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Governor Wang Sanyun said in the firstplace, the plan for “Anhui DemonstrationZone for Industrial Relocation into Citiesalong the Yangtze River” is the firststrategic plan at state level in Anhui’shistory, and the first specific plan aimingat promoting the industrial relocation fromhome and abroad to the central and westpart of China. Meanwhile, it is asignificant national action to respond tothe industrial relocation, to speed up therising of central China, and to coordinatethe regional development. China’sgovernment has approved plans to buildits first national-level industrial transfer

zone to encourage the relocation of low-end industries from coastal regions toinland areas. As the first strategic plan topromote the industrial relocation incentral and western parts of the country,the plan will serve as a milestone for thedevelopment of Anhui. Then he answeredthe questions raised by journalists.

Xinhua News Agency reporter asked:Governor Wang, the State Council hasapproved in recent years a number ofregional development programs, Can youplease tell us what are the main featuresand characteristics of Anhui’s regionalplan?

Governor answered: This is actuallythe first plan approved by the centralgovernment about undertaking industrialrelocation. In fact, the characteristics ofthis demonstration area have been shownclearly on the name of the plan: the threekey words of the title, the first one is toundertake, the second one is to relocate,and the last one is to demonstrate. Thethree key words indicate that the themeis undertaking, the core is relocation andthe goal is demonstration. In terms ofundertaking, Anhui is deemed as thecarrier of the undertaking; in terms ofrelocation, the eastern areas or coastal

A press conference for“Anhui Demonstration Zonefor Industrial Relocation intoCities along Yangtze River”was held by the AnhuiProvincial People’s Govern-ment and the State CouncilInformation Office in Beijing,on January 22.

The press conference hasobtained attention from thedomestic and foreign media.Attended the press conferenceare journalists or correspon-dents from Xinhua NewsA g e n c y , C h i n a R a d i oInternational, China CentralTelevision, China Daily andother central media, theAssociated Press, Hong Kong’s Wen Wei Po, Hong Kong Ta Kung Pao and the Hong Kong Commercial Daily,Hong Kong Phoenix Satellite TV and other foreign media, as well as the Liberation Daily, Shanghai Oriental TV,Guangzhou Daily, Southern Metropolitan Daily, and media from the Yangtze River Delta and Pearl River Delta.CCTV International Channel (CCTV-4) and China Network conducted a full live video of the conference and livetext report. People’s Network, Xinhuanet, Oriental Net and Southern Net and other well-known domestic newswebsites have links to the live report of the press conference, and international online network covers the conferenceright through the bilingual languages. At the press conference, Governor Wang Sanyun briefly talks about theplan of the demonstration area, and answered the questions raised by Chinese and foreign journalists.

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areas are encouraged transfer or relocatelow-end industries, low-skilled, lowmargin manufacturing from outside ofAnhui to the province; as demonstrationis concerned, it requires efforts from allmany aspects.

In this sense, if Anhui wants to buildthe area of industrial relocation into agood demonstration, to a large extent,apart from the redoubled efforts Anhuiwill make, it also hopes to promotevarious factors apt to industrial relocationand to enhance greater interaction. Inaddition, it needs a strong push fromrelevant nat ional ministr ies andcommissions. So, I think, the mostprominent feature of the “Plan” is linkage,order and demonstration. Anhui shouldbe highly active; and the eastern regionsshould be positively interactive; thecentral government is earnestly hoped to

strongly push the implementation of the“Plan” forward. Only with the jointefforts, the demonstration area can reallyplay its demonstrative role.

