BIZCHINA / Investment Alerts

China targets Beibu Gulf as next driver of development
By Fu Jing (China Daily)
Updated: 2006-07-21 09:22

China has launched an initiative to transform the area around the South China Sea into a regional development hub that will deepen ties with ASEAN neighbours.

Called the "Pan-Beibu Gulf Rim Co-operation Plan," the initiative includes port cluster construction, joint resource exploration, and economic and trade integration, said Liu Qibao, newly-appointed secretary of the CPC committee of the Guangxi Zhuang Autonomous Region.

The Beibu Gulf area includes five ASEAN (Association of Southeast Asian Nations) countries: Viet Nam, Indonesia, Brunei, Malaysia and Singapore, and China's Guangdong, Hainan and Guangxi.

Jiang Zhenghua, vice-chairman of the Standing Committee of National People's Congress, said the initiative is of importance to the overall development of China's coastal areas.

"If the great potential is realized, the gulf area can become China's fourth economic powerhouse along its coastal regions," said Jiang at yesterday's forum on regional economic co-operation.

Contributing more than 60 per cent of the country's economy, the Pearl River Delta in South China, the Yangtze River Delta in East China and North China's Bohai Sea Rim area have already become China's three economic engines fuelling growth.

Appointed as secretary last month, Liu said he expected the initiative would be discussed by China's leadership at the 17th national Party congress, which is to be held in the second half of 2007.

"We can start co-operation with infrastructure construction," said Liu. "That will facilitate trade and other flows."

He suggested that the region can build an expressway linking Nanning, capital of the Guangxi Zhuang Autonomous Region and Singapore. "The plan is feasible because we only need to build about 300 kilometres of new road despite the whole length exceeding 3,000 kilometres."

International communities and domestic officials applauded the initiative, saying it shows China's commitment to speeding up construction of the China-ASEAN Free Trade Area.


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