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Foreign investment in Liaoning Province in Northeast China has almost doubled after one year's implementation of the country's Northeast Rejuvenation strategy.
Ongoing construction of two major bases in Liaoning a modern equipment manufacturing base and a key raw materials base, will provide greater opportunities to investors, says Wang Wanbin, vice-secretary of the Liaoning Provincial Committee of the Communist Party of China.
In the first eight months, foreign direct investment (FDI) to Liaoning reached US$2.89 billion, rising 96 percent. The growth rate far outpaced the national rate of 18.77 percent in the same period.
Wang said the country's strategy to revitalize Northeast China, which include Liaoning, Heilongjiang and Jilin Provinces, is paying off.
"The strategy gave birth to many big projects and beefed up reforms of State-owned enterprises, which enabled many opportunities for foreign investors," Wang said.
Policy incentives have brought vitality to Liaoning, which has a strong industrial capacity, he said.
The northeastern region is home to China's most important manufacturing enterprises, oil wells and metal mines, as well as defence sector manufacturing.
The region's economy has experienced hardship since China introduced a market system a decade ago, largely because of a heavy tax burden and excessive staff in its mammoth State-owned factories.
The State's Northeast Rejuve-nation scheme is pivotal to rebuilding the region and making it a new powerhouse for the country's economic growth, alongside the Yangtze River Delta, the Pearl River Delta and the Beijing region.
Most of the investment is focused on "two bases" and "three industries," according to Liu Guoqiang, vice-governor of Liaoning.
Liaoning has set out to develop itself into China's manufacturing and materials base, attaching great attention to high-tech, agricultural products processing and service sectors, Liu said.
Many of its products are in dominant positions in domestic markets.
Its petrochemical capacity, for example, is the third strongest in the country; its crude oil processing ranks first; and its comprehensive metallurgical capacity ranks second.
Its iron and steel, light passenger car, ship building, and digital-controlled machine tool industries are famous throughout the country.
Liu predicted more opportunities will be created for investors as the rejuvenation project broadens.
Liaoning has listed 690 technical projects, which need total investment of 650 billion yuan (US$78.5 billion), Liu said.
The province is in the process of building the nation's largest oil and petrochemical production base and special steel and construction steel bases.
Ten IT-related production lines are being prepared, including digital medical equipment, Liu said.
In the central government's rejuvenation strategy for the Northeast, Liaoning will have a decisive role.
At present, the province's gross domestic product accounts for 46 percent of the three provinces in Northeast China, its industrial added value accounts for 44 percent; fixed assets investment accounts for 47 percent.
Meanwhile, due to its advantageous position, Liaoning's import and export volume stands at 70 percent of the total of the three provinces; and the amount of foreign investment is about 78 percent.
(China Daily October 19, 2004)
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