BEIJING, Dec. 19 (Xinhuanet) -- Office of the Leading Group for Revitalizing Northeast China and Other Old Industrial Bases of the State Council, People's Republic of China, released an English version of "Plan of Revitalizing Northeast China" on Wednedsay on  www.chinaneast.gov.cn.

    Following is the full text of the plan.

Plan of Revitalizing Northeast China 

    By National Development and Reform Commission, Office of the Leading Group for Revitalizing Northeast China and Other Old Industrial Bases of the State Council，People's Republic of China

    Preamble

    To apply the scientific outlook of development, accelerate the pace of revitalizing Northeast China, and promote coordinated regional economic development, the Plan of Revitalizing Northeast China is hereby formulated in line with "The Guidelines of the CPC Central Committee and the State Council on Implementing the Strategy of Revitalizing Northeast China and Other Old Industrial Bases" and " The Outline of the 11th Five-year Plan for National Economic and Social Development (2006-2010)".

    With emphasis on illustrating national strategies, clarifying government priorities, guiding market behaviors, and identifying general approaches, major objectives and tasks in revitalizing Northeast China, this plan is aimed at coordinating key issues in regional development and enhancing policies and measures to accelerate the process of revitalization.

    Geographically, areas covered in this plan include the following provinces and cities: Liaoning Province, Jilin Province and Heilongjiang Province as well as Hulunbeier City, Xinggan League, Tongliao City, Chifeng City and Xilinguole League, with the latter five areas seated in the eastern part of Inner Mongolia Autonomous Region., These areas are home to 120 million people and stretch for 1.45 million square kilometers .

    Development during the 11th Five Year Period (2006-2010) is a major focus in this plan while outlook of key issues may be envisaged as far as the year of 2020.

    Section I Review of Current Situation

    Since the strategy for revitalizing Northeast China and other old industrial bases was implemented three years ago, economic and social development in this region has registered accelerated growth, with constantly improving economic strength. Institutional innovation, with the restructuring of state-owned enterprises (referred as "SOEs" hereafter) as a priority, has made much headway. This region is opening up more to the outside world, and significant progresses have been made in technological innovation and structural readjustment. Moreover, mining-induced subsidence areas have been treated comprehensively and shanty areas have experienced successful redevelopment. Pilot projects to transform the economic structure of resource-based cities have been carried out steadily. In addition, infrastructure has been further improved and ecological development and environmental protection efforts have been strengthened. Moreover, urban social security net has taken shape initially and employment has been boosted. The past three years witnessed the most brilliant period of the region since reform and opening up in that the regional economy has expanded substantially and both the urban and rural residents here have received more tangible benefits than ever before. In general, the campaign of "Revitalizing Northeast China" has achieved great progress.

    The next five to ten years is a crucial period for Northeast China to seek fresh development and all-round rejuvenation, as it is standing at a new starting point. There are many favorable conditions: first, the Central Committee of the Communist Party of China unveiled strategic thoughts like scientific outlook of development and establishment of a socialist harmonious society, both of which enrich concept of reinvigorating Northeast China and highlight future orientation; secondly, sustained, stable and smooth growth of the national economy and the increasingly growing national strength creates an enabling environment to speed up institutional reforms and restructuring in Northeast China; thirdly, constantly improving regional coordination mechanisms facilitate interactions between Northeast China and the Central, Eastern and Western regions, which would be conducive for these regions to achieve shared prosperity and tap on each other's strengths; fourthly, China is more active in participating global competition, utilizing both domestic and foreign resources, and expanding both domestic and overseas markets. This provides further potential opportunities for Northeast China to boost its foreign trade and cooperation, thus opening up wider to the outside world.

    However, there are some pronounced contradictions and problems in the revitalization process. First, there are institutional obstacles to be removed and vitality to be aroused. The non-public economic sector in this region is still underdeveloped and market still needs to play a bigger role in the economy. Secondly, structural contradictions are still prominent. Proportion of high-tech industry and modern tertiary industry remains small, and the equipment manufacturing industry needs to produce more compatible products and improve its system integration capability. Meanwhile, the intensive and downstream processing capacity in raw materials industry is very low and many enterprises are weak in independent innovation. Thirdly, strong pressures are building up in creating jobs for the unemployed and providing social security. There are some residents still living a difficult life. Fourthly, the region provides declining amount of certain resources and some areas along coast or river are plagued by severe pollution. Fifthly, resource-based cities, and resource-depleted cities in particular, are lack of sustainable development capability, with slow development of alternative industries and huge social and ecological problems. These contradictions and problems mentioned above worth our high attention and call for effective measures.

    Section II Guiding Ideologies and Objectives of Revitalization

    2.1 Guiding ideologies

    With Deng Xiaoping Theory and the important thoughts of "Three Representatives" as the major guiding ideologies, we will step up economic and social progress by applying the scientific outlook of development and the theory of building a harmonious socialist society, thus promoting all-round revitalization in Northeast China. The guiding ideologies also involve six aspects: first, to transform development philosophies and enhance economic vitality through deepening reform and open-up; secondly, to improve independent innovation capability and promote restructuring while centering on revitalizing old industrial bases; thirdly, to solve demanding economic and social problems by accelerating economic transformation in resource-depleted cities; fourthly, to start with raising peoples' living standards and gradually establish a moderately well-off society in an all-around manner; fifthly, to promote balanced development between urban and rural areas and address regional disparity with establishing a new socialist countryside as a priority; sixthly, to enhance capability of sustainable development by boosting a recycling economy.

    In line with these guiding ideologies, several major measures should be adopted to solve the pronounced contradictions and problems in the revitalization process:

    First, pace of reform and open-up will be accelerated. We must deepen institutional reforms by establishing modern enterprise system and ownership structure, promoting strategic restructuring of state-owned sector, and cultivating non-public economy. We must increase development vitality by opening up more in both domestic and foreign markets.

    Secondly, efforts will be enhanced in restructuring and upgrading of industries. We must enhance independent innovation capability by upgrading and optimizing industrial structure. We must also enhance overall competitiveness of industries by spreading the use of information technologies and adopting new models of industrialization.

    Thirdly, regional cooperation will be intensified. Efforts should be made to establish regional coordination and interactive mechanisms, remove administrative barriers, and promote fast flow of resources and factors of production. In addition, we must also enhance regional cooperation and balanced development by co-building and co-using infrastructure facilities.

    Fourthly, economic transformation in resource-depleted cities will be accelerated. Measures will be taken to establish compensation system for resources development and aiding system for sunset industries, and cultivate the growth of alternative industries. We must also boost more employment and deliver more complete urban functions, thus making resource-based cities experience sustainable development.

    Fifthly, a resources-saving and environment-friendly society will be constructed. State policies of resources conservation and environment protection must be fully enforced. We must also strengthen efforts in developing recycling economy, ecological development and environmental conservation so as to achieve coordinated development of economy, society and environment.

    Sixthly, education, healthcare, culture, sport and other social undertakings will be advanced. We must improve social security net, expand employment, and promote democracy and rule of law. By promoting social stability and harmony, we must also let more people share the benefits of revitalization as well as all-around individual development.

    2.2 Objectives of Revitalization

    Through working arduously in the next 10 to 15 years, we are aimed at transforming Northeast China into an important growth engine featuring impressive economic strength, relatively complete institutions and systems, rational industrial structure, balanced regional growth, sound development of resource-based cities and harmonious social environment. To fully realize revitalization of this region, the area should be expanded as an internationally competitive equipment manufacturing base, a state base for new materials and energy supply, a key state base of grain commodities and agricultural and animal husbandry production, a key state base of technological development and innovation, as well as a strategic area for national ecological safety.

