Opinions of the State Council on Further Implementing the Strategy of Revitalizing the Old Industrial Bases Including Northeast China (1)
Source: MOFCOM View: 525 Date: 2011-05-16

People’s governments of provinces, autonomous regions and municipalities directly under the Central Government, and ministries and commissions directly under the State Council,

Important by-stage achievements have been made in the past five years since implementation of the strategy of revitalization of the old industrial bases including Northeast China. Specifically, major breakthrough was made on institutional innovation with focus on reform of state-owned enterprises, the economic system with diversified ownership structure was under rapid development, the economic structure was optimized, the independent innovation ability was obviously improved, those bases were more open to the outside world, the infrastructure was ameliorated, key livelihood issues were gradually solved and both urban and rural areas took on a new look. It is proved by the practice that the strategy of the Central Government for revitalizing the old industrial bases including Northeast China is timely and correct. However, deep-rooted problems on aspect of system and structure in the old industrial bases including Northeast China are to be solved, the achieved results are to be reinforced and the potential for accelerated development are to be exerted. In current situation, the government shall learn from experience gained from practices, enrich the revitalization strategy and formulate new policies and measures in a timely manner, which are necessary to counter global financial crisis, promote steady and fast economic development and boost rejuvenation of the old industrial bases including Northeast China. To this end, opinions are proposed as follows:

I. Optimize economic structure and build a modern industrial system

1. Speed up merger and restructuring of enterprises. The principle of market domination and government guidance shall be insisted on and regional, industrial and ownership limits shall be eliminated. Efforts shall be made to optimize resource allocation, promote merger and restructuring of enterprises and develop large corporation groups with international competitiveness. Where any association and restructuring of enterprises in Northeast Region involves disposal of any asset of “shares converted from debts”, the right concerning such shares shall be properly handled by new disposal approaches according to real situations. China supports association and restructuring of large corporation groups under the Central Government with local enterprises, encourage private and foreign-invested enterprises to participate in reform and restructuring of enterprises in the old industrial base and give prior supports to merged or restructured enterprises for their technical transformation.

2. Make great efforts to facilitate nonpublic economy and small and medium sized enterprises. A fair competition environment shall be created to equally protect different ownerships and boost development of nonpublic economy. Policies on financing, taxation and market access shall be put into effect to encourage nongovernmental investment in infrastructure, public utility, financial service and social causes. The government shall promote the co-development of public assets, private assets and foreign assets and actively develop the mixed-ownerships economy. Employees are allowed to hold certain percentage of shares of their restructured enterprise. Small and medium sized enterprises shall be guided to innovate in institutional system and improve operation and management level and market competitiveness. The advantages of concentration of large enterprises in the old industrial bases including Northeast China shall be fully exerted and small and medium sized enterprises are encouraged to establish cooperation relationships with large enterprises to form industrial chains and develop to be “professional, unique and superior”. The government shall improve its service to small and medium sized enterprises’ entrepreneurial financing, continue the establishment of the credit system and the credit guarantee system for such enterprises and support small and medium credit re-guarantee enterprises and their affiliates to expend their businesses.

3. Improve and empower pillar industries. The plan on adjusting and revitalizing key industries shall be carried out. More efforts shall be made on structural adjustment, elimination of backward facilities and avoidance of repeated construction. The government shall actively promote IT-based industrialization, transform traditional industries by modern IT means and improve the level of digitalization and intellectualization. The more shares of the Central Government budget shall go to adjustment and reconstruction projects in the old industrial bases including Northeast China. Industries with competitiveness, key enterprises and important brands in this region are encouraged to increase market shares. More efforts shall be made to increase the production of large castings and forgings, nuclear power equipment, wind power equipment, shield machinery, advanced vessel and marine engineering equipment, large agricultural machinery, high-speed motor chain units, high-power locomotives, high-end digital control machine tools and key parts and components, which are of competitiveness and are in urgent need in market. Enterprises are encouraged to purchase equipment made in China and apply initial important technical equipment. The Export-Import Bank shall arrange certain credit quota annually to support export of important technical equipment made in northeast China and the People’s Bank of China and the Administration of Foreign Exchange shall give policy supports. More efforts shall be made to promote structural adjustment of auto industry in northeast China, mainly developing autos of self-owned brands, autos with small capacity engines, autos using new energy and key parts and components. The product structure of steel industry shall be further adjusted. Efforts shall be made on energy saving and emission reduction, elimination of backward facilities and improvement of market competitiveness. Meanwhile, more efforts shall be made on resource exploration and development and foreign cooperation, and improvement of guarantee level of ore resources supply. The oil industry shall be optimized. The organs concerned shall speed up the execution of large oil-refining and ethylene projects, improve processing capability and develop fine chemicals and chemical fertilizer industries.

