Government promotes western areas' development

The State Council, China's highest governing body, issued recommendations Friday on how to promote China's western areas, which have trailed the eastern coastal regions in economic development in recent decades.

The massive stimulus package that the government released last year has helped revive the economy, but the western regions lack a solid foundation to maintain the recovery.

Large-scale infrastructure development tops the government's list of areas that need improvement.

Railways, airways, and waterway transportation networks are essential to irrigation the western regions with the more developed coastal cities, the report says.

Energy infrastructure will be improved and hydropower projects will be pushed forward.

The report noted problems with the current economic growth model, which is based on low-level manufacturing.

The council recommends that the regions should develop technologically sophisticated industries.

The government emphasized industries such as aerospace, modern equipment manufacturing, electronic information, defense science and technology, and new energy.

Service industries need to be promoted. A better infrastructure will also enable the further development of important industries like tourism and e-commerce.

Better financing also must be available to small- and medium-sized enterprises, and therefore county banks and microfinance institutions are to be encouraged.

But the report also noted that the environment was not to take a backseat to the economy, as energy-saving technology should be utilized whenever possible.

The time frame within which progress can be expected, however, were not detailed in the report.

Li Qiaoyi contributed to the story

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