While the provincial authorities reported growth of 6.1 per cent in the first quarter, which was on a par with the national figure, little of that upturn came courtesy of Shenyang Machine Tool.In fact, the company's decline, coupled with years of losses due to mismanagement and political meddling, has been exacerbated in recent years by its investment in an automation system known as i5.
Heilongjiang Longmay Mining Holding Group is another SOE that has been steadily sinking into the mire in recent years, recording a net loss of 978 million yuan in the first quarter of this year, according to state media reports.
The recent upturn in Liaoning's fortunes comes after years of dwindling economic performance and accounting scandals.
After the local government admitted to falsifying its figures between 2011 and 2014, the provincial economy actually contracted by 2.6 per cent in 2016."The 6 per cent growth figure holds huge meaning for Liaoning, as it shows the economy has walked out of its most difficult period," provincial governor Tang Yijun said in a press conference in Beijing late last month.
Liaoning's industrial output grew just 6.7 per cent in the first five months of 2019, compared with a 10.5 per cent rise for the first quarter of last year.
Output from SOEs in the January-May period climbed 3.4 per cent, while private firms recorded 10.6 per cent growth, according to figures from the provincial statistics bureau.
Growth in Jilin, for example, has been much more subdued, with the economy growing 2.1 in the first quarter of the year and industrial output expanding by 1.5 per cent.
https://www.scmp.com/print/economy/china-economy/article/3018525/economic-improvement-chinas-northeast-rust-belt-just-skin?
Heilongjiang Longmay Mining Holding Group is another SOE that has been steadily sinking into the mire in recent years, recording a net loss of 978 million yuan in the first quarter of this year, according to state media reports.
The recent upturn in Liaoning's fortunes comes after years of dwindling economic performance and accounting scandals.
After the local government admitted to falsifying its figures between 2011 and 2014, the provincial economy actually contracted by 2.6 per cent in 2016."The 6 per cent growth figure holds huge meaning for Liaoning, as it shows the economy has walked out of its most difficult period," provincial governor Tang Yijun said in a press conference in Beijing late last month.
Liaoning's industrial output grew just 6.7 per cent in the first five months of 2019, compared with a 10.5 per cent rise for the first quarter of last year.
Output from SOEs in the January-May period climbed 3.4 per cent, while private firms recorded 10.6 per cent growth, according to figures from the provincial statistics bureau.
Growth in Jilin, for example, has been much more subdued, with the economy growing 2.1 in the first quarter of the year and industrial output expanding by 1.5 per cent.
https://www.scmp.com/print/economy/china-economy/article/3018525/economic-improvement-chinas-northeast-rust-belt-just-skin?
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