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The draft version of a set of regional planning guidelines for the Yangtze River Delta (YRD) calls on the region, with Shanghai and Jiangsu and Zhejiang provinces as key drivers, to drag up the entire country's economic growth.

 

The draft represents the first time that top authorities have attempted to draw up trans-regional planning guidelines. The goal is to meet the growing demands of a booming national economy, rapidly changing society and the tandem development of different regions.

 

The guidelines are a sort of road map for development for the YRD. They cover 16 major cities, including Shanghai, Hangzhou and Nanjing.

 

Once implemented, they are expected to set the standard for future regional-level economic cooperation in other areas of the country, experts said.

 

They added that the guidelines would be a valuable resource for multinational companies planning to do business in the region.

 

Officials in Shanghai and the two neighboring provinces are currently reviewing the guidelines and are expected to offer their feedback.

 

The draft designates the delta as one of the Asia-Pacific region's leading portals for international business. It describes the YRD as one of the world's most crucial advanced manufacturing bases and says it possesses a world-class city cluster.

 

Chen Xuanqing, a deputy director of the National Development and Reform Commission, China's economic planning agency, said his department had only recently completed the draft.

 

Under the guidelines, the YRD will be developed as an integrated economic zone with Shanghai one of the centers of international economics, finance, trade and logistics in China as its core. Other cities in the region have been assigned affiliated roles.

 

"It's important to stress the region's role even though it has long served as the country's economic powerhouse," said Xu Changle, an economist with the Yangtze River Delta Development Research Institute at the Shanghai-based East China Normal University.

 

Xu noted that in the past, such planning was confined to individual provinces or cities.

 

"The YRD will serve as a test case, which will enlighten future regional economic cooperation, particularly in areas like policy-making for different industries, the division of industries among cities, sustainable development and the construction and management of major public utility facilities," Xu said.

 

To date, more than 400 of the top 500 multinational companies have set up branches in the delta. They are attracted to the region's steel, chemical and petrochemical production facilities, as well as the its strong construction materials manufacturing sector.

 

"Foreign investors will be able to use the guidelines to get a better sense of their business costs, the investment environment and the supporting policies and abilities for their industries," Xu said.

 

(China Daily November 23, 2006)