    During the 11th Five-Year plan period, the following objectives in economic and social development must be attained in Northeast China:

    First, sound and rapid economic growth will be maintained under the guidance of scientific outlook of development. By restructuring the economy, raising efficiency and reducing energy consumption, GDP per head in the region is expected to double that of the year 2002.

    Secondly, substantial progress in economic restructuring will be made. Proportion of tertiary industry in regional GDP and added value of non-public sector in regional GDP must be improved by a large margin. A number of internationally competitive domestic businesses with independent intellectual property rights and well-known brands will emerge with remarkable independent innovation capabilities.

    Thirdly, strong capabilities of sustainable development will be built up. Resources utilization efficiency will be considerably improved and worsening trend of ecological environment be reversed. Significant progress will be made in controlling and preventing air pollution in this region, and water pollution in areas along Liao River and Songhua River. Marine ecological environment will also be improved.

    Fourthly, social development will be vigorously advanced. We will strive to deliver better public services and promote public undertakings, such as education, healthcare and social security. The number of poverty population should be further diminished, and the capability to prevent and counter disasters be strengthened. Public security and work safety should be improved. In addition, progress will be made in building a socialist new countryside, with per capita disposable income of urban residents and per capita net income of rural residents in this region growing faster than national average, and registered urban unemployment ratio being kept at below 5 percent.

    Fifth, marked breakthroughs in reform and opening-up will be achieved. The system of socialist market economy should be improved with innovation in institutions and systems and SOE reforms be completed basically. Besides, an opening-up framework with coastal and border regions, and major cities in the Northeast as key sites will be formed. Foreign trade must be expanded further, with overseas investment being used better.

    Note: data in parenthesis is the sum number in five years

    Section III Promote Upgrading of Industrial Structure

    In the course of revitalizing Northeast China, we should adopt new models for industrial development, help businesses to play a major role and be market- oriented, strengthen their independent innovation capability and change the pattern of economic growth. Competitive industries must become more competent by using advanced technologies. We must cultivate new industries, support labor-intensive industries, and establish new industrial bases through structural and layout adjustment.

    3.1 Build a base for manufacturing advanced equipment

    By using information technologies, intelligent and integrated technologies, we must advance the independent innovation capabilities and system integration capabilities of businesses, and raise localization content and international competitiveness in major equipments manufacturing. Northeast China is expected to be built into an internationally competitive manufacturing base of heavy machinery and large complete set equipment, a global leading R&D and manufacturing base for digital machine tools and components, a state R&D and manufacturing base for power generation, transmission and transformation equipment, a strategic manufacturing and export base of complete vehicles, parts and components, a world-leading shipbuilding base as well as a state manufacturing base for rail transportation equipment.

Column 2     Priorities of Revitalizing Equipment Manufacturing Industry Digital machine tool: integrated products such as high-speed digital-controlled machine tool, digital-controlled milling and boring machine, high-speed vertical machining center, planer-type pentahedral machine center, multi-axis machining center, turning-milling machining center and flexible automatic production line, flexible manufacturing system and intelligent manufacturing system, etc. Large complete set equipment for oil refinery and ethylene manufacturing: 10-million-ton oil refinery equipment, complete-set equipment for manufacturing 1-million-ton ethylene, PX, PTA, PVC and polyester. Large complete set equipment for chemical processing of coal: large centrifugal compressor, 1250KN compressor for coal liquefaction project. Large metallurgical equipment: new-generation complete set short-route equipment for sheet metal concasting and constant rolling, large complete set sintering equipment. Large power generation equipment: Large hydropower generation units, large thermal power generation units with high efficiency and low pollution, megawatt nuclear power generation units, heavy gas turbine, IGCC(integrated gas-steam combined cycle) units, forging and casting components for large power-generation equipment, complete set power station auxiliary equipment, large air-cooling units and wind turbine units.        Ultra-high voltage/Extra-high voltage power  transmission and transformation equipment: 500 kv AC/DC complete set power transmission and transformation equipment, 750 kv AC complete set power transmission and transformation equipment, step up development in 1000kv AC ultra high voltage and ±800 kv DC transmission and transformation equipment.        Other large complete set machinery equipments: full face tunnel boring machine, large complete set equipment for cement manufacturing, port loading and unloading equipment, large lifting equipment, centrifugal compressor units and air-cooling equipment, large-volume oil-pump with high efficiency and adjustable speed, high temperature and high pressure large vessel and heat exchanger reciprocal compressor.        Large vessel equipment : 300,000-toncrude oil carrier, large and super large container vessel, roll on roll off(ro-ro) car shipping vessel , new-type ro-ro passenger ship, large bulker and ore carrier, stainless steel tank chemical carrier and its auxiliary equipment, large offshore oil engineering equipment, floating production, storage and offloading ship,etc.        Rail transport equipment: 200 km/h high-speed rail and rail above 200km/h, high-power AC-drive electric locomotive, internal-combustion locomotive and core technologies of novel subway vehicles.

    3.2 Speed up development of high-tech industry

    We must launch a number of high-tech projects on the basis of independent innovation, foster industrial clusters and enhance international cooperation. By doing so, we are aimed at constructing high-tech industry chains, nurturing leading industries and industrial clusters with core competitiveness. Priories are as follows: information industry, to build state photoelectron industrial base in Changchun City and state software industry and export base in Dalian City; biological industry, to build state national biological industrial base in Changchun City; new materials industry, to focus on technologies and products like new fine chemical materials, powder metal materials, rare earth luminescent materials, nanometer metal materials, organic electroluminescent materials, special functional materials and composite materials etc; aviation industry, to enhance designing and manufacturing capability of aircraft and core components of engines; and emerging marine industry.

    3.3 Optimize development of energy industry

    In order to optimize energy production layout and consumption mix, we must put energy conservation first, develop environmental friendly technologies, promote use of both coal and oil, and seek diversified development. We must also strengthen energy cooperation with Northeast Asian region, and build Northeast China into a state energy supplying base. In this regard, coal resources must be developed in an orderly way and large coal-power-chemical industrial bases in Hulunbeier, Huopingbai and Shengli and other places will be established. Coal production center will be established in the eastern part of Heilongjiang province and Tiefa ore district of Liaoning province will be developed. We must also ensure stable production capability of crude oil, expand natural gas output, and strengthen oil prospecting in Hailar Basin, Erenhot Basin and offshore areas. Comprehensive exploitation of oil shale in Jilin province will be enhanced and we must construct the crude oil pipeline linking Russian border to Northeast China. Project of natural gas pipeline network in Northeast China will be kicked off and power stations and power grids construction will be further optimized. In addition, we must give vigorous support to new energy and renewable energy industry and promote key energy-saving projects for energy conservation. In the year 2010, We are planning to produce 300 million tons of coal, 57 million tons of crude oil,7 billion cubic meters of natural gas, 300 billion kilowatt hours of electricity with installed capacity standing at 60 megawatts.

Column 3     Priorities in construction of power grids and natural gas pipeline network Power grids construction: power transmission line linking Hulunbeier and central Liaoning province, 500 kv AC transmission line connecting coal-powered bases in both Huolinhe and Chifeng and load centers in Liaoning province, 500 kv parallel power transmission line linking Heilongjiang and Jilin provinces, as well as the 4th parallel line for 500 kv power transmission between Jilin and Liaoning provinces. Natural gas pipeline network project: the trunk natural gas pipe line linking Harbin, Changchun, Shenyang, and Tangshan, ten branch lines linking Daqing and Harbin, Changling, Changchun and Jilin, Zhuaji and Harbin, Dalian and Shenyang, Daqing and Qiqihaer, etc.

