On July 26, the State Council issued a circular to outline its opinions on how to revitalize the old industrial base in northeastern China, showing the central government's resolve to revitalize the old industrial bases of northeast China.

The research team at ANBOUND Consulting is of the view that in face of the systemic downturn in the northeastern economy and society, the new measure to revitalize old industrial base must seek to achieve new breakthroughs.

Chan Kung, ANBOUND’s chief researcher has once suggested that the revitalization of northeastern China must follow the rhythm of the market.

Specifically, there are three checklists:

(i)Instead of keeping those hopeless enterprises, the government should allow them to wind up so that monies can be spend directly to help their employees;

(ii)The government should encourage the outflow of talent so that in the future these talents can bring home the capitals, technologies and products.

(iii)The central government should give special tax incentive to the northeastern region and thereby giving northeastern region an edge in term of costing which will be appealing to the markets and the investors and thereby leverage on the market to revitalize the economy in the northeastern region.