Henan Province's Economic Development Strategy Study

The open economy is defined as a kind of economic mode that commodities, service and production factors (including capital and technology, etc) are able to step over the border communication freely, and realize the optimized allocation of resources according to the market regulation. Compared with the closed economy, it has differences from the export-oriented economy; the magnanimity on target of open economy is to indicate the degree of economy opening.The economic globalization requires each country to open the commodity market, service market as well as the production factor market, and to establish the open economy around the world. Henan province is generally recognized as the great economic province and the bellwether of the central rising in China. While being united in the aim on total development in our country, to study the open economy in Henan province also has great theoretic and immediate significance on researching the open economy in developing regions, central and coastal regions as well as exploring cooperative mechanism of regional economy, and relieving the lower degree of economy opening of central regions in China.The process of developing the open economy in Henan province is full of opportunities and challenges in varying degrees. The vital opportunities faced may include the great improvement of trade terms, possible chances of attracting more foreign funds, more exports on the labor-intensive industries. The challenges confronted are mainly elaborated on the economic globalization and China entering WTO.There exists some problems on the process of open economy development in Henan province, they are mainly displayed as follows: the lower development speed of the export-oriented economy, the structural unbalance of import and export production, the weak merits while taking advantages of FDI scale, the extreme low degrees of open economy while compared with other five central provinces in China.The open economy development in Henan province requires the ability of increasing co-ordination of overall planning inside and outside, continuing the international industry transform, sharpening the international competitive edge of industry and transforming the increasing style of foreign trade. To plan the strategy goals of Henan' s open economy should based on the practice in Henan. It must manifest at the import-export trade, international tourism, agriculture that can earn foreign exchange through export. The basic target of Henan's open economy development strategy is that to improve the usage of level of foreign capital, enlarge the foreign trade and cooperation, and continue to implement the strategies.In order to realize the target of Henan' s development in open economy, we should implement the strategy of development from the policy-level and operational-level. On the policy-level, to formulate the measures which promote the opening of agriculture and service industry through the less of the examination and approval procedure during the foreign object and promoting the investment environment; On practical operational-level, we should make sure the export of advanced agriculture and actively to develop the international service industry.