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Updated: 2007-06-28 11:20

Jilin's economy has been on a fast and robust track over the past five years and its future outlook seems bright as well, according to Wang Min, secretary of the provincial committee of the Communist Party of China.

From 2001 to 2006, Jilin's gross domestic product (GDP) grew from 203.25 billion yuan to 424.92 billion yuan, increasing by 11.8 percent annually.

Last year, the increase hit 15 percent, helping the province take second place in the country in terms of growth, while the per capita GDP hit the $2,000 mark for the first time. Also in 2006, the total profits of Jilin's industrial enterprises reached 20.1 billion yuan, a rise of 46.9 percent from the previous year, revealing the improvement in economic efficiency.

As an important national agricultural base, Jilin Province has made great efforts to promote agricultural production, accelerate the construction of infrastructure facilities and help increase farmers' incomes, said Wang.

With increased investment in the sector, grain production in Jilin has seen steady growth in the past years, with output reaching 25 million tons last year, further consolidating its position as one of the leading grain producers in China.

Farmers' incomes have been on the rise, thanks to exemption from agricultural taxes and related charges. The increase in income has also been triggered by the rapid development of the food processing industry that is helping farmers sell their produce more easily.

SOE reform

Echoing the central governments' strategy of revitalizing traditional industries in Northeast China, Jilin Province has made great efforts to reform its many State-owned enterprises (SOEs).

"In this reform, we have basically solved the re-employment problem of the laid-off workers," Wang said, adding that about 600,000 workers laid off during the reform of the SOEs have been offered new jobs.

SOE reforms have spelt a rare opportunity for investors both in and outside the province.

By attracting new investment in the restructuring of the enterprises, the scale of the existing firms have been expanded and new enterprises created, bringing multiple benefits in terms of the province's economic development, including improvement in industrial structure and creation of more job opportunities, the provincial committee secretary said.

Reforms have also made Jilin more investor-friendly, as illustrated by the increase in the province's fixed-asset investments from 67.95 billion yuan in 2001 to 280.43 billion yuan last year.

A number of projects to build up Jilin's infrastructure have also been completed, including those related to transportation, water and energy supplies. These too are expected to provide a strong boost to the province's economic and social development.

Wang pointed out that Jilin's economic reform was meant to benefit its residents. Thus, while ensuring the rapid development of the economy, local authorities have also taken care to ensure that the residents' interests are not sidelined.

One such ongoing effort is the drive to improve residential conditions for low-income families in both the cities and the countryside. "We want the people at the lower rungs of society to possess their own houses, or their own assets," Wang asserted.

Jilin's officials are also promoting a social security system in the province, covering poverty and disaster relief, free education, and medical insurance. Free education for rural areas has already been implemented, and now all children in these areas can look forward to receiving basic education. Meanwhile, progress has also been made in sanitization and healthcare.

Future plans

"Reform is a continuous process," Wang noted, when asked about Jilin's future plans to maintain its development momentum. "The next step for us is to continue to promote the establishment of modern corporate mechanism among the SOEs. Also, we want to create a trustworthy business environment."

To tap into the potential of its farming industry and create more national brands, Jilin Province will reinforce the irrigation of its farms, increase protection of its arable land, invest more in agricultural research and promote the use of technology to increase farming efficiency.

Besides this, Jilin intends to provide more support to its pillar industries, namely automobile, petrochemicals and farm products processing, and expects these sectors to expand substantially and win more international recognition in the next five years, Wang added.