Three Gorges Dam Project Demonstrates China’s Domestic Growth Ambitions

[Editor's Note: Money Morning Investment Director Keith Fitz-Gerald is one of the world's leading experts on Asia, especially China. Right now, Fitz-Gerald is leading an investment tour of the Red Dragon, and he'll be sending along regular investment travelogues to update Money Morningreaders on his latest observations. Fitz-Gerald previously wrote about how China is capitalizing on the global financial crisis.]

By Keith Fitz-Gerald
Investment Director
Money Morning/The Money Map Report

FENGDU, The People’s Republic of China – We’ve been underway now for the better part of the day in this area of China, and the vistas along the fabled Yangtze River have been spectacular.

In the old days, Sichuan’s rugged mountains served to isolate this area from Eastern China, so the river was essentially the only means of accessing inner China. The journey was a long and dangerous one, with the Yangtze running hard and fast through the Three Gorges and their sheer-faced cliff walls. It’s every bit the journey of legend and the one so often depicted in cinema.

Today, though, thanks to the soon-to-be finished Three Gorges Dam, the shoals have disappeared, and the journey is a pleasant one that can be taken in stride aboard any of a half dozen cruise ships – like the Victoria Queen we’re on – that ply the waters taking tourists to interesting sites – such as Fengdu’s Ghost City on Ming Mountain, which we visited earlier this afternoon.

Fengdu itself is an interesting story and is part of the quickly changing tapestry that is modern China. Originally located on the river’s western bank, Fengdu was completely relocated to the eastern shore to accommodate the river’s rising waters as the water level rose behind the Three Gorges project. The water has already risen some 150-160 meters, and will rise as much as 175 meters before the dam is finished later this year.

Last year, I could still see remnants of “Old Fengdu” on the western bank, which was still inhabited by a few holdouts – and their cows – who all refused to leave. Now, though, they’re gone, too.

Today, new Fengdu city rises in a sheen of new buildings that’s growing almost by the minute. In fact, I’ve already spotted several buildings that literally were not there 12 months ago when I was last here. And I’m not talking small stuff, either. These are 30-story and 40-story high-rises that would take years to build anywhere else in the world.

Here in China, however, it’s all in a year’s work – change that takes place on an unprecedented scale, made possible by new, innovative planning – not to mention good-old-fashioned patience.

News and Related Story Links:

• ChinaCulture.org:
  Yangtze River.

• ChinaTravelTourGuide.com:
  Fengdu Ghost City.

• CNN.com:
  Three Gorges Dam.

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