Recently, with the rapid rise of the cost of land, energy and labor expenses related to complying with environmental demands in the coastal zone and the international market shrinking due to global financial crisis, manufacturers have decided that expanding local demand is fundamental to industrial development. As such, they have moved their production bases to cheaper locations. China&rsquos central and western regions, with their rich resources and relatively low labor costs, have emerged as popular alternative locations. At present, the central and western regions are enjoying rapid economic growth, while the growth rate of eastern regions has declined substantially. For instance, inner mongolia maintains a growth rate of over 16. A survey by renmin university of china&rsquos economic research institute showed that the gdp share of central and western regions increased to 46.16 in 2009 and an estimated 47.1 in 2010. The final consumption percentage of the central, western and northeastern regions increased to 48.6 in 2009 and the consumer percentage recovered to 48.68 in the same year. These numbers show that the national economic center is moving to the central and western regions. To improve the level of economic and social development in central and western china, following the strategy of developing the western region outlined in the 11th fiveyear plan, the state has initiated a series of policies to promote balanced regional development. In february 2010 the state council pledged to speed up the transfer of electronic information, light industry, textile and other industries to central and western regions. In september 2010, the state council&rsquos guidance for industries to relocate to central and western regions was issued. In it, the council stated that with rich natural resources, low costs and the advantage of strong market potential, the central and western regions would accept industries transferring from within china and from abroad. This will accelerate the industrialization and urbanization of central and western china and promote coordinated regional development. This migration will also promote economic growth, upgrade the east coast&rsquos infrastructure and optimize the division of industries in the country. Market demand and state policy are the two major forces driving industries towards central and western china, creating a surge of industrial transfer. Foxconn technology group, a leading global it oem, recently opened a new plant in zhengzhou. Computer chip giant intel recently closed its shanghai factory and expanded its chengdu production base. Hp has set up a laptop export and manufacturing base in chongqing and unilever is planning to open a new factory in hunan. Additionally, haier, gree, midea, tcl and other household electrical appliance manufacturers are planning to set up new production bases in the mainland. With the westward migration of the terminal market, a large number of carton procurements are being generated in fields like product packaging and transportation. This has prompted carton manufacturers, a supporting industry, to focus on opportunities in the central and western markets. However, with such a large market to explore, carton factories have to increase productivity to meet customer requirements and turn a profit while controlling costs, managing production and innovating their equipment. For suppliers, the central and western regions will need to purchase more new corrugated equipment and technologies to meet huge carton production orders and satisfy the requirements of the new carton businesses built there.
