II. SHENGYANG CITY DEVELOPMENT: CURRENT SITUATION
D. Implications of current and future Shenyang City developments for the economy of the area
Shenyang has become the regional economic centre as a result of the spatial concentration of the regional economy. Compared to neighbouring areas, Shenyang is superior in respect of its developed industries, advanced technologies, concentrated funds, prosperous commerce, convenient traffic systems and good information systems. As the centre of production, exchange, circulation and consumption for Liaoning province, Shenyang plays a key role in the economy of the province. It acts as the junction for connections with other regions and cities and it shoulders the responsibility for driving the economic development of surrounding areas.
Shenyang is an old industrial base that was established with concentrated investments during the first Five-Year Plan, and it has a solid base of heavy processing industries. The areal concentration of essential production factors such as technical personnel, facilities and so on have brought about very favourable division and cooperation, thus saving investment, lowering production costs, shortening production cycles, improving labour productivity and providing higher benefits from assembly production. At the same time, the superior location, convenient traffic systems, frequent commodity exchanges and wholesale trade have made Shenyang the central market for the exchange of commodities and essential production factors, while also attracting investment and producing a high agglomeration of benefits.
On the other hand, the distribution of economic and technological conditions is not balanced in the region as the central city is normally taken as the core. With the economic development of Liaoning, the economic and technical connections between Shenyang and other areas in the region will continue to be enhanced. From the production allocation aspect, the diffusion of products and technologies (such as semi-processing or deep-processing of certain products and non-staple foods), the production of other simple consumer goods, and the access to and coordinated processing of large-scale enterprises in the city will be diverted from the central city to rural or other areas. In addition. Shenyang has rich scientific and technological resources. With its numerous institutions, superior conditions and advanced means of scientific research and technical exploitation, Shenyang has become an important base for scientific and technical exploitation and application. Therefore, the scientific and technical superiority of Shenyang will promote the development of the regional economy.