    3.4 Uplift basic and raw materials industry

    We must step up efforts in eliminating backward productivities, optimize industrial structure and spatial layout, control the total output and explore intensive and precision processing. Therefore, we must strive to shift from expansion-based growth to efficiency-based growth. The major tasks are as follows: first, to establish new-type petrochemical industrial base, with focus on ten-million-ton crude oil processing bases such as Fushun Petrochemical Company, Dalin Petrochemical Company, Dalian West Pacific Petrochemical Company. Expansion and reconstruction projects in Daqing, Jilin petrochemical, Fushun Petrochemical Company and other projects must be accelerated to form a world-leading ethylene manufacturing base. By the year 2010, oil refinery capacity and ethylene production capacity are to be kept at 100 million tons/year and 4 million tons/year respectively; secondly, to develop coal chemical industry rationally. Coal chemical industrial bases in Xilinhot, Huolinhe, Hulunbeier, eastern Heilongjiang Province and western Liaoning Province must be established when timing is appropriate; thirdly, to build a top quality steel manufacturing base in Northern area, with supports from sheet steel manufacturing base in Anshan iron and steel group, and supports from manufacturing base of Northeast special steel group, which will offer special steel and steel used for equipment. Backward production capacity must be eliminated and iron and steel production base in Bayuquan District of Yingkou Municipality must be established, so as to gradually shift of iron and steel industry from inland to coastal area.

    3.5 Accelerate development of light industry with regional characteristics

    We must develop light industry with regional characteristics by taking advantage on natural resources, nurturing new brands, extending industry chains, and thereby creating new economic pillars and making light industry as an important stimulus to balance regional economic growth and absorb surplus labor. Priorities in this regard are: to develop chemical medicine and Chinese traditional medicine, support development of national medicine industry, promote intensive processing of farm produce by establishing manufacturing bases of grain, meat, aquatic products, dairy products and biochemical products and strengthen textile, garments, paper-making, plastic, furniture and forestry products processing industries, etc.

    Section IV Actively Promote Modern Agriculture

    To push forward building a new socialist countryside in an earnest way, we must equip agriculture with modern equipments, transform it with modern science and technologies and enhance it with modern industrial system. More specifically, we need to improve output, quality and food security of agricultural products and increase competitiveness of agriculture industry. We will strengthen the role of Northeast China as a state strategic commercial grain base, promote stable growth of agriculture and increase farmers' income.

    4.1 Strengthen the construction of agricultural production base

    Inputs must be enhanced to raise land productivity, resources utilization efficiency and labor productivity. We must strive to improve overall quality, efficiency and competitiveness of agriculture, establish more specialized agricultural bases with their own distinction, and develop green agriculture. Efforts will be strengthened in the following areas:

    First, construction of commercial grain bases will be reinforced. Priorities will be areas in Songnen and Songliao Plains where corn for special use and high-yield, oil and protein-rich soybean grow, Sanjiang Plain where quality rice grows. More investment must be channeled to build irrigation and drainage facilities, cultivate improved strain and purchase agricultural machinery. Regional agricultural cluster for large scale specialized production of agriculture and animal husbandry must be encouraged. We must accomplish construction of modern state commercial grain bases, ensuring stable output of grain and commercial grain supply.

    Secondly, top quality animal husbandry industry and relevant bases will be established. Specifically, industrial belt of meat, egg and milk production and processing shall be a priority in development, with central plain in Northeast China as a major focus. Other priorities are to establish cow and sheep bases in the west part of Northeast China where farming and pastoral zone staggered, to establish large modern milking cow raising zones and cow and sheep raising zones by taking advantages on Songnen Plain along Binzhou, meadow steppe in eastern Inner Mongolia, and other high-quality artificial pastures and fodder bases.

    Thirdly, production bases of green agricultural products will be built. Green food industry will be strengthened by building farm produce bases where high-yield, high-quality, safe, efficient and ecological-friendly products grow. In addition, a number of high-standard agricultural bases and bases for farm produce export are to be built. We must provide active support to the production of edible mushroom and ginseng, and other well-known distinctive forestry products. We must build green fruit product bases around eastern Liaoning Peninsula and hilly regions in western Liaoning province. Aquatic products farming and intensive processing bases along coastal areas must be built.

    4.2 Improve basic conditions for agricultural development

    We must improve the quality of cultivated land, enhance comprehensive agricultural productivity and apply advanced agricultural science and technologies so as to build pillars for modern agricultural development. Efforts will be made as follows:

    First, we will strengthen the comprehensive agricultural productivity with focus on transforming farmlands with low or middle yield. We must bring water under control and improve the soil, promote water-saving irrigation, and transform farmlands with low or middle yield. Traditional farming patterns must be improved and we must develop resource-efficient agriculture with standardized management, and equipped with modern facilities. Large agricultural production bases to produce top quality farm produce in large scale and professional way must be established. Agricultural production conditions and capability to resist natural disasters must be improved. We must increase inputs in comprehensive treatment and transformation of low or middle yield lands, cultivate improved strains and relevant technologies. We must raise the grade of cultivated land, build high-standard basic farmlands with stable and high yields at around 500 kg/Mu (1Mu equals to about 1/15 hectare) and resistant to drought or waterlogging. We must seek funds from diverse channels so as to transform 4 million hectares of low-yielding or middle-yielding lands from 2006-2010.

    Secondly, we will improve supporting system for agriculture. Agricultural service system must be accelerated and we must promote agriculture with standardized management and wide use of information technology. Agricultural market system must be completed and agricultural science parks and demonstration zones must be established. We will enhance efforts in developing innovation system for agro-science and technologies, develop and disseminate new strains and popularize advanced and useful technologies. Rural economic cooperative organizations must be set up to improve coordination mechanisms between leading enterprises and rural households, explore new model for development combining agriculture, industry and commerce. We must introduce mechanisms to ensure stable growth of agricultural aiding funds, and increase transfer payment to major grain producing areas.

Column 4 Priorities of Agricultural Development Irrigation and drainage facilities construction: to increase inputs in supporting facilities and renovating water-saving projects in irrigated areas, and initiate planning and construction of some new irrigated areas when time is appropriate in areas along Heilong River, Wusuli River and Xinkai Lake, where quality water sources abound. Transformation of low-and-middle yielding farmlands:  to conduct soil erosion control and soil fertility improvement in the Songnen Plain with black soils, transform barren and water logged low-and-middle yielding farmlands in Sanjiang Plain, improve saline-alkali land and wind-induced sandy land in the western part of Songnen Plain, as well as water-logged and saline-alkali land in northeast Liao River plan with brown soils. Construction of large-scale agricultural and animal husbandry bases with high-quality products: establish large state commercial grain bases, high-quality animal husbandry production base, high-quality aquatic products breeding and production base, and develop special resources in an all-round way. Agricultural mechanization: promote complete mechanization in maize and paddy rice production, strengthen service network for agro-machines and train personnel for maintaining and operating agricultural machinery. Supporting system development: to enhance protection of animals and plants, cultivate improved strains in agriculture and animal husbandry, popularize science and technologies while promote information services and establish certification center for assessing qualities of farm produce. Rural infrastructure development: to speed up construction of rural roads and grassland fences in pasture areas, ensure water safety and develop rural energy. Public facilities of education, culture, healthcare, medical, etc, will also be strengthened.

    We must foster the development of tertiary industry by following market-orientation, expanding industrialization and encouraging socialized services. We must establish modern service system by relying on regional center cities, and capitalize on accelerated service trade transfer. The potential of absorbing labor by service industry should be released and let the industry play a pivotal role in job creation.

    5.1 Develop production-oriented services

    First, we must make the development of modern logistics as a priority. Overall planning should be made to establish inter-provincial logistics centers and corridors. We must establish and improve information platform for logistics and distribution facilities, and promote the use of information technologies in business logistics management. We must speed up the construction of international logistics center in Dalian and regional logistics centers in Shenyang, Changchun, Haerbin and Tongliao, thus establishing an integrated logistics system in Northeast China.