Hong Kong’s Phoenix TV reporterasked: My first question is that Anhui isa province abounding in labor resourcesas you just mentioned. We also know thatAnhui is a big province of labor output.A large number of migrant workers go tothe coastal areas to work. Of course, thisis not because they cannot find jobs inAnhui, but because they are paid highert h a n t h a t t h e y e a r n i n A n h u i .Comparatively speaking, the income incoastal areas is higher than that in inlandprovinces, including Anhui, whoseincome is relatively lower. I really wantt o a s k i f t h e p l a n f o r “ A n h u iDemonstration Zone for IndustrialRelocation into Cities along the YangtzeRiver” is put into reality, then the migrantworkers might stay in their native place

to work. Can the province guarantee theincome of the migrant workers whoremain in their home place? That is to say,since Anhui is ready to introduce theindustries in the Yangtze River Delta, canit also introduce the salary standard of theYangtze River Delta? My second questionregards the topic of relocation. Does theindustrial relocation from the YangtzeRiver Delta mean relocation of theoutdated industries in the Yangtze RiverDelta? How does Anhui avoid redundantconstruction and vicious competitionafter the implementation of industrialrelocation from the Yangtze River Delta?

Governor answered: I am verygrateful to the Hong Kong Journalist’sconcerns and care about Anhui. He hasasked two problems. In fact, he isconcerned about the problems of Anhui’smigrant workers. At the same time, he isalso concerned with the environmentalprotection issues in Anhui. I think he hasraised very good questions. First, I wouldlike to give a brief introduction. In thelast two years, we have adopted manymeasures attempting to solve the issuesof migrant workers. About 11 millionpeople from Anhui are now workingoutside of the province. After the outburstof financial crisis, we were veryconcerned about the difficulties faced bymany companies in the coastal areas,resulting in a large number of migrantworkers returning home. It gave us muchpressure. Therefore, the CPC provincialcommittee and the provincial governmentquickly examined a number of measuresin resolving the issue of migrant workers.One of the very important measures wasto establish startup business parks formigrant workers. The migrant workers’startup business parks rely on the existingdevelopment zones and cities. So far, wehave built up 250 migrant workers’startup business parks that accommodatea large number of migrant workers whohave returned home. During the SpringFestival season of the year before last, thenumber of returned migrant workers inthe province reached 8.6 million. We havefirst ventured to attract the migrantworkers to the startup business parks, andthen we have tried to improve the external

environment. So 90 percent of thereturned migrant workers have gone totheir original posts and the remaining 10percent have also been properly resettled.

In recent years, one of the importantreasons why the industries have shiftedfrom the eastern coasts to central andwestern regions is that the costs of theproduction elements in the coastal areashave increased and this is our greatstrengths in the central and westernregions. Therefore, the situation ofmigrant workers returning to Anhui is nota bad thing. If the migrant workersventure new business in the urban areasalong the Yangtze River, their salary willnot be reduced or will be increased tosome extent in a sense, because he isworking or doing business at home ornear home. Thus, his living cost will begreatly reduced. As this aspect isconcerned, the migrant workers actuallybenefit from being home. We haveattached great importance to this issue.Therefore, there will be no big problem.

As for the environmental protection,we have fully taken this into account inthe “Plan”. We will strictly control thetwo accesses: the first is environmentalassessment. We will never let thosepol lu t ing en te rpr i ses en te r ourdemonstration area; the second is low-level redundant and duplicat iveconstruction. We will never allow thelow-level duplicate redundant andduplicative construction to be started in

the demonstration area.China Radio International reporter

asked:Governor Wang, as we know, thePlan of the demonstration areas is a verydifficult systematic program. I would liketo know how you consider the work forthe next step. In addition how will youensure the objectives of the Plan to be

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achieved?Governor answered: The implementa-

tion of the Plan is a great historicalopportunity for Anhui. How to reallygrasp and make good use of this historicand significant opportunity depends onour own work which is most determina-tive at all. Therefore, we should focus onpragmatic and effective work in thefuture.

Our overall consideration is to start the“Plan” from the following aspects: thefirst is to set the periodical goal. Thesecond is to establish a support system.The third is that we must adhere to theundertaking standards of industrialrelocation and the last one is to find andform up resultant forces.

The goal at this stage includes thelinkage, coordination, three-year plan,five-year plan, and even the vision of adecade. We must refine them out. Thesupport system mainly includes threeaspects: First, support system ofcomplementary policy, second, theincentive system of assessment andevaluation, and the third one is to promotethe coordination of the relevant system.

