The central government wants to work with its regional neighbours to rejuvenate the nation's traditional northeastern economic base.

An official from the National Development and Reform Commission (NDRC) told China Daily that it is planning to enhance economic co-operation with Russia, Japan and the Republic of Korea (ROK) to build Northeast China - comprising the provinces of Heilongjiang, Jilin and Liaoning - into a national and even a world-class industrial base for equipment manufacturing and important raw materials.

"We should not only stress co-operation within the three provinces, but also the formation of a regional market in Northeast Asia," said the anonymous NDRC official.

The official also said China's ambitious plan to invigorate its industrial base means more development opportunities for foreign investors.

"Our policies will be more open and market-oriented," said the official, adding that the country will further open the doors of State-owned industrial enterprises to private investment from home and abroad.

The NDRC and the State Council Development Research Centre, the central government's think tank, are busy formulating measures to restructure the nation's old industrial base.

Investors will be encouraged to participate in regrouping existing industrial enterprises, bring in advanced technologies and increase research and development of new products.

Lu Zheng, president of the Institute of Industrial Economics Research under the Chinese Academy of Social Sciences, said much closer agricultural co-operation with foreign countries should also be emphasized.

"We should stress the comparative advantages when coming up with measures," said Lu.

(HK Edition 08/18/2003 page1)