Cooperate, Develop and Create a Future Together

By ZHANG DEJIANG

New technology, particularly information technology, is a global trend that has given impetus to economic development, but levels of development vary according to the conditions in different countries and regions.

With this in mind, regional cooperation must have as its basis human as well as inter-related interests. We must take part in the globalization process, increase our competitiveness and achieve realistic goals that will bring common development. The EU, North American Free Trade Zone and ASEAN have developed rapidly in recent years, demonstrating excellent prospects for regional cooperation. The latest round of EU expansion increased its member countries to 25, representing 450 million people, and its aggregate economy now stands at US $10 trillion. This constitutes a major force within the world economy.

The Chinese economy has made astonishing accomplishments in the past two decades since implementation of the reform and opening policy. From 1978 to 2003, China's GDP increased from US $147.3 billion to US $1.4 trillion at an annual growth rate of 9.4 percent. Last year, its gross import and export volume reached US $851.2 billion, and its foreign currency reserves reached US $403.3 billion. China's gross economic volume is seventh and its import and export volume fourth in the world. Rapid development of regional economy has given impetus to that of the whole country. At present, the Yangtze River Delta, the Pearl River Delta, and the Bohai Sea Rim are China's three largest economic regions.

Guangdong Province started regional cooperation earlier than most other regions. Guangdong, Hong Kong and Macao have already developed into a Greater PRD that has generated economic benefit for all three. Guangdong's GDP increased from 18.5 billion yuan in 1978 to 1.345 trillion yuan in 2003 at an annual increase rate of 13.4 percent, and its gross import and export volume reached US $283.6 billion. Guangdong's GDP accounted for one-ninth, its tax revenue for one-seventh, its actual utilization of foreign capital for a quarter, and its import and export volume for one-third of the national total. Guangdong Province's working target for the first two decades of the 21st century is to double the per capita GDP in the year 2000 to US $3,450 by 2010 and redouble this figure to US$ 7,000 by 2020. Guangdong is determined to set a national example in building a well-off society and realizing socialist modernization.

Development in Guangdong is not possible without Hong Kong and Macao. Guangdong has accommodated industries that have shifted from Hong Kong and Macao, to the extent that Hong Kong, Macao and Guangdong now have a "shop at the front and factory behind" relationship. Since the reform and opening policy, Guangdong has used accumulated overseas funds of US $176.5 billion, over 70 percent of which came from Hong Kong and Macao. More than 80,000 Hong Kong and Macao enterprises now have factories or businesses in Guangdong, and the province carries on most of its import and export trade with Hong Kong. About 80 percent of tourism in Guangdong emanates from Hong Kong and Macao, and many Guangdong enterprises have entered the world market by way of the two Special Administrative Regions. Meanwhile, Hong Kong and Macao have brought much advanced technology and management experience inland and compatriots in the two regions have made substantial contributions to education, science, cultural and health development in Guangdong.

Hong Kong and Macao have also benefited from their cooperation with Guangdong. From 1978 to 2003, Hong Kong's GDP increased from HK$ 356 billion to HK $1.361 trillion, consolidating its status as world finance, information and logistics center. The SAR's prosperity and development is closely related to China's reform and opening policy and rapid progress in Guangdong. Over the past two decades, about 80 percent of Hong Kong's manufacturing industry has expanded business and optimized industrial structures by utilizing Guangdong’s resources and favorable policies. Guangdong. More than 70 percent of Hong Kong logistics business comes from Guangdong, and rapid development in Hong Kong's service industry is also closely connected with the province's manufacturing industry. In recent years, more than half of tourists from China's mainland to Hong Kong and Macao have come from Guangdong, and an average 42,000 motor vehicles and 477,000 persons travel between Guangdong and Hong Kong or Macao every day. Maintenance of social stability and prosperity in Macao can also be largely attributed to its achievements stemming from cooperation with Guangdong. 

Implementation of the Closer Economic Partnership Arrangement (CEPA) this year has created a new opportunity for cooperation and development within the Greater PRD. It has drawn the attention of the Guangdong, Hong Kong and Macao regional governments, all of whom have worked together in determining principles and targets of cooperation. The aim is to make Guangdong a world manufacturing base, Hong Kong an international financial and logistics center, and Macao a regional trading service platform and tourism center within 10 to 20 years. Their ultimate goal is to turn the Greater Pearl River Delta into a prosperous and vigorous world economic center.

