Identifier
Created
Classification
Origin
09GUANGZHOU237
2009-04-24 09:00:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Guangzhou
Cable title:  

HOW REALISTIC ARE THEY? CHINESE GOVERNMENT GOALS FOR THE

Tags:  EIND ECIN ECON PGOV CH HK 
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UNCLAS SECTION 01 OF 02 GUANGZHOU 000237 

SENSITIVE
SIPDIS

STATE FOR EAP/CM, S/P, INR/EAP
STATE PASS USTR CHINA OFFICE

E.O. 12958: N/A
TAGS: EIND ECIN ECON PGOV CH HK

SUBJECT: HOW REALISTIC ARE THEY? CHINESE GOVERNMENT GOALS FOR THE
PEARL RIVER DELTA'S DEVELOPMENT

REF: A) GUANGZHOU 112; B) GUANGZHOU 30; C) 2008 GUANGZHOU 518; D)
2008 GUANGZHOU 456; E) 2008 GUANGZHOU 406; F) 2008 GUANGZHOU 419

GUANGZHOU 00000237 001.2 OF 002


(U) This document is sensitive but unclassified. Please protect
accordingly. Not for release outside U.S. government channels. Not
for internet publication.

UNCLAS SECTION 01 OF 02 GUANGZHOU 000237

SENSITIVE
SIPDIS

STATE FOR EAP/CM, S/P, INR/EAP
STATE PASS USTR CHINA OFFICE

E.O. 12958: N/A
TAGS: EIND ECIN ECON PGOV CH HK

SUBJECT: HOW REALISTIC ARE THEY? CHINESE GOVERNMENT GOALS FOR THE
PEARL RIVER DELTA'S DEVELOPMENT

REF: A) GUANGZHOU 112; B) GUANGZHOU 30; C) 2008 GUANGZHOU 518; D)
2008 GUANGZHOU 456; E) 2008 GUANGZHOU 406; F) 2008 GUANGZHOU 419

GUANGZHOU 00000237 001.2 OF 002


(U) This document is sensitive but unclassified. Please protect
accordingly. Not for release outside U.S. government channels. Not
for internet publication.


1. (SBU) SUMMARY: What's new in the Pearl River Delta? Yet another,
newer, improved development plan for one thing. The Chinese
government recently unveiled its "Outline of the Plan for the Reform
and Development of the Pearl River Delta," though it seems to be
based largely on existing policy. So, what's new in this newest
plan? According to local experts, there's more cooperation among
municipal governments, for one thing; for another, the "double
transfer policy" has received formal central government blessing.
However, absent a more formal mechanism for implementation, the
goals of this plan, like ones past, will be difficult to meet.
Experts also told us the new plan is less ambitious than previous
incarnations. The plan may have been drafted without outside input,
but since its release, provincial authorities have made
unprecedented efforts to solicit feedback from the public. END
SUMMARY.

Can't We All Just Get Along
--------------

2. (SBU) The new PRD Development Plan was unveiled to much fanfare
in December 2008. The 122-page document lays out development goals
for the region in 28 different economic areas. While local experts
agree that the overall plan is a positive step forward, its success
will depend on increased cooperation between local governments.
Competition among municipalities has been blamed for preventing the
effective administration of PRD-wide issues such as law enforcement
and transportation, according to prominent blogger and Sun Yat-sen
University Professor Guo Weiqing. The new development plan
addresses this problem by requiring governments at the local,
provincial, and national levels to work together on specific issues

such as law enforcement and the construction of transportation
infrastructure.


3. (SBU) However, Professor Wen Xianyuan of the Guangdong Academy of
Social Sciences (GZASS) said the plan lacks any formal mechanism for
implementation/coordination and does nothing to improve China's
current administrative structure, which effectively discourages
cooperation between local governments. Those same governments -
with local officials recognizing their promotions are based on their
performances - focus exclusively on GDP growth and tax revenue of
their cities. So little has really changed as there remains a near
single-minded focus on boosting the GDP of one community without
regard for optimizing new development projects with nearby
municipalities. Cities have built competing infrastructure like
airports and port facilities in an effort to lure key industries to
their areas, and this has weakened broader regional competitiveness
and reduced the effectiveness of each individual project. In many
PRD cities, there is so little cooperation that a road built in one
municipality will simply dead-end when it reaches the border of the
neighboring government jurisdiction.


4. (SBU) Professor Guo Weiqing said many experts recognize these
problems, and there was some discussion of forming a committee of
PRD-area municipal governments based on the structure of the
European Union. Plans were abandoned because such an approach would
not easily mesh with existing government structures. In fact,
rather than creating a new body to oversee the local governments,
Professor Guo said the plan also calls for local governments to be
granted greater autonomy - a contradiction with which the plan is
supposed to achieve, i.e., greater coordination. Other contacts
expressed skepticism that municipal governments would be able to set
aside old differences and cooperate without a formal structure.
GZASS Professor Wen suggested that the city of Guangzhou should take
the lead in implementing the plan, while Professor Guo felt that
active intervention by central and provincial government officials
would be necessary for success.

New Plan Less Ambitious Than Previous Versions
--------------

GUANGZHOU 00000237 002.2 OF 002



5. (SBU) Local contacts acknowledge that there is very little new
content in the PRD Development Plan. Points of emphasis have
changed and some of the specifics are new, but most of the plan was
drawn from existing government policy and previous development
plans. In 2004, former Guangdong party secretary Zhang Dejiang
announced the Pan-Pearl River Delta Cooperation Plan with a similar
flourish of publicity. The 2004 plan included even more ambitious
goals including formal integration of Hong Kong and Macau into the
PRD region greater regional cooperation with SE Asia. Experts said
the 2004 plan was never fully implemented, and commented that this
new plan is an effort to lay out a more attainable set of goals.
Sun Yat-sen University Professor Guo said the new outline is more
focused and realistic than previous development plans, despite its
weaknesses.

Out With the Old Factories, In With the New
--------------

6. (U) Guangdong leaders used the PRD Development Plan to further
bolster the province's so-called "Double Transfer" (shuang zhuanyi)
strategy and officially make it a central element of the region's
economic future (reftels A, E). Although the provincial government
has encouraged such relocation efforts for some time (reftels B, C,
D),and some feel this should have been tried four-five years ago,
the policy has so far not met with much success, according to GZASS
Professor Wen. Provincial leaders had been unable to secure central
government approval for the double transfer strategy until it was
codified in the broader PRD Development Plan.

We Welcome Your Input, After We Announce Our Plan
--------------

7. (SBU) Following the plan's debut, Guangdong Party Secretary Wang
Yang toured nine PRD cities and held meetings with prominent
professors, bloggers, and think tank representatives to discuss
development in the region. Li Jiankang, an entrepreneur who met
with Wang, said that the meeting involved an open and honest
exchange of ideas between the government and civil society that had
not taken place in Guangdong for a long time. Contacts were
optimistic that the meetings signaled a greater degree of
transparency and openness in government, but Sun Yat-sen University
Professor Guo noted that the PRD Development Plan was still
formulated in the old style - by the government with very little
outside input. Professor Guo also said it remains to be seen
whether the provincial government will take any action based on the
outside suggestions received so far.

GOLDBERG