Global Times: Xi stresses transforming resource-based economy in Shanxi inspection tour

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Jul 09, 2025, 01:40 ET

BEIJING, July 9, 2025 /PRNewswire/ -- President Xi Jinping has called on North China's Shanxi Province to further promote the transformation and development of the resource-based economy and strive to write its own chapter in advancing Chinese modernization, the Xinhua News Agency reported.

Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, made the remarks during his inspection tour in Shanxi from Monday to Tuesday.

When inspecting the Yangquan Valve Co., Ltd. on Monday, Xi was briefed on the province's progress in industrial transformation and upgrade in recent years. He also learned about the production and sales of some valve products at the company's workshop, according to Xinhua.

He emphasized that traditional manufacturing is an important part of the real economy, and called for efforts to respond to market demand and enhance sci-tech innovation to breathe new life into traditional industries.

Noting that China's industrial development today relies on advanced technologies and equipment for improvement, Xi encouraged the company's staff members to contribute more to the country's growing manufacturing strength.

On Tuesday morning, after listening to a work report from the CPC Shanxi Provincial Committee and the provincial government, Xi made requirements for the province's future work.

Xi noted that building a national pilot area of comprehensive reform for the transformation of resource-based economy is a strategic task entrusted to Shanxi by the CPC Central Committee.

While ensuring the coal supply for the country's power generation, efforts should be made to promote the low-end to high-end transformation of the coal industry and the upgrading of coal products from primary fuels to high-value products, Xi said.

He also required efforts to push forward the transformation and upgrading of traditional industries and develop emerging and future industries in light of local conditions to foster new quality productive forces.

It is imperative to make good use of various development conditions, optimize the business environment and stimulate the vitality of business entities, he said.

"Xi's inspection tour serves as an encouragement to develop the local manufacturing sector, as well as a guideline for the province to further promote industrial transformation and develop emerging sectors," Hu Qimu, a deputy secretary-general of the Forum 50 for Digital-Real Economies Integration, told the Global Times on Tuesday, noting that as Shanxi is an important province in the rise of Central China, its development pattern will provide a model for other areas to achieve industrial transformation and upgrading.

Hu noted that the tour elucidated the profound connotation of new quality productive forces, expounding the dialectical development approach of preserving and innovating between traditional and emerging industries. "Moreover, the emphasis on the real economy and the manufacturing sector with tech innovation will play a vital role in the 15th Five-Year Plan (2026-30) for the country to navigate internal and external challenges and achieve high-quality development," the expert noted.

Continuous industrial transformation

Yangquan Valve Co., Ltd., founded in 1924, is a "little giant" firm in the field of industrial valve manufacturing, with products exported worldwide. These "little giant" firms represent the novel elites of small- and medium-sized enterprises that specialize in a niche market, boast cutting-edge technologies and show great potential, according to Xinhua.

In the face of intense market competition, Yangquan Valve continues to increase investment in research and development and technical upgrades, leveraging technological innovation to create new advantages for development. At present, 58 product varieties made by the company have filled domestic gaps, Xinhua reported.

"The company represents China's medium-sized, small and micro enterprises, as well as being an entity that achieves industrial transformation through technology and innovation," Hu said.

"President Xi's inspection tour not only shows deep care for the manufacturing industry but also instills confidence in enterprises, emphasizing the status of traditional manufacturing as a vital component of the real economy. This confidence is more important amid the uncertain external environment, motivating enterprises to redouble their efforts and contribute more to building a manufacturing powerhouse," Cheng Tianqing, chairman of Shanxi Zhongde Investment Group, told the Global Times on Tuesday.

Cheng, also vice president of the Shanxi Federation of Enterprises and member of the 12th National Committee of the Chinese People's Political Consultative Conference, noted that "the manufacturing companies must actively seek change and keep pace with the times. In the current fiercely competitive market environment, only through continuous innovation and tapping into potential market demands can enterprises establish a firm foothold in the industry and achieve sustained development."

According to Cheng, the company previously focused on development within the real estate industry, engaging in business segments such as plastic steel profiles, broken bridge aluminum and plastic pipelines. To achieve its transformation, the company has integrated internet, digital and intelligent technologies into traditional industry transformation projects.

For example, by developing intelligent security doors and windows, the company has combined traditional industries with new quality productive forces, injecting new vitality into them. "This systemic innovation not only enhances product competitiveness but also provides a new pathway for the transformation and upgrading of traditional industries," he noted.

These companies represent a microcosm of the economic transformation and development in Shanxi, a resource-based region, forming a structural pattern with diversified industrial support.

According to Shanxi provincial government, the province focuses on traditional industries such as steel, coking, chemicals, non-ferrous metals and building materials, promoting equipment upgrades, standard enhancements and product iterations. In addition, it is implementing technological upgrades and phasing out outdated production capacity, continuously driving the transformation and upgrading of the manufacturing industry.

Through tech innovation, it has promoted technological advantages to forge industries such as new energy vehicles, new materials and high-end equipment manufacturing. Official data shows that the value added of strategic emerging industries supported by high-end manufacturing in the province grew at an average annual rate of 5.4 percent from 2022 to 2024, according to the provincial government.

The province propelled the upgrading of traditional industries and the cultivation of emerging industries through technological innovation and policy guidance, providing a replicable model for the transformation of manufacturing nationwide, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Tuesday.

Moreover, located at the junction of central and western China, Shanxi's manufacturing upgrades can radiate to neighboring provinces, forming an industrial corridor for equipment manufacturing and new materials, contributing to the development of Central China as a hub for inland openness, Wang noted.

Strengthening manufacturing

In May, Xi conducted an inspection tour in Central China's Henan Province. China must continue to strengthen the manufacturing sector, adhere to the principles of building self-reliance and strength, and master core technologies in key fields, Xi said.

"The reason we were able to achieve development after reform and opening-up is due to the scale and stability of the country's manufacturing capabilities, which is also the main reason why we can maintain strategic composure amid profound changes unseen in a century," Hu said.

According to a report by the People's Daily, the total value added industrial output in China increased from 31.3 trillion yuan in 2020 to 40.5 trillion yuan in 2024, with the overall scale of manufacturing maintaining the world's top position for 15 consecutive years. The robust foundation, innovative momentum and vibrant vitality demonstrated by Chinese manufacturing provide strong support for advancing Chinese modernization.

On April 30, 2025, Xi chaired a symposium on economic and social development for some provinces and municipalities for the 15th Five-Year Plan period. He highlighted the roles of scientific and technological innovation and the real economy, urged efforts to transform and upgrade traditional industries, develop emerging industries, and make forward-thinking arrangements for industries of the future, so as to accelerate modernization of the industrial system, the People's Daily reported.

Hu said that the 15th Five-Year Plan period coincides with a turbulent external environment and rising unilateralism, which means China must be self-reliant in terms of technology, key resources and equipment.

The transformation of China's traditional industries has now entered a critical phase, requiring China to seize the industrialization opportunities brought by the technological revolution to achieve high-quality development and effectively manage the country's own affairs amid the challenges, Hu noted.