12 November 2003 09:44
Heilongjiang to improve pillar industries, business climate
Author: Northeast China's Heilongjiang Province will strive to revive its economy by fully tapping its potential
and attracting overseas investment, according to a senior official with the province. The Chinese Government has
launched a massive program to revitalize the traditional industrial bases in Northeast China, another strategic move
following the country's massive western development program, said Tang Xiuting, director of Development and
Planning Committee. This offers Heilongjiang a historic development opportunity, he said. The province will grasp the
opportunity to speed up its economic development. Measures The province will take measures to upgrade its traditional
industries, reform State-owned enterprises (SOEs), promote sustainable development and enhance infrastructure. More SOEs
are encouraged to diversify their ownership. Some insolvent State owned enterprises have been urged to close. About 30
large groups with strong competitiveness in the international market will be fostered in the years to come. Five key
industries, petrochemical, energy, organic food, equipment and pharmaceutical, will be gradually upgraded, Tang said. In
the equipment sector, the province will give priority to the production of complete set of equipment for power plants,
heavy duty equipment, high speed freight trains and railway cranes, automobile and engines, welding equipment, new type
agricultural machinery, small aircraft and new type helicopters. Relying on the abundant oil resources, ethylene and
polypropylene projects will be top on agenda. Also the province will greatly promote the processing of downstream
products. "Aimed at becoming the first class petrochemical industrial base, Heilongjiang plans to build Daqing
Petrochemical Industrial Park, which will form a petrochemical industrial belt with neighboring cities of Harbin,
Daqing, Qiqihar and Mudanjiang," said Tang. He pointed out that more electric power plants near coal mines are
going to be constructed to guarantee the increasing demand for electricity from Northeast and North China. Moreover,
Heilongjiang is to carry forward the programs of million tons of oil and direct liquefied coal and their byproducts. The
processing bases of organic food, soybean and dairy products are another focus on Heilongjiang's strategic plan.
Also, bases for processing beer, mineral water, flax, grain and livestock will be further developed. certification from
the State with an output value of 22 billion yuan (US$2.7 billion), according to Tang. Some large township enterprises
with an individual sales income of over 3 billion yuan (US$362.7 million) are expected to emerge by 2005. "With the
superiority in antibiotic medicines and medicinal resources with unique Heilongjiang characteristics, the province is to
speed up the production of antibiotics, bio-medicines, traditional Chinese medicines, and new drugs," Tang said.
For example, the Harbin Pharmaceuticals Group will make efforts to take lead in China. Speaking with tertiary industry,
he said that the province focuses on the growth of tourism, logistics, finance and insurance. The province attaches
great importance to sustainable development in the process of developing economy. Daqing, a major oil producer of the
country, is encouraged to transform from an oil production center to a petrochemical industrial center. More power
plants will be built next to mines, which will help curb pollution and protect the environment in mining areas. Tang
also stressed the crucial task of improving transportation in Heilongjiang. In cooperation with Northeast China's
Liaoning and Jilin provinces, Heilongjiang tries to win over the bid for the railway construction in the eastern part of
Northeast China. Also transportation with Russia and other bordering countries is expected to be further strengthened.
Harbin Airport's transport hub status will be enhanced and more small airports will be built. "A number of
rivers run through our province which pose us great pressure on strengthening water conservancy facilities," said
Tang. Heilongjiang invites investors from home and abroad to participate in the province's economic revival
program. The province will greatly improve its government services and work efficiently to attract more investment. Tang
mentioned that more than 13 cities in Heilongjiang have set investment service centers to provide more convenience to
investors. Overseas investors are encouraged to engage in the reform of SOEs by injecting investment and transferring
technology. Private enterprises are also allowed to merge with SOEs and are equally treated in terms of taxation, land
using and foreign trade. Advantages As one of the oldest key industrial bases in China, the province possesses many
advantages in terms of natural resources, a comprehensive industrial system, geographical position and human resources.
Heilongjiang is endowed with rich natural resources such as oil, minerals, timber and arable land. Its oil reserve and
forest coverage rank first in the country. A comprehensive industrial system has also been developed. Heilongjiang is
one of the country's major producers of crude oil, timber, machinery for power plants, coal, freight trains,
commodity grains, heavy duty equipment and national defense devices. In 2002, Heilongjiang's incremental industrial
output value ranked 9th in China and its industrial profit 6th. The province's 25 border ports make it convenient
to develop foreign trade and economic cooperation with Russia and northeastern Asia. Heilongjiang has 606 research
centers and institutions, 48 universities and colleges which have an abundance of talented people.
[AIW [Asia Africa Intelligence Wire]] |
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