The Dilemma and Countermeasure for Investing in China's West Region

Investment is the major factor of economical growth in china's western areas. Since the implementation of the strategy of the Development of the West Region, the government has given preferences to investment in western areas, while the private capital has been flowing to the eastern areas through savings deposits and loans in commercial banks, which became the obstacle in the economical development. Calculating the pushing effects of the investment on western china's development and analyzing the difficult situation for investing in china's west region, the article explores the effective way to unravel this problem in order to make us better use external resources and to realize the sustainable development in economy.