THE Central Government has announced fresh policy measures to support the lagging northeastern region, including quickening infrastructure investment and opening up State firms to private investment.

    Premier Li Keqiang has already pledged to provide more support for the northeastern region, which is made up of the provinces of Liaoning, Jilin and Heilongjiang.

    The government will speed up the construction of railways, highways, airports, power grids and water conservation, as well as spend more on shanty town renovation, according to a guidance issued by the State Council on the government website.

    Private investors will be encouraged to participate in infrastructure projects through public-private partnership (PPP) deals, and privately owned banks will be allowed to set up in the region, the cabinet guidance stated.

    Private investment will be allowed into State-owned firms when they restructure and State firms will use part of returns from their share transfer and asset operations to pay for “the necessary cost of reform,” it added without elaborating.

    Known as China’s rustbelt, the northeast was plagued by widespread layoffs in the 1990s, when the government forced State factories to shut en masse to cull inefficient industry.

    The region enjoyed an economic boom in the past decade due to China’s supportive policy and increased demand for raw materials and machinery products, but the revival wobbled this year as China’s growth grinds towards a 24-year low.

    The region faces new challenges “as the rate of economic growth has continued to drop since last year and some industries have production difficulties,” the Cabinet said.

    (SD-Agencies)