The State Council approved the development of Shenbei New Area on Tuesday.

Chen Zhenggao, secretary of Shenyang's Party Committee, said the new city would return the rustbelt area of northeastern China to its former strength.

"Shenbei New Area is meant to be another engine of growth both for Shenyang and northeastern China as a whole," said Chen.

Shenbei will join Tianjin's Binhai New Area, Shanghai Pudong New Area and Zhengzhou Zhengdong New Area in leading government efforts to encourage development in the country's various regions.

The Northeast was for decades China's industrial heartland, though its fortunes have waned in the age of liberalization.

The many State-owned enterprises that once dotted the area have fared poorly in comparison with other booming regions along the country's coast.

Among Shenbei New Area's key tasks will be rebuilding this industrial base, experimenting with reform and building up a new countryside, said Li Xiangping, a researcher at the Liaoning Provincial Academy of Social Sciences.

The former Shenyang Huishan Agricultural Development Zone will serve as Shenbei New Area's core. It will also cover Xinchengzi Area, Shenyang Hushitai Development Zone and Daoyi Development Zone.

The area will grow to cover more than 1,000 square kilometres.

"This is a significant step at a time when the central government is working to rein in the country's development zones. Like Shenzhen, we shoulder very important responsibilities in guiding reform and opening up the country," said Wang Shiwei, secretary of Shenbei New Area's Party Committee.

"Liaoning is at the heart of northeastern China. And Shenyang is the central part of Liaoning Province. So this step is not just about the future of Shenbei, but about the whole region."

Liaoning Province is responsible for half of northeastern China's gross domestic product and leads the region in exports.

"We have already had a good start and are very confident about the area's future," said Jian Biao, chief of Shenbei New Area.

Among the industrial sectors planned for the area are bio-pharmaceuticals and logistics.

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