Reform and renewal for Heilongjiang province

During the 16th China International Fair for Investment and Trade, Northeast China's Heilongjiang province has been expected to steal the limelight thanks to its reform and renewal efforts.

Ample investment opportunities have been brewed in its plans in economic reform over the next five years as it faces the challenge of diminishing natural resources, said a top official.

To replace resource-intensive industries, the provincial government will emphasize new industries of strategic importance, Heilongjiang Party Secretary Ji Bingxuan said.

Though it was important in the development of heavy industry in New China, the province with a population of 380 million increasingly became a rust belt as inefficient factories closed during the economic reforms of the last 30 years.

As well, provincial studies have found that reliance on intensive coal mining, oil extraction and logging is no longer sustainable.

Today officials are focusing on 14 cities in Heilongjiang that are among 118 cities in China whose livelihood is based heavily on natural resources.

Basic conditions and opportunities exist for further development, but the cities have a range of hurdles to clear to develop their economies and quality of life.

Heilongjiang has one city whose economy is largely fueled by oil, two supported by logging and four that are centered around coal mining. They now face a range of economic and social problems.

Urbanization has lagged and environmental pollution has become serious. Both income and education levels remain low among residents.

Since the strategy of revitalizing economies in Northeast China started eight years ago, Daqing and Yichun have been identified as experimental cities - now based on oil and logging respectively - for further reforms.

Other cities in the province are listed as locales where resources have been exhausted.

The provincial government is now moving to develop ancillary industries - and the proportion of non-resource industries has risen gradually as a result.

According to the overall plan, Daqing will promote petrochemicals and plastics while developing new and high-tech industries along with building materials and increased agriculture.

The province's four coal-mining cities - Qitaihe, Jixi, Hegang and Shuangyashan - are moving upstream along the coal industry chain and at the same time developing other sectors including "green" food, new building materials, biopharmaceuticals and tourism.

Cities centered around logging are encouraging new industries including eco-forest tourism, tree farming and value-added processing to create more diverse economies.

After the provincial government began to revitalize the economy, Heilongjiang's GDP doubled from 2006 to 2011.

Last year the figure reached 1.25 trillion yuan ($198.6 billion), an average annual increase of 12 percent, the fastest development since reform and opening-up began three decades ago.

Provincial taxes and fees surpassed 162 billion yuan last year, 3.4 times the level in 2006, an average annual increase of 27.6 percent.

Contact the writers at tianxuefei@chinadaily.com.cn and zhouhuiying@chinadaily.com.cn