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Why is China's economy strong in the east and weak in the west? The reason is here

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Why is China's economy strong in the east and weak in the west? The reason is here

In the 40 years of reform and opening up, the coordination of China's regional economic development has continued to increase, but new situations of regional economic differentiation have also emerged.

Under the new situation, how can China's regional economy continue to develop healthily? Is the gap between the major economic sectors further widened? What opportunities should be seized in developing a regional economy today?

A few days ago, at the annual meeting of the China Regional Economic 50 Forum held in Diaoyutai, many policy makers and practice promoters working on the front line of regional economic development discussed their views on China's regional economic development in the new situation.

Data map: Fujian Putian sports shoes production line. Photo by Zhang Bin, China News Agency

Regional economic development is diverging

Du Ying, counselor of the State Council of China and former deputy director of the National Development and Reform Commission, said that the coordination of regional economic development in China has continued to increase, but new situations of regional economic differentiation have also emerged.

Du Ying believes that there are four indicators for measuring the coordination of regional economic development. The first is whether the gap in regional economic development is controlled in a reasonable space; the second is whether people everywhere can enjoy public services equally; the third is whether the comparative advantages of each region can be brought into full play; the fourth is whether the relationship between man and nature is harmonious.

According to China's actual situation, it can be concluded from the above four aspects that China's regional economic coordination is enhanced. However, in this context, China's regional economy is undergoing new differentiation, but regional differentiation cannot deny the strengthening of regional development coordination.

Regional differentiation is mainly manifested in the very different economic growth situations in different regions.

The first is the significant differentiation of the four major economic sectors in China. From 2008 to 2012, the economic growth rate of the central and western regions and the northeastern region of China surpassed that of the eastern region for five consecutive years, and the northeast region ranked first in 2008. However, the growth rate of the northeast region has fallen to a trough.

Secondly, the internal differentiation of the economic sector is obvious. In particular, in the past ten years since the implementation of the regional coordinated development strategy, the internal differentiation and differential development of the sector have been the most significant stage.

Again, the North-South differentiation is obvious. Since 2013, the economic growth rate of North and South China has begun to expand. In 2017, the GDP of the South accounted for about 60% of the country's total, and it has the highest proportion since 1980. The pattern of rising south and falling north.

Du Ying analysis said that this is mainly the result of the effects of cyclical factors, structural factors, and institutional factors. "Cyclical factors are the external cause of regional differentiation, and the other two are the internal and main causes."

At this stage, regional economic differentiation has a profound background. China is in a special period of structural transformation and functional transformation. In the past, expansion methods relying on resources and the environment have come to an end. In the future, focusing on quality and efficiency, we will eliminate backward production capacity and promote the "double "Creation" has become the main feature of the national economy.

Du Ying emphasized that it is necessary to thoroughly analyze the reasons for regional differentiation, make targeted policies, and make use of the positive interaction between regions.

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