China is pushing forward its ambitious "go west" campaign with the imminent completion of a draft law which aims to close the widening gap between the underdeveloped western region and the east's wealthy coastal areas.

Wang Jinxiang, vice-minister of the National Development and Reform Commission, described the legislation as "a breakthrough" in China's legislative history as it was the first time the country had constituted a law solely for the development of a single region.

"It demonstrates the great significance of the western region as it concerns the long-term and sustainable development of the whole country," said Wang. He added that the Legislative Affairs Office of the State Council is processing the 14th version of the bill.

"After the office deliberates on the draft law it will then be submitted to the National People's Congress (NPC) Standing Committee for review," he said.

Wang declined to say when the law will be passed by the top legislature but noted it has been included in the 10th NPC Standing Committee's legislative plan between 2003 and 2008.

"Personally speaking, I believe the sooner the law on promoting western development is enacted the more the whole country will benefit," he said.

Wang, who is also executive deputy director of the Office of the Leading Group for Western Region Development of the State Council, made the remarks on the sidelines of the annual session of the 10th NPC--China's top legislature.

The legislation is believed to be a major part of China's "go west" campaign which was launched in 2000 to address the growing inequality between the western and eastern regions.

Western China, which comprises some 71.4 per cent of the nation's territory and holds more than half of its mineral resources, has not enjoyed the same degree of prosperity as the east. In 2004 the combined gross domestic product (GDP) of the 12 western provinces and autonomous regions accounted for only 18.8 percent of the country's GDP that year.

Wang said the bill aims to create a favorable legal environment and support for a smooth implementation of the western region development program.

Although central government has published some separate regulations and documents to introduce preferential fiscal and taxation policies for the western regions the national lawmakers have been pushing for the legislation since 2000.

Wang said the draft law covers all major aspects of the "go west" campaign. The bill identifies goals, the responsibilities of the central and local governments, the financing, the central government's preferential policies and legal measures for protecting investment.

He noted that the draft law was based on the extensive experience of Japan, Canada, Germany, the United States and France in promoting the development of their poorer regions.

Despite the benefits expected from the law a senior official said that heavy-polluting industries may consider moving into the western region. However, to protect the environment, he said, investment in high-tech, resource-saving industries would be encouraged to locate in the western region.

(China Daily March 14, 2006)