BEIJING -- The State Council has approved a scheme to set up a demonstration zone in Lianyungang city in Jiangsu Province to enhance economic cooperation among the country's east, central and western regions, China's top economic planning body said on Thursday.

Lianyungang is of great strategic importance because it's the eastern end of the New Eurasian Land Bridge and the proposed Northern East-West Freight Corridor, and is also one of the first 14 Chinese coastal cities opening to the world, the National Development and Reform Commission said in a statement posted on its website.

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The city is located in the center of China's coast, linking eastern sea routes with western land routes and playing an important role in promoting the landlocked central and western regions' exchanges with the world.

Lianyungang has established sound partnerships with key cities of the central and western areas in logistics and other industries. The establishment of the demonstration zone will further accelerate the economic development of central and western regions and help achieve the coordinated development of all regions in China, the statement said.