After China decided to launch its economic reforms and opening up in 1978, Deng Xiaoping, the late chief architect of China's reforms, proposed the principle of allowing some regions and people to get rich first in order to achieve a final "common prosperity".

Almost 30 years later, Guangdong now accounts for 12 percent of China's GDP. However, over 80 percent of Guangdong's GDP were generated in the Pearl River Delta (PRD), a region in central Guangdong with just 15 percent of the whole province's population and territory. Other parts of the province were left far behind economically. But they are catching up.

Last year, Qingyuan, a city in north Guangdong, shocked the province by achieving the fastest growth rates in seven out of eight major economic indexes among the 21 cities. Besides Qingyuan, most of the 14 cities in east, west and northern parts of the province saw acceleration in economic development.

A policy to reduce the economic performance gap between regions within the province has stayed on top of the Guangdong government's agenda in recent years. In May of 2002, the "Areas Developing in Harmony" strategy was first proposed during the 9th Party Congress of representatives of Guangdong province. In September of the same year, the province issued the "Decision to Quicken the Development of Mountainous Areas". In 2004, the "Decision on Quickening The Development of County Economy" was also issued, which offered a series of favorable policies and supports to the development of the mountainous area and both wings of Guangdong Province. Now, "enhancing regional cooperation", "regional relocation of industries" and "developing heavy industry and the petrochemical industry" have become the three engines of these areas' development.

Enhancing regional cooperation

The rise of regional cooperation in recent years, including closer economic partnership between Guangdong, Hong Kong, Macao, the Pan Pearl River Delta (PPRD) regional cooperation and the growth of Guangdong-Southeast Asia trading and cooperation, has stimulated infrastructure improvements throughout the province. The expressway network now connects Guangdong with all the neighboring provinces and regions except Hainan and Macao. By 2008, the province will contain 13 cross-border expressways and an expressway network, centered in the PRD extending to Hong Kong, Macao and mainland provinces. The eastern and western regions of Guangdong, as well as the mountainous areas now are beginning to serve as the connecting points of PRD region and places outside the province. The continuous improvement of transportation and logistics condition will bring these regions new chances to lure domestic and foreign investments and develop their industries and trading.

Regional relocation of industries

In recent years, the mountainous areas in northern Guangdong improved their investment environment and received many industries relocated from the PRD region. For example, Yun'an county of Yunfu city, in west Guangdong, has attracted domestic and overseas cement brands to set up factories there. Now the county has become the biggest cement manufacturing base in China. The city now plans to develop a cement industry cluster with Yun'an as the center along the western Pearl River waterway, which is expected to produce 40 million tons of cement per year.

Heavy industry and petrochemical industry

As Guangdong plans to develop its heavy industries and high value-added industrial chains by further expanding its automotive, petrochemical and steel industries in the coming five years, the eastern and western wings of Guangdong have now started constructing a belt of heavy industry and petrochemical outlets along the coastal areas. The province, especially its west coast, is closest to West Asia, Africa and Oceanic countries. These countries are frequent buyers of China's raw materials and resources.

Scattered alongside the western Guangdong coastline are the Maoming Ethylene Project (1 million tons), the Maoming oil refining project (15 million tons), the Zhanjiang steel mills project (10 million tons per year), the Zhanjiang oil refining project (10 million tons annually) and the Yangjiang Nuclear Power Station project.

In the next five years, Guangdong will achieve balanced development within the whole province. The northern region and both wings of Guangdong are expected to continue a strong momentum and become the new keys driving the province's development.

Editor: Yan