    Financial industries must be strengthened. We must cultivate a favorable environment for finance industry and enhance credit system. Urban commercial banks must go through reforms and restructuring and reforms of rural credit cooperatives must be deepened. We must promote the development of other financial entities, such as investment and trust companies, lending and releasing entities, and financial companies. We must encourage the development of social service entities which provide investment consulting, asset assessment, accounting and legal services, etc. We must enlarge pilot services in banks to offer loans SMEs and create a financial service system favorable to SMEs development. In addition, credit guarantee system in Northeast China must be improved and we must further support the development of insurance market and conduct researches on establishing companies dedicated to agricultural insurances and other specialized insurance services, and promote innovation of insurance varieties and ways of delivering services.

    Development of commercial service industry must be accelerated. Investment and asset management services like project planning, financial consulting, merger and acquisition, and public listing, etc must be strengthened, and economic services like accounting, auditing, taxation, asset appraisal, calibration, test and commodities examination must be vigorously encouraged. We must support consulting services in market survey, engineering consulting, management consulting, credit services, etc and regulate legal services, such as lawyer system, notarization, legal aids, judicial expertise, economic arbitration, etc. In addition, structure and layout of conference and exhibition industry must be optimized and adjusted.

    Furthermore, we will support the development of innovative cultural industries. We must step up support in specialized industrial designing industries through encouraging industrial R&D and designing consortiums in the Northeast region and we will actively develop entertaining industries, movie and TV making, arts, sports, publishing and advertising industries, etc. We must build state digital movie making bases and domestic animation making centers with Changchun and Dalian as core areas so as to foster the formation of innovative cultural industry clusters and promote export of cultural products.

    5.2 Standardize and improve services pertaining to people's life

    We must promote progress in commercial services by encouraging diversified ownership structures and operating modes, retail sales that are reliable and readily accessible to residents, and catering services, etc. We must also encourage modern logistics and organizational forms such as chain-store operation, franchised management and logistics distribution, etc.

    Tourism must be vigorously developed. We must leverage advantages in winter sports, forest, grassland, wetland, border areas, develop industrial and agricultural tourisms, create attractive tourism products, and develop top quality tourism programs related to forest, grassland, industrial and agriculture.

Column 5   Priorities of Tourism Development Winter sports tourism: to build winter sports bases in Harbin province and Jilin provinces, etc. We must develop high-latitude skiing programs, mountain winter sports tourism and winter recreational programs. Forest, steppe and wetland tourism: to give priorities to the development of forest tourism in Daxinganling Mountains and Xiaoxinganling Mountains, Changbai Mountain and eastern Liaoning Provinces, sight-seeing and folk tourism in the grasslands of Hulunbeier, Xilinguole, Keerqin, as well as wetland ecological tourism in Sanjiang Plain, Songnen Plain, downstream plain of Liao River, and Daxinganling Mountains, etc. Volcano and hot spring tourism: with effective ecological protection, to actively develop programs such as volcano landform sight-seeing, volcanic lake sight-seeing, scientific expedition, mineral spring tourism and  leisure tourism, etc in Changbai Mountain of Jilin, Wudalianchi of Heilongjiang and Ar Mountain of Inner Mongolia. Industrial tourism: to explore cultural legacies in old industrial bases which are most representative and are mirrors of regional development. Focuses will be on such tourism programs in Shenyang, Anshan, Changchun, Daqing and Qiqihar. Guidance will also be provided in developing such programs in resource-depleted cities. Agricultural tourism: by relying on resources of modern agricultural production bases, set up agricultural demonstration parks, as well as villages and towns with distinctive features. Cultural and historic tourism: to develop world renowned tourism programs with distinctive local cultural characteristics by core sites, such as Hongshan cultural heritage, Gaogouli relics, relics of Bohai country, “One palace and Three tombs” in Shenyang which are world cultural heritage under the protection of state. Border tourism: to develop border tourism in key border cities, such as Dandong, Huichun, Suifenhe, Heihe, Manzhouli, and Erenhot, simplify custom clearance procedures and enrich contents in border tourism.  Coastal tourism: to fully utilize coastal tourism resources, promote sight-seeing and leisure tourism in coastal areas.

    Section Six Coordinate Regional and Urban-Rural Development

    We must guide division of labor among regions, encourage regional cooperation, strengthen inter-regional key infrastructure construction, coordinate balanced development between urban and rural areas and create new growth engines. A new regional development framework pattern featured by interconnected key cities and their constant interaction with surrounding hinterland must be formed, and sustainable growth of resources-based cities must be promoted.

    6.1 Optimize regional spatial structure

    First, Harbin and Dalian and coastal economic belt all together form a first-grade axis, the advantages of which must be explored. Based on this, we must promote the second grade development axis to form a spatial structure of "Three horizontals and Three Verticals axis".

    Priorities must be given to the development of Harbin-Dalian economic belt. We must build Dalian economic zone, central Liaoning economic zone, Changchun-Jilin economic zone as well as Harbin-Dalian-Qiqihar industrial corridor in this belt. We must optimize industrial layout, promote industrial clusters, and build world-leading manufacturing industrial belts.

    Efforts must be put in forming a coastal economic belt. With Dalian as the spearhead, and Changxin Island, coastal area of Yingkou, Jinzhou Bay, Dandong and Huayuankou, which forms "five points in a line", we must optimize the layout of ports in this line, and actively develop port-related industries, high-tech industries and modern service industries. We must gradually build this economic belt as a competitive and leading industrial cluster with distinctive features.

    We must promote the sound development of second-grade axis. Eastern corridor of Northeast region, Qiqihar-Chifeng, Suifenhe River-Manzhouli, Huichun-Arshan Mountain , Dandong-Huolinhe River, Jinzhou-Xilinhot form the second-grade axis, which must also be given priority. We must accelerate the development of urban economic zones, border cities and towns, and support the establishment of border trade zones where conditions are appropriate.

    Major functional zones must be formed. We must make rational division of the four kinds of functional zones and clarify specific functions. Fiscal, investment, industrial, land, environmental, population and other supporting policies must be put into place.

Column 6 Some of the Restricted and Prohibited Development Zones in Northeast China Restricted development zones: Forest ecological functional zones in Daxinganling Mountains, Xiaoxinganling mountains and Changbai Mountain—Forest harvesting for non-protective purposes is prohibited, and natural forest protection project must be implemented. Development of this functional zone must concentrate on key nodes and form clusters, and ecological industry with distinctive local flavor must be developed.   Wetland ecology functional zones in Sanjiang Plain—Protection zones must be enlarged and the intensity of agriculture and urban development must be within control. Wetland ecological environment must be improved and agriculture and industries with distinctions must be developed. Desertification control zones in Hulunbeier grassland, Kerqin and Hunshandake ——Excessive land reclamation, inappropriate felling and over-grazing must be prohibited and necessary prevention and control measures must be implemented. Township development must be highlighted and competitive local special industries must be fostered. Prohibited development zones: 50 state natural reserves, 5 world culture and natural heritages, 16 state key tourist attractions, 108 national forestry parks and 12 national geological parks are included in this class.

    6.2 Promote balanced development between urban and rural areas

    We must promote balanced development between urban and rural areas and speed up urbanization in line with the principles of "industries back-feeding agricultural development and urban areas supporting rural areas" and "giving more, taking less, and loosening control".

    Development of county economy must be promoted. We must develop distinctive industries and competitive industries based on local conditions and advantages. We must support the growth of leading processing enterprises for grain, meat, egg, milk and other agricultural and sideline products, solidify pillar industries in county and towns, and build processing bases for vegetable, flowers, mushrooms, milk products, meat, etc, which are targeting at urban market.

