Three years on, China's northeast regains its shine

A strong comeback

Thanks to the deepened reform, improved business environment, and commitment to further easing market access for foreign investors, a growing number of foreign-invested enterprises have settled in the region.

Yaskawa Electric (Shenyang) Co Ltd is a Sino-Japan joint venture focusing on the manufacture and service of servo motors and related components. At present, the total investment of the company in Shenyang, capital of Liaoning, has exceeded $1.4 billion. Last year, construction of the company's third plant in Shenyang started.

"We'll introduce the latest production management system in the new factory to achieve real-time management of production status. This is exactly what the local enterprises lack," said the company's general manager Masahiko Okura.

So far, Japanese companies have invested more than $24 billion in nearly 7,700 projects in Liaoning, according to the Liaoning Provincial Department of Commerce.

"These projects mainly involve industries such as high-end equipment manufacturing, new energy, and electronic information, and require relatively high standards on quality. This is what Liaoning needs for economic transformation and development," said Tang Shenfei, deputy head of the department.

Global investors are also attracted by other northeastern regions. Jilin attracted more foreign capital in 2018, with its actual use doubling year-on-year to $702 million. More than half of foreign direct investment flowed into industries such as railway and ship transportation equipment manufacturing, and oil and gas exploitation.

Liang Qidong, vice president of Liaoning Academy of Social Sciences, said that Northeast China had been building a business-friendly environment by streamlining administration and adopting a service-oriented approach. It still faces uphill challenges, including unsound industrial chain and a talent shortage, to build an ecosystem suitable to future industrial development.

"Although the economy of Northeast China is recovering, there is still a long way to go to achieve high-quality development," Liang said.

The prospects are very bright. As the region is getting more involved in the Belt and Road construction, it may become a major platform in opening up thanks to its geographical location and industrial advantages.