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Leaders in the capital city of northeast China's Liaoning Province, which is known for heavy industry, have pledged to revitalize traditional industry by joining forces with high technology companies, especially in the equipment manufacturing industry.

"A new industry and trade belt will emerge as the Tiexi Industry District has combined with its neighboring Shenyang Economic and Technological Development Zone," said Gu Chunli, assistant mayor of Shenyang.

The new industry belt consists of five functional areas including a modern commercial and trade district, an industry belt and an equipment manufacturing district.

Established in 1988, the Shenyang Economic Development Zone has solicited investors from more than 40 countries and regions with a total investment of US$1.3 billion. The Tiexi district enjoys the advantages of hefty capital already invested in fixed assets, well-trained workers and cheap land.

"The reasonable combination of the two areas will sharpen their competitive edge rapidly and lead them to become a driving force for the renovation of the old Tiexi district," Gu said.

Tiexi is home to nine-tenths of the provincial capital's State-owned enterprises (SOEs) and has been the heart of heavy industry in the province, which have made great contributions to national economic development, especially in the 1950s and 1960s.

As the Chinese economy becomes increasingly market-orientated, many SOEs are bogged down in an economic dilemma due to backward equipment, low competitive products, poor management structure and severe pollution problems.

The Shenyang municipal government initiated the combination of the two districts in June.

(China Daily December 9, 2002)