Pearl River Delta integration is good but not enough, policy official says, as it offers only short-term economic stimulation
A top government think-tank in Guangdong has proposed forging a European Union-style common market with five neighbouring provinces in southern China, saying the plan will be crucial for the development of the region.
While Guangdong enjoys the highest growth rate on the mainland and was the first province to reach the US$100 billion export milestone this year, the provincial government fears the province will lose its competitiveness to other mainland regions.
Chen Zuhuang, department chief of the Guangdong Government Policy Research Office, is now working with other scholars to formulate a proposal to form a common market with neighbouring provinces Guangxi, Fujian, Hunan, Jiangxi and Hainan.
Mr Chen believes the alliance will ensure Guangdong's leading position in the country's economic growth for the next decades.
The idea is for provincial leaders to hold an Apec-style forum each year to co-ordinate policies and development. The governments would work together to cut administrative procedures hindering the free flow of goods, capital and talent within the region. They would also launch massive infrastructure projects to link all the highways together.
But Mr Chen said an awkward road system, a bureaucratic administration and regional protectionism had made it difficult for a common market to emerge in southern China. 'Even though we are one country, it's hard for goods and capital to circulate freely from one province to another. Lack of infrastructure is a problem, but government red tape is the biggest obstacle,' he said.