China works to restructure it old northeast industries

CHINA'S government has unveiled new targets for rejuvenating its old industrial economies in the northeast over the next 10 to 15 years.

The region, which includes the provinces of Liaoning, Jilin and Heilongjiang and east Inner Mongolia Autonomous Region, covers 1.45 million square kilometers and has a population of 120 million, said the report, released yesterday by the National Development and Reform Commission.

"The region will be built into a major powerhouse for economic growth, an internationally competitive manufacturing hub, a national source of raw materials and energy, and an important base of grain and farm produce," the document said.

Major firms in the region are being urged to make breakthroughs in developing and producing heavy-duty machines, machine tools, power plant equipment, automobiles, auto parts and railway equipment.

The document also called for further development of the electronic, information, biological, aviation and other high-tech industries.

To optimize the economic structure and increase job opportunities, northeast China should "vigorously develop" the service sector, including logistics, financial and commercial services, cultural innovation and tourism.

The document put the development of the economic axis of Harbin, Dalian and coastal areas high on the agenda and suggested making the most of economic and technical cooperation with neighboring countries.

The region's per-capita gross domestic product is expected to reach 21,889 yuan (US$2,880) in 2010, up from 15,318 yuan in 2005, while grain output will grow an annual average of 1.9 percent to 94.5 million tons in 2010.

"Great progress is expected to be made in economic restructuring," with the service sector taking a 41-percent share of the economy and non-public sectors contributing 48 percent to the regional GDP in 2010, the document said.

In 2005, service industry's contribution to the regional economy was 38 percent, while private businesses constituted 36 percent of GDP.

In a drive to improve the region's innovation capabilities, spending on scientific research will be equivalent to two percent of the regional GDP by 2010, up from 1.3 percent in 2005.