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Economy

Problems the Northeast must solve(2)

1
2016-03-28 10:39China Daily Editor: Feng Shuang

"We produce good grains, but our mooncakes are all imported from Guangdong province in the south," says Li Junjiang, chief of the School of Economics, Jilin University.

Local enterprises tend to solve problems through their close relationships with officials instead of market means, Li added.

What should the resource-intensive provinces do? How do they reverse the falling trend?

"Investment is still the most effective policy," says Ren Kai, a planning official with the Shanxi provincial development and reform commission.

Ren's remarks reflect the mentality of officials in the provinces. As demand dips, heavy investment in big projects becomes their main tool to stabilize economic growth.

To attract investment, the Liaoning provincial government has set up a 10-billion-yuan ($1.53 billion) "guiding fund" to facilitate cooperation between State and private capital. In neighboring Jilin, officials have expedited infrastructure construction. And Heilongjiang had started at least five programs by September 2015, each with an investment of over 10 billion yuan.

Another major move is to develop new industries and extend the industrial chain. In Inner Mongolia, one coal mine after another has been trying to extract gas and oil from coal, in order to produce cleaner energy.

And Shanxi is putting more emphasis on sectors such as cultural tourism, agriculture and gas exploitation.

New policies (Mar 20-26)

Establishment of China Aerospace Day

The State Council, China's cabinet, has approved the establishment of a China Aerospace Day, which will fall on April 24, starting this year.

Natural disaster relief plan issued

The State Council has released a revised national natural disaster emergency relief plan, which also covers natural disasters in border areas that have a major impact on China.

Business tax to VAT reform formally announced

The Ministry of Finance and the State Administration of Taxation issued a circular that said the business tax will be replaced by a value-added tax starting on May 1.

Adjustment of hygiene and food business licenses

The China Food and Drug Administration and the National Health and Family Planning Commission recently issued a circular revoking licenses for restaurants, cafes, bars and tea houses issued by local hygiene departments as management of food safety and hygiene licenses will be handed to the food and drug authorities.

Urban taxi management rule abolished

The Ministry of Housing and Urban-Rural Development and the Ministry of Public Security abolished the urban taxi management regulation on March 16.

Quality supervision method issued

The State Administration for Industry and Commerce passed a new regulation on the supervision of product quality, which will become effective on May 1. It forbids sales of products with the so-called three-nos. That is they do not have any information on the manufacturer, date of production or correspondence.

Financial support for poverty reduction urged

The People's Bank of China and six other departments issued implementing instructions requiring relevant departments to support poverty reduction programs after thoroughly assessing the financing needs of poor people.

  

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