After Covid-19 swept east of the country, under pressure from the United States, China decided to pave the way to a vast, energetic west.

Beijing on May 17 announced the latest details of its "Westward" plan, as it prepares for the post-Covid-19 world, which is expected to be less friendly with China.

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Newly built residential area in Yanzhou County, Shaanxi Province, China in April 2019 Photo: Xinhua

Although senior government officials once claimed the second largest economy in the world will continue to open, the new plan they are pushing is shifting inward, focusing on the vast domestic market.

"Strengthening efforts to promote western region growth is an important decision, made to meet the requirements of balanced regional development, while also coordinating interests in general, both at home and abroad.

The plan includes a series of new transport infrastructure initiatives for the western regions of the country, such as the Sichuan-Tibet railway project, or the high-speed rail line along the Yangtze River, and numerous airports.

The Chinese government will also develop new energy projects, such as oil and gas underground facilities, and encourage industrial projects to shift their operations westward instead of relocating abroad.

Beijing made a similar plan called the Western Development Strategy in 1999, covering more than 10 provinces, accounting for three-quarters of the country's territory and a quarter of its population.

By the end of 2018, after nearly two decades of implementation of the plan, the contribution to the national economic output of western provinces of China increased by 1.8% to 20.5%.

However, during Covid-19's devastation of the country, the western provinces showed better economic resilience.

The new "West" plan recognizes the importance of western China in meeting the government's goal of reducing poverty by the end of this year.

Economic self-reliance has long been China's goal.

However, this policy largely stalled after leader Deng Xiaoping focused on market reform four decades ago.

China is facing a big challenge to maintain its role in the global value chain.

"The disruptions and economic losses caused by the global crisis will change the dynamics of globalization. Most Western governments will want to reduce their dependence on China for goods.

The "Westward" plan also highlights the need to promote Xi's Belt and Road Initiative, which aims to expand China's international influence, through its network of infrastructure projects and

The inland provinces of the west are at the end of the east on this modern "Silk Road".

"The landscape outside of China is undergoing significant changes even before the pandemic, such as the trade conflict between Beijing and Washington. China will rely more on domestic demand for future growth.