The rising of Central China

Beijing Express
By CELESTE FONG
THE recent three-day Expo Central China 2007 in Zhengzhou, Henan province, was, in the words of Bo Xilai, the Chinese Minister of Commerce, all about “working something out, making some friends, closing some deals and earning some money.”
Although Bo’s words may paint a rather simple picture of the second Expo Central China, they somehow capture the essence of the investment and trade expo, to say the least. In fact, his speech delivered in layman’s terms at the opening ceremony on April 26 received a unanimous roar of agreement from those gathered outside the impressive Zhengzhou International Convention and Exhibition Centre in the central business district of Zhengdong New District. The figures may tell a better story.
At the end of the expo, the six provinces – Shanxi, Anhui, Henan, Jiangxi, Hu’nan and Hubei in central China – had signed a total of 196 Foreign Direct Investment (FDI) projects worth US$12.374bil. The expo has also drawn for these six provinces export contracts totalling US$920mil and domestic contracts worth 2.996 billion yuan.
It attracted a crowd of more than 42,000 people from home and abroad, of which 7,100 were foreign guests and merchants from 108 countries, and 315 and 303 companies respectively out of the World Top 500 and National Top 500 enterprises.
“This is a big event for the country, a grand affair for the central region, and a fortunate opportunity for Henan,” said Xu Guangchun, secretary of the Henan Provincial Party Committee of the Communist Party of China (CPC). According to Xu, Malaysian billionaire Robert Kuok Hock Nien had sent his right-hand man to attend the expo, which was themed “To Promote Central Part Rising, To Construct A Harmonious Society.”
There were 17 VIP guest speakers attending its forum on “Thousand Merchants Going Westward” to give their insights on opportunities the central plain could offer. Among them was Singapore Senior Minister Goh Chok Tong, who described the rising of Central China as a successful strategy that would help enhance balanced development in China.
“Singapore will further encourage Singaporean merchants to invest in the central plain as well as those of other nationalities to take part. And I strongly believe the Central China plays a key role in sustaining the future development of China,” he said in his speech.
It is learnt that only seven Singapore companies attended the expo last year but this year, 20 companies – in tourism, food, education, logistics and banking industries – were present.
Hong Kong Chief Executive Donald Tsang said the Special Administrative Region, as an international financial, trading, and business centre, would help strengthen the rising of Central China.
“Hong Kong can provide four aspects of service. First, Hong Kong could push the investment boom by taking advantage of its open market environment and its role in the international market,” he said. “Second, Hong Kong can offer and provide a better financial platform and service. Third, its service industry can be a good springboard. And fourth, the Central China enterprises can make use of Hong Kong as a base to expand internationally.”
Kim Yong Ju, Minister of Commerce, Industry and Energy of the Republic of Korea, told the floor that Central China would become “the new engine of growth for the continuous development of China”. “I believe the six provinces will soon become the economic centre of China,” he said. “I hope more businesses of the world can take an active part in this great drive and the Korean government will provide all the assistance possible.”
John Spotila, the Global Eight Enterprises chief executive officer who served former President Bill Clinton in the White House as Administrator of Office of Management and Budget’s Information and Regulatory Affairs, was one of the visitors. “The Expo Central China is a wonderful opportunity to learn about the people of this part of China and the economic development taking place (in the central plain),” he said.
Spotila, who believed his participation would be a good opportunity to contribute to the trade relationship between China and the United States, said: “The rising of Central China and its economy are remarkable tributes to the hard work and contribution the people of these provinces have accomplished. I think they have a very bright future.”
Not only are the six provinces rich with mineral resources such as coal, molybdenum, alum clay, cyanite, copper, gold, silver, iodine, and tantalum, they also have a total population of 360 million. Henan itself is the country’s most populous province.
Historically, the central plain, or Zhong yuan, was the cradle of ancient civilisation. It is also the main agricultural area in China.
“The rice from one in every 10 rice bowls comes from Henan,” said Xu, noting that Henan has traditionally produced 10% of the country’s total grains output. But, he said, despite industrial transformation, Henan would continue to develop its agriculture and agricultural industries. According to Xu, GDP (gross domestic product) for Central China reached 4296.16 billion yuan (RM1907.16bil) in 2006.
Central China’s population, area (1.028 million square kilometres) and GDP made up 10.7%, 28.1% and 20.5% of that of the whole country respectively. In 2006, the total length of highways was 658,000km, and the central region is also an important transportation hub of Chinese railways. The central region also has a strong aviation capacity with more than 30 airports connecting all the main cities and providing direct flights to other countries and regions like Japan, South Korea, Singapore, Malaysia, Hong Kong, Macau, Paris, Moscow, Los Angeles, Frankfurt and Vancouver.
“With the presence of all the heavyweights at the expo, it shows the emphasis China has placed on this region,” whispered one of the VIP guests at the opening ceremony minutes before the Chinese Vice Premier Wu Yi launched the event.

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