China is all set to revitalize its northeast region, commonly called the rustbelt region, via multiple reforms and economic restructuring, as per a report by People’s Daily Online.
State-owned enterprises (SOEs) will be restructured, private firms will receive more support and regional cooperation will drive development, according to the document jointly published by the Communist Party of China (CPC) Central Committee and the State Council.
The region’s equipment manufacturing sector will be modernized, and high-end industries, the modern service sector and modern agriculture will all be supported, it said.
The northeastern region, which includes Liaoning, Jilin and Heilongjiang provinces, was among the first regions in China to become industrialized. Its traditional industries include steel, automobile, shipbuilding, aircraft manufacturing and petroleum refining.
However, this once robust industrial base is bearing the brunt of a more acute slowdown than the rest of the country, trailing well behind in terms of GDP growth.
The region is experiencing growing downward pressure on growth while SOEs are lacking in vitality, according to the document.
By 2020, industries in recession and regions with dwindling resources should have transformed their growth patterns, the document said.
In a bid to modernize the ancient silk route and boost trade ties between the West and the East, Chinese authorities are also promoting the “two belts, one road” strategy that will bring new opportunities not only for Chongqing, the heartland city of China, but also for global investors.
In another ten years, northeast China should become the manufacturing base for advanced equipment and a strategic base for technological equipment. The region should become synonymous with new raw materials, modern agriculture and innovation.
Excerpts from People’s Daily Online. Image courtesy of Reuters/China Daily