Section III: Promote Upgrading of Industrial Structure

In the course of revitalizing Northeast China, we should adopt new models for industrial development, help businesses to play a major role and be market- oriented, strengthen their independent innovation capability and change the pattern of economic growth. Competitive industries must become more competent by using advanced technologies. We must cultivate new industries, support labor-intensive industries, and establish new industrial bases through structural and layout adjustment.

    3.1 Build a base for manufacturing advanced equipment

By using information technologies, intelligent and integrated technologies, we must advance the independent innovation capabilities and system integration capabilities of businesses, and raise localization content and international competitiveness in major equipments manufacturing. Northeast China is expected to be built into an internationally competitive manufacturing base of heavy machinery and large complete set equipment, a global leading R&D and manufacturing base for digital machine tools and components, a state R&D and manufacturing base for power generation, transmission and transformation equipment, a strategic manufacturing and export base of complete vehicles, parts and components, a world-leading shipbuilding base as well as a state manufacturing base for rail transportation equipment.

    3.2 Speed up development of high-tech industry

We must launch a number of high-tech projects on the basis of independent innovation, foster industrial clusters and enhance international cooperation. By doing so, we are aimed at constructing high-tech industry chains, nurturing leading industries and industrial clusters with core competitiveness. Priories are as follows: information industry, to build state photoelectron industrial base in Changchun City and state software industry and export base in Dalian City; biological industry, to build state national biological industrial base in Changchun City; new materials industry, to focus on technologies and products like new fine chemical materials, powder metal materials, rare earth luminescent materials, nanometer metal materials, organic electroluminescent materials, special functional materials and composite materials etc; aviation industry, to enhance designing and manufacturing capability of aircraft and core components of engines; and emerging marine industry.

    3.3 Optimize development of energy industry

In order to optimize energy production layout and consumption mix, we must put energy conservation first, develop environmental friendly technologies, promote use of both coal and oil, and seek diversified development. We must also strengthen energy cooperation with Northeast Asian region, and build Northeast China into a state energy supplying base. In this regard, coal resources must be developed in an orderly way and large coal-power-chemical industrial bases in Hulunbeier, Huopingbai and Shengli and other places will be established. Coal production center will be established in the eastern part of Heilongjiang province and Tiefa ore district of Liaoning province will be developed. We must also ensure stable production capability of crude oil, expand natural gas output, and strengthen oil prospecting in Hailar Basin, Erenhot Basin and offshore areas. Comprehensive exploitation of oil shale in Jilin province will be enhanced and we must construct the crude oil pipeline linking Russian border to Northeast China. Project of natural gas pipeline network in Northeast China will be kicked off and power stations and power grids construction will be further optimized. In addition, we must give vigorous support to new energy and renewable energy industry and promote key energy-saving projects for energy conservation. In the year 2010, We are planning to produce 300 million tons of coal, 57 million tons of crude oil,7 billion cubic meters of natural gas, 300 billion kilowatt hours of electricity with installed capacity standing at 60 megawatts.

    3.4 Uplift basic and raw materials industry

We must step up efforts in eliminating backward productivities, optimize industrial structure and spatial layout, control the total output and explore intensive and precision processing. Therefore, we must strive to shift from expansion-based growth to efficiency-based growth. The major tasks are as follows: first, to establish new-type petrochemical industrial base, with focus on ten-million-ton crude oil processing bases such as Fushun Petrochemical Company, Dalin Petrochemical Company, Dalian West Pacific Petrochemical Company. Expansion and reconstruction projects in Daqing, Jilin petrochemical, Fushun Petrochemical Company and other projects must be accelerated to form a world-leading ethylene manufacturing base. By the year 2010, oil refinery capacity and ethylene production capacity are to be kept at 100 million tons/year and 4 million tons/year respectively; secondly, to develop coal chemical industry rationally. Coal chemical industrial bases in Xilinhot, Huolinhe, Hulunbeier, eastern Heilongjiang Province and western Liaoning Province must be established when timing is appropriate; thirdly, to build a top quality steel manufacturing base in Northern area, with supports from sheet steel manufacturing base in Anshan iron and steel group, and supports from manufacturing base of Northeast special steel group, which will offer special steel and steel used for equipment. Backward production capacity must be eliminated and iron and steel production base in Bayuquan District of Yingkou Municipality must be established, so as to gradually shift of iron and steel industry from inland to coastal area.

    3.5 Accelerate development of light industry with regional characteristics

We must develop light industry with regional characteristics by taking advantage on natural resources, nurturing new brands, extending industry chains, and thereby creating new economic pillars and making light industry as an important stimulus to balance regional economic growth and absorb surplus labor. Priorities in this regard are: to develop chemical medicine and Chinese traditional medicine, support development of national medicine industry, promote intensive processing of farm produce by establishing manufacturing bases of grain, meat, aquatic products, dairy products and biochemical products and strengthen textile, garments, paper-making, plastic, furniture and forestry products processing industries, etc.