Lanzhou to set up new zone

China will launch its fifth State-level new zone in Lanzhou, Northwest China's Gansu Province, multiple sources confirmed Tuesday, a move expected to turn the country's western region into a new growth engine of the Chinese economy as it is facing downward pressure.

A staff at Gansu Provincial Development and Reform Commission, who declined to be named, told the Global Times Tuesday that the plan to turn Lanzhou New Area into a State-level zone was proposed by the local government last year and has been approved by the State Council recently.

He said the plan was part of the nation's 12th Five-Year Plan (2011-15) for the development of the country's western region but declined to comment on the details of the plan for the new area.

An official at the Administrative Commission of Lanzhou New Area surnamed Hua told the Global Times that he heard that the plan has been approved but has not received the official notice.

"We will definitely hold a press conference soon to unveil the news after we receive the approval document," he said.

The announcement will make Lanzhou New Area the fifth State-level new area following the Pudong New Area of Shanghai, Binhai New Area of Tianjin, Liangjiang New Area of Chongqing and Zhoushan Island New Area of Zhejiang.

Meanwhile, Lanzhou Daily also reported that the State Council has approved the plan to turn Lanzhou New Area into a State-level new zone, citing Lu Wucheng, secretary of Lanzhou Municipal Committee of the Communist Party of China (CPC) at a meeting Monday.

"The move will mark a landmark event in the history of Lanzhou and even Gansu Province and will have a far-reaching impact on the transformation and rise of Lanzhou," Lu was quoted by the paper as saying.

The new area will focus on developing sectors such as advanced equipment manufacturing, strategic emerging industries, petrochemical industries, new energy and materials, and modern agriculture, Lu said in the report.

The new area aims to achieve 50 billion yuan ($7.87 billion) in GDP by 2015, 100 billion yuan by 2020 and 270 billion yuan by 2030, Shanghai Securities News reported Monday.

"China's economy is going through a difficult phase and the government is looking for new avenues of growth to substitute sluggish exports to power the economy. Investing in Lanzhou in the country's western region is in line with the country's strategic plan," Li Huiyong, chief analyst at Shanghai-based Shenyin Wanguo Research & Consulting, told the Global Times.

"Lanzhou's development should avoid following the traditional path of development in the country's eastern areas by investing in projects that will create overcapacity and damage the environment but should instead focus on sectors in which the city has advantages such as agriculture," he said.