With economic development now at a fairly advanced stage along the east coast and in southern China, and with central China receiving a welter of grants and subsidies to attract commercial and industrial investment, the government’s next stated economic objective has seen a geography shift.
The economic development of the former ‘rust belt’ of northeastern China is an area that the government has long sought to boost, but it has now accelerated its approach to stimulate both long-term growth and a diversified economic base.
Northeastern China has traditionally been a key centre of heavy manufacturing, shipbuilding and automotive production, particularly during the command economy days of the 1960s and 70s. It has, however, been struggling to adapt to the demands of China’s 21st century economy. Now, Premier Wen Jiabao is pinpointing the region as “a new engine for China’s economic growth,” according to state media.
The Premier’s statement represents a governmental push to ramp up industrial diversification, attract new commercial investment and improve economic efficiency in the northeast – a region encompassing Liaoning, Jilin and Heilongjiang provinces and the Inner Mongolia Autonomous Region. The northeast has received significant foreign investment in recent years, with cities like Dalian, Shenyang and Harbin attracting most interest from both Chinese and foreign companies investing in the region.
