The government has vowed to conduct pilot business environmental assessments in Northeast China, a rust belt that has suffered years of industrial decline, to further revitalize the economy there.
These assessments are part of a broader effort discussed at a State Council executive meeting presided over by Premier Li Keqiang on Thursday. The cabinet's meeting proposed steps to revitalize the region, including a plan for local departments to give greater support to decentralization and break the hidden barriers to strengthening the private economy.
Experts said the move, which comes amid China's shift to a quality-driven development model and industrial upgrading while facing an unstable external environment, shows the central government's resolve to address longstanding imbalances in regional development.
"Support policies for the area, such as subsidies, industry development support and infrastructure construction might come up later to better realize the revitalization plan," Cong Yi, a professor at the Tianjin University of Finance and Economics, told the Global Times on Monday. The three northeastern provinces - Liaoning, Jilin and Heilongjiang - have struggled with declining growth, falling investment and daunting business environments for years.
In 2016, the central government rolled out measures to revitalize the region such as setting up a free trade zone in Liaoning, streamlining administration and improving the business environment.
The growth of the three provinces has recovered slightly in recent years. For example, the GDP growth rate of Liaoning Province in 2018 was 5.7 percent, compared with a decline of 2.5 percent in 2016.
The governor of Liaoning Province said early this year that the local economy had bottomed out and entered a stable, sound development track.
The latest figures showed that in the first quarter of 2019, the economy of Liaoning grew by 6.1 percent year-on-year, Heilongjiang's economy grew up 5.3 percent, and Jilin's economy expanded by 2.4 percent.
However, rejuvenating Northeast China is a long-term project, and the meeting said the process is at a critical stage.
"One of the major barriers is uncertainty in Northeast Asia," Cong said. "If a trade zone could be finally established, China's northeast region, which sits at the center of the zone, might find new opportunities for development."
Obsolete industrial structures, institutional problems and weak markets are also problems that have long existed in the region, and they need to be addressed though long-term efforts and radical reform, Cong noted.
