Overview of National Economic and Social Development of Liaoning Province
In the past decade, Liaoning Province adhered to the overall keynote of seeking improvement in stability and kept continuity and stability of work to achieve sustained and healthy development of economy and society of the whole province. Last year, as the State Council issued the major policy measure for supporting the Revitalization of Northeast China, Liaoning had a great historical opportunity for a new round of revitalization and development. The State Council implemented a strategy of One Belt and One Road as well as coordinated development of Beijing-Tianjin-Hebei, providing a great opportunity for Liaoning to exert regional advantages and expand opening-up to both domestic and foreign markets.
I. Overview of Liaoning Economic and Social Developments in 2014
(I) Generally speaking, the economy operated within an appropriate range. The GRP reached 2.86 trillion yuan, with an increase of 5.8% over the previous year. The social employment steadily increased, the real-name employment was 1.017 million persons, and the registered urban unemployment rate was 3.38%, lower than the control objective by 0.92 percentage point. The market price remained stable, and the CPI increased to around 1.7%.
(II) The quality and returns of development were steadily increased. The GRP per capita was 65,201 yuan, converted to 10,614 USD according to the annual average exchange rate, with an increase of 5.7% over the previous year. The per capita disposable income of urban residents reached 29,082 yuan, rose by 7% in real terms. The per capita disposable income of rural residents reached 11,191 yuan, rose by 8.6% in real terms. The added value of new high-tech products of industrial enterprises above the designated size increased by 7.8%.
(III) The structural adjustment made positive progress. The added value of the first industry was 228.58 billion yuan, with an increase of 2.2%; the added value of the second industry was 1438.46 billion yuan, with an increase of 5.2%; the added value of the third industry was 1195.62 billion yuan, with an increase of 7.2%. The added value of the service sector grew faster than GRP and the second industry, accounting for 41.8% of GRP, with an increase of 1.2 percentage points. The contribution of consumption toward economic growth was greater than that of investment. The proportion of private investment reached 71.1%. The added value of private economy increased by 7.2%.
II. Overview of Revitalization of Liaoning Old Industrial Bases in 2003-2013
A decade has passed since the strategy of revitalizing old industrial bases, such as in the northeast China, was implemented in 2003, and it was a decade for Liaoning to make fastest socio-economic development, most effective system and mechanism innovation, and maximum material benefit for people since reform and opening up. During this period, a series of achievements were made.
(I) Economic status stopped going downward, and comprehensive strength was substantially promoted. During the decade of revitalization, GDP grew at an average annual rate of 12.5%, and the growth in the whole economy leaped over the two big steps of one trillion yuan and two trillion yuan, with its national ranking raised from No.8 to No.7; per capita GDP grew at an average annual rate of 12%, with its national ranking raised from No. 9 to No.7.
(II) Significant development was made to system and mechanism innovation, and micro foundation of economic development was reconstructed. The reform of state-owned big enterprise corporation was basically completed; the enterprises consolidated or re-organized with central enterprises accounted for 30%, and the enterprises consolidated or re-organized with private enterprises and foreign enterprises accounted for 14% and 9% respectively. Enterprise listing achieved positive progress, there were 26 state-holding listed companies in the whole province, and the securitization rate reached 27%. The proportion of private economy to the whole economy in Liaoning province exceeded 60%, the condition of single ownership structure and high state-owned economy proportion was greatly improved, and the development vitality is obviously enhanced.
(III) Fields and depth of opening up were comprehensively expanded, and all-dimensional opening up pattern was preliminarily formed. The total import and export of foreign trade grew at an average annual rate of 15.7%. Among which, the total export grew by 4.4 times, and the average annual growth was 16%. Countries and regions having trade contacts with Liaoning were increased from 177 in 2003 to 221 in 2013. Utilization of foreign capital grew at an average annual of 20.2%, and the total foreign capital was stabilized among Top 3 throughout the country.
(IV) Innovation capability was further enhanced, and a number of major techniques were localized. With the generous support of various national policies, a group of key enterprises implemented extensive technical innovation. Liaoning has a solid industry foundation, and owns 17,300 large-scale industrial enterprises, with a national ranking of No.7. Among which, 1100 were research and development institutes, with a national ranking of No.12. By the end of 2014, the number of invention patents in the whole province was 18,417, with a national ranking of No.9; that is, per million population have 419.5 invention patents. Hundreds pieces of major technical equipment, such as cracking gas compressor sets for megaton ethylene units, transformers for 1000kV AC transmission engineering, and five-axis linkage high-grade CNC machine tools, were domestically produced.
