'Plan of Revitalizing Northeast China' released

Updated: 2007-12-20 13:43

Section VIII: Enhance Development Vitality

We will push forward institutional reforms and procedural innovations to create stimulus from inside, open up wider to propel development and enhance independent innovation to build up competitive capabilities. By making key breakthroughs and achieving synergy in development, we will accelerate momentum in revitalizing the Northeast.

    8.1 Accelerate institutional reforms and procedural innovations

First, we shall accelerate administrative management system reforms. We will push forward the separation of government functions from enterprise and separation of government from asset management functions. Over´╝Źintervention of government in economic activities must be reversed completely and more economic and legal measures must be applied in regulating economy. In places where conditions permit, we will initiate reform of "county directly administered by provincial government".

SOEs reforms must be deepened. We must facilitate the concentration of state assets in key areas, industries and enterprises that are of vital importance to economic development and state security. We must promote key industries to restructure with diversified ownership and cross-regional cooperation. We must promote reforms in businesses to separate their auxiliary departments from core business, reform ownership of these auxiliary departments and separate social functions from businesses. We must actively push forward the trial restructuring of SOEs-affiliated collective enterprises, and accelerate the reforms of state-owned forest district through the above-mentioned initiatives.

Moreover, we will develop non-public economic sector in a vigorous manner. We will treat non-public enterprises as equals with SOEs and carry out supporting policies in market entry, import and export, land use, lending, issue of enterprise bond, etc. Private investment must be allowed to participate in SOEs restructuring by various forms and enjoy equal status with SOEs in non-performing loans write-offs, interests reduction, land use and other tax and credit policies.

Modern market system must be improved. We will set up property rights market oriented toward the Northeast, based on property rights transaction center in Shenyang and we will establish an important futures trade center in Dalian, based on Dalian commodity exchange. We must rectify market order, intensify market supervision and improve social credit system by setting up mechanisms to encourage credit compliance and penalize dishonest.

We must actively push forward supporting reforms. Districts with favorable conditions must be selected as pilot areas to experiment with important reform initiatives as follows: SOEs reform, opening up, reforms of administrative management system, reform of investment and financing, financial and credit system, non-performing assets disposal, land management, etc, thus providing new experiences in revitalization of Northeast.

    8.2 Expand opening-up

We must increase both quantity and quality of foreign investment utilization. We shall encourage foreign investment to participate in SOEs restructuring and achieve diversification in investing entities. Foreign direct investment must be guided to flow into industries like high-tech, equipment manufacturing, modern agriculture, tertiary industry, infrastructure and ecological environment conservation, etc. Foreign-invested financial institutions must be encouraged to set up offices and deliver services in Northeast China and foreign investors must be encouraged to establish regional R&D centers, or participate in setting up technological innovation and designing centers in industries with distinctive advantages. Foreign investment must be prohibited or restricted to invest in energy-intensive, materials-intensive and high pollution industries.

We must actively develop foreign trade. Export of high-tech, high value-added products, labor-intensive and agricultural products must be encouraged and export mix must be optimized. We will control the export of energy-intensive, high pollution and resource-based products. We shall actively use the transfer of foreign manufacturing industries to develop foreign services trade and processing trade, consolidate trade relationships with Northeast Asian countries and actively explore overseas markets in Southeast Asia, Europe, and North America and develop border trade.

Moreover, we must strengthen international economic and technological cooperation. We need to accelerate the establishment of border economic cooperation zones, exchange trade zones, export processing zones and cross-border industrial districts in major border cities. We must promote collaboration with surrounding countries in energy, raw materials and mineral resources, establish exports processing bases and technological cooperation bases oriented to Russian market and encourage international cooperation in competitive industries. We must support leading businesses to establish production bases and economic and trade cooperation zones in neighboring countries, and continue to push forward cooperation in the development of Great Tumen River.

We must optimize the spatial pattern of open-up. In this regard, we must accelerate in making Dalian the air transportation center in Northeast Asia, actively promote the construction of bonded zone in Dayaowan port of Dalian and let it be functional for inland areas. We must conduct pilot reforms of custom clearance system based on the principle of "declaration according to administrative jurisdiction with examination at the port". We must enhance urban infrastructure and international logistics corridors construction in major border cities and actively develop corridors for inter-regional transport of domestically traded commodities and cross-country railway-water combined transport, push forward the construction of roads, ports and economic cooperative zones at areas bordering Russia, Mongolia and Democratic People's Republic of Korea. We must open up wider in development zones.

Column 13 Construction of Port Corridors

Priorities of construction should be given to railway from Suifenhe to Vladivostock, from Huichun to Kamesova at the border with Russia, railway from Arshan to Qiaobashan at the border with Mongolia, and Nanping port for transportation of iron ore powder, as well as railway from Mudanjiang to Luojin at the border with North Korea.

8.3 Actively promote independent innovation

We must help enterprises to become major players in technological innovation. In areas of equipment manufacturing, petrochemical, biological engineering, medicine, new materials, etc, we must encourage enterprises to set up technical centers, high-level laboratories, engineering centers and test bases, thus providing impetus to make breakthroughs and promote application of technologies.

Independent innovative capabilities must be built up. To improve independent innovation capabilities and stimulate sharing of resources, we must reinforce scientific research facilities, integrate scientific experimentation and research systems and establish leading bases for researches and talents training. Among others, we must establish platforms, networks and systems for technological innovation in key fields and implement key projects.

Innovative mechanisms must be strengthened. We shall perfect the comprehensive policy systems for transferring and commercializing science and technological results. To support independent innovation, we must form relatively advanced venture capital investment system in science and technology by establishing relative input mechanism, encourage original innovation and commercially viable technological innovation, and strengthen the protection of intellectual property rights.

We must increase inputs in independent innovation. We must support basic researches, frontier high-tech researches, and researches for public good. We pledge to ensure that the outlays of provincial governments for technological development should increase much faster than the increase rate of their regular revenues. We must encourage local governments to provide special funds for the commercialization of technical progress and innovation of SMEs.

Column 14 Technological Innovation System in Northeast China

Five major platforms for technological innovation

Industrial technological innovation platform: construction of engineering centers in equipment manufacturing, petrochemical, quality steel, automobile, photoelectricity engineering, medicine and modern agriculture.

Platform for applying basic researches: construction of laboratories in industries of nano materials, cleaner energy, optical, mechanical and electronic integration, robot, aerospace, biological medicine engineering and so on.

Incubator platform for scientific and technological enterprises: construction of incubators in software, photoelectronics, biomedicine, new materials, fine chemicals, new-type environmental protection, modern agriculture and so on.

Platform for scientific and technological innovation service: to establish socialized and networked intermediary service systems for science and technology.

International science and technology cooperation platform: to establish demonstration bases for international science and technology cooperation.

Two networks for science and technological collaboration

Cooperation and sharing network of large scientific instruments in Northeast China: to construct and share large scientific instruments, equipment and facilities.

Information resource service and sharing network of scientific and technological literature in Northeast China: construction of scientific and technological databases, information network as well as fast and efficient decision-supporting system.

Two scientific and technological market systems

Scientific and technological talents market: to establish scientific and technological talents information network and share information and resources within the region.

Transaction market of technical patents: to establish technical patents rules, management methods, transaction modes, monitoring system, transaction dispute settlement system commonly recognized in the region.


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