Section I: Review of Current Situation

Since the strategy for revitalizing Northeast China and other old industrial bases was implemented three years ago, economic and social development in this region has registered accelerated growth, with constantly improving economic strength. Institutional innovation, with the restructuring of state-owned enterprises (SOEs) as a priority, has made much headway. This region is opening up more to the outside world, and significant progresses have been made in technological innovation and structural readjustment. Moreover, mining-induced subsidence areas have been treated comprehensively and shanty areas have experienced successful redevelopment. Pilot projects to transform the economic structure of resource-based cities have been carried out steadily. In addition, infrastructure has been further improved and ecological development and environmental protection efforts have been strengthened. Moreover, urban social security net has taken shape initially and employment has been boosted. The past three years witnessed the most brilliant period of the region since reform and opening up in that the regional economy has expanded substantially and both the urban and rural residents here have received more tangible benefits than ever before. In general, the campaign of "Revitalizing Northeast China" has achieved great progress.

The next five to ten years is a crucial period for Northeast China to seek fresh development and all-round rejuvenation, as it is standing at a new starting point. There are many favorable conditions: first, the Central Committee of the Communist Party of China unveiled strategic thoughts like scientific outlook of development and establishment of a socialist harmonious society, both of which enrich concept of reinvigorating Northeast China and highlight future orientation; secondly, sustained, stable and smooth growth of the national economy and the increasingly growing national strength creates an enabling environment to speed up institutional reforms and restructuring in Northeast China; thirdly, constantly improving regional coordination mechanisms facilitate interactions between Northeast China and the Central, Eastern and Western regions, which would be conducive for these regions to achieve shared prosperity and tap on each other's strengths; fourthly, China is more active in participating global competition, utilizing both domestic and foreign resources, and expanding both domestic and overseas markets. This provides further potential opportunities for Northeast China to boost its foreign trade and cooperation, thus opening up wider to the outside world.

However, there are some pronounced contradictions and problems in the revitalization process. First, there are institutional obstacles to be removed and vitality to be aroused. The non-public economic sector in this region is still underdeveloped and market still needs to play a bigger role in the economy. Secondly, structural contradictions are still prominent. Proportion of high-tech industry and modern tertiary industry remains small, and the equipment manufacturing industry needs to produce more compatible products and improve its system integration capability. Meanwhile, the intensive and downstream processing capacity in raw materials industry is very low and many enterprises are weak in independent innovation. Thirdly, strong pressures are building up in creating jobs for the unemployed and providing social security. There are some residents still living a difficult life. Fourthly, the region provides declining amount of certain resources and some areas along coast or river are plagued by severe pollution. Fifthly, resource-based cities, and resource-depleted cities in particular, are lack of sustainable development capability, with slow development of alternative industries and huge social and ecological problems. These contradictions and problems mentioned above worth our high attention and call for effective measures.