Liaoyuan improves investment environment for private enterprises

Liaoyuan is a small city in Jilin province that was in decline due to the exhaustion of its coal resources.

In 2008, Liaoyuan was the first pilot project of economic transformation in China. Industries such as basic clothing and aluminum gradually became the city's major economic supportsover the first few years.

The GDP of the region, however, is now nearly six times higher than that of the initial stage of transformation.

In addition, the economic data of Liaoyuan are quite different from that of the old industrial base in northeast China.

The private economy accounts for 58.45percent of the city's GDP and over 90 percent of the city's industry is private.

Wang Liping, vice mayor of Liaoyuan, said that the local government has created a favorable investment environment for private enterprises.

Li Changxiang, director of the investment environment office, said that 210 projects in Liaoyuan have been included in "express-way" service, which means their application, examination and approval procedures are solved once and for all.

The government has also set up "factory offices" right inside enterprises to deal with land expropriation and compensation issues with farmers, to comply with formalities and to supervise the quality of projects.

Hu Guotai, the government official responsible for administration of Liyuan Jingzhi, said that the planned land use of the Dongliao River renovation project was in conflict with the intended land use for the third phase of the company's construction project.

"We're all going to relocate," said Hu. "However, the government repeatedly communicated with the provincial water department. On the basis of not affecting the normal project, the renovation of the DongliaoRiver has changed its design to make way for our project".