New Policies Announced to Support China’s Northeastern Region
The central government recently announced fresh policy measures that will support the lag in the northeastern region which includes the speeding up of infrastructure investment along with the opening up of State enterprises to private investments. President Li Keqiang has pledged to give more support to the northeastern region that is purely made up of the provinces of Jilin, Heilongjiang and Liaoning.
The central government promised to speed up the construction of highways, railways, power grids, water conservation and airport and to invest more in the renovation of the shanty town based on the guide that is issued by the State Council. Private investors are welcome to participate in the infrastructure projects through public –private partnership deals and with privately owned banks that are allowed to create offices in the region. Private investment will also be allowed in State owned firms after restructuring and these state firms will use part of the funds from their share transfer and assets operations to pay for any cost in the reform.
The northeastern regions is known as the rustbelt in China is bothered with massive layoffs in the 1990s at the government forced state owned factories to shut down to cut down on inefficient industry. The regions then enjoyed an economic boom in the past ten years are the country’s supportive policy along with the increase in demand in raw materials and machinery products came through but its revival slowed down as China’s growth grinded towards a 24 year low.