    We must step up efforts to set up towns and townships in rural areas. Administrative reforms of managing systems in agricultural farms, forest district and mining district must be accelerated. We must create new models and mechanisms in setting up townships in rural areas and push forward household registration reforms, land reforms, investment and financial reforms.

    6.3 Coordinate construction of key inter-regional infrastructure

    Extensive transportation system must be established. Focusing on building transport corridors and major hubs, we must consolidate the construction of railway network, expressway network, port system, airport system and corridors linking other regions. Six corridors, including Tongjiang-Dalian corridor, eastern corridor in Northeast China, Heihe-Beijing corridor, Suifenhe-Manzhouli corridor and Dandong-Xilinhot corridor must be priorities. Seven comprehensive transportation system must be formed as follows: coal transportation system must be built and renovated, with railways and expressways linking coal bases in eastern Inner Mongolia and the three major energy consumption provinces in Northeast, thus forming a system with powerful supporting capacity; oil transportation system must be enhanced with the construction of Russia-China crude oil railway system, Russian-China oil pipelines when appropriate, and enlargement of functions of Dalian and other major ports in oil loading, unloading and transit; efficient ore transportation system must be formed by actively building Dalian and Yingkou ore ports; efficient grain transportation system must be built relying on railway-water combined transport; efficient and convenient container transportation system must be established with Dalian as trunk-line port and other ports as supporting ones. We must also expedite customs clearance system; heavy-equipment transportation system must be set up and fast and convenient passenger transportation system must be established.

    Construction of inter-regional transportation infrastructure must be advanced by improving railway network and rapid transportation network in city and towns clusters, and speeding up development of inter-provincial expressways. We plan to guide the rational division of functions among coastal ports in the Northeast and step up efforts to build small-sized airports.

Column 7  Planned Transportation Projects in Northeast China Railway construction:  to construct Harbin-Dalian passenger line, Changchun-Jilin inter-city rail transit, Yimin-Yirshi railway, Chifeng-Daban-Baiyinhua railway, Wulanhot-Huolinhe-Xilinhot railway, Fuxin-West Ujimqin league railway, railway corridor in the eastern part of the Northeast, and container load centers in Harbin, Shenyang and Dalian; to transform Hailar-Manzhouli, Baicheng-Arshan, Huolinhe-Tongliao, Jinzhou-Qiqihar, Jinzhou-Chengde, Shenyang-Jilin, Shenyang-Dandong, Yebaishou-Chifeng, Changchun-Tumen railways, etc. Expressway construction: to construct expressways of Suifenhe-Manzhouli, Hegang-Dalian,Huichun-Wulanhot,Daqing-Tongliao-Chifeng-Chengde,Changchun-Shuangliao-Fuxin-Chaoyang-Chengde,Dandong-Xilinhot,Tongliao-Shenyang,Jilin-Shenyang, Jilin-Heihe, which are all key components in national expressway network plan. Port construction: to transform the 3rd and 4th phases of Dayao container ports, old ports and eastern ports in Dalian, and expand Yingkou port, Dandong port and Jinzhou port. Airport construction: to expand and improve airports of Dalian, Shenyang, Changchun, and Harbin, as well as build new airports in Changbai Mountain, northwestern part of Jilin province, Mohe, Daqing, Jixi, Yichun, Arshan and Erenhot.

    We must step up the construction of information infrastructure and accelerate the establishment of integrated information system in Northeast China. Integrated information application systems, such as E-government, e-commerce, distance education and distance medicare must be promoted. Cultural information sharing project must be implemented and by support from universities and research institutes. Northeast science, technology and education information network must be built and information-sharing with advanced regions must be strengthened.

    6.4 Promote sustainable development of resource-based cities

    To promote comprehensive, coordinated and sustainable development in resource-based cities, we will aim at creating jobs, eliminating poverty, improving people's livelihood and housing environment, setting up functional social security system, and maintaining social stability. By expanding reform and opening up, as well as promoting independent innovation, we must make strong policies and measures to improve institutions and systems, promote industrial upgrading and transformation of economic growth mode, cultivate alternative industries and improve ecological environment.

    We must establish long-term incentive mechanisms: first, to establish compensation mechanism for resource exploitation. When exploiting resources, behaviors of various market entities must follow market principles, assume responsibility for resources compensation, ecological environment protection and rehabilitation and be regulated by legal, economic and necessary administrative means. Secondly, to establish aiding mechanisms for sun-setting industries. We must carry out overall planning, accelerate industrial restructuring and upgrading, and vigorously develop alternative industries to transfer surplus labor. Social security system must be improved and various vocational training must be rolled out to help laid-off workers get reemployed. We must solve historically inherited problems in resource enterprises and ensure smooth exit of resources-depleted enterprises and promote social stability.

    Moreover, we shall vigorously develop succeeding or alternative industries following market guidance and make businesses play a major role in this process. For cities with stable output in resources exploitation, we must formulate rational exploitation plans, improve resource recovery efficiency by using new techniques and processing methods and improve resources utilization efficiency by developing upstream and downstream industries, thus translating resources advantages into economic competitiveness. We must also encourage the development of new industries. For cities with declining output in resources, we must enhance comprehensive appraisal of resources, fully explore secondary resources, expand resources prospecting in other regions and overseas so as to find sources of resources for local enterprises. In the meantime, we must speed up the establishment of alternative industries with great potential and strong competitiveness. As for the resource-depleted cities, the focus is to shift orientation of industries, transform traditional industries by using high and new technologies, and form new leading industries tapping on local advantages.

Column 8 Major tasks of pilot reform of economic transformation in Six Resource-based Cities Fuxin City: to promote agriculture and farm produce processing industries, develop alternative industries based on scientific planning, strengthen exploitation in surrounding mining districts, and actively help to develop coalfield area in eastern Inner Mongolia to transfer surplus labor. Ecological environment must be improved in mining areas. Daqing City: to strengthen exploration in new potential areas and increase reserves; to improve tertiary oil recovery and recovery efficiency through using innovative technologies, and mitigate the declining trend of oil oilfields; to expand petrochemical industry and accelerate the development of alternative industries, such as new construction materials, oil industry equipment and farm produce processing, etc. Yichun City: to push forward natural forest protection project and experiment with state-owned forest ownership reform; to deepen economic reforms, enhance vitality of enterprises, and separate government functions from enterprises and straighten out governmental functions, and encourage the in-depth development of timber industry, forestry ecological tourism, medicine, green food and other competitive industries. Liaoyuan City: to actively attract high-tech businesses and professionals and develop special synthetic fiber, high-performance special alloyed material, new construction material,etc; to develop biological medicines, health products and organic food processing by relying on biotechnologies; to enhance competitiveness of traditional industries, such as equipment manufacturing, textiles and garments, construction materials, etc. Baishan City: to develop tourism industry by fully exploring tourism resources of Changbai Mountain, and make it a renowned attraction in Northeast China; to cultivate forest resources and promote in-depth processing of timber; to expand mineral water producing industry and health products industry with Ginseng and Ciwujia as major raw materials. Panjin City: to ensure stable oil and natural gas output for a long period; to expand petrochemical industry and actively develop fine chemicals, plastic processing and new construction materials industries; to expand and strengthen equipment manufacturing industries like small and medium-sized shipbuilding, and petroleum drilling and recovering equipment, etc; to fully utilize ecological resources by developing green food processing industries and ecological tourism.

    Section VII Enhance Economy Support Capability

    We must strive to enhance education and talent training, build a sound social security system, strengthen ecological development and environment conservation, and optimize resource allocation, thus providing support and guarantee for regional development.

