The integration of the two cities of Shenyang and Fushun in Northeast China's Liaoning Province has become a hot topic among residents since the proposal was put forward for deliberation by local delegates to the National People's Congress and the Chinese People's Political Consultative Conference last spring.

Besides the hub created by the provincial capital Shenyang and Fushun, an industrial city east of Shenyang, there already exists a city cluster in central Liaoning, including the cities of Tieling, Benxi, Liaoyang, Anshan and Yingkou, all of which have close bonds between one another.

The gross domestic product (GDP) of the seven cities accounted for more than 60 percent of the provincial total in 2006, according to Zhao Zhishan, director of the Policy Research Office of Liaoning Provincial Committee of China's Communist Party.

"Among these cities, Shenyang and Fushun enjoy the closest economic relations," Zhao said, adding that both have obvious advantages in geology and infrastructure, and that their industries are complementary.

The term "integration of Shenyang and Fushun" refers to the integration of their industries, market supervision, social management and public service, given the fact that the two cities still retain independent jurisdiction, Zhao explained.

The integration will lead to unified raw material and product sales markets, thereby greatly reducing production and sales costs and sharpening the competitive edge of both cities.

"It is high time that we urge an energetic interaction between the coastal area and the hinterland," Liaoning Governor Zhang Wenyue said. "The integration of Shenyang and Fushun is such a case that forges a regional economic center in Liaoning's hinterland, benefiting both interior and coastal areas."

Strategy

In 2005, the provincial government initiated a "Five points and one line" coastal development strategy, as part of the nation's adjustment of regional economic development during the 11th Five-Year Plan period (2006-10). Five points means the development of five key industrial areas, and the one line refers to a road connecting the coastal cities in Liaoning Province.

Li Keqiang, Party Secretary of the Liaoning Provincial Committee, pledged at the annual provincial people's congress in January that the province will accelerate coastal economic development by following the strategy.

"We will take advantage of the opportunity of regional economic adjustment to push forward the rejuvenation of our old industrial bases. Priority will be given to the economic development of the coastal areas," Li said.

He believes that rapid development in coastal areas will help markedly improve the investment environment in the interiors of the province.

"This strategy will give an impetus to the development of the 2,200-km coastline in Liaoning. Thus it has a great potential to grow into another economic powerhouse in the country's coastal areas," Li pointed out.