This is evident in survey measures of capacity utilisation (Graph 2). It is also evident in the labour market, which has been very tight, with the unemployment rate having been at its lowest level in nearly 50 years.
In this light, I should emphasize the leading role of local governments and also the central government in promoting regional economic development. To be specific, local governments should provide a clear vision and framework for sustainable development with detailed strategies to support business and human capital development. Deregulations, supportive tax system, and administrative services would then be designed within the framework.