China issues guidelines to rejuvenate northeast rust belt

China issued guidelines to speed up innovation and reform in northeast China to rejuvenate the rust belt region.

The central government decided to accelerate reforms in administration, state-owned enterprises and the private economy to give full play to the region's vitality, according to a statement released by the State Council on Wednesday.

The provinces of Liaoning, Jilin and Heilongjiang in the northeast were among the first areas in China to be industrialized. However, this once robust industrial base has been faced with a more acute slowdown than the rest of the country, trailing well behind in terms of GDP growth.

The northeast will pilot a negative list program for investment. The region also aims to set up at least one private bank before next June to encourage growth of the private economy.

The central government urged the three provinces to update their industries and issued a three-year action plan. It will offer fiscal support to develop emerging sectors, such as tourism, according to the document.

The three provinces will cooperate with economically developed counterparts in east and south China and four major cities in the region will partner with Beijing, Shanghai, Tianjin and Shenzhen to seek cooperation.

The central government will offer stronger fiscal support to ensure the wellbeing of local people, especially those in poor areas, according to the statement. Endi