Northeast China, made up of Liaoning,
Jilin
and Heilongjiang
provinces, is China's old industrial base and an important grain
base. The region has abundant natural resources, integrated heavy
industries, solid infrastructure and a strong pool of human
resources.
However, it has lagged behind other coastal provinces in recent
years. All three provinces now face the same difficulties: many
state-owned enterprises have gone bankrupt and thousands of workers
have been laid off; natural resources are exhausted in some places,
and low incomes in the agricultural sector has caused farmers to
cut back production.
To revitalize the old industrial base, the Chinese government
has decided to put certain preferential policies in place for the
region. In December, the State Development and Reform Commission
announced that 61 billion yuan (US$7.4 billion) was to be invested
in the first 100 projects.
Nevertheless, the three provinces have come to the conclusion
that system innovation is crucial for their development.
“We need adjust the structure of state-owned enterprises and
adopt joint-stock systems for them. We also need to create a good
investment environment for private domestic and foreign investors,”
said Zhang Zuoyi, governor of Heilongjiang Province.
He said that Heilongjiang Province is set to develop a mixed
ownership economy.
Jilin Province Governor Hong Hu believes that the greatest
problem of the old industrial base is its outdated industrial
structure and systems. Structural adjustment, he said, is crucial
for the revitalization of northeast China.
Hong said that Jilin Province will accelerate this type of
necessary structural adjustment, encourage modernization in
agriculture, develop the service sector and fully upgrade secondary
industry.
"We will began to develop light industry and we will use high
technology to rebuild the traditional industries," he said.
None of the three governors was eager to respond to questions
concerning regional cooperation and division of industries. Each of
the three provinces is making an individual effort to develop
certain industries, including autos, steel, petrochemicals and
heavy industry. They are competing for both domestic and foreign
investment.
"We each need to adjust the industrial layout in the region
according to our own advantages, and prevent redundant
constructions," said Zhang Zuoyi. He provided no further
details.
(China.org.cn by staff reporter Tang Fuchun March 13, 2004)