China's 'rust belt' shows sign of modest recovery

New drivers of growth

In recent years, the State Council, China's cabinet, has published a series of guidelines and opinions for revitalizing the northeast region and transforming traditional industrial bases.

Daqing, China's oil capital in Heilongjiang Province, is seeking new drivers of growth while keeping its advantage in the traditional petrochemical industry. Swedish car manufacturer Volvo has shown faith in the future of the city against major economic downturn in the region by vowing to turn its new Daqing plant into "one of the most advanced car making facilities in China."

S90 sedans showcased at the plant of Daqing Volvo Car Manufacturing Co., Ltd. [Photo provided to China.org.cn]

"I do think that, this province gives many possibilities what Volvo wants to do to have a manufacturing footprint to China," Marc Gombeer, vice president of Daqing Volvo Car Manufacturing Co., Ltd, told China.org.cn while explaining the choice of city for its operation.

He said it was quite smart for Volvo to choose Daqing as a production base for its S90 flagship model instead of in first-tier cities like Beijing and Shanghai.

With an annual output expecting to reach 80,000 in 2017, Gombeer is optimistic for the future of its operations in the city and is seeking for more transport options to export China-made premium cars to countries worldwide.

Gong Zhenjiang, head of the publicity department in Daqing, said the city is considering developing advanced manufacturing, new materials and biomedicine among other areas in a bid to breakaway from its over-reliance on the petrochemical industry.

The northeastern province also vows to accelerate infrastructure construction, the building of Heilongjiang Land and Maritime Silk Road Economic Belt and cross-border trade and cooperation, to further restore and stabilize growth, according to government plans.