The Northeast was at one time known as the "cradle of industrialization" of China. In 1980, industrial output for Liaoning alone was twice that of the Guangdong. However, the northeast was left behind amidst market reforms of the 1980s and 1990s, while Guangdong and other provinces along the South and East China Sea coasts prospered. Its economy—still largely tied to state-owned enterprises—stagnated relative to other regions, with high unemployment rates. The revitalisation plan aimed to address this by reviving the region's traditional industries, strengthening trade ties with and encouraging investment from South Korea and Japan, and experimenting with free trade zones in select cities.Calder, Kent; Ye, Min "The Making of Northeast Asia" (Stanford University Press, 2010). In 2004, official media reported that foreign direct investment in Liaoning had nearly doubled since the launch in 2003 of the northeastern rejuvenation strategy.Pan, Letian (19 October 2004) "FDI inflow almost doubles in Liaoning" , China Daily.
