Economic Trouble in Heilongjiang

Oil and coal are nearly 60% of the economy in Heilongjiang province. The GDP growth target in 2014 was 8.5%, but GDP growth was 5.2% through Q3. In 2014, the GDP target is still be optimistic at 6% growth.

One reason for weakness is the failure to diversify, such as building up the local grain industry.

Many enterprises still remain in thought patterns of the planned economy, the only know grasping production, good product, do not pay attention to market development, lack of brand strategy, the country knows Heilongjiang rice is good, but the rice really well-known brands are few. Produced by various companies are "popular and dependable" vicious competition among different enterprises also everywhere fraud, once the impact of the green image.

The agricultural industry is being hit by low soybean prices.

But after 2005, the benefits of planting soybeans, entered an unstable period, benefits gradually decline, this year, it is caught in a situation full of loss. Liu Jinlong simple calculations under the bill: in 2013, there have been planted soybean losses, the loss of about 100 yuan per mu.

May 2014 soybean market is still sluggish. The original 2.4 yuan per kilogram of soybeans, can only be sold for 2.1 yuan, a loss of about 140 yuan per mu. It also benefited from a full range of agricultural machinery that he has, there are economies of scale. Around the small farmers, this year has already abandoned soybean, the more general phenomenon is that more and more farmers choose to land transfer out to go to work outside the province.

The result is agricultural concerns going bankrupt.

January 13, Liu Jintao drove with reporters to see this key project is located on the outskirts of Helen: On a piece of open land, the plant just built a building ancillary buildings, would have been stopped so far two years. The entire Hailun, as Hualong projects, into soybean processing plant downtime and discontinued everywhere. And Liu Jintao same contractors who gathered in groups in the labor bureau and other government departments, waiting for the government helping hand extended, to return for projects.

The situation is so grim that the next day, Liu Jintao's car was taken by a debt collector.

Economic Observer: 黑龙江：失语的粮仓