Long derided as poverty-stricken backwaters reliant on government handouts, the mainland's inland provinces are getting a boost from an unexpected quarter - the global financial crisis. As more companies seek to cut costs to stave off sliding earnings, many are relocating to cheaper inner regions away from the more high-cost coastal provinces. Among those making the move are some of the biggest names in global business such as Intel Corp and Motorola.
Ironically, the crisis that has rocked the western world could be a turning point in a long-held Beijing ambition to close the income gap between the wealthier eastern seaboard and the inland regions.
Intel, the world's biggest semiconductor maker, announced in February that it would close a Shanghai plant and consolidate chip assembly and testing operations in southwestern Chengdu.
Eco Service Management, a unit of blue chip Hong Kong and China Gas (Towngas), recently announced it was setting up its regional headquarters in a hi-tech zone on the outskirts of Xian.
Meanwhile, Foxconn International has set up operations in the inland Wuhan city and Shanxi province while Motorola established a research and development laboratory in Chengdu to develop software for mobile telephones.
Alcatel-Lucent, Ericsson, Nokia and Microsoft Corp also have all set up research and development centres around Chengdu.
Much of this investment is expected to bring about a knock-on effect on the manufacturing value chain as suppliers join the move inland, benefiting local small and medium-sized manufacturers.
