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A year-on-year increase of 9 percent in Guangdong's economic development during the 11th Five-Year Guidelines (2006-10) period can lead the southern province to achieve more balanced and sustainable development, said Zhang Dejiang, the province's Communist Party chief.

Guangdong, an economic powerhouse in south China, will take strides to surpass Taiwan, one of the "four little Asian dragons," in terms of economic development in the next five years, Zhang said.

"Such a goal is set based on the rapid economic development over the last five years, and we are sure of it," Zhang was quoted by Wen Wei Po, a Hong Kong-based newspaper, as saying.

According to Zhang, the province's overall economic volume during the 10th Five-Year Plan (2001-05) period has taken a step forward by achieving about 2,000 billion yuan (US$246.6 billion) annually in terms of gross domestic product (GDP).

In addition, 400 billion yuan (US$49.3 billion) was generated respectively in areas of overall fiscal revenue and foreign trade in the province during the period.

Accounting for nearly one-tenth of China's economy, Guangdong generated 2,170.1 billion yuan (US$268 billion) of GDP last year. While Taiwan's GDP was 2,854.4 billion yuan (US$352 billion).

"By changing from labor-intensive economic development mode to a technology-intensive one, Guangdong's GDP in 2010 will double that of 2000 and will surpass that of Taiwan," Zhang said, adding that the province's GDP is expected to reach 3,350 billion yuan (US$413 billion).

In a bid to build a technology-intensive economic development mode, Guangdong will enhance co-operations with Hong Kong by establishing the "Shenzhen-Hong Kong Innovation Zone" in the years to come.

"The innovation zone will definitely demonstrate its impact on the stage of the international economy and in the area of science and technology," Zhang said.

Zhang said that the time has come to form such a technological innovation circle between Hong Kong and Guangdong, as the two regions are strong in education, science as well as technology research and development capability and industrial resources.

(China Daily March 14, 2006)