South China's Guangdong Province is expecting a 9 percent year-on-year increase in its economy in the 11th Five-Year Program period (2006-10), down from the previous 13 percent annually.

Guangdong Governor Huang Huahua revealed the new target when delivering his government work report at the opening ceremony of this year's provincial people's congress yesterday.

Accounting for about one-tenth of China's economy, Guangdong generated 2,170.1 billion yuan (US$268 billion) in gross domestic product (GDP) last year.

It is the first time Guangdong has set up an annual economic growth since the late 1970s that is less than 10 percent.

Experts believe the province will pursue a higher graded development strategy in the future.

"Guangdong has entered the second phase of industrial development," said Dong Xiaolin, vice-president of Guangdong University of Foreign Studies, as well as a macroeconomics professor.

As the province is changing from labour-intensive economic development mode to a technology-intensive one, it is natural for it to opt for more balanced and sustainable development, Dong added.

He forecasts the market proportion of the service industry will grow by nearly 10 percent to 50 percent in the next few years, closer to the 70 percent proportion in developed countries.

Chen Shanru, director of the Development and Reform Commission of Guangdong Province, said during the congress that the province will not only introduce more high-tech projects, including software, integrated circuits, bioengineering and new materials, but also bring the policy of "Green Guangdong" into effect.

"The province will actively strengthen environmental protection and build more zoology gardens," Chen said.

Chen expected energy consumption to decrease by 3 percent this year from 2005.

Fixed-asset investment growth this year is set at 15 percent, compared with 16.3 percent last year. Growth in export and retail sales this year is targeted respectively at 10 percent and 14 percent, compared with 19.8 percent and 15 percent in 2005.

Huang Huahua said: "The provincial government will adhere to the key tasks of innovation, deepening reform, saving energy sources, and changing the mode of economic growth."

More co-operations with HK, Macao

Governor Huang also said in his report that the province will use the initiative to work even more closely with the special administrative regions of both Hong Kong and Macao.

Infrastructure projects, the cross-boundary flow of people, cargo, trade, tourism, environmental protection, science and technology, education, epidemic disease prevention and food safety are all among the co-operative fields of the three sides.

He said that the province is busy with all the preparatory work for the mega-bridge to link Zhuhai of Guangdong, Hong Kong and Macao and will begin construction work early next year.

The mega-bridge, about 40 kilometers long, will be fully completed by the year 2015.

Other co-operative infrastructure projects include Shenzhen Gulf Port and Futian Port, as well as those related to the Dongguan-Hong Kong express cargo railway service, Jiangmen-Hong Kong helicopter service, and the Zhuhai-Hong Kong airport passenger transport by sea service.

There is also the Guangzhou-Zhuhai intercity light rail project linking Macao, and the Zhuhai legs of two new expressways to Macao, and the special port for the Zhuhai and Macao Industrial Zone.

The "self-service" customs passage system for Hong Kong and Macao residents to come in and out of the province will be improved and applied more widely in 2006.

While fortifying the already close co-operative ties in economy and trade, the governor said that the three sides will join hands more closely to deal with problems related to people's lives.

He said that the province will strengthen co-operation with both Hong Kong and Macao in epidemic disease prevention and food safety surveillance.

(China Daily February 23, 2006)