Northeastern China was originally built up as an industrial center using pre-existing Soviet and Japanese factories. By the 1980s these outdated and inefficient factories could not keep up. To further complicate matters, starting in the early 1990s, large portions of China's state owned enterprise workers were laid off. Thus, like many other cities in this region, contemporary Harbin is struggling with an aging work force and unemployment. Private enterprise is mostly centered in the service sector, retail, restaurants, etc. with most large scale enterprises still state owned. However, the province has thousands of state-owned enterprises up for sale, and many have been purchased since the late 1990s. Numerous universities in Harbin also play a vital role in the economy in education, research and through their subsidiary companies.
In 2005 there was a major pollution spill on the Songhua River.
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