanced and inadequate development.1 Tackling unbalanced and inadequate development among regional economies is the main task in the new stage of regional economic development. The Report to the 19th CPC National Congress has laid out the general plan for the development of China’s regional economies, proposing the implementation of coordinated regional development strategy, innovation-driven development strategy, rural revitalization strategies and sustainable development strategy with adherence to the goal of poverty alleviation and the building of a moderately prosperous society by the year 2020. 2018 is a critical year in China’s efforts to build a moderately prosperous society on all fronts. In 2018, change in multiple dimensions will continue to be seen among China’s regional economies, with changes in terms of the economic growth rate and contribution to national production between the various parts of China, and multiple growth centers will lead to more coordinated development between various regions. The building and operation of high-speed railways have made urban agglomerations an important pillar of support for the development of regional economies, and policies to promote regional development will be further strengthened, with even more potential for regional growth released. For the further promotion of coordinated development between regional economies, it is necessary to closely follow the changes in the main contradictions in Chinese society and take the appropriate measures while promoting such coordination. Efforts should be made to: further optimize regional policies and to focus more on the guiding principles on spatial classifications; to develop Chinese urban agglomerations according to specific grading systems so that they may adapt to the “new normal” in development, and to help urban agglomerations become new engines for the optimization of coordination between regional economies; to create environments amenable for innovation and to kick start and power regional development and economic transformation through technological innovation; to continue to strengthen the building of an ecological conservation system and to implement the regional integration of environmental governance; and to create a new landscape of full openness to further promote coordinated development between regions.
1 Development of China’s Regional Economies in 2017
In 2017, we have seen change along multiple dimensions among China’s regional economies, with changes in terms of the economic growth rate and contribution to national production between the various parts of China (faster economic growth in western China, and a rising share of the national output for southern China, for instance). The Belt and Road Initiative has continued to advance, and a good start has been achieved with efforts at ensuring the coordinated development of the Beijing-Tianjin-Hebei region; efforts towards the building of the Yangtze River Economic Belt have also achieved positive results. There have been sustained efforts at establishing and building high-tech industrial development zones at the national level, as well as national independent innovation demonstration zones. Regional economic growth is becoming more reliant on innovation. The government has made major decisions in the area of environmental governance, and various local authorities appear to have become more aware of the need for, and proactive in, implementing the concept of green development. Various regions have also adopted a diverse array of approaches to targeted poverty alleviation and achieved results to a certain degree.
1.1 Change During the Development of Regional Economies
1.1.1 Trend of Comparatively Faster Economic Growth in Western China, and a Rising Share of the National Output for Southern China Continues
A sustained recovery of the global economy has led to the growing prosperity of both the domestic and international markets, and a stream of regional economic development policies has been drawn up, with various regions also working continuously to further enhance reform and innovation efforts to stimulate regional development. The transformation of economic structures and the shift towards new engines of growth are gradually accelerating in pace, and the operation of the national economy is being maintained within a reasonable range. The Chinese economy is becoming increasingly stable and is also becoming better. In the first half of 2017, China’s economy generally ran smoothly (up by 6.9%), with the economic growth rates in the eastern, central, western and northeastern regions standing at 7.5%, 8.0%, 8.3%, and 4.1%, respectively. In the eastern region during this period, the economic growth rate stabilized slightly and was also adjusted; in central China, the growth generally accelerated, and the momentum for economic development was strong. Western China still led the country in terms of the development of the “Four Major Regions”, though the degree of difference was great; although the rate of economic growth in northeast China was relatively low, internally there were signs of recovery. In addition, economic growth in China has gradually broken free of the “Four Major Regions” structure with differences emerging between the north and the south. Economic growth in certain southwestern and southeastern provinces has been generally better than in northwestern and northeastern China, and has also been faster in the south than the north. The proportion of total economic output from the south is also substantially rising (see Table 1.1).
Table 1.1
GDP growth in China’s “Four Major Regions” (unit: %)
Year | Eastern China | Central China | Western China | Northeast China |
|---|---|---|---|---|
2006 | 16.9 | 16.2 | 18.4 | 15.2 |
2007 | 19.2 | 21.8 | 21.9 | 19.0 |
2008 | 17.1 | 20.9 | 22.9 | 20.6 |
2009 | 9.0 | 10.2 | 10.8 | 9.4 |
2010 | 17.9 | 22.0 | 21.6 | 20.6 |
2011 | 16.9 | 21.3 | 23.1 | 21.0 |
2012 | 9.0 | 11.3 | 13.6 | 11.2 |
2013 | 9.7 | 10.0 | 11.5 | 8.4 |
2014 | 8.1 | 8.4 | 8.8 | 5.0 |
2015 | 8.0 | 8.2 | 8.6 | 4.5 |
2016 | 7.6 | 7.7 | 8.6 | 3.5 |
H1 2017 | 7.5 | 8.0 | 8.3 | 4.1 |
While the scale of the eastern China economy is large, its growth rate has dropped slightly. In the first half of 2017, the economic growth rate of the eastern region decreased by 0.09 percentage points compared to the same period of the previous year, and compared to 2016, the rate had decreased by 0.1 percentage points. At the same time, internally within the region economic growth rates have also diverged: the economic growth rates of Fujian, Hainan, and Zhejiang Provinces are all above 8%, while the economic growth rates of Guangdong, Shandong, and Jiangsu Provinces have also reached 7.8%, 7.7%, and 7.2%, respectively. In the first half of 2017, Tianjin’s economic growth rate was 6.9%, a significant drop from rates seen in the preceding years. In addition, the growth rates of Beijing (6.8%) and Shanghai (6.9%) are also among the lowest in the country. This has been due to the fact that the eastern China economy is mainly export-oriented, and thus the growth rate has decreased slightly due to the downturn in the global economy.
Economic growth in central China has generally accelerated, and the growth rate is strong. Prior to 2014, the economic growth rate of the central region had been consistently a double-digit figure. In 2014, the rate dropped to 8.4%, and in the first half of 2017, it fell to 8.0%. There are also significant differences in the economic growth rates of various central Chinese provinces. Jiangxi leads the central region with a growth rate of 9% (fifth highest in the country), followed by Anhui (8.7%), Henan (8.2%), and Hubei (7.8%), which are ranked 6th, 8th, and 13th in the country, respectively. The economic growth rate in Hunan (7.6%) is also higher than the national average. Although Shanxi (6.9%) had the lowest economic growth rate among the provinces in the central region, the rate was still higher compared to the first quarter. Central China has been able to turn in a strong economic performance due to China’s implementation of the strategy of the rise of Central China. Compared to eastern China, the central region has undertaken many industrial transfers in recent years. At the same time, it has received support from the central government in the form of the relevant policies. Numerous factors have contributed to the rapid economic development in the central region, which has been faster than that in the eastern region for many years.
The economic growth rate in the western region is still at the top of the “Four Major Regions”, though differences between different parts of the region are significant. Judging from the economic growth rates of the 31 provinces, the economic growth rate in the western region leads the country. In addition, five western provinces are also among the top ten in the country. In the first half of 2017, Tibet’s economic growth rate was the fastest a...