China is planning to rejuvenate its old northeastern industrial zones, where growth has lagged compared with the southeast. That’s the word from Premier Li Keqiang. Li was in the northeastern region to inspect the work of economic reforms there and he said local authorities should continue to focus on reducing the red tape for local business activities.
Li called for more investment in rail, infrastructure and water conservation sectors. He said the renovation of shanty towns will be quickened as well. In the meantime, private investment will find opportunities in the region in manufacturing technologies and by modernizing the farming sector. The Northeast is known as China’s rustbelt and it went through major layoffs in the 1990s when the government decided to close miles of industrial sites in order to curb inefficient production. The local economy has been recovering in recent years, but came to a standstill as the country’s growth slowed down.