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China to Rejuvenate Northeastern Rust Belt

China's government has unveiled new targets in its plans to rejuvenate its old northeast industrial economies in 10 to 15 years in a document published on Monday by the country's top planning body.

The northeastern region, including the provinces of Liaoning, Jilin, Heilongjiang and eastern Inner Mongolia, has an area of 1.45 million square kilometers and a population of 120 million, said the document from the National Development and Reform Commission (NDRC).

"The region will be built into a major powerhouse for economic growth, an internationally competitive manufacturing hub, a national source of raw materials and energy, and an important base of grain and farm produce," said the document.

In the last three years the northeast saw economic growth catch up with the national average, with grain output setting successive records and incomes steadily increasing, said Zhang Guobao, NDRC Vice Minister.

Per capita GDP in the region is expected to reach 21,889 yuan (US$2,880) in 2010, up from 15,318 yuan in 2005, while grain output will grow an annual average of 1.9 percent to 94.5 million tons in 2010.

"Great progress is expected to be made in economic restructuring", with the service sector taking a 41-percent share in the national economy and non-public sectors contributing 48 percent to the regional GDP in 2010.

In 2005, the proportion of tertiary industry in the economy was 38 percent in the region, while private businesses constituted 36 percent of the GDP.

In a drive to improve the region's innovation capabilities, spending on scientific research will be equivalent to two percent of the regional GDP by 2010, up from 1.3 percent in 2005.

While projecting growth in key economic indices, the document also set binding targets for environmental protection and social development, in order to boost balanced and sustainable economic and social development.

Energy consumption for every 10,000 yuan of GDP must be reduced by 20 percent by 2010, while water consumption for per unit of industrial added value must be decreased by 30 percent, said the document.

The region must expand its arable land to 25.53 million hectares from 25.48 million hectares in 2005 and raise the forest coverage rate from 34 percent to 38 percent.

In 2010, pension insurance must cover 32.7 million people in urban areas, compared with 25.5 million in 2005, while the rural cooperative medical care system must benefit 80 percent of the rural population.

Urban unemployment must be kept under five percent, said the document.

(Xinhua News Agency August 21, 2007)


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