Northeast sees economic revival

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August 8, 2019

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Northeast sees economic revival

Source: Xinhua | 00:00 UTC+8 August 8, 2019 |

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China’s online retail giant JD.com has launched its digital economy industrial park in northeast China’s Liaoning Province, bringing the old industrial base back in the limelight once again.

More than 50 enterprises signed up to settle in the JD industrial park, the largest in northeast China, when it opened last Tuesday.

Northeast China, including Liaoning, Jilin and Heilongjiang provinces, has long been struggling for growth due to shrinking resources and industrial over-capacity.

But a flood of investment — domestic and foreign — has been helping to restore the region’s former glory, as the country stepped up to revive the old heavy industrial hub with the emerging manufacturing industry and new energy.

More than half a month ago, e-commerce giant Alibaba reached a strategic cooperation agreement with the provincial government of Heilongjiang.

In May and June, real-estate conglomerates Wanda Group and Evergrande Group also announced investments of about 80 billion yuan (US$11.34 billion) and 120 billion yuan in Shenyang, capital of Liaoning Province.

“JD.com saw the fastest growth in orders in northeast China last year,” said Li Bin, general manager of the company’s logistics in the northeast.

In Liaoning Province alone, JD.com saw fixed asset investment exceeding 2.6 billion yuan and it plans to invest more than 8.2 billion yuan over the next three years.

Not only are private Chinese companies cashing in on the region’s economic revival but foreign capital is also coming in. In March, global oil giant Saudi Aramco invested over US$10 billion to build a joint venture petrochemical company in Liaoning’s Panjin City.

Five years ago, the economic growth of the three provinces had seen an obvious decline. Liaoning, which accounted for almost half of the economic volume in northeast China, once experienced negative GDP growth.

From 2018, the provinces gradually pulled out of the downturn. In the first half of this year, Liaoning reported GDP growth of 5.8 percent. Encouraging momentum has also taken place in the economies of Jilin and Heilongjiang.

This new round of investment in northeast China has attracted more diversified investors, with foreign and private capital playing the leading role.

“This is only a good start but the region’s economic recovery is still not stable enough,” said Chang Xiuze, a professor with the Chinese Academy of Macroeconomic Research, think tank of National Development and Reform Commission. “In particular, the investment mainly comes from big companies that are located in big cities.”

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Northeast sees economic revival

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