
Since enacting its 2009 stimulus package, Beijing has dramatically expanded its transport infrastructure to better connect the major cities in the country's interior to the rich coastal provinces. Building out this infrastructure has led to increased foreign direct investment (FDI) in Central China. Attracting FDI is necessary to improve the Chinese interior's economic prospects — improvement that is important for Beijing's goal of transitioning from a heavily export-based economic model to one that utilizes more domestic consumption. However, most of the areas being integrated with the coasts through new infrastructure (and thus receiving the most FDI) are already large urban centers, and many rural areas have been left behind. The continuing disparity between urban and rural areas in the Chinese interior will make it difficult for the country to establish a more balanced economic model unless other reforms are undertaken.