Changing ideas in western China
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On December 16, 2009, shopping mall Luosiwan International Trade City officially opened its doors to customers in Kunming, the capital of southwest China's Yunnan Province. It is the first phase of a gigantic project that has a construction area of 5.5 million square meters and spans total of 8 million square meters. The building complex took only one and a half years to plan and construct, as the project's 32-billion-yuan (US$4.68 billion) fund was raised entirely by private investors from eastern China.
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| Luosiwan International Trade City |
The size and the construction speed of the shopping mall marvels people in Kunming. They are not only shocked by the great power of the private economy in the east, but they are also deeply impressed by the pioneering market ideas of private entrepreneurs.
Yunnan is home to many distinct ethnic cultures. It enjoys a pleasant climate and abundant resources, yet its economic development lags behind that of China's central and eastern provinces. Statistics showed that in the year 2000: the provincial GDP was less than 200 billion yuan; the revenue of local governments only totaled 18 billion yuan; the annual average income of urban residents was 6,000 yuan; and the annual average income of rural residents was below 1,500 yuan. The backward situation is a result of underdeveloped market ideas and conservative public thoughts.
Since the launch of the "West China Development" strategy 10 years ago, Yunnan has made great strides. In the past decade, it has witnessed fast economic growth, bringing many benefits to the local people. The provincial GDP currently has a 9.7 percent annual increase. Yet, traditional views toward the economy have not changed and government investments are still the major source of funds. The situation is especially prominent in the provincial economic structure, as state enterprises are much stronger than private companies. In many sectors, the two compete with each other for profits.
The "West China Development" plan is attracting huge investments into Yunnan. More importantly, it is introducing new ideas and brave market patterns that are more common in China's east. Liu Weigao, chairman of Yunnan Zhonghao Real Estate Co Ltd and contractor of Luosiwan International Trade City, believes Kunming has huge business potential because of its location joining China, the ASEAN free trade zone and the Pan-Pearl River Delta (9 inland localities + 2 SARs). However, Yunnan is handicapped by its historical dependence on the government and therefore did not have any responding plans or facilities to cope with the establishment of the China-ASEAN free trade zone. Liu's company was determined to build the largest business flagship in East Asia for conducting trade, logistics and other business matters.
For many years, eastern China has been more prosperous than western China. With the progress of the "West China Development" plan, along with the transfer of industries from east to west, the rise of western China will eventually come true. The businessmen of Zhejiang have taken the first step. "West China Development" is not a slogan, but an action. My question is: Yunnan, are you ready?
The author is a reporter of China Daily based in Kunming.
(This article was translated by Chen Xia.)
