The ‘Bridgehead’in the Southwest of China
------- An Interview with Du Yong, the Director of Investment Promotion Cooperation Bureau of Yunnan Province
Upon the successful conclusion of the NPC and CPPCC of China (the 4th Session of the 11th National People’s Congress and the 4th Session of the 11th Chinese People's Political Consultative Conference), the reporter noticed a piece of important information:
The strategy “To build up Yunnan into a major bridgehead opening to the southwest ” has been attached great importance by the Central Government and then scrutinized as a national strategy in the 11th National People’s Congress, which was held in March, 2011. For the purpose of understanding the potential opportunities and influence brought to Yunnan by the “Bridgehead”, Joy communications had an interview with Yong Du, the Director of Investment Promotion Cooperation Bureau of Yunnan Province.
The Chapter of Yunan’s Advantages
1．Joy Communications (Joyc. Biz): What strengths does the Yunnan Province rely on to attract great importance of the Central Government on the strategy of ‘To build up Yunnan into a major bridgehead opening
to the southwest’and scrutinized as a national strategy in the 11th National People’s Congress held in March, 2011?
Director Yong Du: Yunnan, whose abbreviation is ‘Yun’or ‘Dian’, is located in the southwestern border of China and adjacent to provinces and autonomous regions such as Sichuan, Guangxi, Guizhou and Tibet and bordering Burma, Laos and Vietnam. The land frontier line, which amounts to 4,061 Km, is one of the sections with better open conditions among the 200,000 Km of inland boundary line. In the south, it connects Indo-China Peninsula and Malay Peninsula along Pacific Ocean and Indian Ocean and South Asia and Indian Ocean in the southwest, which is the nearest land route for China to reach West Asia and countries along the Indian Ocean. Yunnan Province, which seems to be quite remote, turned out to be one of the places contacting the foreign countries at the earliest. Before Qing and Han Dynasty, a folk business road, which was referred to as “the Silk Road in the South”, was formed among Yunnan, Southeast Asia and South Asia.
In 1910 when the Yunan-Vietnam Railway opened to traffic, a French pointed out after investigation, ‘The real sea exit for Yunnan is not in the east (Guangdong and Hong Kong), but located in the valley of Honghe Prefecture in the southeast, which leads to Haiphong and the Gulf of Tonkin (the present Beibu Gulf).’Actually, the French only noticed the advantage that Yunnan was accessible to the Pacific Ocean via Vietnam but failed to see the fact that Yunnan also had easy access to the Indian Ocean via Burma. There is only a little more than 300 Km from the border port in the west of Yunnan Province to the frontier of India. The distance is approximately 2,000 km from Kunming to Lashio of Burma via the Burma Road and then it reaches the Indian Ocean coast by connecting the Burma railway network. The distance is at least 3,000 km shorter than that of entering the Indian Ocean by passing the Strait of Malacca via the Southeastern coastal areas.
The proposal of the construction of a ‘bridgehead’will definitely make Yunnan become the strategic passage of China opening to the southwest.
The reason why Yunnan acquired such a precious historical development opportunity is mainly based on the following four strengths:
First, its excellent location condition. Yunnan is located in the junction of the East Asia, Southeast Asia and South Asian Subcontinent, which is backed by Southwestern China and connects the vast economic hinterland of Central and Western China, thus becoming the door and passage for Southwestern China to open to Southeastern Asia, South Asia and the coasts long Indian Ocean.
Second, its stable relationship with the neighboring countries. With numerous common grounds and relevance between Yunnan and counties in Southeast Asia and South Asia in culture, long-standing history, and tradition in the communication, it has established a relationship of close and mutual trust and cooperation.
Third, its constant improvement on its foreign connections and condition. Currently interprovincial main high-class roads, 8 main railway lines leading to the Central and Western part of China, 4 main roads and 4 main railway lines reaching the frontier via Yunnan has already been listed in the national medium and long-term planning, which are under construction or being improved. The Kunming-Bangkok expressway, the whole journey of which is more than 1,8000 km, and the Tengchong-Myitkyina (Burma) high-class roads have already been connected. The airline network from the whole province to domestic cities and countries in Southeast Asia and South Asia has been basically formed.
Fourth, its strong economic complementarity with Southeast Asia and South Asia. Quite obvious complementarity has been demonstrated between Yunnan and countries in Southeast Asia and South Asia in the aspects of development stage, resource condition, industrial structure, market structure and consumption level etc. For instance, Yunnan shares strong complementarity with Southeast Asian countries in energy sources, mineral products, forestry, agriculture, tourism resource and economic technology, which thus provide relevant agricultural enterprises with more export opportunities in labor-intensive agriculture products such as fruits and vegetables as well as Yunnan with more vast industrial development space.
