SHENYANG, CHINA – Investments in the country’s northeast have grown over the past years as several multinational corporations put in more money or enhanced investments in the area.
One such investment is in the mega Saudi-Chinese petrochemical project in Panjin City, Liaoning Province, by Aramco and joint venture partners NORINCO Group and Panjin Xincheng Industrial Group, said the official Chinese Xinhua news agency.
The project, a major integrated 300,000 barrels per day refinery and a petrochemical complex with an annual production capacity of 1.65 million metric tons, has been under construction since March this year.
Hub for foreign investment
Northeast China has become a hub for foreign investment over the past years with investments ranging from China’s new energy vehicle (NEV) and high-end equipment manufacturing to bio pharmaceuticals.
“The continuous increase of investment in northeast China reflects foreign capital’s confidence in the market and highlights the attraction of the region’s industrial revitalization,” said Xinhua.
A series of high-level opening-up measures in this region has sparked optimism among multinational corporations about opportunities for mutually beneficial cooperation, Xinhua added.
The agency highlighted northeast China’s industrial capabilities that enhance investor confidence, including the existence of a complete industrial and supply chain and a large number of industrial workers.
Li Zheng, dean of the School of Economics at Liaoning University, said northeast China is witnessing continuous optimization of its business environment and institutions, stimulating “the vitality of market entities and the potential for social creation.”
He expects further breakthroughs in northeast China within the 14th Five-Year Plan period of 2021-2025.
“Northeast China has a solid industrial and scientific research foundation,” said Li Zheng.
Boost in foreign capital
In Liaoning Province, where the Saudi-Chinese complex is located, actual utilization of foreign capital has increased in the first half of 2023 compared to the same period in 2019, according to official data.
The northeastern provinces of Jilin and Heilongjiang also saw a considerable increase in the actual utilization of foreign capital, by 23.83 percent and 85.2 percent year on year, respectively.
Xinhua put the spotlight on multi-billion foreign projects and investments in northeast China in the fields of vehicle battery production, petrochemicals and automotives.
It also cited automotive corporations officials as confirming their plans to increase their investment in China and expand production capacity, especially in light of the leading position maintained by the Chinese NEV industry.
Northeast China is the first industrial base to be built after the founding of the People’s Republic of China in 1949.