Western China, a Rising Land of Opportunity with Resources, New Markets and a Large Population
Western Expansion: 18th C. America and 21st C. China
  Keywords heard when discussing China today include concepts such as “development” and “growth.” Right in the middle of that discussion is the Chinese West, which looms large like the American West did in the 18th and 19th centuries. The Chinese government coined the phrase “Great Western Development Project” to describe the heart of its tenth (2001-2005) and eleventh (2006-2010) Five-year Development Plans. The winds of change and development are now blowing across a vast region that has lagged behind the rest of the country.

The West: the Other China Geographically, Ethnically, Culturally and Historically
  The region commonly referred to as “Western China” literally is the “territory in the West.”As a territory, it is vast, occupying 71.4% of the nation’s land. Besides geography, Eastern and Western China can be differentiated environmentally, politically, culturally and ethnically. Eastern China is situated along the coast, so the weather is mild and precipitation is plentiful. By contrast, the West is mostly deserts, plains and tablelands; the weather is dry and the land is largely barren.
  The Western inhabitants are different, too. Usually when one speaks of “Chinese” one imagines the Han Chinese, who comprise at least ninety percent of the total population. However, fifty-five ethnic minorities also belong to the Chinese people, although their appearances, customs, and languages are unlike those of the Han Chinese. Some of these minorities have brown eyes and large noses that make them look more like Arabs than East Asians. Moreover, certain ethic groups in China have matriarchal societies and follow primitive agricultural traditions.

The West: Falling behind since China’s Opening
  China began to open up to the outside from the 1980s, but natural landscape, ethnic groups, and social restrictions were major obstacles to change in the West.
  Life was more difficult than in the East to begin with, and the inland location was not conducive to export and import activity, so industrialization was impaired. For these reasons, the West has lagged further and further behind the East, which has experienced more than two decades of steady and rapid economic growth.

The West: with Great Development Potential
  People say China’s fate hinges on the West. This means that the backwardness of the region cannot be allowed to continue. However, the West also has virtually unlimited development potential in its own right.
  Natural resources are one of the keys. Beneath the vast barren landscape lie valuable treasures for a China that is suffering from resource scarcity. Indeed the thrust of the government policy to develop the West involves natural resources. Projects of note are piping natural gas from the West to the East while transporting hydroelectric power from the East to the West.
  Building infrastructure in the expansive territory will enhance its utility for industry, agriculture and other activities.
  The Western population of more than 300 million persons represents a more competitive labor pool than that now found in the East, and they are a huge group of would-be consumers. Moreover, the untapped development potential of the region is immeasurable.

Global Companies Flocking Westward
  China stands as the world’s largest market and production base. Many companies see the great Western development as a golden opportunity for success in China and a springboard to global prominence. Infrastructure-related companies are right at the top of this list.
  Infrastructure must precede other activities such as building plants or developing new markets. The motto for the “Great Western Development Project”is to elevate the region’s capabilities to develop on its own. Therefore, many resources are being focused on infrastructure establishment.

Doosan Infracore: Taking Root as a Local Corporation
  Doosan Infracore arrived in China relatively late compared with other foreign players. However, company management correctly understood and prepared for the changes occurring in Chinese construction. As a result, Doosan Infracore has managed to maintain the top share of the excavator segment in China despite steadily increasing competition.
  The secret to this success has been localizing operations and going after niche markets.
  The People’s Daily has run customer satisfaction surveys on excavator quality in China, and the products from Doosan Infracore have placed first every year since 2003. The machines perform exceptionally well on local terrain, and the company has taken after-sales service to a new level in China. The response by Chinese consumers has been very favorable.
  Doosan Infracore has also contributed to the construction of more than ten primary schools for children from low income families in rural areas. Such attention to public service activities has earned the company a positive public image as a “local Chinese business.”
  The fate of Chinese industry now lies in the West, and Doosan Infracore is also paying keen attention to the region for its future. The company established a subsidiary in Yantai (Shandong Province) in 1994 and has subsequently operated mainly in the East. However, the sales network is now steadily expanding westward. Indeed company’s brand power is rising in the West along with its share of the regional market.

Doosan Orange Hits the High Plains
One of the most salient memories from this long fact-finding tour was the sight of orange-colored excavators, built by Doosan Infracore, working on what has been dubbed the “Iron Silk Road of the 21st Century.”Not a single house could be found in this vast expanse that now boasts the world’s highest railway, which runs between Qinghai and Tibet.
  Most of the Doosan Infracore construction equipment in China’s West has been either been sold or leased through local dealers located in the cities of each province. One of the most surprising facts discovered during this 90-day odyssey was how fast the Doosan construction equipment numbers are growing. Doosan Infracore dealerships began to open their doors around the time that the “Great Western Development Project” was launched in 2001. Today, the company’s machines are found on plains of over 5,000 meters in altitude and in steep gorges, building roads where none existed before.
  Greater interest needs to be directed at Doosan Infracore (China) Co. as consumers welcome the company’s products, and demand for construction equipment goes into full swing. China’s West is the last frontier, and Doosan has countless tasks ahead in this immense land.

  Doosan Infracore has the top share of the excavator market in China and is recognized as a world-class construction equipment maker there. The People’s Daily, meanwhile, is the nation’s largest media company. A team of reporters from these two organizations traveled overland for ninety days (from July to October 2006) through China’s 32,000km2 Western Region.
The Chinese government was deeply concerned about sustaining economic growth and achieving balanced development nationwide when the “Great Western Development Project” was launched six years ago. The present journey was organized as a way to discover how the region had changed and to get a better understanding of this region, which will play a key role in China’s future.