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Northeast China's Heilongjiang Province will vigorously encourage foreign and private investors and optimize its investment climate, said Qian Yunlu, Party secretary of the province.

 

Qian said: "The province saw fast economic development last year because foreign and private investment played important roles. This year, the province will enhance opening up and attract more capital inflow."

 

Total utilized foreign investment last year amounted to US$1.75 billion, a growth of 14.9 percent year-on-year. Of this, foreign direct investment was US$1.71 billion, an increase of 18 percent.

 

Further, the incremental value of the private economy in 2006 recorded 234 billion yuan, growing by 20.1 percent and accounting for 37.6 percent of the gross domestic product of the province.

 

Meanwhile, tax revenue from private enterprises hit 20.5 billion yuan, a rise of 17.8 percent.

 

"This year, the province will work steadily to improve its market, legal and service environment in order to protect investors' legal rights," Qian added.

 

Immense opportunities

 

The Party secretary said he believes the province's rapid economic development is set to continue.

 

Experts predict 2007 will be a key year for Heilongjiang's reform and development.

 

"The province's opportunities outstrip the challenges ahead this year," Qian said.

 

Heilongjiang is now benefiting from the nation's macroeconomic adjustment measures, including the strategies of revitalizing Northeast China's traditional industry bases and building the socialist new countryside.

 

Russia, the largest foreign trade partner of Heilongjiang, is expected by market analysts to maintain economic growth of 6.5 percent this year. This will benefit Heilongjiang's foreign trade.

 

The Harbin-Daqing-Qiqihar Industry Corridor is expected to develop into a key economic growth area for the province.

 

Connecting the province's three major cities of Harbin, Daqing and Qiqihar, the corridor's initial area covers 58.7 square kilometers. A total of 377 projects are now in operation, with a total investment of 22.4 billion yuan.

 

The area boasts advanced human resources and transportation facilities and enjoys preferential policies.

 

Acceleration of urbanization and the effects of State enterprise reforms have helped the province on to the development fast track, and more and more job opportunities are being created everyday.

 

Active player

 

Private enterprises in Heilongjiang witnessed the fastest development in 2006, fueling the overall economic growth of the province.

 

Jia Dongmei, director of the Heilongjiang Small and Medium-sized Enterprise Bureau, said export and import value of private enterprises hit 8.53 billion dollars last year, accounting for 66.4 percent of the province's total export and import value, while the year-on-year growth was 49.4 percent.

 

"Private enterprises have become the most active player in foreign trade in Heilongjiang," said Jia.

 

Many leading private enterprises have emerged in Heilongjiang. Over 200 of them have earned annual income exceeding 100 million yuan each.

 

The province's three major private enterprises the Heilongjiang Sunflower Medicine Ltd, Qitaihe Yidaxin Coal Co and Heilongjiang Yiyang Group have each contributed more than 100 million yuan in tax revenue to the province last year.

 

At present, many private investors are involved in large construction projects in Heilongjiang.

 

Last year, 928 large projects absorbed private capital of 5 million yuan each, and 101 projects attracted 100 million yuan each in Heilongjiang.

 

The province will attach more importance to the development of private enterprises this year, Heilongjiang's government work report in 2007 has stated.

 

(China Daily March 7, 2007)