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GUANGZHOU: The gross domestic product of South China's Guangdong Province is likely to surpass that of Taiwan in a couple of years, experts estimate.

"It will not take very long for Guangdong to catch up with Taiwan," said Li Huiwu, deputy director of the provincial government's development research centre.

Related readings:  China's GDP to grow by 10.5% this year  Guangdong to overtake Taiwan in GDP  China's economy to grow slower next year

"Guangdong's gross domestic product grows by more than US$30 billion a year, while Taiwan's grows by about US$10 billion. It is very likely that Guangdong will outpace Taiwan in 2008."

This year Guangdong's GDP growth rate is estimated at 14 per cent and its GDP is expected to top 2.5 trillion yuan (US$308.26 billion), Li said.

Taiwan's GDP reached US$323.4 billion last year.

"As a matter of fact, the provincial authorities attach greater importance to the sustainability of economic development rather than the speed of GDP growth," Li said.

"That is why the province has adjusted its annual GDP growth rate to 9 per cent in the 11th Five-Year Plan (2006-10)."

The yearly GDP growth rate was 13 per cent from 2001 to last year.

Energy, environment concerns

"Whether the province can lower energy consumption and improve the environment as expected, depends crucially on the sustainability of Guangdong's economic development,

"Though it is among the regions that have the lowest energy consumption per 10,000 yuan (US$1,233) GDP in China, Guangdong, the economic powerhouse of China, still have to figure out effective ways to lower the energy consumption rate," Li said.

The province lacks its own energy resources. It is dependent on other regions of the country and imports for more than 90 per cent of its energy.

The shortage of power, petrol and gas from time to time in the past few years has caused concern for the province, Li said.

Guangdong has been highlighting high-tech industries, encouraging independent innovation and generally speeding up the development of industry, he said.

The province has placed controls on heavy energy-consuming industries and encouraged existing enterprises to revamp equipment with energy-saving devices.

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