A Study On The Strategy Of Developing The Westward Region Under The Adjustment Of Regional Development

Follow-up effect of the financial crisis highlights the deep-seated contradictions inChina’s economic development: Two out of the eastern coast of processing trade andover-reliance on China-US co-occurrence (Chimerica) are not sustainable; increasinglyserious resource and environmental constraints, and tends to dry the demographic dividendto accelerate disoperation of China’s manufacturing cost advantage; Excess of industrialcapital and financial no way release.Under the condition， the pattern of regional development in China is bound to usherin a profound adjustment. The nature of this adjustment is the productive space movementand re-layout, productivity adjustment to the inland movement. In productivity the inlandduring exercise, how to realize the potential production capacity to translated into practicalproductive forces effectively is particularly critical.In this article,“Westward Expansion” is different from “Westward Openness”.Openness means break the inherent block of economy and expand the mutual economicrelation. On the other hand, expansion contains two types of requirements. The first is topositively go out to participate in international issues. Besides, it requiresself-improvement. In other words, westward expansion not only expands westwardeconomic channels for China, but also could lead to economic development of westernChina. Base on it, analysis the feasibility of Westward Expansion and research adevelopment strategy to ensure successfully completion of it. First of all, analysis thepattern of regional development in China deeply and uses principles of demand, capabilityand environment are employed to analyses the feasibility. Furthermore, the main idea ofwestward development strategy is introduced by analyzing the advantage, disadvantageand neutral conditions of executing it. The first step is setting up a development base atXinjiang to expand trade as priority and sufficiently open the Central Asia market. Andthen it is expanding to the CIS counties by investing to Central Asia and bypassing tradebarriers. And final step is to achieve the strategy of going out from westward and thedevelopment strategy by connecting with the world through the Central Asia. The final partof this dissertation is to analyze the trade basis of the strategy based on the general idea ofit. In this part, the Principal Component Analysis is applied to evaluate the comprehensiveeconomic strength of each west provinces and determine the strategic space of westwarddevelopment strategy on the basis of regional comprehensive strength. And analysis oftrade basis, test the difference of industrial structure and comprehensive measurement of gray connection are applied to select strategic industry of the Strategy. Besides,suggestions ensuring implement of the Strategy are made as well.There are five main conclusions in this dissertation. First, according to theendogenous demand, derived demand, environmental condition and the own ability,westward expansion is feasible. Second, close trade dependence and obvious tradecomplementarily are between China and the five countries in Central Asia. ExceptKazakhstan, China and the other four countries are not mutual trade partners and tradedependence is asymmetry. Generally speaking, the Central Asia nationals more depend onexports from China rather than China depends on them. Third, no intra-industry tradingexists between China and these countries. This means there is little overlap of externaldemand, which makes assignment division and cooperation suitable. Fourth, Xinjiang willbe the frontier of westward development strategy. Inner Mongolia, Chongqing, Sichuanand Shaanxi are strategic rear. Besides, Qinghai and Gansu is strategic sub-centre. Fifth,the primary selections of strategic industries are food, petroleum processing (especiallyfuel), steel, daily necessities, textiles, pharmaceuticals, machinery manufacturing,transportation equipment and building materials. Meanwhile, machinery manufacturing,power and communication, transportation and financial services are seen as future strategicindustries for westward development.