August 8, 2007 (LPAC)--Russia and China are both putting industrial, transport, and energy development of the vast northeast Asian region on the "front burner." These development projects will create the essential "strategic depth" for the Bering Strait project. The Far East region of the Russian Federation has fallen into deep economic crisis since the end of the Soviet Union, and is rapidly losing population. In China, the Northeast region, of Liaoning, Jilin, and Heilongjiang provinces, was formerly its industrial base in the 1940s-50s, when cooperation with the then-Soviet Union was vital. The area has become a "rust belt," but in the past two years, Beijing has made revitalization of this area, and expanded cooperation with Russia, a national policy.
Yesterday, Russian Economic Development and Trade Minister German Gref arrived in Vladivostok to attend a conference on urban development, Itar Tass and Vladivostok Times reported. The main theme of the conference, "Development of Vladivostok as a Center of International Cooperation in the Asia-Pacific Region," is preparation for the 2012 APEC summit, but it will discuss broader development of the area. The conference will discuss creation of special economic and trading zones, founding the Far Eastern Center of Shipbuilding and Repairs, and railway transport development, including high speed rail to link Vladivostok, the end-terminal of the Trans-Siberian Railroad, to neighboring cities of Ussuriisk and Artyom. Although a "recreation area" including gambling is also on the agenda, the Primorye Territory authorities are proposing to build a nuclear power plant, an aluminum smelter, oil refining and petrochemical facilities and other industrial capacity. Other urban infrastructure, for water and road facilities, are also planned.
China's State Council has approved a comprehensive regional plan to revitalize the Northeast, the Shanghai Security News reported today. The plan is to create four industrial bases to manufacture heavy equipment, new materials, rail and energy infrastructure, agriculture products and foster research and development. The comprehensive plan will include Liaoning, Jilin, Heilongjiang and eastern Inner Mongolia Region, an area with a population of 122 million - almost half that of the United states. The State Council made this new policy to deliberately override various provincial development plans, which were too limited. Liaoning Provincial Academy of Social Sciences economist Liu Xiaonan is quoted by China Daily saying that the provincial Five Year plans would not meet the challenge: "Conditioned by administrative system, their plans lack cross-provincial projects and regional coordination. The separate plans are also lacking coordination," Liu said. The regional concept will change this.
