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By Shi Yaodong, Zhou Yi & Liu Yufeng, Research Team on “BRI Ports and Border Opening”, DRC

Research Report, No.114, 2019 (Total 5614) 2019-7-16

Abstract: The industrial development in border areas is of vital importance in advancing the Belt and Road Initiative, and it’s therefore necessary to give an overall analysis of the problems facing border areas in developing industries. Based on the significance of industrial development and transformation as well as upgrading in border areas, this paper gives an illustration of the appropriate and gradual adjustment of the industrial structure and the development of distinctive industries and tourism with comparative advantages in border areas. It is noted that there are still some problems in the industrial development of border areas, such as small scale, weak competitiveness, limited capacity for technical innovation, and ineffective coordination between port management policies and industrial development. In view of the above-mentioned problems, this paper proposes some policy options for the industrial development of border areas. The border areas need to promote green development, propel industry-based innovation and innovation-driven industrial development and develop distinctive industries according to local conditions. It is advisable for border areas to open wider to the outside world, further relax market access rules and actively apply the successful experience of free trade zones relating to their smooth development. In addition, they need to make double efforts to flesh out the fiscal and taxation system, improve business environment, and enhance innovation incentives and personnel cultivation.

Key words: border areas, industrial development, industrial transformation