The deprived northeast is ripe for investment, the premier says, and restrictions are likely to be lifted to make it happen
Premier Wen Jiabao has called for increased reliance on market forces to jump-start the stagnant economy in the northeastern rust belt.
Mr Wen said now was the right time to push for developing and stimulating new competitive industries in the northeastern provinces, Xinhua reported.
The news agency said that Mr Wen, speaking at a special State Council meeting on reforming the region's economy, believed the implementation of market-based measures would spur increased capital inflow and economic development.
The report did not list any specific policies but economists said the government was likely to loosen restrictions to attract foreign and private investors and allow factory managers to purchase state-owned assets.
The region has already received substantial investment from South Korean, Japanese and Russian firms.
Economists said the implementation of market-based reforms was crucial if the region was going to recover, but warned the changes would involve risks.