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Business / Economy

China's regional growth indicates economy bottoming out

(Xinhua) Updated: 2015-10-29 16:03

At the same time, the province has seen a boom in the private economy thanks to the local government's effort in attracting investment, Hu added.

Bejing, shanghai change gears

Both Beijing and Shanghai reported slower GDP growth for the first three quarters, but local officials say the two cities are instead pursuing higher-quality growth through economic restructuring.

The Chinese capital reported a 6.7 percent GDP growth in the first three quarters, down 0.3 percentage points from the first half year.

Xin Zhihong, an official with Beijing branch of National Bureau of Statistics, said part of the slowdown is caused by Beijing's ongoing effort to relocate non-essential and polluting industries outside of the city.

The city also closed down more than 300 polluting companies during the first nine months of this year, according to officials.

Shanghai's economy expanded 6.8 percent in the first three quarters, 0.2 percentage points lower than the first half year.

Wang Jian, head of Shanghai Bureau of Statistics, said although the city's industrial added value dropped faster than expected, the municipality's economic structure has been optimized further.

In the first three quarters, the share of tertiary industries rose to 67.6 percent of the city's total, up 0.5 percentage points than in the first half year.

Northeast at bottom

Among the three provinces along China's northeast rustbelt, only Jilin reported its growth, coming in at 6.3 percent in the first three quarters, the lowest among all provinces.

Once China's industrial base, the northeast region has been hit hard by lingering downward pressure. The three provinces were among the bottom of the list for GDP growth in the first half year, with Liaoning ranking last at 2.6 percent.

The rustbelt has been a traditional hub for a number of pollution-spewing industries, producing everything from steel, petroleum to coal. As demand for such commodities remains weak both at home and abroad, the region is now saddled with overcapacity. Meanwhile, private enterprises that boomed elsewhere in China by leading with innovation and catering to China's rising consumer class have yet to take root in the region.

Sun Zhiming, researcher with Jilin Academy of Social Sciences, said economic restructuring will be the way out for the region and more policies to boost the local economy can be expected in the future.

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