In China there are mountains in many provinces, but Guizhou is known as “The mountain state”. In ancient times there was a saying that described the province: “Guizhou has no flat area that extends for more than 1,500 meters."
 Today Guizhou’s people have realised that transportation is vital for developing the province’s economy. The building of infrastructure, such as roads and railways is the primary task for the province’s economic development.
Three thousand kilometers of roads are being constructed in Guizhou at both county and village level. Last year 3,020 kilometers of roads were constructed and upgraded, which is 15 times more work than in previous years. The expressway from Guiyang to Bijie is a strategic link built to help drive the economic development of Guizhou.
The large scale of transportation infrastructure development needs massive financial support. It is hoped the present Xidiandongsong project will provide Guizhou with part of the required funds.
 Oujiang River is the largest tributary on the south bank of the Yangtze river. It has the same rate of flow as that of the Yellow River and it is very important resource for Chinese hydro－power systems. On the main stream of the Oujiang river 10 large and medium sized hydro－power stations are going to be built, among which nine are in Guizhou. The combined capacity of these stations will be 7,700,000 kilowatts. At present only Oujiangdu and Dongfengshui have been constructed, with a capacity of 1,140,000 kilowatts. However the most important part of the Xidiandongsong projects is the expansion of the three existing power stations of Hongjiadu, Yinzidu and Wudiangdu.
The construction of the major projects like the Oujiangdu hydro－power station will accelerate the process of Guizhou’s industrialisation, giving vitality and energy to the development of the local economy.
 Zunyi is a famous historical city in China. In January 1935, at the height of the Chinese revolution, Mao Zedong’s leadership status was established during a meeting held here. Zunyi city is now the second largest city of Guizhou province.
Although the farmers here are not rich, there is an increasing consciousness for building their economy. The Zunyi local government is now encouraging farmers to travel to the city to conduct business or work in the expanding industries.
Zunyi is located in a mountainous region, so it is not very easy for the population to develop their own industries. However many eastern companies have recognised the advantages of Guizhou province, with their abundant natural resources, labour and large market potential.
 In 1997 the famous Qingdao Haier Group joined with the former Zunyi Fenghua engineering works and established the Guizhou Haier Electrical Appliances Company. This partnership introduced an advanced management model and new operational concept, giving the old Fenghua company a new lease of life.
Yang Jianguo used to be a worker for the Zunyi Fenghua Company, at that time his salary was only 38 US dollars a month. After the merger with Haier his monthly salary has increased five times.
The successful operation of Guizou Haier has provided a good reference for other companies in western China that are looking for merger possibilities.
Xifeng is one of the poorest counties in Guizhou, many industries have pulled out of the region and it is now predominately supported by the Government. In 1994 four large and medium sized enterprises closed their businesses in Guiyang. In order to improve the economic situation in Xifeng, the province needs to attract outside funds to create a favorable investment environment. This will provide employment and economic stability to the rural population.
Guizhou Hanfang Pharmaceutical Company believes Xifeng now has a favourable investment envirnoment. In 1998 they invested more than 2,500,000 US dollars in setting up the Xifeng Pharmaceutical Factory.
Guizhou’s old enterprises are now facing a challenging future and accelerated transformation with the growth in the market economy. The Mitsui－Huayang Automotive Components Company is a joint venture set－up by Guizhou Huayang Electrical factory and two Japanese enterprises. The new venture has survived and prospered in the competitive market environment.
 The continuous growth of the economy in Guizhou has created favourable conditions for the development of new cities in the province, with large scale construction already underway.
Guiyang city is the political, economic and cultural centre of Guizhou. The city is surrounded by mountains and has many industries crowded into a small area, resulting in severe pollution problems. This situation is not conducive to further expansion of the present city, so Guiyang government has begun to construct a new district located near further out of the old city.
The construction of the new city and the development of the economy have created an increasing need for educated and skilled people.
Guizhou’s government has worked out a series of programs and measures to develop education and attract talented people to the province. These two focuses are the main long－term strategies for the development of Guizhou.
At present the universities and colleges in Guizhou are becoming the main breeding－grounds of talented people in the province.
 West Development brings opportunities for Guizhou which have never been seen before. The people of Guizhou are confident in eradicating poverty and rapidly developing. Guizhou’s government has a clear vision of the future. In five years time, they want to lay a firm basis for growth, in 10 years they aim to have made a substantial step towards full modernisation, and in 15 years they want to see all their development goals met. It is also hoped that Guizhou will become an essential transportation centre both on land as well as a southwest gateway to the sea. Guizhou will also play an important role in the environmental protection of the upper reaches of the Yangtze River and Zhujiang River.
The province could also be an important supplier of natural resources, raw materials and a base for high tech industries.
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