Revitalizing Northeast China would boost China's economy

"By 2020, the total labor productivity in Northeast China will grow by an average annual rate of 6.2 percent, which will lay a solid foundation for the development of the northeastern region into a forefront of the country's modernization." During the key stage to revitalize the northeast industrial base, the National Development and Reform Commission published the "13th Five-Year Plan for the Revitalization of Northeastern China," which clarifies the general course, describes development targets, puts forward the steps to be taken and points out the direction for the overall revitalization of the Northeast so as to win this tough battle.

As an old industrial base, Northeast China occupies a critical position in the country’s development. Thus, the revitalization of Northeast China's economy is not only an important task for the development of the national economy, but also for the revitalization of state-owned enterprises.

The northeast old industrial base achieved brilliant results in the planned economy period and made outstanding contributions to the building of an independent and complete industrial system. But because of structural and institutional conflicts, coupled with China's economic development trend showing higher and more complex divisions, it turns out that how to focus on the revitalization of the northeast economy has become an urgent task.

It should be noted that Northeast China has undergone many difficulties in recent years. Since 2014, the growth rate of Northeast China ranks last in the country. In 2014, the GDP growth rate of Heilongjiang, Liaoning and Jilin was 5.6 percent, 5.8 percent and 6.5 percent respectively, and then in 2015, they were respectively 3 percent, 5.7 percent, 6.5 percent. From January to September in 2016, the economic growth rate in Liaoning was -2.2 percent, in Jilin 6.9 percent, and in Heilongjiang 6 percent, compared to a national average of 6.7 percent. Northeast China ranks at the bottom of the four developing areas in China. The grim situation facing the region is therefore not only a development problem for the three provinces, but also for the whole nation.

To rejuvenate and revitalize the Northeast economy, we need to focus the utmost attention and take effective measures to make the old industrial base flourish and bloom.

For the Northeast, the investment environment can directly determine the speed of economic development. Fortunately, a series of policy support for investors has brought great hope. Throughout last year, the CPC issued a series of initiatives to help the Northeast. These initiatives were taken in a timely manner, which can help to solve the pressing problem of the development for the regional economy.

In order to revitalize the Northeast’s economy, it’s unavoidable to get rid of unresolved institutional mechanisms conflicts and long-term economic structural problems. There is an explicit explanation as to the plight facing the Northeast in "Several Opinions on Comprehensive Revitalization of the Northeast Old Industrial Base:" The level of marketization needs improving; the state-owned enterprises lack vitality; the development of the private economy is not sufficient; integration between development of technology and economy needs deepening. These conflicts and problems come down to the institutional issues, and the issues of industrial institutions and economic institutions. Industry is the pillar of modern economy, as well as the leverage of the development of the national economy. The flourishing and blooming of the national economy cannot do without the development of the industry. We hold great hopes for the fertile lands of Northeast China. The region has great advantages in population, resources, industry, intellectuals, infrastructure, location etc., and has great potentials. In the long run, the Northeast has the conditions for economic development, so the present difficulties are only temporary as long as reforms are implemented.

Zhang Shenglei, PhD in International Relationships, Macau University of Science and Technology.