Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (1519)	11/18/2003 7:24:12 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Superpower dream behind China's heavy industry push GUO SHIPING FOR THE STRAITS TIMES MANY Chinese were surprised by the decision made during the third plenary meeting of the Chinese Communist Party's (CCP) 16th Central Committee in October to accelerate growth in the north-east of the country. With the nascent development of western China yet to produce significant results, what could be the reasons for pumping resources into another region? Premier Wen Jiabao conducted three study tours of the north-east this year. Clearly, its development has entered the main agenda of the Chinese leaders. Sources note that while the central government made the evaluation on economic grounds, political factors played a major role in the decision. One of these was the need to salvage China's heavy industries. Chinese think-tanks have, on many occasions, argued that China's market reforms have made the mistake of basing economic growth on light industries and the fast-growing service sector, and overlooking its heavy industries. As a result, these have been shrinking gradually. An authoritative research agency even predicted that China would have no heavy industries in five years, if it continued to ignore their development. If this happened, China's sustainable development would clearly be affected. Premier Wen has noted that while the coastal regions have grown rapidly over the past 24 years, the north-east, where the majority of China's heavy industries are concentrated, has hardly progressed. For China to lose its heavy industries would be a blow to it as an emerging superpower. Almost all members of the CCP's Politburo believe that China not only needs heavy industries, but should also devote major efforts to develop them. Without these industries as its foundation, China will not be able to become a superpower. As China moves up the global gross domestic product (GDP) ranking, it gains more international recognition as a superpower. It is, therefore, unimaginable that heavy industries do not factor in its GDP growth, as they do for other global powers. They are highly developed in countries such as the United States, Sweden and Germany. Sources say China's concept of a superpower encompasses not just economic but also military and technological strength. To achieve that, no efforts should be spared in developing its heavy industries. The policy to accelerate economic development in the north-east is, therefore, laying the foundation for China to become a superpower. Another important consideration is that China needs a strong heavy industrial sector to handle world situations which become volatile. straitstimes.asia1.com.sg