    7.1 Strengthen education and talent training

    We must optimize the allocation of educational resources. We must keep reforming management system of higher education, expand and consolidate nine-year compulsory education program, actively develop vocational education and vocational training programs in diversified forms and accelerate training for talents with practical skills. We must provide technical training to laid-off workers and hold training for farmers to get practical skills. Training bases for high-skilled personnel and pubic practice centers of Northeast China must be established. We must integrate all sorts of educational resources and establish training bases for continuing education.

    We must improve talent development mechanism. Reforms of personnel selection systems must be pushed forward based on open recruitment, position competition and fixed tenure system. We must formulate more flexible policies to attract talents and encourage them to start business in Northeast region. We must establish effective incentive mechanisms, such as making technologies, management as factors of production that could be considered in distribution. Public supporting services for talents must be improved and we must further establish comprehensive policies and regulations for talent training, introduction, utilization and management.

    Moreover, we shall strengthen talent training and exchanges. We pledge to implement training programs and projects for high-level innovative talents and urgently needed professionals. Cadre exchange mechanisms among Northeast China, the central government and Southeast China must be improved. We must carry on exchange programs of entrepreneurs in Northeast enterprises under the management of central government. Barriers among different regions, industries and ownership structures must be removed to facilitate talent flow. Talent flow mechanisms and human resources market must be improved.

Column 9     Major Programs of Talent Development in Northeast China Pairing exchange program of entrepreneurs: to send a number of excellent entrepreneurs selected from enterprises owned by central government in coastal regions to work in enterprises in the Northeast and vice versa. High-level innovative talents training program: to help growth of young and middle-aged academic leaders in Northeast China by programs like “the new century national hundred, thousand and ten thousand talent projects”, “Cheung Kong scholars program” and “Innovative research team program in universities”, etc. “Northeastern Spring” talent project: to train a number of academic leaders, key technicians and new industrial talents by relying on Chinese Academy of Sciences, which supports project-based research, on-job training of doctorate, and other training programs. Project for training urgently needed professionals: to accelerate training of urgently-needed professionals in major industries of old industrial bases by relaying on universities and research institutes. The project may rely on  “985 project”, “211 project” and “Innovation project of graduate education”, etc.   Skilled talent training project: to establish a number of skilled talent training bases with emphasis on training urgently-needed technical personnel in manufacturing and modern tertiary industry, under which 30 thousand new technicians each year and 200 killed personnel must be sent overseas for short, middle or long-term training. Program for training farmers with practical skills: to train farmers and migrant workers in Northeast China by relying on projects like “Green certification program”, “New Science technologies training scheme for farmers” and “Sunshine Project” to train rural surplus labor for non –farming jobs.

    7.2 Enlarge employment and build a sound social security system

    We will go all out to create employment. Development of labor-intensive industries, tertiary industries and SMEs of various ownership types must be encouraged. We will encourage people to seek job on their own and become self-employed. Government will reinforce its public responsibility to stimulate job creation and improve public employment service system. We must create enabling environment for rural migrant workers working in cities and actively help university graduates get employed. Employment-aiding system to the poor must be improved and job positions for public welfare must be explored. We will also strive to provide at least one job opportunity for family with no one employed.

    Meanwhile, social security system must be improved. We must improve the new rural cooperative medical system and rural medical aiding system, gradually establish the minimum subsistence system in rural areas and explore to establish diverse rural pension and insurance systems in places where conditions permit. Systems of basic pension and medical insurance in urban areas, unemployment insurance, work injury insurance and maternity insurance must be improved. We will gradually enlarge coverage and benefits, and elevate levels of contributions for social insurances. We will carry out serious measures to provide social security for migrant workers and farmers whose land has been expropriated or requisitioned.

    7.3 Strengthen ecological development and environmental conservation

    We must do a good job in ecological development and environmental conservation in mining districts of resource-based cities. Specifically speaking, we must carry out comprehensive treatment of ecological environment in mining areas and strengthen the monitoring and supervision of exploitation activities in order to prevent occurrence of geologic disasters and build a sound ecological environment in resource-based cities. Relocation of residents living in mining-induced subsidence areas must be implemented in an earnest way and places with potential geological hazards, such as opencast pit, waste yard, waste dump, etc must be treated. We must also increase inputs in treating falling water level and Saline-Alkalized land triggered by oil exploitation, conduct the planning of land development and reclamation, and work into land reclamation of deserted mines.

    Ecological development in key regions must be implemented in an earnest way. In particular, we must increase inputs in treating desertification and land degradation, carry on the work of forestation, grass-growing and protect natural forest and grassland. We must reinforce the treatment of soil erosion and implement a batch of key construction projects that are conducive to improving ecological environment and reversing environment deterioration.

Column 10   Priorities of Ecological Development in Northeast China Treatment of Kerqin sandy land: to construct sand-blocking ecological belt, composite ecological shelter, and integrated forest-grass-pasture ecological economic system; to treat   declining sylvestris forest and establish small water-and-soil conservation and storage project in arid areas. Treatment of sources of sandy wind in Beijing and Tianjin: to enclose desertification land and protect it, to nurture forest and grasses which are windbreakers and sand-binding, to harness grasslands, and implement migration programs for environment protection. Comprehensive treatment of black soil area: to strengthen comprehensive treatment of soil erosion, improve the shelter forest system for farmland protection, restore vegetation in grassland, and improve fertility of black land and prevent nonpoint source pollution. Protection and development of natural forest: to protect current forest, strengthen cultivation of forest resources and develop forest economy; to strengthen growth of succeeding industries, enhance comprehensive utilization of timber and its processing. Pasture for grass in natural grasslands program: to push forward the project of pasture for grass project in key grass degradation zones of eastern Inner Mongolia and other places, strengthen the comprehensive treatment of problematic grasslands, transform the traditional grazing mode, construct high-yield artificial grassland and feeder bases, and implement confinement feeding. Ecological restoration and treatment in mining districts: to combine engineering, biological measures and comprehensive utilization of waste to harness soil erosion, and  continue to implement restoration project in mining-induced subsistence areas and environmental protection project in mining mountains. Wetland protection and restoration: should strengthen the protection of wetland resources and biological diversity in Sanjiang and Songnen plains, carry out pilot projects of wetland restoration, and implement resettlement project in wetlands. Marine ecological protection: to strengthen the protection of marine resources, biological diversity and environment, and initiate pilot projects for marine ecological restoration.

    Moreover, we must strengthen energy-saving, emission reduction and environment protection. In particular, we must push forward the water pollution prevention programs of Songhua River and Liao River, strengthen the protection and treatment of drinking water sources for large and medium sized cities with centralized water supply, enhance the rate of urban sewage treatment to above 70 percent and decontamination rate of urban refuse to above 60 percent, strengthen industrial pollution prevention, push forward the construction of desulfurization in power plants, elevate the rate of comprehensive use of industrial solid waste to above 60 percent and the rate of water recycling in industrial use to above 90 percent, and initiate environmental protection action program for the purpose of achieving rural moderately well-being.

Column 11   Priorities of Environmental Pollution Treatment in Northeast China Protection and treatment of drinking water sources: to strictly define the protection zone for drinking water sources, improve environmental monitoring system for drinking water, publish water quality information on a regular basis, carry out pollution prevention in key drinking water sources, and prepare emergency response plan for potential pollution. Water pollution control in Liao River valley: to push forward clean production, reduce further the total emission industrial waste, to accelerate the construction of urban sewage treatment plants and garbage treatment plant, advocate water recycling, and strengthen waste pollution in large scale fowl and livestock breeding industry, and actively eliminate agricultural nonpoint pollution. Water pollution control in Songhua River valley: to strengthen industrial waste control, avoid serious accident, and accelerate pollution treatment facilities infrastructure urban areas Regional air pollution control: to pay special attention to the desulfurization of coal-fired power plants and emission reduction of auto-exhaust. City clusters in central Liaoning province will be a key area. We will decompose the pollution control targets among different cities, strengthen industrial pollution prevention and control, and initiate relocation and transformation of heavy polluting businesses in densely populated urban areas.

