Since 1999, Chinese leaders have been according a much higher priority to the development of the western region. Falling in the ranks of the last third of China's provincial units in terms of overall development, the Ningxia Hui Autonomous Region is still blessed with a relatively well-educated population. To strengthen competitiveness, the region now emphasizes industrialization and related structural adjustment. Recently, the tourism industry has also become all important growth point. Southern Ningxia, a poor mountainous area, is now initiating a regional afforestation program in areas where people are living on semi-arid land Ningxia has been relatively successful in securing funding for its projects in infrastructure and heavy industry; construction of roads and railways is in particular assuming increasing significance. Sustainable long-term growth, however, will have to depend on an improvement in the investment environment, leading to the expansion of both the service and nonpublic sectors, as well as an increase in small and medium-sized enterprises.
