The Analysis on the Historical Evolution and the Developing Trend of China's North-South Gap

In recent years, the widening of the North-South gap in China has garnered significant attention across various sectors of society. However, an analysis of the latest data presented in this paper reveals a narrowing trend in both the absolute level and the relative proportion of this gap during 2021-2022, thereby reversing its previous trajectory characterized by rapid expansion. from an industrial perspective, the narrowing of the gap of industry and real estate is the main reason for the narrowing of the North-South gap; from a sectoral perspective, the gap of government fiscal revenue and corporate profits between the north and south has narrowed, but the gap of household income did not narrow. Taking into account the overall economic situation both domestically and internationally, as well as the economic performance of each province, this paper argues that since 2021, the gap between northern and southern regions in China has narrowed due to a combination of factors. These include not only countermeasures taken by the central government in response to its recognition of this widening gap but also external events such as COVID-19 pandemic, Russia-Ukraine conflict, fluctuations in real estate market and international inflation particularly driven by rising energy prices. However, it is crucial to comprehend that certain factors in play are of a transient nature, leaving the long-term trajectory of the North-South divide yet to unfold. The burgeoning disparity between the Northern and Southern regions represents a prominent novel concern within China's regional development paradigm. Therefore, it is imperative to generate novel concepts in order to effectively address the widening disparity between the Northern and Southern regions. It is essential to fully leverage regional comparative advantages, adhere to the objective laws governing industry and population concentration in advantageous areas, and devise tailored development policies that consider local conditions for key growth zones, ecologically vulnerable regions, as well as energy and resource-rich territories. The government should allocate efficient transfer payments to key ecological functional areas, major agricultural production regions, and economically disadvantaged areas.