(V) Structural adjustment achieves remarkable success and industrial agglomeration effects are continuously highlighted. In the past decade of reformation, the average annual growth rate of the added value of industry above designated size of the whole province is 17.2% which is 2.5 percentage points higher than national average. The proportion of added value of Equipment, petrochemical, metallurgy and agricultural products processing accounting for industry above designated size is 85.2%. Among them, the proportion of equipment manufacturing industry increased by 8 percentage points to 31.5%. The industrial clusters growth is accelerated, the proportion of its sales revenue accounts for 55% of the industry above designated size of the whole province. 19 industrial clusters achieve more than 50 billion yuan.
(VI) Major livelihood projects achieves remarkable effects, fruits of development are enjoyed by everyone. Clean Water Project, Green Mountain Project and Blue Sky Project are implemented comprehensively. The forest coverage increases to 40.2%, the rate of woody plant cover grows to 45.8%, the dustfall reduces by 18%, the qualified rate of excellent and good urban air quality days increases to 94.8%. The registered urban unemployment rate is below national average continuously, registered urban unemployment rate had lowered from 6.5% of 2003 to 3.4% of 2013. The average growth rate per annum of per capita dispensable income of urban residents is 12.4%. The average growth rate per annum of per capita net income of rural residents is 12.9%.
III. Industrial structural adjustment and upgrading orientation in the future
It is preliminarily considered that: for the thirteenth five-year-plan period, the anticipated target of tertiary industries structural adjustment is to turn the current rate 8.0:50.2:41.8 to 7.0:46:47.
(I) Pushing forward the agriculture modernization
We will accelerate the development of modern agriculture and the conversion of agriculture development mode, increase the scale, intensify the production, improve the mechanization, specialization and systematization of agriculture, adjust the internal structure of the industry and products of agriculture, increase the proportion of added value of livestock industry and fishing industry to agriculture from currently below 50% to above 55%. We will place emphasis on the promotion of the use of new technology and new equipment, accelerate the upgrading of technology and equipment of agriculture, encourage and guide the development of resource saving and ecological environment-friendly agriculture, take improving the agriculture resources efficiency and protecting ecological environment as cores and take saving land, saving water, saving fertilizer, recycling resources and improving agricultural ecology as key points. We will promote the transformation of the mode of agricultural operation. Under the precondition of fully respecting farmers' wishes, we will accelerate the orderly transfer of land-use rights, and develop moderate-scale agricultural businesses of various types. We will expand industry chain of agriculture, encourage and guide various enterprises and agricultural operation organizations to energetically develop agricultural industrialization, support the development of enterprise integrating farm production, animal raising, processing and marketing, and maximize the efficiency of agricultural operation.
(II) Optimizing industrial structure
We will promote transformation and upgrading of industrial sectors in the trends of large scale, clustering, high-end, intensive and ecological development to change our industry from large to strong. In the added value of industries above a designated scale, the proportion of equipment manufacturing industry and petrochemical industry will be increased, and the proportion of metallurgical industry will be decreased.
1. Strengthening traditional superior industries. First of all, we will emphasize on the development of superior equipment manufacturing industry. We will maintain the advantages of Liaoning Province in traditional industries such as petrochemical and metallurgical equipment, mining and engineering machinery, numerically controlled machine, power generation and transmission equipment, shipbuilding, etc., boost the competitiveness in the field of middle and high-end automobiles and components, communication equipment, etc., foster the growth of nuclear power equipment manufacturing, petrochemical and coal chemical equipment, software technology development, environmental protection equipment and other industries, and energetically develop the high-end equipment manufacturing industries of oceanographic engineering, rail transit and new energy equipment. Secondly, we will accelerate the transformation and upgrading of petrochemical industry.
We will optimize industrial distribution, and focus on building world-class Dalian Changxing Island (Xizhong Island) Petrochemical Industry Base and Panjin Liaodong Bay New District Petrochemical and Fine Chemistry Industrial Base. We will also adjust the refining and chemical structure, adhere to refining-chemical integration, and energetically develop the fine chemicals industry. Thirdly, we will further adjust and optimize the metallurgical and building material industries. The addition of new production facilities will be strictly limited, and outdated production facilities will be closed down. We will focus on developing recently emergent industries with low energy consumption and high added-values, including high-speed railway, high strength vehicle, new energy steel and stainless steel products, thermal and sound insulating materials, waterproofing materials, technical glass, etc. Fourthly, we will accelerate the transformation and upgrading of agricultural products processing industry. The construction of characteristic industry base and processing zone will be advanced.
