Getting serious and hitting hard, with unprecedented strength! Liaoning "cuts" 21 provincial-level economic development zones

Why is the reform in Liaoning Economic Development Zone unprecedented in strength?

According to Liaoning Daily on March 24, since November 2025, in less than five months, Liaoning has merged or abolished 17 provincial-level economic development zones (hereinafter referred to as “provincial EDPs”), including the Benxi Economic Development Zone and Liaoyang Economic Development Zone. Additionally, four zones were abolished in the first half of 2025. As a result, the number of provincial EDPs in Liaoning has decreased from 92 to 71, involving 10 cities, with a reduction rate of 22.8%, nearly one-quarter.

On March 23, the reporter learned from the Provincial Department of Commerce that the Provincial Party Committee and Provincial Government have explicitly required the resolute integration or abolition of provincial EDPs that are poorly growing, financially unsustainable, poorly planned, or consistently ranked low. Relevant reform measures have already been implemented.

A relevant official from the Department of Commerce stated that this round of adjustments to provincial EDPs is unprecedented in strength and is not simply about “reducing numbers,” but a systemic overhaul centered on restructuring institutional mechanisms. The goal is to retain only those economic development zones capable of doing and achieving real work, and to concentrate resources on key areas.

The core of this reform is to return provincial EDPs to their main responsibility: economic development.

In the past, some provincial EDPs in Liaoning also handled social affairs such as education and civil affairs, leading to bloated agencies and dispersed efforts, deviating from their main responsibilities of “focusing on the economy, promoting openness, and attracting projects.” This reform aims to, on one hand, vigorously strip social management functions from EDPs based on actual needs, allowing them to operate more lightly; on the other hand, to orderly transfer municipal economic management authority to EDPs, further focusing their main responsibilities on economic development, investment attraction, and enterprise services.

The reform also targets core pain points related to “people, finance, resources, and authority.” For example, it aims to gradually improve personnel and salary systems, develop performance-based salary reform plans, break down identity barriers, and ensure that those who work hard and perform well truly benefit. Additionally, EDPs will establish revenue-sharing mechanisms with local governments to motivate zones to attract projects and develop industries.

Since these reforms, EDPs are gradually shedding their “multi-headed” burdens.

Latest data shows that among the 82 provincial-level and above EDPs in the province (including 11 national-level and 71 provincial-level), the average number of internal agencies has decreased to 7.1, a reduction of 13.3%. Among these, 83.1% of internal agencies focus on main responsibilities such as economic development, investment attraction, and enterprise services, an increase of 7.1 percentage points compared to before the reform.

Furthermore, among the 82 EDPs, 74 have completely shed social management functions, accounting for 90.2%; 45 have established revenue-sharing mechanisms with local governments, an increase of 21 compared to before; the average number of economic management authorities undertaken by each zone is 29.4, an increase of 10.5, making it easier and more efficient for enterprises to handle affairs within the zones.

“With the social functions being stripped away and agencies streamlined, EDPs can focus more on investment attraction and enterprise services. This ‘reduction’ from 92 to 71 is actually a ‘addition’ in terms of governance capacity modernization. When EDPs truly focus on economic functions, unleash market vitality, and better meet enterprise needs, they can play the role of the ‘main battlefield, main position, and main engine’ of economic development,” said Cao Haijun, director of the National Governance Research Institute at Northeastern University.

Source: Liaoning Daily

Editor: Meng Yaxu