From the perspective of the nation, the implementation of the bridgehead strategy will boost the economic cooperation in Lantsang-Mekong subzone and Bangladesh-China-India-Burma regions, as well as furthering the domestic regional cooperation like the Pan-Pearl River Delta by connecting the domestic and overseas markets.
It can facilitate the construction of Sino-ASEAN Free Trade Area by connecting the channel for economic and cultural communication between China and Southeast and South Asia countries. Meanwhile, the construction of the bridgehead will demonstrate fully the excellent image of China to maintain world peace and boost mutual development.
2．Joy Communications (Joyc. Biz): Since opening to the Indian Ocean is the unique, geographical strength of the Yunnan Province, what specific aspects does it demonstrate?
Director Yong Du: Opening to the Indian Ocean is the real embodiment of the specificity and Non-Substituability of the location strength of Yunnan. The international passage from Yunnan to Burma serves as the most convenient way for the Central and Western China to reach the Indian Ocean. The distance among Kunming, Rangoon and Moulmein (the largest two ports near the Bay of Bengal in Burma) is all within 1,800 km.
From the perspective of current transportation alone, to send the goods from Kunming by land to Rangoon or Moulmein and then ship them from there to South Asia, Middle East, South Africa and Europe will save as much as 30%-60% transportation cost compared with shipping the goods from Zhanjiang to the above mentioned area. To send products from the Central and Western China-Changsha, Chengdu, Guiyang and Lanzhou and then enter the Indian Ocean via Sino-Burma international passage to the above regions will save as much as 10%-40% in transportation cost compared with that of passing the Strait of Malacca from our country.
In the future, after the west line of the Pan-Asian railway and the Sino-Burma land-water intermodal transportation passage open to traffic, the transportation cost of Sino-Burma passage will reduce in a further way and the scope of hinterland, which is to be attracted, will become larger, thus promoting greatly the status of Yunnan in our country as the bridge opening to the Indian Ocean.
The Chapter of Investment in Yunnan
3. Joy Communications (Joyc. Biz):The construction of the ‘Bridgehead’will enormously enhance the extent and depth of the opening of Yunnan to the outside world. What impact will it bring to Yunnan in attracting investment? Furthermore, what positive role does the activity of attracting investment play to the construction of the ‘Bridgehead’?
Director Yong Du: During the‘12th Five-year Plan’, Yunnan has established the strategic objective of constructing better green economic province, better national culture and bridge opening to the southwest. In a certain period of the future, centered on the above strategic objectives, the Yunnan Province will strive to build the strategic passage for China’s opening to the southwest.
From another perspective, the sustainable development of attracting investment will definitely boost the construction of the ‘Bridgehead’. By displaying the two unique strengths of the Yunnan Province-resources and location to the fullest, we shall integrate ‘Bringing in’and ‘Moving outwards’, rely on the advantage of passages and ports, to attract enterprises at home and abroad to participate in the construction of logistics systems, industrial bases and export processing bases facing Southeast Asia and South Asia of our province and assist foreign enterprises to head for Southeast Asia and South Asia, thereby facilitating the implementation of the ‘Bridgehead’strategy.
4. Joy Communications (Joyc. Biz): Which of the key industries are the most inviting investment in Yunnan, during the next period?
Director Yong Du: It will mainly include the following:
Ⅰ. Make use of high and new technology to improve traditional industries such
as tobacco, mining, biology, electricity, clean energy, construction and etc.;
Ⅱ. Modern agriculture especially including 12 types of superiority characteristic industries such as tea, rubber, coffee and sericulture;
Ⅲ. Focus on cultivating strategic new industries such as bio-industry, photoelectron industry, high-end equipment manufacturing industry, new material industry, energy conservation and environmental protection industry, new energy industry, etc.; and
Ⅳ. Modern service industry mainly includes logistics, tourism culture, technology service, financial service, conference and exhibition, information consultancy service, education, medical and pension service etc..
5. Joy Communications (Joyc. Biz): Would you please convey the key areas for investment in the Yunnan province?
Director Yong Du: The key areas for investment in Yunnan can be summarized as six city clusters, three cross border economic cooperation areas and seven economic corridors. Six city clusters include agglomerations in west Yunnan, southwest Yunnan, northeast Yunnan, southwest Yunnan, northwest Yunnan and central Yunnan, which is the key area. Three cross border economic cooperation areas include Ruili China-Muse Burma area, which takes Ruili as the key point of opening developing area, Hekou China- and Boten China- Lao Gai Vietnam area
and Mohan China- Boten Laos area. Seven economic corridors include Kunming-Hanoi corridor, Kunming-Bangkok corridor, Kunming-Kyaukypu corridor, Kunming-Calcutta corridor, Kunming-Munsan-Gulf of Tonkin& Pearl River Delta corridor, Kunming-Shaotong-Chengdu, Chongqing & Yangtze River Delta corridor and Kunming-Lijiang-Shangri La-Qamdo corridor. Economic circle in middle Yunnan and Ruili National Key Open Development Zone will be mainly introduced here.