The undertaking s tandards ofindustrial relocation have a range ofindicators, that is, as I answered earlier,the key is to strictly control the twoaccesses. The first one is to protect theenvironment; the other one is to prohibitlow-level redundant and duplicativeconstruction. The two accesses are ourone-vote veto.

The so-called formation of resultant(joint) forces regards two major aspects.On the one hand, as for the external factoris concerned, we should actively integrateinto the regional development of theYangtze River Delta, strengthen ties withthe Pearl River Delta, the Gulf of BohaiSea, both sides of the Taiwan Strait, HongKong, Macao and Taiwan, even the entirecentral and western lateral economiccooperation and contacts. On the otherhand, as for the internal factor isconcerned, we need to mobilize theenthusiasm of the all walks of lifethroughout the whole province and theinitiatives within and without the

demonstration zone.Recently, the CPC Anhui provincial

committee and provincial government arefurther deepening the specific programsin accordance with the national strategicplan. The province is ready to convene amobilization conference and will alsoannounce the implementation rules andplans.

The Xinhua News Agency’s NationalWeekly of Finance reporter asked: I have aquestion. Prior to the approval of the Plan,Anhui has Hefe i -Wuhu-BengbuComprehensive Reform Pilot Area forIndependent Innovation. The positioning anddirection of these two areas are totallydifferent. One is the undertaking of industrialrelocation, the other is the independentinnovation. From thedistribution point ofview, one is a belt,the other is blockarea; and betweenthese two zones andbelts, there are twocities overlappingeach other. That isHefei and Wuhu. Iw a n t t o a s kGovernor Wang,how will we considerthe development andfunction of these twozones or belts fromthe perspectives ofd i s l o c a t i o n a n dorientation?

Governor answered: The Hefei-Wuhu-Bengbu Comprehensive Reform Pilot Areafor Independent Innovation was designedand started the year before last. In thebeginning of 2008, when President HuJintao visited Anhui, he pointed out inparticular that Anhui is rich in science andeducation resources. The scientific andtechnological strength is quite impressive.So Anhui should achieve more in terms ofindependent innovation. In accordancewith the spirit of the important instructionsof General Secretary, we carefully study,plan, and put forward the proposal ofconstructing the Hefei-Wuhu-BengbuComprehensive Reform Pilot Area for

Independent Innovation in a hope of givinga full play of Anhui’s subsequentadvantages. At the same time, while theGeneral Secretary visited the province, hespecifically pointed out that Anhui shouldactively participate in the Pan-YangtzeRiver Delta regional development division,and take the initiative to undertake theindustrial relocation from the coastal areas.This is our comparative advantage and thefoundation of our planning to build “AnhuiDemonstration Zone for IndustrialRelocation into Cities along the YangtzeRiver”. It should be said that the two issuesare proposed by the general secretary whilehe inspected Anhui province. We considerthem as a major strategic issue. Therefore,the two zones are the concrete

implementation oft h e g e n e r a lsecretary’s importantinstructions. In fact,these two issues arenot contradictory.

Because innova-tion is an eternal themeand industrial reloca-tion is a general trend,and Hefei, Wuhu andBengbu are the threeplaces that concentratethe most innovativeelements, yet construc-tion of the Hefei-W u h u - B e n g b uC o m p r e h e n s i v eReform Pilot Area for

Independent Innovation will give full play totheir innovative edge, and their innovativepractices.

As for industrial relocation, there is animportant prerequisite. That is to say wemust insist on independent innovationand promote the optimization andupgrading of industrial structure, so theindustrial relocation cannot be separatedfrom industr ia l innovat ion, andinnovation cannot be separated fromundertaking industrial relocation.

Here, I would also like to tell you apiece of pleasant news that is worth beingcelebrated. The National Ministry ofScience and Technology has recently

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identified three provinces as technologyinnovation pilot provinces of nationalsignificance. These three provincesinclude Anhui, Jiangsu and Zhejiang.Therefore, Anhui isrelatively abundantin the innovationr e s o u r c e s . T h eNational TechnologyInnovat ion Pi lotProject Province noton ly covers theH e f e i - W u h u -Bengbu Comprehen-sive Reform PilotArea for Indepen-dent Innovation but also covers “AnhuiDemonstration Zone for IndustrialRelocation into Cities along the YangtzeRiver”. In other words, it covers thewhole area of the province.

