As a result, several western provinces and regions were expecting to outpace the national economic growth this year, he said. "The northwestern Shaanxi Province, for example, is aiming at a 13-percent growth rate this year, compared with the 8-percentprojected national GDP growth."

Shaanxi vice governor Zhao Yongzheng said the confidence was fueled by the growing number of investment projects, including 42 energy projects with a combined value of 42.8 billion yuan a year, 27 equipment manufacturing projects valued at 7.4 billion yuan a year, 10 high-tech projects of 1.3 billion yuan and 37 infrastructure construction projects with 40.8 billion yuan of annual investment.

Some observers, however, warn that western China should not be too optimistic. "The western regions generally lack the economic capacity and competitiveness to tackle the financial crisis," said Du Ying, deputy head of the National Development and Reform Commission (NDRC). "They will need more efforts and longer time to shake off the impact."

Compared with wealthier eastern provinces, the fledgling, singular and very often resource-based economies of western regions were more fragile in the global downturn, said Shi Ying, deputy head of the Shaanxi Provincial Academy of Social Sciences. "Some businesses are already feeling the chill."

He cited the Fast Group, the province's leading auto equipment producer and exporter, which reported an 80-percent drop in orders in the first quarter.

Lack of orders and falling prices on the international market had caused many resource-based companies in western China to cut production, or even close down, he said.

"Nearly all the western provinces and regions need to transform from resource-based and singular economies to more sustainable and diversified patterns," said Shi.

While Shaanxi was fostering high-tech industries, its western neighbors Gansu and Xinjiang were exploiting wind power hoping to parallel the Yangtze's Three Gorges Dam in terms of power generating capacities, he said.

"The impact of the financial crisis on western China is sometimes indirect and gradual," said NDRC's deputy head Du Ying. "The western regions need to overhaul their industries and expand cooperation with the eastern provinces to solve their common problems."

(Xinhua News Agency April 21, 2009)