    We will actively promote recycling economy. Pilot project of enforcing recycling economy in businesses, industrial parks and governments must be initiated, with focus on energy, raw materials, equipment manufacturing and agricultural products processing industries. We must improve agricultural eco-environment by actively promoting eco-agricultural modes and technologies.

    7.4 Promote rational use of resources

    We will strengthen land resources management. As required by the strictest basic farmland protection, we will prevent excessive growth of land used for construction and reinforce land redevelopment and consolidation of old city districts and deserted industrial sites. We will pay attention to integrated development of land used for construction. We will support land consolidation and reuse in deserted mining mountains, lands heavily salinized and coast beaches. Functional system for land purchase and reserve must be established and reinforced. We must standardize leasing system for land used for commercial activities, strengthen land property rights registration and land assets management, and make good arrangement for compensating farmers whose land has been expropriated or requisitioned.

    We must optimize water resource allocation. We will strengthen the protection of drinking water sources and the construction of inter-regional water diversion project, build up capability for water resources allocation and urban water supply capacity, We will raise flood resistance capacity in cities, major towns and mining areas by accelerating projects to enhance waterproof improvement projects of medium-and-large reservoirs. We must formulate a reasonable plan in identifying the direction and priorities of water exploitation and achieve joint utilization of surface water, underground water and water channeled from other regions. We will spread the use of water-saving irrigation technologies, adopt comprehensive water-saving measures, build water-saving farms and pastures, and upgrade water-saving technologies in water-intensive industries such as thermal power, metallurgy and so on. We will raise water recycling rate in industrial use, extend the utilization of water-saving facilities in both urban and rural areas, enlarge the use of recycled water and try to raise the recycled water utilization rate to over 20 percent by the end of 11th Five-Year Plan period. We will set up and improve the distribution and transfer system of water rights and strengthen management system by combining water valley management and regional water resources management.

Column 12  Hydraulic Engineering Projects in Northeast China Large water control and diversion projects: to complete the construction of water diversion project at Dahuofang reservoir, water control projects at Xishan reservoir and Laolongkou water conservancy project; to build water control and diversion project at Sanwan, and the second phase of water project at Taoshan reservoir, and water project at Qinglongshan reservoir; to complete preparation work for water projects as Hadashan hydrojunction, Jinling reservoir, water conservancy project at Bila river estuary, Qingshan reservoir, water transfer from Songhua River to supply city clusters Jilin province, from Nen River to Baicheng City, and water supply project in Dalian City and so on. Irrigated area projects: to finish the expansion project of Nirji water conservancy project for diverting water from Nen river, and make preparation for projects in large irrigated area in Sanjiang, Songnen and Liao River plains and kick off these projects when time is ripe, etc.

    Moreover, we will exploit ore resources in an orderly way, reinforce the coordinated planning of mineral resources survey and exploitation, step up certification and authorization management. Prospecting activities of oil and natural gas in Songnen Plain as well as nonferrous metals, precious metal, underground water and other important non-metal resources in Daxinganling Mountains, Xiaoxinganling Mountains, Changbai Mountain and other surrouding places will be more frequent. We will initiate pilot project in Wengquangou of Fengcheng City in Liaoning province for integrated development of iron-boron mine, raise the recovery rate and integrate utilization rate of mineral resources, push forward the recycling of industrial residue and tailing minerals, improve mineral resources development management system by allocating according to law the prospecting rights and exploiting rights. We must establish mineral rights trading system, improve exploration system with explorers paying at price and compensation mechanism for environmental restoration in mining areas.

    Furthermore, we shall make rational use of forest and grassland resources. We must strengthen the protection of natural forests in Daxinganling Mountains, Xiaoxinganling Mountains, Changbai Mountain and scientifically renew resources of "Three North Shelterbelts" so as to ensure that forestry resources are growing faster than the amount reduced by felling. We must establish state strategic bases for timber reserve, make rational use of and protect natural pastures in Hulunbeier and Xilinguole, etc, prevent excessive grazing, and restore fertility and ecological functions of grasslands.

    Last but not least, we shall protect and explore marine resources. We must actively develop marine oil and natural gas resources, thermal energy and sea water chemical resources. Excessive fishing near shore must be strictly prohibited and dynamic balance of biological resources must be kept. We must ensure that aquaculture development in shallow sea must not exceed sustaining capacity of marine environment, control the land reclaiming activities, and exercise treatment of coastal areas. Exploitation of marine sand must be restricted, and management of strand wetland, islands and marine natural reserves must be enhanced to maintain a sound ecological system in coastal area.

    Section VIII Enhance Development Vitality

    We will push forward institutional reforms and procedural innovations to create stimulus from inside, open up wider to propel development and enhance independent innovation to build up competitive capabilities. By making key breakthroughs and achieving synergy in development, we will accelerate momentum in revitalizing the Northeast.

    8.1 Accelerate institutional reforms and procedural innovations

    First, we shall accelerate administrative management system reforms. We will push forward the separation of government functions from enterprise and separation of government from asset management functions. Over－intervention of government in economic activities must be reversed completely and more economic and legal measures must be applied in regulating economy. In places where conditions permit, we will initiate reform of "county directly administered by provincial government".

    SOEs reforms must be deepened. We must facilitate the concentration of state assets in key areas, industries and enterprises that are of vital importance to economic development and state security. We must promote key industries to restructure with diversified ownership and cross-regional cooperation. We must promote reforms in businesses to separate their auxiliary departments from core business, reform ownership of these auxiliary departments and separate social functions from businesses. We must actively push forward the trial restructuring of SOEs-affiliated collective enterprises, and accelerate the reforms of state-owned forest district through the above-mentioned initiatives.

    Moreover, we will develop non-public economic sector in a vigorous manner. We will treat non-public enterprises as equals with SOEs and carry out supporting policies in market entry, import and export, land use, lending, issue of enterprise bond, etc. Private investment must be allowed to participate in SOEs restructuring by various forms and enjoy equal status with SOEs in non-performing loans write-offs, interests reduction, land use and other tax and credit policies.

    Modern market system must be improved. We will set up property rights market oriented toward the Northeast, based on property rights transaction center in Shenyang and we will establish an important futures trade center in Dalian, based on Dalian commodity exchange. We must rectify market order, intensify market supervision and improve social credit system by setting up mechanisms to encourage credit compliance and penalize dishonest.

    We must actively push forward supporting reforms. Districts with favorable conditions must be selected as pilot areas to experiment with important reform initiatives as follows: SOEs reform, opening up, reforms of administrative management system, reform of investment and financing, financial and credit system, non-performing assets disposal, land management, etc, thus providing new experiences in revitalization of Northeast.

    8.2 Expand opening-up

    We must increase both quantity and quality of foreign investment utilization. We shall encourage foreign investment to participate in SOEs restructuring and achieve diversification in investing entities. Foreign direct investment must be guided to flow into industries like high-tech, equipment manufacturing, modern agriculture, tertiary industry, infrastructure and ecological environment conservation, etc. Foreign-invested financial institutions must be encouraged to set up offices and deliver services in Northeast China and foreign investors must be encouraged to establish regional R&D centers, or participate in setting up technological innovation and designing centers in industries with distinctive advantages. Foreign investment must be prohibited or restricted to invest in energy-intensive, materials-intensive and high pollution industries.

