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New Drivers for Economic Growth: Viewing from Regional Perspective

2017-06-05

New Drivers for Economic Growth: Viewing from Regional Perspective

By Hou Yongzhi, DRC

2017-4-25

In recent years, China’s economy has entered a state of new normal. Many factors both at home and abroad which used to support the rapid growth of economy have undergone significant and major changes, and the traditional growth drivers are gradually phasing out. In order to maintain a medium-to-high growth of China’s economy and to shore up the world economic growth, we need to seek new growth drivers. The new drivers of economic growth could be found in the changes of regional development pattern.

Spatial optimization is an important way to promote economic growth. In view of the macro-perspective, spatial optimization gives expression to the process of economic agglomeration and viewing from the perspective of regional relationship, it finds expression in the deepening of regional division of labor.

China’s regional development pattern has a large room to be further optimized. 1. The regional development is rather imbalanced, which requires new growth poles to be cultivated in the central and western regions and areas where it is difficult to realize economic transformation. 2. Mismatch of resources still exists, which needs to be fleshed out. 3. Homogeneous competition among regions still prevails and the reform for regional division of labor needs to be further deepened. 4. To develop a high-quality open-oriented economy, we need to encourage various regions to participate in the division of labor in global value chain.

The Chinese government has taken positive measures to optimize spatial development pattern. 1. The government has comprehensively promoted the vision and action plan of the “Belt and Road” Initiative and constructed an all-dimensional and wide-ranging opening pattern. 2. The government has made efforts to facilitate coordinated development of Beijing-Tianjin-Hebei region and the construction of Yangtze River Economic Zone, and to accelerate the process of regional integration. 3. The government has sped up the construction of city clusters to create new growth poles. 4. The government has enforced the construction of infrastructure to improve the connectivity among regions.

 
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