Strategy to revitalize the old industrial district in northeastern China and restructuring of state-owned enterprises

Abstract

Despite the remarkable economic development in China especially in the coastal areas, the old industrial district in northeastern China has been left behind. In the northeastern district, which consists of Liaoning, Jilin and Heilongjiang Provinces, many state-owned enterprises in the heavy industry field prospered a few decades ago with abundant natural resources. This, however, is hampering the district' s economic development in recent years. This paper examines the measures initiated by the Chinese government to revitalize the economy in northeastern China and highlights challenges facing the district. The paper also suggests 4 measures to restructure state-owned enterprises in the district and promote economic development. The measures include establishment of the present-day corporate governance, set-up of social environment surrounding enterprises, dissolution of excessive workforce and accumulated debts, and implementation of production technology and management technique when receiving foreign investment.