    We must actively develop foreign trade. Export of high-tech, high value-added products, labor-intensive and agricultural products must be encouraged and export mix must be optimized. We will control the export of energy-intensive, high pollution and resource-based products. We shall actively use the transfer of foreign manufacturing industries to develop foreign services trade and processing trade, consolidate trade relationships with Northeast Asian countries and actively explore overseas markets in Southeast Asia, Europe, and North America and develop border trade.

    Moreover, we must strengthen international economic and technological cooperation. We need to accelerate the establishment of border economic cooperation zones, exchange trade zones, export processing zones and cross-border industrial districts in major border cities. We must promote collaboration with surrounding countries in energy, raw materials and mineral resources, establish exports processing bases and technological cooperation bases oriented to Russian market and encourage international cooperation in competitive industries. We must support leading businesses to establish production bases and economic and trade cooperation zones in neighboring countries, and continue to push forward cooperation in the development of Great Tumen River.

    We must optimize the spatial pattern of open-up. In this regard, we must accelerate in making Dalian the air transportation center in Northeast Asia, actively promote the construction of bonded zone in Dayaowan port of Dalian and let it be functional for inland areas. We must conduct pilot reforms of custom clearance system based on the principle of "declaration according to administrative jurisdiction with examination at the port". We must enhance urban infrastructure and international logistics corridors construction in major border cities and actively develop corridors for inter-regional transport of domestically traded commodities and cross-country railway-water combined transport, push forward the construction of roads, ports and economic cooperative zones at areas bordering Russia, Mongolia and Democratic People's Republic of Korea. We must open up wider in development zones.

Column 13 Construction of Port Corridors Priorities of construction should be given to railway from Suifenhe to Vladivostock, from Huichun to Kamesova at the border with Russia, railway from Arshan to Qiaobashan at the border with Mongolia, and Nanping port for transportation of iron ore powder, as well as railway from Mudanjiang to Luojin at the border with North Korea.

    8.3 Actively promote independent innovation

    We must help enterprises to become major players in technological innovation. In areas of equipment manufacturing, petrochemical, biological engineering, medicine, new materials, etc, we must encourage enterprises to set up technical centers, high-level laboratories, engineering centers and test bases, thus providing impetus to make breakthroughs and promote application of technologies.

    Independent innovative capabilities must be built up. To improve independent innovation capabilities and stimulate sharing of resources, we must reinforce scientific research facilities, integrate scientific experimentation and research systems and establish leading bases for researches and talents training. Among others, we must establish platforms, networks and systems for technological innovation in key fields and implement key projects.

    Innovative mechanisms must be strengthened. We shall perfect the comprehensive policy systems for transferring and commercializing science and technological results. To support independent innovation, we must form relatively advanced venture capital investment system in science and technology by establishing relative input mechanism, encourage original innovation and commercially viable technological innovation, and strengthen the protection of intellectual property rights.

    We must increase inputs in independent innovation. We must support basic researches, frontier high-tech researches, and researches for public good. We pledge to ensure that the outlays of provincial governments for technological development should increase much faster than the increase rate of their regular revenues. We must encourage local governments to provide special funds for the commercialization of technical progress and innovation of SMEs.

Column 14 Technological Innovation System in Northeast China Five major platforms for technological innovation Industrial technological innovation platform: construction of engineering centers in equipment manufacturing, petrochemical, quality steel, automobile, photoelectricity engineering, medicine and modern agriculture. Platform for applying basic researches: construction of laboratories in industries of nano materials, cleaner energy, optical, mechanical and electronic integration, robot, aerospace, biological medicine engineering and so on. Incubator platform for scientific and technological enterprises: construction of incubators in software, photoelectronics, biomedicine, new materials, fine chemicals, new-type environmental protection, modern agriculture and so on. Platform for scientific and technological innovation service: to establish socialized and networked intermediary service systems for science and technology. International science and technology cooperation platform: to establish demonstration bases for international science and technology cooperation. Two networks for science and technological collaboration Cooperation and sharing network of large scientific instruments in Northeast China: to construct and share large scientific instruments, equipment and facilities. Information resource service and sharing network of scientific and technological literature in Northeast China: construction of scientific and technological databases, information network as well as fast and efficient decision-supporting system. Two scientific and technological market systems Scientific and technological talents market: to establish scientific and technological talents information network and share information and resources within the region. Transaction market of technical patents: to establish technical patents rules, management methods, transaction modes, monitoring system, transaction dispute settlement system commonly recognized in the region.

    Section IX Policy Measures and Implementation Mechanisms

    Focusing on objectives and major tasks listed above, we must improve polices and measures and relevant implementation mechanisms in the revitalization, so as to ensure effective enforcement of the plan.

    9.1 Ensure enforcement of ongoing policies and measures

    We must press ahead with ongoing policies and measures, with emphasis on solving problems as follows: issues remained in collectively-owned businesses that were affiliation with SOEs, historical tax arrears in enterprises, and renovation of shanty areas surrounding coal enterprises once under supervision of central government. An enabling policy environment must be created for revitalizing the Northeast.

    9.2 Improve revitalization policies

    We must provide policy supports for the development of equipment manufacturing industry in Northeast China. For enterprises importing key parts, components and raw materials to manufacture strategic technological equipments, we must allow these enterprises to enjoy preferential duty-free status, tax rebate benefits or rebate of value-added tax in importing process. We must encourage businesses to order and use key technical equipments made in China. Support must be given to large state-owned equipment manufacturing enterprises that are of vital importance to national strategies and people's livelihood, technological innovation projects for urgently needed key equipments, as well as the technological upgrading projects that are crucial for the restructuring of industries.

    Financial institutions should raise credit support to eligible projects in the Northeast and we must carry out researches to establish regional reinsurance agencies for providing credit guarantees for SMEs. We must improve credit-lending environment, support state-owned commercial banks in disposing non-performing assets, encourage enterprises to go public and help qualified public entities in Northeast to raise funds by issuing business bonds.

    9.3 Establish regional coordination mechanisms

    On the basis of equity, mutual benefit, cooperation and resources optimization, we must enhance regional partnerships among Northeast China, Eastern, Central and Western regions by forming coordinating mechanisms for win-win cooperation. We shall encourage developed regions to join in revitalizing the Northeast and strengthen the economic linkages among Northeast China and Beijing-Tianjin-Hebei, Shandong Peninsula, Yangtze River delta, Pearl River delta. We must also support enterprises in the Northeast to actively participate in the campaigns of " Development of Western China" and the " Rise of central China."

    In addition, we must establish inter-regional public platforms and coordination networks. We must establish high-rank coordination conference system of four concerned provinces, on which to solve key bottleneck problems in regional development through consultation and discussion, and establish coordination agencies within framework of this conference system.

    We must encourage inter-regional M&A and structuring of enterprises. Enterprises to have inter-regional merger and restructuring in assets must get preferential verification by the state and preferential supporting funds. We must support cooperation between three provinces in the Northeast and Eastern Inner-Mongolia to carry out joint development, especially in constructing large coal, oil bases and other bases in eastern Inner Mongolia.

    9.4 Improve plan implementation mechanisms

    We must strengthen implementation of this plan. Concerned state authorities and governments at all levels in the Northeast must have their own share of responsibilities and enhance interdepartmental cooperation and communication. Local governments must work out detailed suggestions and adopt detailed actions to implement the plan, and disintegrates all tasks in their annual plans. Comprehensive appraisal and performance assessment for implementing the plan must be enhanced to deliver real effects.

    We must reinforce supervision, strengthen the follow-up of plan implementation, and improve information communication and feedback mechanisms to link government with enterprises and the common people, therefore soliciting support from the whole society in the revitalization process.

    Moreover, we shall organize mid-term assessment of the plan. We must make updates in the contents and procedures according to external changes and progress made in the process of implementation, thereby ensuring effectiveness of the plan.