The enhanced transport network throughout Fujian province demonstrates its massive infrastructure investment.
 

Xiamen Port, a key port for trade between the Chinese mainland and Taiwan province, has experienced an explosive period of growth as cross-Straits business and political relations have become ever more cordial in recent years.

Inspired by the economic successes of the Yangtze River and Pearl River deltas, as well as the financial triumphs of the Bohai Bay rim area, the Western Straits Economic Zone is now set to emerge as the latest star performer on China's economic stage.

Situated to the west of the Taiwan Straits, the zone covers the entire Fujian province, as well as parts of the neighboring provinces of Zhejiang, Jiangxi and Guangdong.

As the core of the zone though, the southeastern coastal province of Fujian will undoubtedly be the major beneficiary of the project.

Last year the gross domestic product (GDP) of the province exceeded 1 trillion yuan for the first time, a record high in the province's history and the result of its seventh consecutive year of double-digit growth.

This year the GDP growth is estimated at around 10 percent, according to local statistics. The provincial government says the figure is expected to surpass 1.5 trillion yuan by 2012, with per capita GDP exceeding 40,000 yuan.

Despite the worldwide economic slowdown, foreign transactions in the coastal province continued to perform strongly, with more than $84.8 billion yuan traded, a rise of 13.9 percent year-on-year.

The Western Straits Economic Zone is now very much seen as the driving force behind the province's outstanding performance. Economists in the area maintain that the zone has furthered reinforced Fujian's advantageous position for securing overseas investment, especially from Taiwanese investors across the Straits.

As the traditional hometown of many Taiwanese born on the mainland but who relocated to the island before 1949, Fujian has long enjoyed close links with Taiwan, both culturally and geographically. This saw total Taiwanese investment in the area reach some $14 billion by the end of 2008.

Designated by the central government as a pilot area for economic cooperation and cultural exchange between the mainland and the Taiwan province, the construction of the economic zone has received considerable support from both the central government and a number of major State-owned businesses.

This has already resulted in the infrastructure facilities in the region improving significantly. The investment in transportation projects over the past five years has now exceeded the total amount spent in the previous 50 years.

According to statistics from the provincial government, fixed-asset investment totaled more than 1.3 trillion yuan over the past five years, with about 370 billion yuan going into infrastructure construction.

An extended public transport network, covering expressways, railways, ports and airports, has helped considerably in facilitating business development and has seen the province secure yet more investment.

The zone has also acted as a catalyst for cross-straits business exchange. Over the past five years, Fujian-Taiwan trade has doubled, rising to $7.26 billion in 2008. More than 40 of the Taiwan businesses listed among the island's top 100 companies now have operations within the zone.

The zone's role in boosting cross-straits cooperation has been widely acknowledged. During the recent Straits Forum, a number of experts and specialists, from both the mainland and Taiwan, proposed the expansion of the zone to include Taiwan itself.

In addition to its significance to the Taiwan business community, the zone has also played an active role in building regional cooperation.

As the neighboring provinces of Zhejiang and Guangdong are heavyweight players in the Yangtze River Delta and the Pearl River Delta respectively, Fujian has been able to capitalize on its strong trading ties with these two dynamic regional economies. This close geographical proximity has seen a number of mutually beneficial opportunities emerge. Within Zhejiang, one of its most entrepreneurial cities, Wenzhou, has now formed a dedicated taskforce solely to promote business opportunities within the zone to many of its small to medium companies.

Such is the perception of the zone's existing commitment to business development within the region that news of its accelerated status has been warmly received. Many experts have welcomed the move as a timely means of both revitalizing the regional economic landscape along the coast and opening up further inland channels through the neighboring Jiangxi province.

With the zone's success already assured, Huang Xiaojing, governor of Fujian, said that a number of sectors had already been identified as priorities for its future development. These include advanced manufacturing, hi-tech industry, agricultural and forestry cooperation, maritime development, logistics, tourism and culture.

Reflecting on the success of the project, Lu Zhangong, Party secretary of the provincial committee, said: "We are all well aware of Fujian's instrumental role in developing the Western Straits Economic Zone. We are now ready to accelerate the construction of the zone and establish it as a key platform for advancing regional cooperation and promoting the reunification of our mother land."

Goddess Matsu statue in Putian, worshiped and admired by people on either side of the Taiwan Straits, is now seen as a symbol of both the common heritage of the two sides and their shared aspiration for future economic and cultural partnerships.