Business / Opinion

Lanzhou is key to western China

By Mike Bastin (China Daily) Updated: 2014-02-17 07:23

The spread of economic development, it is hoped, across the Chinese mainland is often presented as a gradual "rollout" from the developed eastern cities, such as Shanghai, westwards.

This gradual, step-wise process of development from eastern to western China, however, has not materialized in much significant change, despite the central government's go west initiatives and policies dating back nearly 15 years.

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Clearly, a different approach is required. It is woefully insufficient to continue to call for an influx of investment and growth across western China without the establishment of an economic engine, probably located at or near the geographical centre of this region.

The role and responsibility, therefore, of gateway and engine of economic growth of the western falls squarely on the shoulders of Lanzhou, capital of Gansu province.

Lanzhou's location, the geographical centre of northwest China, makes it the key regional transport hub for the entire region, allowing areas further west to maintain railroad connections to the eastern half of the country.

Recent rail network developments have also added further to the attraction of Lanzhou as an investment centre. China's new Silk Railroad, as it has been dubbed, provides a direct rail link between central and western China and western Europe with a dramatic reduction, up to a third, in transport costs.

Such a favorable geographical location presents an ideal building block in the building of Brand Lanzhou. More is needed though in terms of powerful, positive brand associations that attract not just interest and investment from domestic industry but also appeal to the international business community.

Successful cities the world over nearly always create a powerful, distinctive brand in themselves. Beijing has a powerful image based on its rich cultural heritage and Shanghai is perceived as a beacon of fashion and modernity, for example.

Lanzhou's emergence as an economic hub and engine of growth for northwest China also requires a powerful, distinctive brand image

Establishment of such a brand image for Lanzhou requires a collection of carefully combined brand associations.

One such association emerged last year with the setting up of Lanzhou New Area, China's newest special economic zone. In August, the area was approved by the central government as the fifth State-level new special economic development zone (following Pudong in Shanghai, Binhai in Tianjin, Liangjiang in Chongqing and Zhoushan in Zhejiang).

This is also the first State-level new area in the northwest.