Guangxi hopes to become growth engine

South China's Guangxi Zhuang Autonomous Region is positioning itself to become another growth engine for the country by speeding up the development of its coastal cities on the Beibu Gulf.

The strategy is expected to transform the coastal cities of Nanning, Beihai, Qinzhou, Fangchenggang, Chongzuo and Yulin into a single economic zone.

As a result, the Beibu Gulf area is expected to become another growth engine for the country as well as platform for economic cooperation with ASEAN member states, most of which have links with the Beibu Gulf region.

"Guangxi has started the planning and construction of the economic zone, and has set up an administrative committee to take charge of the planning and co-ordination of the coastal cities in the zone," said Chen Wu, vice-chairman of the Guangxi Zhuang Autonomous Region government and the director of the zone's administrative committee, in a recent interview.

"We aim to develop the zone into a base for harbor industries and for China-ASEAN cooperation in logistics, commerce and trade, as well as in information exchanges," he added.

Officials in Guangxi have been focusing on improving the region's infrastructure and industrial coordination among the six cities in the zone, he said.

About 6 billion yuan ($769.23 million) has been earmarked for investment in infrastructure projects in the plan's first phase, and another 4.71 billion yuan ($603.85) has been budgeted for 26 infrastructure additional projects in the second phase.

The vice-chairman said authorities in Guangxi are also working with the different coastal cities to integrate the development of their ports.

"Infrastructure in the zone's six cities will be drastically improved by 2008, when all of the projects are completed," he said.

He said the administrative committee had been planning the zone's layout, focussing on industries like petrochemicals, pulp-paper manufacturing, energy, iron and steel production, aluminum processing, foodstuff processing, shipbuilding, information technology, ocean-related business, tourism and logistics.

"Many business people have approached the zone about possible investment opportunities, and the zone is definitely heating up," Chen said.

He said several deals for large-scale projects had already been reached.

Among them were a 56 billion yuan ($7.18 billion) joint-venture iron and steel project between Wuhan Iron and Steel (Group) Corp and Liuzhou Iron and Steel Group in Fangchenggang; a 12.5 billion yuan ($1.6 billion) China National Petroleum Corp oil refinery project in Qinzhou with an annual refining capacity of 10 million tons; and a 3 billion yuan ($384.62 million) electrolytic aluminum project in Nanning.

Ma Biao, Party secretary of Nanning, the autonomous region's capital, said the city is keen to act as the zone's headquarters and will speed up the development of its logistics offerings and exhibition industry.

Huang Daowei, Party secretary of Qinzhou, said his city is particularly interested in the development of harbor industries and tourism, while Wen Kahua, Party secretary of Beihai, said his city would encourage environmentally friendly industrial development.

source: China Daily