In the context of China's sporting goods manufacturing industry, a significant proportion of Foreign Direct Investment (FDI) has raised concerns about regional imbalances. This issue has deep roots, dating back to the planned economy era when geographical disparities were already evident. The five major production bases and four key commercial supply centers were largely concentrated in economically developed regions, setting the stage for future inequalities.
With the transition to a market economy, the eastern coastal areas benefited from earlier reforms and opening-up policies, leveraging their geographical advantages and human resources. This led to the emergence of the "Matthew effect," where already advantaged regions continued to grow faster, widening the gap between the east and the west. As a result, FDI became increasingly concentrated in these more developed areas, further reinforcing existing economic disparities.
To address this imbalance, it is essential to focus on improving regional infrastructure. This paper examines differences in transportation, communications, and energy as key indicators of regional development. Using 2006 data as a baseline—measured by road and railway density, per capita standard coal consumption, and the number of mobile and fixed-line telephones per person—the study highlights the stark contrast between the western region and the more developed eastern and central regions.
Although the western region may not easily change its absolute position, its relative standing can improve through targeted infrastructure development. Enhancing transportation and communication networks can reduce the perceived distance and time, mitigating location disadvantages. Moreover, both physical infrastructure—such as urban development and investment environments—and intangible factors—like education, health, and cultural development—play a critical role in shaping economic growth.
The underdevelopment of infrastructure in certain regions hampers the sustainable growth of the sporting goods manufacturing industry. A high concentration of FDI in this sector indicates that foreign investors are drawn to regions with better infrastructure and economic conditions, leaving less-developed areas at a disadvantage. Therefore, improving infrastructure is not only crucial for regional equity but also for the balanced and long-term development of the entire industry.
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