Economy 经济

■Development Achievement

Since the reform and opening up, in Jilin Province, the economy has made a sustainable, stable, healthy and fast development, the economical synthesis strength has enhanced remarkably, as a whole, the life standard of Jilin’s people has basically achieved a well-off level. In 2006, the economy of Jilin province developed better and faster, the local gross product topped 400 billion Yuan for the first time, achieved 424.923 billion Yuan, increased 62.896 billion Yuan than the previous year, up 15.0 percent over the previous year at the comparable prices. The increased amplitude ranked second in the whole country, up 3.0 percentage points than the last year. The local financial revenue totaled 24.5 billion Yuan, up 18.3 percent over the previous year. The added value of the mentioned scale industries have increased by 18.5%, the gross industrial output value amounted to 470 billion Yuan.

Jilin's grain produce has reaped good harvests for three consecutive years, and reached a new high without parallel in history, the total grain output reached 27.2 billion kg. The total import and export was 7.91 billion USD, up 21.2%, of which that of export was 79.1 billion USD, up 21.2%. The total retail sale income of consumption goods is 167.58 billion Yuan, up 14.7%. The per capita gross domestic product (GDP) of the province was 15625 Yuan (2003 USD), up 2277 Yuan over the previous year. The industrial structure has been optimized gradually, the proportion of the three industries changed to 16.1:44.4:39.5 from 17.3：43.6：39.1 in last year,.

Now Jilin’s economy has entered a new period of development. We will concentrate all forces on building the five industrial bases including automobile, petrochemical, farm produce processing, modern Chinese traditional medicine and biological pharmacy, photoelectron information and so on. Jilin province will also actively advance the reform of state-owned enterprises, and develop the private enterprises and the modern agriculture, at the same time cultivate and develop the five characteristic industries including energy, metallurgy, new building materials, textile, tourism.

■Development of the Private Enterprises

In 2006, the added value of the private enterprises occupied 40% of GDP in Jilin province, and the reality taxations counted 53% of the local-level financial revenue, the employees made up 54% of total staffs and urban self-employed workers in Jilin province. The private economy has already become the important economic increasing power, the main resources of the local tax revenue and the important urban and rural employment channels in Jilin Province. In order to realize the aims to rich people and strong province, Jilin implemented the three-year development plan of private economy.

According to the three-year development plan of private economy, in 2007, we will pay special attention to realize ten work and operational policy measures:

Firstly, we will enlarge and strengthen 1000 developing medium and small sized enterprises. We will choose some enterprises in counties and towns. Secondly, we will implement the policy to widen the market access. Comprehensively cleaning up the regulations and rules that discriminated and disturbed the development of private economy, to set up fair environment for their competition and development. Thirdly, enlarge financial support. To strengthen system construction of credit guarantee for the small and medium-sized enterprise to enhance the guarantee fund and capacity. Fourthly, implement the policies of preferential tax and financial support. Implementing the preferential policies of the income tax exemption for the person who studied abroad and returned to homeland to develop enterprise and the private enterprises to carry out labor service and social welfare, and invest to medical organizations, research and develop the new product, carry on the technical transfer and so on. Fifthly, accelerate to start the new business. Depend on various kinds of development zones and the industrial concentration area to establish the private small and medium-sized enterprise promotion bases. This year, all cities in Jilin province must construct 1 to 2 promotion bases, even in counties. Sixthly, establish the public technical service platform. Supporting the independent innovation policy for the private enterprise to impel the essential innovation factor to gathered to the private enterprise. Seventhly, train a group of talented innovation people. Eighthly, enhance agency service. Ninthly, set up pioneering model.

With the implementation of the relative policies to promote development of the private economy in 3 years, the elements of production such as talented person, fund, technology, land and so on, must continuously accumulate to the private economy. Building the pleasant environment and encouraging all the people to start an undertaking, must become common practice. The private economy of Jilin Province must enter a new era of rapid development.

■Rich Fruits of the Modern Agriculture

Jilin is a major agricultural province with rich farming resources. As a major commodity grain product base, it leads the nation in average per-capita grain output, grain commercial rate, amount of grain shipped out of the province, and corn exports. In 2006, the total output of the grains reached 27.20 million tons, up 5.4 percent over the previous year. The organic, characteristic, and high quality agricultural products have created a broader market and a high reputation inside or outside our country.

