Economy improving in China's west region

Chen Dongsheng, director of China Regional Economics Studies, is also concerned at the simple mode of development.

"The current development mode of most of the cities in the western region is either copying the experience of the eastern region or repeating similar projects. Once the investment decreases or slows, the economy of the western region will be in danger," said Chen.

"So far, many governments of western regions are burdened with debts and with huge regional financial risk because of excess capacity in several industries. Take the real estate industry for instance: A real estate bubble has already emerged in several second- and third-tier cities in the west, which rang alarm bells for the rest of the cities that bet on real estate as a development engine."

He warned that cities should heed the lesson and take the necessary measures to control the speed of development to prevent financial difficulties.

With the complicated international and domestic economic situations, the method by which the central government supports the development of the western region may also change. In the long run, the western region needs to rely on self-development to cultivate sustainable industries and attract professionals, he added.

Zhang Junkuo, vice-director of the Development Research Center for the State Council, said the central government should give the western region preferential policies to help it become part of the international economy and encourage investment in the region.

China launched the Western Development Strategy in 2000 to help the western half of China catch up with the east.

The strategy covers: Gansu, Guizhou, Qinghai, Shaanxi, Sichuan, and Yunnan provinces; the Guangxi, Inner Mongolia, Ningxia, Tibet, and Xinjiang autonomous regions; and Chongqing. The region accounts for 71.4 percent of mainland China's area, but only 28.8 percent of its population.