President Xi Jinping meets NPC deputies from Liaoning province at a panel discussion in Beijing on Tuesday during the ongoing two sessions. Xi said Liaoning should be determined to regain industrial success.[Photo by Xie Huanchi/Xinhua]

President says SOEs should be innovative

President Xi Jinping urged Northeast China on Tuesday to depend on the real economy and push forward supply-side structural reform to revitalize the region's economic growth, which has slowed in recent years with overcapacity cuts in heavy industries.

Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, made the remarks at a panel discussion with lawmakers from Liaoning province during the ongoing annual session of the country's top legislature.

The real economy will always be fundamental for the country's development and competitiveness, Xi said, adding that Liaoning's provincial authorities should be determined to regain industrial success amid the country's efforts to revitalize Northeast China's industrial base. "Real economy" refers to producing goods and services.

The northeastern region, consisting of Liaoning, Jilin and Heilongjiang provinces, largely relies on heavy and chemical industries, energy resources, raw materials and a large proportion of State-owned enterprises. The region, an old industrial base, has experienced more difficulties than the rest of the country in economic development in the past two years.

Xi pointed out that the key to revitalization of Liaoning's economy is to push forward supply-side structural reform.

He called for more efforts to upgrade the industrial structure to establish competitive industries.

The president mapped out the new vision of the province's development, with joint development of strategic emerging industries and traditional industries, the promotion of both modern and traditional service industries, deep integration of informatization and industrialization, and integration of military and civil industries.

Informatization refers to an information-based economy.

In October last year, the central government approved the 13th Five-Year Plan (2016-20) for revitalizing Northeast China, which aims to boost the local economy and private investment in Liaoning, Jilin and Heilongjiang provinces.

State-owned enterprises, which play a leading role in the revitalization of Liaoning, should become stronger, Xi said. He encouraged the SOEs to take the lead in innovation.

Xi also urged optimization of State-owned assets, full implementation of the duties of preserving and increasing the value of State-owned assets, and prevention of losses of State-owned assets.

During the discussion, Xi highlighted the importance of clean governance. Only with "good political ecology" will the government gain progress and stability, he said.

The nomination of officials must stick to the correct direction to select loyal and honest officials, he added.

The deputies to the National People's Congress should represent the people, speak for the people, and unite the people since they were elected from the people, he said.

During the discussion, the lawmakers gave their suggestions on issues including SOE reforms, development of private businesses and the preservation of traditional culture.