----by well-known international economist Zheng Xiongwei

The most important feature in the new round of global economic integration is the international services outsourcing. Due to the various advantages of service outsourcing, the international service outsourcing will become a “new highlight” for the economy in the 21st century. What is the point of the new economic highlight to the central region which is in urgent need of comprehensive, coordinated and sustainable development?

In fact, either from the viewpoint of industrial upgrading and economic restructuring, or from the viewpoint of regional economic development, the international service outsourcing has become new blood to the rise of central China and is of landmark significance.

Firstly, the international outsourcing creates great opportunities for the central region to devote major efforts to developing the resource deep-processing industry and extending the resource-based industrial chain. In terms of extending the industrial chain, for the central region which is abundant in resources, the international outsourcing, especially the introduction of services outsourcing will promote technology introduction and innovation, expand the breadth and depth of the resource-based industrial chain, increase industrial added value, open up a new industrial approach characterized by high technology, good economic returns, low resource consumption, less environmental pollution and the advantages of human resources into full play and move beyong a region rich in resources toward a region strong in resources. At present, the international outsourcing will create great opportunities for the central region to vigorously develop the resource deep-processing industry and extending the resource-based industrial chain. It’s fair to say that the international outsourcing opens up a new era of resource development models.

Secondly, the advantages of the central region, especially Henan in taking on the industrial transfer from the coastal areas are becoming increasingly apparent. From the perspective of regional economy, currently, the overall strength of the eastern region has been enhanced substantially, the basis for the rise of the central region is becoming stronger and stronger, the conditions for the development of the western region have been gradually improving and the prospects of revitalizing the northeastern region are bright. The industrial transfer from coastal areas to central and western regions and the transfer of the international service outsourcing industry to the lower-cost central and western regions have become an important trend for regional economic development in the new era. And the advantages of the central region, especially Henan in taking on the industrial transfer from the coastal areas are becoming increasingly evident.

Thirdly, the comprehensive environment in the central region to undertake international outsourcing is being optimized. In terms of the advantages of the central region, such infrastructure networks as transportation and communications have further improved, which have greatly reduced time and space distance between the central region and the coastal areas and the Asia-Pacific region and even the globe; the fresh progress made in industrialization and urbanization demands a lot of raw material products of energy and tourism and cultural products as well as land resources, so that the advantages of the central region in resources will become more prominent; the central region is rich in labor resources with a certain level of cultural knowledge and skills and the wages and prices have a comparative competitive edge. This provides huge potentials and space for the central region to undertake international outsourcing.

Under this pattern, Former Prime Minister of Australia Mr. Bob Hawke, also known as “forerunner of the global international outsourcing”, believes that the time for the central and western regions of China to develop international outsourcing has come. We are convinced that the international outsourcing will open up a new era for  the rise of central China by bringing into full play the global talents and technological advantages and it will become a new model of economic growth modes in the central and western regions of China.