2. Cultivating and strengthening recently emergent industries, including high-end equipment manufacturing (such as the development of intellectualized NC machine and intellectualized manufacturing line, self-elevating drilling platform, deep water drilling ship, towing/anchor handling/supply vessel and other maritime machine products), new generation information technology industry (such as high performance integrated circuit design, IC equipment, next-generation internet, digital audio-video, next generation communication network and equipment, cloud computing and big data, Internet of Things, satellite navigation and location-based services), advanced materials industry (such as high performance fiber glass and products, high-quality artificial crystal materials, special-purposed synthetic rubber and elastomer and high-performance fiber), biomedical engineering (such as color ultrasonic diagnostic equipment, magnetic resonance imaging system, nuclear medical imaging equipment and other high performance diagnostic equipment), energy-conserving and environment-protective industry (such as technology and equipment for waste heat and pressure recovery, motor efficiency promotion, energy system optimization, water pollution prevention, air pollution control, solid wastes recycling, etc. as well as environmental protection materials and drugs), new energy industry (such as the development and application of products for grid-connected power station and distributed photovoltaic power station, high-power photovoltaic grid-connected inverter, energy storage battery and system) and new-energy automobile industry (such as the research and development of key components of new energy vehicle, strongly supported pure electric vehicle and plug-in hybrid electric vehicle).
(Ⅲ) Accelerating to Build Modern Service Industry
We will continue to implement a four-year action plan of accelerating the development of the service industry, and increase the proportion of the modern service industry. We will strive to develop the productive service industry, boost the separation of the productive service industry in industrial enterprises, and promote the integrated development of the productive service industry and the equipment manufacturing industry. We will promote the E-business to realize spanning development and develop financial service industry, modern logistics industry, information technology service and science and technology service industry, research and development design, intermediary services and service outsourcing. We will accelerate the upgrade of life service industry, upgrade and develop the commerce and trade circulation industry, accelerate to build the modern commodity circulation system, stably develop real estate, and strive to develop tourist industry and cultural industry.
Ⅳ Promising Prospect for Cooperation of Liaoning with Utah of America
Liaoning has been always attaching importance to friendly communication and transaction cooperation with all circles of America. Our economic and trade contact is increasingly frequent. By the end of 2014, Liaoning province has approved 4860 foreign-invested enterprises of America and a foreign capital amount of contract of 20.02 billion dollars, and foreign capital of 11.07 billion dollars is used in practice. Utah is one of states with the fastest and the healthiest economic development in America in recent years, and has strong strength in the fields of transportation, logistics, education, financial service, tourism and real estate. For a period of time in the future, we hope to cooperate with Utah in the following fields: 1. Science and technology field. Liaoning has a group of excellent science and technology talents, and a good basis for developing new high-tech industries. We welcome Utah enterprises to invest the new high-tech industries of civil aviation, biological medicine, software industry, etc. in Liaoning. 2. Education field. The number of Liaoning colleges and the number of college students rank the forefront in the nation. Liaoning colleges keep close contact with American colleges. At present, Liaoning is deepening the implementation of the strategy of making development more innovation-driven, and accelerating the transformation and the upgrade. Economic development needs to rely on innovation. Transformation and upgrade need the support of talents. They are both related to the educational development. Both parties will further deepen communication and cooperation, continuously promote the interaction of colleges, teachers and students and establish a more close contact. 3. Energy-saving and environment-protecting field. We welcome Utah enterprises to invest renewable energy sources such as wind energy, biomass energy, solar energy and tidal energy, clean energy, energy saving and emission reduction, etc. 4. Modern service industry field. We will positively seek for cooperation with Utah in modern logistics, financial service, information service, science and technology service, tourism, exhibitions, etc. 5. Infrastructure field. We will open urban railway transportation, underground pipe gallery, comprehensive service for elderly care, the Internet of Things, etc. to oversea investors.
We hope to maintain the long-term communication mechanism under our joint efforts in the future, continuously enhance mutual understanding, further strengthen our communication and cooperation, and realize common development in mutual benefit and win-win.
