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SHANGHAI, Oct. 22 (Xinhuanet) -- Economists have set a three-hour drive
from Shanghai as the range of the Yangtze River Delta economic radius, but the
effects of the rapid economic development of the circle is extending far beyond
that.
The former 15-city club is considering taking Taizhou City in Zhejiang
Province into its orbit. Yancheng, Huai'an and Ma'anshan cities in Jiangsu and
Anhui provinces also look likely candidates for membership.
Kaihua County of Zhejiang Province has a population of 320,000.Although it
is over six hours of drive from Shanghai, the county has written the target of
"integrating with the Yangtze River Delta economy" into its development
blueprint.
Boasting superb air quality all year long and rich experience in producing
green food, tea and aquatic products, Kaihua's plan is to become the production
base of green food for the Yangtze River Delta.
Now the delta has been widely acknowledged as the world's sixthlargest
metropolitan area. Total gross domestic product has reached the level of a
standard international economic center.
The delta, embracing the municipality of Shanghai and 14 citiesin Zhejiang
and Jiangsu provinces, contributes to 22.1 percent of the country's gross
domestic product and 28.5 percent of total foreign trade, although it has only
2.2 percent of the country's land area and 10.4 percent of population.
The delta used to have close economic relations with surrounding areas
which provided cheap labor and resources while the delta gave back finished
products. Now the model is changing as these former labor and sources providers
rush to join the production chain.
In Kaihua, more than 70,000 residents are working in big citieslike
Shanghai and Hangzhou. In Anhui Province, more than 2.1 million people work in
the two big cities.
"As one third of income for farmers comes from working away from home, this
kind of relationship is important to the economically-backward surrounding
areas. But the problem is that the consumption of these laborers also happens in
the big cities, which contributes less to local economies," said Yu Leng,
professor at Shanghai Jiaotong University.
To change the situation, surrounding areas have begun setting up their own
industries with projects and technologies coming fromthe delta. So far this
year, private companies based in the delta have invested 20 billion yuan in
Anhui Province.
The best example is auto producer SAIC Chery. Three years ago, the Anhui
Chery Corporation signed an agreement with the Shanghai Automobile Industrial
Corporation (SAIC) to jointly produce economy cars. Now SAIC Chery is listed as
one of China's eight biggest car producers.
"In the past, the comparatively developed delta cities had always provided
'blood transfusions' to the surrounding areas. Nowthey are working to help these
areas improve their own blood-generating capacity," said Dr. Wang Lingyi, of
Shanghai Institute of Social Sciences.
Shangrao City, of Jiangxi Province, has an ambitious plan up to2005 under
which it will send 10 percent of its agricultural produce and 30 percent of its
unemployed laborers to the delta cities. It also hopes 30 percent of funds and
60 percent of tourists will come from the delta.
"In the process of interaction, a bigger delta economic circle will emerge
and become the major engine for the development of China's economy, even for the
world economy," said Stephen Green, head of the Asia Programme of the Britain's
Royal Institute of International Affairs. Enditem |