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Beijing Pledges Cash To Chongqing
Summary:Led by a deputy premier, who replaced the ousted Bo Xilai, Chongqing has secured investments worth 350 billion yuan from centrally-controlled state enterprises.

By Zhang Xiaohui, Du Yuan
Issue 570, May 21, 2012
News, Cover
Original article
: [Chinese]

This is an abstract of the front page story from this week's edition of The Economic Observer, for more highlights from the EO print edition, click here.

The municipality of Chongqing has signed contracts worth more than 350 billion yuan with thirty centrally-administered state-owned enterprises, including national giants China National Petroleum Corp. (CNPC) and China Mobile.

The enterprises, which are controlled by the government in Beijing, will be given a key role in boosting the local economy in Chongqing, where some businesses suffered during the so-called anti-corruption campaign introduced by ousted party boss Bo Xilai.

The new investments are being seen as a gift from Beijing; Zhang Dejiang, who was appointed party secretary in Chongqing after Bo was removed from his position in March, also serves as a member of the party's politburo and one the country's deputy premiers.

The total investments covered in the 72 contracts are equivalent to 10,000 yuan for each of the municipality's 30 million residents.

There are 35 energy projects, with six companies will be working on the construction of power stations.

In industry, 21 deals were signed, including agreements with Chang'an Automobile Group Motors, which is based in the city.

The municipality's high-tech sector will get 10 projects, one of which involves a research center for car engines and another will be for the manufacture of helicopters.

The state contracts represent the biggest investment in the region since the foundation of the People's Republic of China in 1949.

According to an unnamed source from the Chongqing government, officials at all levels in Chongqing are now avoiding mentions of the "Red Chongqing" campaign led by Bo Xilai, and the focus of local politics is shifting from "return to the past" to ensuring stability.

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