The three northeastern provinces of Heilongjiang,
Jilin
and Liaoning
have reported growing inflow of foreign funds since the Chinese
government launched a strategy of revitalizing these major but
rusty industrial bases over a year ago.
Jilin province, where China's first automobile maker -- the No.1
Automobile Works (FAW) Factory -- is located, drew 1.19 billion US
dollars in contractual foreign investment in the first 10 months
this year, a year on year rise of 167.7 percent, according to Li
Jieche, vice-chairman of the Standing Committee of the Jilin
Provincial People's Congress.
Shenyang, capital of Liaoning province, brought in 1.47 billion
US dollars in foreign investment in the January-October period this
year, up 52.9 percent over last year's same period, according to
the city government statistical bureau. The used amount of foreign
funds by Liaoning in the first 10 months rose by 90 percent year on
year.
The inflow of overseas investment to the three northeastern
provinces amounted to a record high of 3.4 billion US dollars in
the first six months of the year, a year on year rise of 72
percent, according to the Office for Revitalizing the Old
Industrial Base in Northeast China under the State Council, or the
Chinese central government.
Foreign funds mainly go to such sectors as equipment
manufacturing, raw materials, chemicals, electromechanical
products, modern agriculture, high tech and automobiles.
Lu Song, a research fellow with the Development and Research
Center with the Liaoning Provincial Government, said that factors
such as the new round of industrial structural adjustment and
upgrading in the country, the strategy of the central Chinese
government to rejuvenate the area and an improved investment
environment have all contributed to the region's fast growth, which
caught the attention of an increasing number of foreign
investors.
After the founding of New China in 1949, the northeast region
contributed the country's first steel, machine tools, locomotives
and planes, and is still seen as having numerous advantages in
these sectors. Many of the traditional industrial companies have
become less competitive, however, and some have been losing money
over the past two decades, as China has shifted from a planned
economy towards its reform and opening-up policies.
China launched a strategy to revive the northeast industrial
rusty belt last year, aiming to turn the region into the new growth
area of the national economy.
As part of their effort to draw more foreign funds, Heilongjiang
and Liaoning provinces made 2004 the "year of improving investment
environment" and the "year of investment and construction." Jilin
has worked out measures for attracting foreign funds, such as
foreign investors are encouraged to take part in the reform and
retooling of state-owned firms by taking over or buying into
state-owned firms.
Wang Min, acting governor of Jilin, said his province has set it
a target to revitalize through development of new industries,
education and science and ecological improvement. "We hope to turn
Jilin into a new-type industrial base of China by 2010 or a little
bit after that."
Zhang Wenyue, governor of Liaoning, noted his province has set
to maintain sustainable economic development and strive for a per
capita GDP of 3,000 US dollars by 2010.
Governor Zhang Zuoji of Heilongjiang said, "We'll join Jilin and
Liaoning in turning the northeast region into a new economic growth
area of China following the Yangtze River Delta, the Pearl River
Delta and the Bohai Rim."
(China Daily December 15, 2004)
