BEIJING: China is trying to revive its downtrodden “rust belt” in the north-east with a “blood transfusion” of around US$7.4bil,backed by a new bank, state media reported.
The north-eastern provinces, home to 110 million people, were once the crown jewel of industry under China's centrally planned economy. But market reforms begun in the late 1970s have resulted in the collapse of state firms in the region, leading to mountains of bad loans at state banks that had lent heavily according to government directives.