In response to economic globalization, China and ASEAN have decided to establish within 10 years a free trade zone as a means of promoting Asian cooperation. This has prompted different regions to find their roles and opportunities in the process: Hong Kong and Macao may play a leading role and achieve new prosperity and development by going inland; Guangdong needs a new platform from which to scale a new height; and areas in their vicinity and that of ASEAN need partners that can help bring them into the international market. This is the basic incentive to set up the Pan-Pearl River Delta, consisting of Hong Kong and Macao SARs, Guangdong and seven other inland provinces and autonomous regions linked by the Pearl River. Since the proposal was first raised by Guangdong in July 2003, the other seven relevant provinces, one autonomous region, Hong Kong and Macao have expressed willingness to participate. Their top administrators have achieved common understanding as regards cooperation agreements.

The PPRD comprises Fujian, Jiangxi, Hunan, Guangdong, Hainan, Sichuan, Guizhou and Yunnan provinces, Guangxi Zhuang Autonomous Region and Hong Kong and Macao SARs, collectively known as the 9+2 region. The nine inland localities cover 2.005 million square kilometers, and represent a population of 450 million. Their GDP is 3.88463 trillion yuan, accounting for 33.3 percent of the national total.

The advantages of PPRD regional cooperation lie in the regions' characteristically distinct industries and strong economic complementation. It showcases the regional economic characteristics of East, West and Central China and incorporates the SARs' “One Country Two Systems” policy. Hong Kong is a well known international financial, information and logistics center; Macao maintains close economic and trading contacts with Portugal and Portuguese speaking countries; and Guangdong is the most important manufacturing base in China. The other inland provinces and one autonomous region have respective advantages of natural resources, science and technology, markets, information, and funds. Their cooperation is of benefit to CEPA implementation; development, stability and prosperity in Hong Kong and Macao; complementary and coordinated economic development in different regions; optimized utilization of resources in the 9+2 regions; and the development of the China-ASEAN Free Trade Zone and its cooperation with other Asian countries.

PPRD cooperation got off to a good start. Projects now cover economy, trade, transportation, energy resources, science, education, tourism, agriculture and human resources. Since the ninth Five-Year Plan, Guangdong has signed economic and technology contracts with the other eight PPRD inland regions worth an accumulated 600 billion yuan. Cooperation projects number more than 10,000. Last April, Guangdong signed economic and trading contracts with Guangxi and Hunan worth 84.4 billion yuan. It is plain to see that the PPRD regional cooperation has great prospects.

Promotion of regional cooperation in the PPRD must be executed on principles of mutual benefit and complementation. Regional governments are responsible for activating and operating projects according to market laws. Cooperative arrangements encourage a rational flow of production elements, optimization of resources, improvements to the investment environment and quality of economic operation.

The relevant regions will work together to establish a highly effective, coordinated and consistent working mechanism. Establishment of the 9+2 top administrator joint conference is with the aim of discussing and deciding cooperative plans, and coordinating and stimulating regional development. The objectives of the government secretary-general and local government coordination system are effective implementation of cooperation projects, and acting as a medium of communication between related departments. Various exchanges are encouraged in order for all enterprises, industrial associations and chambers of commerce to play their respective roles in regional cooperation. It is planned to hold annual PPRD Regional Cooperation and Development Forums and PPRD Economic and Trade Cooperation Talks in each region on a rotational basis. Cooperation, protection and promotion, interest distribution and efficient service and consultation systems are also to be established in order to ensure smooth development of PPRD cooperation projects.

In order to promote PPRD regional cooperation, CEPA implementation must be accelerated so as to make cooperative breakthroughs in service industry and cross-border infrastructure facility construction. Cooperation in transportation, energy resources and water conservancy projects must be enhanced to create a more comprehensive and advanced transportation network that caters to the needs of PPRD cooperation and development. Industrial cooperation and trade contacts must increase and construction of a unified market with a fair and open environment accelerated. Finally, a regional environmental protection plan that coordinates with sustainable regional economic development must be formulated.            

Development of the PPRD region is a complex and long-term project entailing many stages of practical work by different departments and organizations.

As a member of the PPRD, Guangdong has an obligation to play an active role in development of the region. This it will do while simultaneously cooperating with other provinces and regions, and fully supporting Hong Kong and Macao's work of maintaining prosperity. This is a rare opportunity for Guangdong and the other involved regions. Guangdong is determined to increase its cooperation with other 9+2 provinces, the autonomous region and two SARs, thereby ensuring the success of PPRD cooperation.

ZHANG DEJIANG is Secretary of the CPC Committee of Guangdong Province.