Taking "Transnational Merger & Acquisition and Rejuvenation of Northeast" as theme, the international seminar on rejuvenation of old industrial bases in Northeast China was held on Feb 21 in Changchun, capital of northeast China's Jilin Province.

More than 200 officials from governmental organs including Ministry of Commerce, State Council's Office of Revitalizing Northeast China and experts from the Organization for Economic Co-operation and Development attended the seminar.

According to Tang Hua, an official with the State Council's Office of Revitalizing Northeast China, multinational corporations can participate in the process of rejuvenation of the Northeast China via six channels: Take part in reform and restructure of the SOEs; pushing the SOEs' ownership's diversification via transnational merger & acquisition.

Participate in industrial structure adjustment so as to guide international manufacturing industries to move to the Northeast.

Engage themselves in technical and information upgrade for enterprises that are backward in equipment and technology.

Work together with resourceful cities in developing substitutable industries.

Participate in programs developing modern agriculture and develop deep and refined processing of farming products.

Involve in development of third industry like finance, insurance, logistics and tourism.

Compared with the Yangtze River Delta, the three provinces of the Northeast China possess huge advantages in transnational merger & acquisition because they own huge state-owned assets and a large number of SOEs. The Northeast, therefore should attach enough importance to transnational merger & acquisition. By making full use of multinational corporations' advantages in management, technology, capitals and human resources the SOEs will gain opportunity for existence and development in fierce international competition through merger and acquisition and reorganization of assets, said Ken Davis, a senior economist with the Organization for Economic Co-operation and Development.

2005 is a crucial year for SOE reforms in the Northeast. To push forward the revitalization of the Northeast, the State Council's Office of Revitalizing Northeast and Ministry of Commerce are now working out new measures attracting foreign capitals in an attempt to give support to cooperation between SOEs and multinational corporations, said Hu Jingyan, Director of the Department of Foreign Capitals, Ministry of Commerce.

By People's Daily Online