Jilin province is located in the golden corn belt of the northeast China, where the climate, soil and other natural conditions are conducive to quality corn production. Corn actually makes up about 60% of the total farm acreage, and accounts for about 70% of the province’s total grain output. Through the years Jilin has ranked first in China in terms of total corn output, per-capita grain share, amount of corn converted into commodities, volume of corn export, and amount of corn shipped out of the province. Corn production, therefore, is vital to local farm production, local farmers’ incomes and the economic development of the entire province. With a view of the new situation arising in agricultural development and market demand and taking into consideration the changed circumstances, the provincial authorities reassessed the role and significance of corn production and set forth a new guideline for a corn-associated economy. According to the new guideline, the corn is taken as not only a kind of grain crop but also a kind of cash crop, the corn produce and agricultural development will be treated as the perspective of industrial economy. The bottom line is to turn the province’s abundant corn resources into economic advantage and promote local agriculture and rural economy to develop in giant strides. The key to a thriving corn economy lies in revamping the mode of production, expanding the scale of production, and setting seed selection and other links of corn production along regionalized, specialized and standardized lines. Corn circulation has to be reformed as well, so that grain deep processing enterprises can foster direct contact with farmers, and both home and foreign markets can be opened up. Corn processing will become more refined so as to increase its incremental value. A number of major corn processing enterprises are growing in strength, including Changchun Dacheng and SongYuan Lishida, and a 600,000-ton-a-year alcohol production project of Jilin Municipality; and a galaxy of grain circulation and fodder processing enterprises, including Jilin Corn Group, Jilin Deda, Changchun Haoyue, Gongzhuling Huazheng, are going strongly. Jilin’s corn economy is thriving as never before.

The Five Backbone Industries

Strengthen and enlarge the automobile industry. Jilin is the cradle of China’s automobile industry. As a symbol of the national automobile industry, Changchun First Auto Works has a fixed asset of more than 50 billion Yuan. The products have six series, and more than 550 kinds of different type, such as heavy-duty, middle-duty, light-duty, subminiature-duty, car, and passenger car. Now it has already become a modern production, scientific research, and sale base with the biggest scale, the most various productions, and advanced technology in the Chinese automobile industry. The core of building an automobile base is: depending, supporting, and serving the FAW, speeding up the development automobile industry, expanding the entire vehicle scale, enhancing the ability of necessary accessories, promoting automobile trade and service, and trying to form an automobile industry base with international competitive power. In 2006,FAW sold 625500 automobiles，up 21.39% over the same period of last year, realized the gross industrial value RMB 122.2 billion Yuan, up 21.73%, and the industrial added value RMB 32 billion Yuan, up 28.17%, the profit 2.75 billion Yuan, up 51.3%, the total tax and profit payment went up to RMB 10.26 billion Yuan, 28.17% higher. In 2006, the gross industrial value of FAW occupied 25.9% of Jilin province and 57.5% Changchun municipality. In 2005, in the southwest of the Changchun city, Jilin provincial automobile industry development zone was set up, with a total area of more than 100 sq km. Now it has been an important platform to develop theJilin provincial automobile industry.

Consolidate and expand the petroleum chemical industry. Jilin’s petroleum chemical industry, primarily based on Jilin Oil-field and Jilin chemical industry, is one of the most important petroleum chemical industrial bases in China. The Jilin Petrol-chemistry Group is a famous large-scale and a biggest chemical industry enterprises in China. During the 11th five-year period, Jilin will take the Jilin Chemical Plant and the Jilin Oil-field as the main item, and optimize the structure, expand the scale, and enhance the benefits of the enterprises. We are thus developing the fine chemical, the high performance compound material and special material, improving the proportion of processed products, changing the long-time-formed structure of the basic industrial chemicals base products, and constructing an important domestic comprehensive petroleum chemical industry. In 2005, the petroleum and gas exploitation industry accomplished the values 8 billion Yuan, up 4.33 billion Yuan over the previous year, 1.2 times. The contribution rate was 57.9 percent for provincial industrial profit.

Cultivate the agricultural product processing industry to a pillar industry. Jilin is a major agricultural province with fertile soil, rich resources, and superior environment. The province will depend on the rich agricultural product resources and the ecological superiority to speed up the development of the three main industry, that is the corn economy, the corn’s and soybean’s profound processing industry, the poultry, milk profound processing industry, and the Changbai mountain’s ecology foods industry. Jilin province is lengthening the industrial chain, carrying out the standardization, constructing the ecotype green agricultural products processing base, and constructing the third pillar industry as the agricultural product processing industry. At present, Changchun Corn Industry Development Zone has begun to construct, and planed to build a world’s biggest corn and agricultural product deep processing region with 100 billion RMB incomes every year. Jilin province has formed corn industry group with the Dacheng group, Sailishida Group, Huanglong Group and Tianhe Group as the driving force. Jilin also has ten industrial groups of farm produce processing, such as the industrial group of poultry, beef, pork, rice and so on. Now Jilin province has more than 2600 industrial management organizations of agriculture, with 52 billion Yuan capital asserts and more than 4600 farm produce processing enterprises. Jilin province use 320 non-pollution sign, 142 kinds of organic products and 839 kinds of non-pollution farm produces. We confirmed 501 non-pollution farm producing areas, with an area of 25 million hectares. In 2006, the general production value of the agricultural product processing industry achieved 125,000,000,000 Yuan, and it has already made his contribution as same as the two big industries of automobile and chemical in Jilin province.