We will make great efforts to turn the economic circle in middle of Yunnan into the regional economic center of southwest China, regional financial center and the core transportation hub which connects China, Southeast Asia and South Asia and will be active in building key open development zones in Dongxing of Guangxi, Ruili of Yunnan and Manchurian of Inner Mongolia.
The Chapter of Yunnan’s Soft Power
6．Joy Communications (Joyc. Biz): As we know, foreign-owned enterprises pay more attention to the investment environment than to preferential policies. What kind of work has been done on the investment environment in the Yunnan Province?
Director Yong Du: Investment in soft environment construction has been strengthened gradually in Yunnan in recent years. Infrastructure investment and construction have intensified continuously, all-around and multiple-layered (from land, air and river) fast tracks for delivering out of Yunnan and export have been set up.
Moreover, we are trying our best to construct and optimize a permanent mechanism by standardizing law enforcement behavior, promoting working efficiency; strengthen consciousness of serving, optimizing the approving procedures and work flow. Integrate service resources to form internal force of department cooperation and improve administration soft environment continuously to ensure that foreign-invested corporations enjoy a high level of management and service.
7. Joy Communications (Joyc. Biz): In which areas does soft power of the Yunnan Province mainly embody?
Director Yong Du: As to this question, the governor of Yunnan Province summarized as the four business cards for Yunnan.
The first business card is Ecological Yunnan
Yunnan is located near the the Tropic of Cancer and the special geological and topographical resources build a multifarious Yunnan where there are various geographical conditions, diverse climate types, diverse species and the provincial forest coverage is over 50%. In most parts of Yunnan, summer is not too hot and winter is not too cold, the environment is fine, the climate is quite agreeable and and it's like spring all the year round. Yunnan has the unique three-dimensional climate, rich natural wonders and human landscapes and harmonious multi-national culture. With the develop target of eco-friendly Yunnan, livable Yunnan and harmonious Yunnan, the mountains in Yunnan will be greener, the skies of Yunnan will be bluer, the environment of Yunnan will be better and Yunnan will become the most suitable and beautiful place for humans to reside, work and live.
The second business card is Opening Yunnan
The Yunnan province is located at the junction point of East Asia, South Asia and Southeast Asia and has the unique advantage of opening to countries in Southeast Asia and South Asia. There is only over 300 km from Yunnan to the border of India by way of Burma and there is only over 500 km from Yunnan to Bengal.
Yunnan has always been the most convenient passageway on land from China to countries in Southeast Asia and South Asia since ancient times. The Bridgehead construction will move Yunnan from being insignificant in the opening of China to the outside world, to the leading position in China’s opening up. Yunnan is active in external communication and has strong ability to open and embrace.
The third business card is Cultural Yunnan
The cultural Yunnan has rich connotations and unique charm. Yunnan is one of the places where mankind originated. As far back as 1,700,000 years ago, Yuanmou Man lived here. National culture of Yunnan is rich and abundant where different nationalities live together and different religions coexist. There are 25 minority nationalities including 15 unique nationalities in Yunnan with individual characteristics of folk custom and spirit. All nations coexist and live harmoniously and thus a kind of associated area combines multi-nationality groups and multi-culture comes into being.
The fourth business card is Developing Yunnan
Yunnan is one of the richest provinces of natural resources, total resource of the whole province positions No. 6 among all the provinces in China, and per capita resource is two times of the average in China. Yunnan put all of its effort to cultivate and build five pillar industries such as tobacco, electricity, minerals, biology and tourism.
On the other hand, emerging industries such as new energy, new material, photoelectron and high-end equipment manufacturing industries are showing their good development trend and huge development space. The implementation of the Bridgehead building strategy will enhance the level and quality of opening-up to home and abroad, and will elevate the position of Yunnan to cooperate in different areas home and abroad. Meanwhile, it will promote Yunnan to convert its advantage of resources and location to economical and developing advantage, and will make Yunnan present strong late-mover advantage and significant impact. West Yunnan, developing Yunnan, will explain the the scientific development perspective brought up by central government perfectly.