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After vitalizing Shenzhen and Shanghai's Pudong, China will build a third economic powerhouse in its coastal areas in the north, which trailed behind the south and east in the country's rapid economic growth in the past two decades.

The development of Binhai New Area (BNA), or the new coastal area, of Tianjin, a municipality about 130 km to the southeast of Beijing, has been written into China's new five-year plan.

The blueprint of national economic and social development for the 2006-2010 period has been approved by the annual session of the National People's Congress (NPC), China's top legislature, which concluded Tuesday morning.

The BNA is home to Tianjin Port, Tianjin Economic and Technological Development Area, Free Trade Zone and administrative districts of Tanggu, Hangu and Dagang, and its coastline stretches 153 km.

More than 70 of the world's top 500 companies have established a foothold in the area and poured in US$26 billion over the past decade. An additional 80 of the top 500 are expected to have a presence by 2010, said Pi Qiansheng, an NPC deputy from Tianjin and also an official in charge of the BNA.

China's strategy of developing regional economy has seen success in the Pearl River Delta in the south and the Yangtze River Delta in the east, with the drive of two regional economic hubs of Shenzhen in Guangdong Province and Pudong in Shanghai, respectively.

However, the Bohai Sea rim, which boasts obvious geographical advantages for its short distance to the national capital Beijing and easy access to sea transportation, has not seen a robust economic growth like the two deltas.

The overall economic volume around the rim in 2003 was only 45.3 percent that of the Yangtze River Delta, and 10 percent less than that of the Pearl River Delta.

The rim, which also covers parts of Liaoning, Hebei and Shandong provinces besides Tianjin, needs a powerful engine to drive its growth, said Zhang Ping, vice minister in charge of the National Development and Reform Commission.

The decision to start the engine in Tianjin is of far-reaching significance, said Mayor Dai Xianglong of Tianjin.

A traditional economic center in the country's north and a major sea access for the northern provinces, the development of Tianjin will not only boost the growth of the Bohai rim but also that of the northern region, the mayor said.

As long as the new economic powerhouse is built in Tianjin, the northern region will have a promising prospect in its economic exchanges with northeastern Asian countries, Dai said.

Tianjin Port is only 1,500 km away from the Mongolian capital Ulan Bator. And it's one hour's trip by airplane from Tianjin to the Republic of Korea, and two hours to Japan.

Prior to the NPC annual session, the State Council, or the central authorities, has issued a package of preferential policies to shore up the development of the new area which covers more than 2,200 square km, including pilot programs of financial reform and a 15 percent cut of tax to the high-tech enterprises in the area.

As part of the development program, Tianjin will start reforms on foreign exchange management and property rights exchange, said Li Yali, director of the development and reform commission of the city.

China's first industrial fund, the Bohai Industrial Fund, will be set up in the city and is expected to raise 20 billion yuan (about US$2.5 billion) to finance the development of the new area, said Li.

The largest bonded port in the country's north, which stretches 30 square km, will also be built in the area to spur economic exchanges with northeastern Asian nations, according to Li.

Fixed assets investment in the area will hit 500 billion yuan (US$62.5) billion by 2010, with a production value of 320 billion yuan (US$40 billion), twice as much as that of 2005.

(Xinhua News Agency March 14, 2006)