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Opinions of the State Council on Further Implementing the Strategy of Revitalizing the Old Industrial Bases Including Northeast China

2009-09-29 10:13:04Source:www.fdi.gov.cnAuthor:

Guo Fa [2009] No. 33

People's governments of provinces, autonomous regions and municipalities directly under the Central Government, and ministries and commissions directly under the State Council,

Important by-stage achievements have been made in the past five years since implementation of the strategy of revitalization of the old industrial bases including Northeast China. Specifically, major breakthrough was made on institutional innovation with focus on reform of state-owned enterprises, the economic system with diversified ownership structure was under rapid development, the economic structure was optimized, the independent innovation ability was obviously improved, those bases were more open to the outside world, the infrastructure was ameliorated, key livelihood issues were gradually solved and both urban and rural areas took on a new look. It is proved by the practice that the strategy of the Central Government for revitalizing the old industrial bases including Northeast China is timely and correct. However, deep-rooted problems on aspect of system and structure in the old industrial bases including Northeast China are to be solved, the achieved results are to be reinforced and the potential for accelerated development are to be exerted. In current situation, the government shall learn from experience gained from practices, enrich the revitalization strategy and formulate new policies and measures in a timely manner, which are necessary to counter global financial crisis, promote steady and fast economic development and boost rejuvenation of the old industrial bases including Northeast China. To this end, opinions are proposed as follows:

I.  Optimize economic structure and build a modern industrial system

1.       Speed up merger and restructuring of enterprises. The principle of market domination and government guidance shall be insisted on and regional, industrial and ownership limits shall be eliminated. Efforts shall be made to optimize resource allocation, promote merger and restructuring of enterprises and develop large corporation groups with international competitiveness. Where any association and restructuring of enterprises in Northeast Region involves disposal of any asset of “shares converted from debts”, the right concerning such shares shall be properly handled by new disposal approaches according to real situations. China supports association and restructuring of large corporation groups under the Central Government with local enterprises, encourage private and foreign-invested enterprises to participate in reform and restructuring of enterprises in the old industrial base and give prior supports to merged or restructured enterprises for their technical transformation. 

2.       Make great efforts to facilitate nonpublic economy and small and medium sized enterprises. A fair competition environment shall be created to equally protect different ownerships and boost development of nonpublic economy. Policies on financing, taxation and market access shall be put into effect to encourage nongovernmental investment in infrastructure, public utility, financial service and social causes. The government shall promote the co-development of public assets, private assets and foreign assets and actively develop the mixed-ownerships economy. Employees are allowed to hold certain percentage of shares of their restructured enterprise. Small and medium sized enterprises shall be guided to innovate in institutional system and improve operation and management level and market competitiveness. The advantages of concentration of large enterprises in the old industrial bases including Northeast China shall be fully exerted and small and medium sized enterprises are encouraged to establish cooperation relationships with large enterprises to form industrial chains and develop to be “professional, unique and superior”. The government shall improve its service to small and medium sized enterprises’ entrepreneurial financing, continue the establishment of the credit system and the credit guarantee system for such enterprises and support small and medium credit re-guarantee enterprises and their affiliates to expend their businesses.