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By Research Team on the Revitalization of Northeast China, DRC

2018-02-08

Jilin province, as one of China’s old industrial bases, mainly relied on manufacturing industry for its long-term economic development. Despite its sluggish economic performance across the board in recent years, the growth foundation is being reinforced due to certain progress made by the innovation in the traditional manufacturing industry and the growth of the emerging industries. Generally speaking, the comparative advantages of Jilin province still concentrate on manufacturing industry, and thus the overall revitalization needs to center on the transformation and upgrading of manufacturing sector.

I.The Main Measures and Initial Progress.

Since the CPC Central Committee and the State Council came up with the strategy of overall revitalization of the northeastern old industrial bases, Jilin province has, under the support of relevant departments, proactively implemented relevant arrangements, taken a series of measures and achieved some initial progress. Compared with those developed provinces, Jilin province is lagging behind in terms of innovation-oriented development, but its targeted and bold policy measures have generated remarkable outcomes, which can be found in the following six aspects. First, Jilin province has pushed ahead with the administrative management system reform. Second, it has made earnest efforts to reduce overcapacity. Third, it has made positive headway in innovation and start-ups. Fourth, it has made practical moves to cut costs and financial burdens. Fifth, it has accelerated the development of private economy. Sixth, it has cultivated new drivers for the development of manufacturing industry.

II.The Main Issues to Be Addressed

Generally speaking, affected by its institutional mechanisms and corporate and industrial structures, Jilin province still faces many challenges in the transformation and upgrading of manufacturing industry for boosting economic growth. First, the major pillar industries face limited space for growth due to the overall overcapacity and weak competitiveness. Second, the development of emerging industries is still relying on government support, and it remains uncertain whether these industries could survive within the local province. Third, some state-owned enterprises still face daunting tasks of shaking off difficulties due to inflexible mechanisms and long-overdue issues left over from the past.

III. Countermeasures

First, Jilin province needs to create a positive and loose public opinion environment, so as to enable various sides to realize the objective factors causing the current plight and make the local officials and people understand that a proper response to the current challenges means the snatch of development opportunities for the future. Second, Jilin province needs to form new advantageous industrial clusters through diversified means such as giving stronger financial support to local technological upgrading and formulating favorable policies towards the layout of productivity. Third, Jilin province needs to support the local pilot reforms of state capital and state-owned enterprises and focus on the work of typical cases, so as to use the models to guide social progress.