A number of local companies in the region are cooperating with reputable companies from other regions, so local managers can learn advanced management skills and adopt the latest technology. For instance, Shenhua Group Corp. Ltd., China's largest coal producer, owns a 51-percent stake in Shenhua Ningxia Coal Group, while the Ningxia Government controls the other 49 percent. Shenhua has invested more than 5 billion yuan ($732 million) in the local firm since 2006. This investment has enabled the local firm to have access to Shenhua Group's advanced coal-mining technology and company management.

"Ningxia cannot develop without external support," Wang said.

Ningxia's agricultural byproduct processing industry is also blossoming. Wang said many companies are keen on the region's wine grapes, because its climate, latitude and longitude, land and sunshine are suitable for growing them. To date, two of the country's biggest domestic wine producers, China Great Wall Wine Co. Ltd. and Changyu Pioneer Wine Co. Ltd., have both set up bases in the region to use Ningxia's wine grapes.

Cultural protection

Although Ningxia is relatively underdeveloped, it still invests in preserving its cultural heritage. The government recently built a new museum to showcase the history of Helanshan Mountain, which has the largest collection of 3,000-year-old rock paintings in the world. The regional government plans to apply to have the mountain recognized as a world heritage site.

"In the past, we invested more in economic development, but less in cultural development," Wang said. "But in recent years, we have invested heavily in cultural development." For instance, the regional government appropriated about 500 million yuan ($73 million) to build a regional library and a regional museum this year, which will become landmark buildings in the region.

Comparative advantages

Wang said Ningxia's economic progress, including its gross domestic product, rank it in the top six among the country's 12 western and central provinces and regions.

Wang also said Ningxia is a comfortable place to live, because it is neither too hot nor too cold due to its geographical location, and it has good weather. The happiness index of Yinchuan, the regional capital of Ningxia, ranks it third among 137 Chinese cities, he said.

"Although the income level in Ningxia cannot be compared with that of other developed cities, consumer prices, especially home prices, are much lower," Wang said. "Therefore, Ningxia residents feel they are comfortable living in the region." Urban employees in the region, for instance, had average per-capita disposable income of 11,000 yuan ($1,610) last year, while home prices in Yinchuan were 2,660 yuan ($390) per square meter. In Beijing, the average per-capita disposable income was twice as much as that of Ningxia last year, but home prices were nearly five times as much as in Yinchuan.

Although Ningxia is small in terms of area, Wang believes this is an advantage. He notes that the region's per-capita gross domestic product is 19th among 32 provinces, autonomous regions and municipalities in the country.

"Hui people are very good at managing businesses," Wang said. "We should not be self-satisfied with the current achievements. In the future, we will make greater efforts and advance our economy by leaps and bounds."