China News Service reporter asked:Undertaking of industrial relocationcannot be separated from carriers andplatforms. We have noted that the “Plan”mentions construction of a centralizedarea to undertake the industrial relocation,how do you explain this? The secondquestion is as this demonstration area planhas been upgraded to a strategic plan atthe national level, what’s the differencebetween the support policies?

Governor answered: This plan hasclearly put forward to building acentralized processing area. It should bea prominently bright spot in the “Plan”.The purpose is to create an intensiveplatform, including concentration,intension and integration of the projects,industries, functions, elements and otheraspects. So if we want to build asatisfactory centralized processing zone,the first and foremost prerequisite is tocarefully plan and plan well. However,in the whole process, we have three mainconsiderations, or we should adhere tothree principles: first, the concentrationarea should have the best conditions;s e c o n d l y , t h e l o c a t i o n o f t h econcentration area should be rationallydistributed; thirdly, the concentration areashould focus on the demonstration effect.

Among all of the conditions, what

m a t t e r m o s t a r e i t s l o c a t i o n ,transportation and communication. Thenthe second one is the industrial base,elements costs and the third one is

e n v i r o n m e n t a lc a p a c i t y. T h i srequires specia lattention. From theperspective of loca-tion, we should givemore considerationto the positioning inthe plan. It is thespatial layout of “ oneaxis”, “two cores”and “two wings”.

Our centralized processing area should beable to cater to the “one axis”, “two cores”and “ two wings.” In other words, afterthis centralized processing area isestablished, it should be easily accessibleto all the six cities and two circles as wellas some other small industrial parks,which is very important.

The effect of the demonstration areashould be a true role model. We areconsidering how to help it to achieve fivegood combinations after it has beencompleted construction: the firstcombination of industrial relocation withthe transformation and upgrading,promoting the optimization of industrialstructure, the second combination ofeconomical use of land to maximize theintensity of land investment, the thirdcombination of energy-saving andemission reduction to ensure that theecological environment will not beaffected, the fourth combination ofimprovement of the people’s livelihood,the fifth combination of the urbanconstruction. The concentration area canbenefit an extensive peripheral region andeventually many places can become amodern city.

The key of creating this centralizedprocessing area is the spirit of innovation,innovative ideas, and exploration of a newmodel of cooperation. For example, wecould introduce the “enclave economy”concept which is already a very matureexperience in many places. The enclaveeconomic concept states that the spatial

concentration of an ethnic group permitsit to create its own business enterprises,thus speeding the economic progress ofthe group. It stresses that ethnic and racialminorities can make more rapid initialeconomic progress when they create anenclave economy. Some advantages arethat it creates an increasingly successfulgroup of entrepreneurs in the ethniccommunity and the ties of the ethniccommunity allow the owners to give theiremployees a better deal. It gives them abetter chance of moving forward thanthey would have in the outside economy.We can provide flexible and diverseforms of cooperation to foreign investorson this land.

So, generally speaking, the mechanismof the centralized processing zones is veryflexible and cooperative; the approach isalso diverse. We sincerely welcome allpotential partners to our demonstrationarea and to centralized processing areafor a grand mission.

As for the difference between thesupport policies at the national level, Ithink since this is a national strategic plan,the state will certainly introduce a numberof related policies to support it. We feelthat the support of the national strategiclevel is one factor on the one hand; so faras Anhui province is concerned, we willprovide convenience and preferentialterms, preferential policies within thepurview of our own best efforts. We arealso conducting an in-depth analysis andassessment. Broadly speaking, we willmake full use of the preferential policiesgranted by the central government. Wewill also learn from the successful newexperience of other provinces. Anhui willproceed from reality and innovate andcreate under the premise of law andlegitimacy.

Thank you all.