Western regions expected to be pillar of recovery

Urban fixed-asset investment in these regions rose 24.2 percent in the first quarter, about 0.9 percentage points faster than the two preceding months, while the growth rate of investment in eastern regions was 0.7 percentage point lower than the first two months, according to the National Bureau of Statistics.

As growth picks up, a challenge facing the region is to reduce its high reliance on government investment, Gao said.

Relatively lower land and labor costs as well as vast natural resources are presenting more advantages, as costs in coastal areas continue to grow.

Foreign direct investment in the western regions surged by 18.29 percent in the first quarter, in sharp contrast to the growth rate in other regions - 0.17 percent in eastern regions and 0.69 percent in central regions, according to the Ministry of Commerce.

Fixed-asset investment in the western regions from the private sector rose 28.8 percent in the first quarter.

But environmental protection must be highlighted as ecological conditions in western areas are more fragile than the eastern regions, said Ma Zhong, dean of Renmin University's school of environment and natural resources.

A recent joint study by China National Textile and Apparel Council and the Swedish Embassy in Beijing showed that textile companies are shifting their factories from eastern regions to central and western parts of China.

About 80 percent of enterprises in the western and central regions have put the required environmental management system into place, but only 16 percent of the employees are familiar with related skills, it said.