Regional development, especially regional inequality, is an important area of academic inquiry and government policy. Regional inequality has been an important issue in China since the establishment of the People’s Republic of China (PRC) in 1949, due largely to its role in the debates over the nature of socialism, central control and local autonomy, and resource allocation among regions (Wei, 2002). On the other hand, regional policy is a concept that is widely used and is not strictly defined theoretically. We can characterize China’s condition as all policies implemented by the government against part of the country belong to regional policies. It has more attention to the scope of the policy object space, instead of the …show more content…
Regional conflicts prompted many to consider regional inequality the root of China’s regional problems and an important issue of government policy. In fact, the imbalance between the developments of different regions reflects the imbalance of urban and rural development in China and regional differences in the level of urbanization. Due to the large gap between the urban and rural development level and the income level, there is a big difference in the urbanization level, which will inevitably lead to large differences in regional development levels and income level. Recently, the central government has compiled the Eleventh Five-Year Plan (2006-2010), and harmonizing the regional development gap between east and west remains a top precedence (Liu, 2006).
4. Changing mechanisms of regional development
China’s triple transitions—decentralization, marketization, and globalization—have basically changed the mechanisms underlying regional development. Changes require new thinking on regional development strategies in China, which ought to fully utilizing human resources, enhancing geographical targeting and reforming urban and regional planning institutions (Wei, 2002). By unified market construction and unified environmental policies, ones would promote localities to play their respective …show more content…
Attracting foreign investment and promoting international trade are major elements of the economic reforms. In order to encourage foreign investments, the Joint Venture Law permits foreign investment in China was introduced in 1979, followed by the establishment of four special economic zones (SEZs) of Shenzhen, Zhuhai, Shantou, and Xiamen in 1980. Concerning the expansion of the economic reforms from rural areas to urban areas, China has opened areas were extended consecutively from SEZs to the 14 open coastal cities (OCCs) in 1984 and the three delta areas (Zhujiang, Minjiang, and Changjiang) in 1985 and 1986 (Wei, 2001). As a result of rapid growth of the Chinese economy and the surge of foreign investment, regions have been competing for foreign investment by offering numerous incentive policies, and some investment projects produced not only inferior products but also