State Owned Enterprises to Invest in Northeastern Province as Part of Revitalization Program
Central State owned enterprises in China are expected to invest around 1 trillion yuan in the rustbelt northeastern province as part of the Cabinet’s program in revitalizing the region in the next three years. These State owned enterprises have already signed agreement and have started initial work on 91 projects in Liaoning and another 82 projects in discussion.
These enterprises have already showed their intent to cooperate in 183 projects and shelling out investment in the province that reached 1 trillion yuan that will be spread in the span of three years. Last August the Cabinet announced a series of fresh policies that will support the lagging northeast which include the speeding up of infrastructure investment and the opening up of State firms to private investment.
Premier Li Keqiang has pledged to provide support to the northeast region a place that is made up of the provinces of Jilin, Heilongjiang and Liaoning. The government will be speeding up the construction of railways, airports, highways, water conservation and power grids and sill invest more in the renovation of the shanty towns. The government will also be allowing privately owned banks to set up in the region.
Called the China’s rustbelt, the northeastern region was hit with massive layoff since 1990s as the government was forced to close down state factories to cull the inefficient industry. Then thr region enjoyed an economic boom in the past ten years due to the support policy that the Central Government issued along with the increase in the demand for raw materials and machinery products, but slowed down as the economic growth grind towards a 24 year low.
To combat this, the government will be encouraging the region to accept technological innovations and to support new industries such as the use of robots, gas turbines and high end equipment.