Can the north hold?

However, some experts say that the so-called development gap between the country's south and north should not be exaggerated. Although the north does face some difficulties in socioeconomic development because of historical reasons, the experts say it is essentially a reflection of the different development models that are taking shape in different regions of the country.

The north is trying to weed out the polluting and overcapacity industries, such as cement, plate glass and iron and steel factories, to "vacate the cage for new birds".

Before the new growth drivers arrive, it is necessary to fill the vacuum so that economic growth is not affected, says Fan Hengshan, an economist of regional development studies and former secretary-general of the National Development and Reform Commission. However, because of the region's underdeveloped business environment, the north lags far behind the south in the competition for investment.

Shandong, the third largest provincial economy after Guangdong and Jiangsu, has not only emerging industries and private economy as in the south, but also underperforming enterprises as in Northeast China.

Shandong Party chief Liu Jiayi told civil servants in the province at a recent meeting on high-quality development:"If we still hold the old steamer ticket featuring an old development model and industrial structure, we will never board the giant ship of high quality development, and we will be a big encumbrance to the country in growth, energy saving and emissions reduction and regional coordinated development."