Jiangsu Government Reports Signs of Recovery from Financial Crisis Go back »

2009-02-25 | Nanjing

According to the Jiangsu government latest figures from the statistics bureau indicate that the province is showing signs of recovery from the global economic downturn, fueling hopes of steady growth this year.

Jiangsu resumed investment growth in the last two months of last year, while sales of commercial residential properties also started to rebound with a 233 percent monthly growth in residential space last December from that of a month earlier, the figures showed.

Export-oriented enterprises have been one of the worst-hit sectors in the economic crisis but Jiangsu still saw a 16.9 percent increase of its export value with a total value of $234 billion over the year, the bureau reported.

"Although the impact of the global financial crisis hasn't bottomed out yet, Jiangsu will try to increase its contribution to the nation's economic recovery by taking the lead in maintaining steady economic growth," provincial governor Luo Zhijun said in his government report at the second session of the 11th provincial people's congress that opened on February 5th. 

Jiangsu, long known as one of the country's economic powerhouses together with neighboring Zhejiang province and Shanghai municipality, is "risk-resistant" and "innovative" in the face of an economic slowdown, Luo said.

One EUCCC member told us "October is used to be the busiest month of production and sales, we saw a dramatic downturn this year, it started from September and continued to decline all the way through October and November. In December however we also saw an increase in the purchasing orders."

Placing steady economic development on top of the agenda, the governor said the province would continue to stimulate domestic demand and develop an open economy this year.

"Rural reform and development as well as infrastructure spending would be key to spurring domestic consumption" Mr. Luo also said.

Another EUCCC member told us "China's steel industry is beginning to recover due partly to the government's stimulus policies, the steel industry is turning better are related to national policies for promoting car and electronics sales in rural areas."

Being home to a high concentration of private companies, Luo said the province would also step up efforts to support the development of small and medium-sized enterprises and hi-tech companies by facilitating their access to loans.

"We received a 15% tax reduction from Zhenjiang Development Zone as we qualify as a hi-tech enterprise. The Committee of the Hi-tech Economic & Development Zone also organizes conference with banks to help Hi-tech SMEs get loans." stated Nanjing member Mr. Emmanuel Le Flem from A. Raymond Fasteners.

Mr. Le Flem added "We have confidence in Jiangsu government's response to the crisis. We look forward to seeing the related policy that will take effect very soon."  

Another SME member of EUCCC told us "With the support of Jiangning Development Zone, we manage to get a 3% reduction in the Social Insurance compared to what our company used to pay before. Although this is not a big amount it shows the attitude of the local government to help SMEs in the Development Zone to overcome the economic hard time."

"The financial crisis has actually provided an opportunity for us to optimize industrial structures and encourage technological innovations," the governor said. Similarly, he said Jiangsu would actively attract investment in such advanced industries as R&D, logistics, environmental protection and services.

The European Chamber will have a memebers meeting with Government Departments to discuss their reaction to the Financial Crisis and support that will be offered to European Companies. Please click here for details