Analysis on the Causes and Countermeasures of the Economic Predicament in the Northeast China

The economy of northeast China developed very well over the last 50 years. But now, as China steps into the “new normal”, the economy of northeast China is declining rapidly. The reasons are as follows. Firstly, the secondary industry is important to northeast economy and the service sector develops slowly. Secondly, state-owned enterprises contribute too much to the development while the private enterprises are too weak. Thirdly, the only way to promote the economy in northeast is investment. Last but not least, government’s investment attraction is not effective. This paper illustrates some advice to promote the economy. First of all, it may be urgent to develop tertiary industry. Second, the reform of state-owned enterprises as Temasek Holdings is inevitable. Third, the economic power should be changed from the investment-driven into innovation-driven and the investment promotion mode should also be changed.