ABSTRACT
In the state plan for central China, industrial development will focus on steel, smelting and pressing of non-ferrous metals, petrochemicals and building materials. The Chinese central government is resolved to developing the central region into a major base for the modern equipment manufacturing industry through research, innovation, and key indigenous technology. e central drive serves three key goals: First, the narrowing of the regional gap is important to regaining political loyalty from the central region. Second, a more balanced regional development is essential to social stability in the central region; in recent years, rising large-scale and violent social unrests particularly in the central region have raised the alarm for the Chinese central government to accelerate development in the region. Third, a more balanced regional development is essential to stimulating domestic consumption, which is also consistent with China's efforts to transform its economy from trade dependent to domestic demand driven.