Accelerate the development of modern Chinese Medicine and biological drugs manufacture industry. Jilin Province is rich in resources of Chinese Medicine. The Changbai Mountains were called “the world biology gene bank”, and has a reputation of one of the three major medicine gene banks. The pharmaceutical industry is one of the key industries among Jilin’s economy. There are 219 medicine production enterprises with a gross asset of more than 18.9 billion Yuan. Among them, the Jilin Aodong Group, Tonghua Dongbao Group, Jilin Xiuzheng Group, and Changchun Haiwang enjoyed a high reputation in domestic and international medicine industries. Jilin’s medicine industry has developed into a “tripod stood” region center including the Tonghua medicine city, Yanbian Aodong medicine city, and Changchun Chinese traditional medicine and biological drug manufacture industry garden. The province possessed two industrial belts: “Changchun-Tonghua-Baishan” and “Changchun-Jilin-Yanbian”. Depending on the advantages of the Changbai mountains’ north medicine resources and the biotechnology, Jilin focused the strength on self-research and development ability, comprehensively finish the rebuilding of the GMP enterprises, and the fully development of the modern medicine industry and the biological drugs manufacture industry. We also expanded the Tonghua, Dunhua medicine city, constructed the Changchun, Jilin medicine industrial garden, and the ten drugs manufacturing groups, like Jilin Xiuzheng, Tonghua Dongbao, Yanbian Aodong, and Changsheng Genes. In this year, Jilin developed 50 new medicines with independent intellectual property. In 2005, the production value of the Chinese traditional medicine industry was 15 billion Yuan, including 10 billion Yuan from Chinese medicine and 5 billion Yuan from Chinese medicine materials. To 2010, the sale income of the medicine industry in Jilin Province will arrived above 50,000,000,000 Yuan.

Impel the rapid development of the high-tech industry, such as the photoelectron information industry. Jilin Province is the seedbed of our nation’s optic enterprises, and has a reputation of “optics base”. Now, the province has formed an industrial system with the photoelectron products, the liquid-crystal displays, the new primary devices, the automobile’s electronic products and the computer application software as leading products, and has its certain industrial scale and technological innovation competence. Jilin Even has possessed the biggest entity of photoelectron coder production and the biggest photoelectron product processing enterprise. The software industry also achieved a magnificent development. It has developed a pattern with the Changchun Software Garden, the Jilin Software as its research base, the Jilin University, Northeast Normal University as the technological support, and the First Auto Words’ Qiming as the key software enterprises. In 2005, the province had finished a gross financial income of 12.4 billion Yuan on the electronic information products manufacturing industry and the software industry, and achieved 12 billion Yuan revenue. To 2010, the sale income of the electronic information product manufacturing industry will achieve 24,000,000,000 Yuan, the yearly average increase rate will be 53%, the added value will be 7,200,000,000 Yuan, the yearly average increase rate will be 45%. In the future, Jilin will take Changchun’s national photo-electron industry base as the core, exert the information technology’s leading function and the industrial foundation, and prioritize the photo-electron information and software industry, the new-type material industry, and the modern agricultural technology, thus form a domestic leading high-tech research, development, production and manufacturing industry.

■The Reform’s Achievements of the state-owned enterprises

The economy of northeastern China is underdeveloped. The crux of the problem lies that State-owned economy takes a large percentage and private enterprises do not develop well. Therefore, the key point for the revitalizing of the old industrial bases is to promote the reform of state-owned enterprises and develop private enterprises.

In Jilin province, the proportion of state owned economy takes 80% of the entire economy, which is among the top in China. In the period of the 9th “Five-Year Plan”, Jilin province implemented the project of casting off poverty that is a difficult part in the reform of state-owned enterprises. Of all the large and medium-sized state-owned industrial enterprises in Jilin, 80% have accomplished the corporate reform, and 80.2% of the losing enterprises on a state anti-poverty list have quit poverty. As a result, the province has basically attained its enterprise transformation and anti-poverty goals in three years.

CPC Jilin provincial committee and the people’s government of Jilin province marked 2005 as a crucial year to reform the state-owned enterprises, and has made a decision to fulfill the reform by the end of the year, which has proved a great success following their leadership. In 2005, Jilin province has completed the transformation of 816 State-Owned Enterprises, which brought out the development enthusiasm of the strypped-down enterprises and accelerated the development speed of the industrial economy. In 2006, there are 1914 private enterprises, increased 213 over the previous year, realized the added value 34.86 billion Yuan, up 33.1%, and the profit 4.77 billion Yuan, up 39.2%.