The group employs 1,650 active staff, is responsible for 600 retirees, and entertains hopes of a future IPO based on innovative products like its mine gasses detection devices, badly needed in China where 2,700 miners have died in explosions and accidents this year alone. The rest of China is watching Provincial officials are well aware that the rest of China is watching carefully. While Liaoning enjoyed a more generous target than other provinces cutting the total number of loss-making enterprises from 60 percent to 30 percent and some analysts question the accounting sleight of hand that guarantees official targets are met, the province has made definite progress. Figures released July 19 showed Liaoning s economy grew 9.5 percent from January to June over the same period, even outstripping the impressive 8.2 percent GDP growth recorded by China as a whole. It was the first time in many years Liaoning has exceeded the national average, and attributable in large part to stronger sales and profits at industrial state-owned enterprises.
Battle is just beginning, analysts say Other analysts suggest the battle is only just beginning.
We can resolve some problems, but important issues remain, especially social security for laid-off workers. Maybe this project can find a way. The human casualties of China s reform program can be seen on streets across Shenyang, hawking goods to make ends meet. A series of layoffs has shrunk factory personnel from 3,000 to under 300 today. Today Liaoning is the epitome of the northeastern rust belt, paying the price of years of government subsidies hiding inefficient, quota-driven operations.