!!! ! The coastal regions have been forerunners in China's economic reform and opening to the outside world. Since China adopted reform and open policies in 1978, tremend ous changes have taken place in these coastal regions which have witnessed a sustained a nd rapid economic growth. In 1996, the coastal regions' gross domestic product (GDP) reached 3,927.01 billion yuan, 57.9 per cent of the national total.

!!!! Reform of state-owned enterpris es is being deepened and economic sectors of different ownership have enjoyed full devel opment!!Cities and enterprises experimenting with state enterprise reform are mainly locate d in East China. In recent years, regions in East China have implemented the Central G overnment's important policy of devoting major efforts to large and medium-sized state e nterprises and lifting controls over small ones. They have improved the competitiveness of a large number of state-owned enterprises through restructuring, co-operation, mergers, sel lout, or contract management. Meanwhile, economic sectors of private and foreign owne rship in East China have enjoyed full development. During the Eighth Five-Year Plan period (1990-95), the non-state-owned sector grew by an average annual rate of 47.2 per cent a nd its output value accounted for more than 35 per cent of the regional total, giving rise to a new pattern in which economic sectors of different ownership co-exist, compete o n an equal footing and enjoy mutual development. Some provinces and cities in East Chin a have become quite competitive globally.

!!!! Reform of the social security s ystem has accelerated!!Regions in East China have been forerunners in the ref orm of China's social security system. At present, they have launched pension and m edical insurance schemes funded by both society and individuals. They are further i mproving the unemployment insurance system and have made remarkable achievements in refor ming the housing system.

!!!! They have opened their door wid er to the outside world!!Coastal regions are at the forefront of China's open ing to the outside world. Located here are the country's five special economic zones, 2 6 economic and technological development zones at the state level, 14 coastal open cities, 15 bonded zones, 3 special open zones (Shanghai's Pudong New Area, Hainan Province's Y angpu Economic Development Zone and Jiangsu Province's Suzhou Industrial Park) and 262 open cities and counties. A framework of all-round opening to the outside world has taken sh ape. Coastal regions have also become China's major absorber of foreign investment. At pr esent, 80 per cent of foreign investment in China has gone to these regions, which have ke pt expanding the scope of their openness. Shanghai, Guangdong and Beijing have allowed fo reign investors to invest in the service sector including finance, insurance, comm erce and foreign trade.

!!!! GDP and foreign trade have kept rising!!The coastal regions have a relatively good foundation for development. In recent years, their economic scale has been further expanded. During the Eighth Five-Year Plan p eriod, the GDP of coastal regions except Beijing, Tianjin, Shanghai and Liaoning Province, had an average annual growth rate of more than 15 per cent. In 1995, the coastal regions' G DP rose by 14.09 per cent over 1994. In 1996, their GDP rose by 11.89 per cent over 199 5, to reach 3,927.01 billion yuan.

!!!! During the Eighth Five-Year Plan period , imports and exports in the coastal regions grew by an average annual rate of more th an 15 per cent. In 1996, their foreign trade continued to rise and their economic link s with foreign countries became even closer. Their foreign trade volume accounted for more than 55 per cent of their GDP. They kept expanding the scope of introducing foreign inve stment. By the end of 1996, they had introduced foreign investment totalling more than US$ 150 billion and had more than 200,000 foreign-funded enterprises.

!!!! Local revenues have been on a s teady rise and investments in fixed assets have increased at a fairly high rate!!In 1996, local government revenues in the coastal regions reached 222.1 billion yuan, up 23.66 per cent over 1995 and accounting for 59.27 per cent of the national and local t otal. The coastal regions have a strong fund-raising capacity. In 1995, they invested 1,218.844 billion yuan in fixed assets, up 17.5 per cent over 1994 and accounting for 62.7 per cent of national total investment in fixed assets. In 1996, the coastal regions' investment in fixed assets increased by 17.4 per cent over 1995.

!!!! People's living standard has im proved remarkably!!In 1995, the per-capita income of urban residents in th e coastal regions was 4,800.36 yuan and that of rural residents 2,346.06 yuan at 1990 constant prices, increasing by a wide margin over previous years.

!!!! Three large economic regions ha ve emerged from north to south!!Their emergence is owed to economic links of c oastal provinces and cities as well as to their geographical location. The regions are:

!!!! The region around the Bohai Sea with th e coast along the Bohai Sea as the centre. It includes Beijing, Tianjin, Liaoning, H ebei and Shandong provinces and radiates its influence to most parts of Shanxi Provin ce and the Inner Mongolia Autonomous Region. The region boasts a good location, a good economic foundation and strong scientific and technological capacity and good transpo rt facilities which can become a driving force for further development. The region also ha s many large and medium-sized cities, an abundance of scientific and technological person nel and rich coal, iron and oil resources. The last few years have seen the formation of a comprehensive economic ring around the Bohai Sea consisting mainly of the Li aodong Peninsula, the Shandong Peninsula, Beijing, Tianjin and Hebei Province. Bein g developed in this area are pillar industries, energy production bases and routes for tran sportation. Large and medium-sized cities along the coast have been playing a pivotal ro le in this regard.

!!!! The Yangtze River Delta Region. It incl udes Shanghai, Jiangsu and Zhejiang provinces. Located at the centre of coastal r egions and backed by the Yangtze, it has extensive economic links with many inland prov inces and cities. This region abounds in resources, and has advanced infrastructure, s trong scientific and technological capacity, high labour quality and mature market s. Since it expanded its scale of opening to the outside world in the early 1990s, the r egion has had an ever-improving investment environment and become a major foreign investme nt absorber. It has been trying to realize regional modernization through opening and dev eloping Shanghai's Pudong area, by speeding up the development of new industries, an d through the transfer of traditional industries.

!!!! The southeastern coastal region. It inc ludes Fujian, Guangdong and Hainan provinces. Near Hong Kong, Macao and Taiwan, th is region is more open to the outside world than other areas. The region, which has the P earl River Delta and southeastern Fujian as its economic centre, is further developing export agriculture, capital, and technology-intensive foreign-funded enterprises as well as high-value-added processing industry to become an economic zone with an adva nced export-oriented economy.