Go West- China’s New Future.docVIP

Go West: China’s New Future 　　The economic model based on exports and attracting foreign investments is called the small country model. When China became the worlds second biggest economy， its economic model began shifting to expand domestic demand and construct an open economy with internationalization at its core. Big changes started in 2012 when Chinese economic growth dropped to 7.8 percent， its first dip below eight percent since the Asian financial crisis. However， contributions from investments， exports and domestic demand remained relatively balanced. Domestic demand contributed 102.2 percent to the GDP growth， with consumption contributing 51.8 percent. In addition， five metropolitan areas in China have attracted the worlds best talent， resources and enterprises， which bring with them business and innovation. They help China catch up in emerging industries while accelerating consumption upgrades. When the labor and real estate prices rise as external demand shrinks， many companies invest more in research and development， innovation and design， resulting in more highquality products. The five metropolitan areas are the Yangtze River Delta led by Shanghai， the Pan Pearl River Delta led by Guangzhou， Shenzhen and Hong Kong， the Bohai Sea Rim area， the middle reaches of the Yangtze River led by Wuhan， Changsha， Nanchang and Hefei， and the Chengdu-Chongqing area. Some cities in these regions have already become worldclass metropolises on par with London and New York. The last two metro areas are located in central and western China. Among the world’s top 500 companies， 238 have settled in Chengdu – momentum reminiscent of Silicon Valley in its early days. As business costs soar in the east， western China， with its promising vast tracts of land， rich resources， excellent infrastructure and comparatively cheap labor， draws increasing interest. In recent years， western provinces have welcomed industries crowded out of the east， realized high growth