Why this is important to Wisconsin businesses: The three-year plan aims to transform the region into a center of advanced manufacturing, in part by increasing the openness of the economy.
Northeast China, a former industrial base, has experienced more difficulties than the rest of the country in the past two years amid China’s economic slowdown. To revive the region’s flagging economy, the central government is enacting a package of new measures.
This August, the National Development and Reform Commission (NDRC), China’s top economic regulator, announced a three-year plan to bolster economic growth in the northeastern region. The plan announced by the NDRC involves launching a total of 127 major projects in the region from 2016 to 2018. The projects cover sectors including transportation (railways, highways, airports, rail transit), energy, water conservation, industry and agriculture, as well as urban and rural development.
About $220 billion will be invested in the projects, contributed by private companies as well the central and local governments. The investment is not intended as short-term aid, but rather, is aimed at creating long-term health for the region’s economy.
According to the plan, efforts will be made to accelerate the reform of traditional industries and the development of emerging industries. Some Chinese experts have suggested that the revitalization of northeast China should focus on structural adjustment and institutional innovation, toward the goal of transforming the region into an advanced manufacturing center.
A recent policy document from China's State Council notes that the region’s revitalization depends on a higher level of openness of the economy. To bring about an increased level of openness, northeastern China must strengthen international cooperation on infrastructure investment and set up a cross-border free trade network to support and promote production-related services and open up the service market.