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        Business / Economy

        Shandong takes measures to turn economy into innovation-driven

        By Jiang Xueqing (chinadaily.com.cn) Updated: 2015-06-20 14:41

        Shandong province is pushing forward the restructuring and upgrade of traditional industries as well as increasing the role of modern manufacturing and service industries, the provincial governor Guo Shuqing said on Friday.

        "We are trying hard to improve the contribution of service industry to the economy and enhance the contribution of final, environmental friendly and traceable products to the economy," he said at China Wealth Forum in Qingdao, a coastal city in Shandong province.

        Heavy chemical industry output accounts for nearly 70 percent of Shandong's economy, which is energy intensive. The province consumes about 10 percent of coals in China.

        "The manufacturing industry in Shandong has a short industrial chain and low added value. We are facing a daunting task of industrial restructuring," Guo said.

        The provincial economic growth slowed down from 8.7 percent in 2014 to 7.8 percent in the first quarter. The pressure of economic downturn, which has increased since the beginning of this year, also added to the difficulties of restructuring.

        "To achieve the goal of industrial upgrade, we must be brave enough to innovate," he said.

        The provincial government is making great efforts to transform the local economy from resource-driven to innovation-driven.

        It accelerated the enhancement of traditional industries via information technologies and made huge progress in sectors including new energy, biomedicine and high-end equipment manufacturing.

        In the mean time, the province is deepening its economic reform comprehensively.

        Direct financing has increased sharply in Shandong. It recorded more than 380 billion yuan ($61 billion) last year, up 95.5 percent from a year earlier.

        The province is actively exploring the diversification of investment sources in the fields like energy, transportation and urban infrastructure.

        In 2013, private investment accounted for 60 percent or the total investment in urban infrastructure. Guo said the provincial government will continue to promote the cooperation between government capital and social capital.

        Last year, Qingdao was approved by the State Council to establish a pilot zone for wealth management.

        Guo said the savings in Shandong province have exceeded 7,300 billion yuan. He advised Qingdao Municipal Government to increase the investment channels of private capital and the financing means of small and medium-sized enterprises.

         

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