4. Take initiatives to nurture industries with potentials. The region shall develop basic support parts and components, processing tools and special raw materials by taking advantage of its strong equipment manufacturing ability. It shall develop civil-military dual-purpose technologies by take advantage of concentration of military industrial enterprises to promote co-development of civil and military purpose technologies and enhance the leading role of military industrial enterprises. Relying on its advantage as a raw material processing base, the region shall spare no efforts to develop downstream distinctive light industries. With the advantages of its large quantity of agricultural and forest products with superior qualities and its developed stockbreeding, the region may put more efforts on development of deep processing of agricultural and forest products. The advantage of abundant Chinese medical plant resources shall be given full play to develop modern Chinese medicines. Since it is located in the center of northeast Asia, the region shall enhance its cooperation with neighboring countries on energy and resources development. Emerging industries including aviation, electronic information, biological pharmaceutics, new energy and new materials shall be proactively developed. Local governments are encouraged to set up special support funds for those industries with potentials.

5. Speed up the development of modern service industry. Domestic and foreign financial institutions are encouraged to establish branches and offices in Northeast Region. Cities that meet certain requirements are encouraged to undertake financial reform and innovation. Small and medium financial institutions are under active support. The region may promote establishment of auto financial companies and expand auto consumption financing channels. The northeast property transaction platform shall be improved on aspect of mutual connection, regional integration and function expansion. Dalian Commodity Exchange is supported to build itself an important futures transaction center in Asia and launch new types of futures with competitiveness in northeast China and consistent to its functional positioning based on improvement of its current listing future types. The modern logistics shall be facilitated. Researches shall be made to formulate special plans for development of logistics in northeast China and a batch of major regional logistics parks shall be established in a comprehensive way. The development of software and service outsourcing industries shall be quickened. Three service outsourcing demonstration cities---Dalian, Harbin and Daqing---are under major support and Yanji and Suifenhe are encouraged to take advantages of their unique locations to develop software and service outsourcing industries. The plan for adjustment and revitalization of cultural industry shall be carried out to support accelerated development of cultural industries including cultural innovation, publishing and distribution, production of films and TV programs, performances and recreation, cultural exhibition, digital sector and animation, so as to create cultural brands with characteristics of Northeast Region. Constructions of public cultural infrastructure and projects for benefits of the public shall be strengthened and the public cultural service system shall be improved. Efforts on protection of cultural relics shall be heightened and overseas cultural exchange shall be expanded. More efforts shall be made to develop tourism. The organs concerned shall launch special plans for tourism development in Northeast Region as soon as possible to enhance construction of tourism infrastructure, develop appealing destinations with distinctive features and improve management and service level, so as to build barrier-free larger northeast tourism zone.

6. Support the fast development of clusters of key industries. Liaoning coastal economic zone, Shenyang economic zone, Heilongjiang-Daqing-Qiqihar industrial corridor and Changchun-Jilin-Tumen region economic zone are encouraged to speed up development and become high-class modern industrial bases in China. The organs concerned shall formulate development plans to support Shenyang Tiexi old industrial base to be adjusted and reconstructed as a new demonstration zone of equipment manufacturing and support the development of the equipment manufacturing clusters in Dalian, so as to create an advanced equipment manufacturing base with international competitiveness. Efforts shall be made to promote the construction of the energy and heavy chemicals base in east area of Inner Mongolia, coal-based power and chemicals base in east area of Heilongjiang and coal-based chemicals in west area of Liaoning to improve the transformation and utilization level of resources. The leading role of hi-tech industrial bases including Shenyang, Changchun, Harbin, Dalian and Tonghua shall be fully exerted to form advanced industries and industrial clusters with core competitiveness. Regions with mature conditions are supported to establish distinct industrial parks with influences and large scale. The development of Changchun automobile industry development zone and railway transport equipment industrial park shall be speeded up. Endeavors shall be made on establishment of Dalian national ecological industrial demonstration zone (under category of venous industries). The expansion of national economic and technical development zones and upgrading of major provincial development zones that meet requirements in northeast China shall be promoted.


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