Chenzhou city’s methods on transformation and upgrading of modern industry

60:40 was the ratio for mining economy: non-mining economy of Chenzhou city 5 years ago.

9.8:57.7:32.5 is current ratio for three industrial structure of Chenzhou city. As you can see from the data, mining economy is no longer the sole economic pole of Chenzhou city, multiple industries are available in Chenzhou city now, which is equal to create a “new Chenzhou” on economic scale.

“Even if no mining industry, Chenzhou city is still a strong economic city.” proudly said by the Chenzhou people who finished the transformation successfully.

The transformation for a resource-oriented city is an urgent reality issue and also a problem worldwide. Chenzhou city was improved to be prosperous on the basis of mining industry, but was suffered from the problem of resource path dependence. Its problems on unsustainable development, resource and environment, and social development were more prominent.

Compared with other resource-oriented city, Chenzhou city’s transformation was forced by the problems of resource and environment. It conquered the thought of “waiting, dependency, claiming”, but powerfully handled out the mining industry governance work with intense awareness of self-transformation, self-development and self-reliant and great determination and courage.

After the “mining industry governance” storm, the total 576 coal mines were integrated to be 165 ones, 747 non-coal mines were integrated to 125 ones and the mining rights were decreased from 1295 ones to 577, which changed the mining industry from chaos situation to well governed condition fundamentally.

Different from other resource-oriented cities, Chenzhou city’s transformation was followed with market-based means. It fully played the roles of its location and resource advantages to introduce more strategic investors, large-scale state-owned enterprises and private enterprises, integrate the resources, create more brands and upgrade the industry, which successfully helped to change the mining-dominated industrial pattern of Chenzhou city.

Along with the globalization of economy and acceleration of regional integration, especially the improvement of high-speed train era, more chances and challenges were faced by the transformation development. Chenzhou city followed the tunes of the time and paid great efforts on the transformation of Chenzhou city’s economy from traditional to modern, from flat to three-dimensional, and from mono to comprehensive pattern.

Chenzhou city tried great efforts on the establishment of “five-one” strategic system to guide the traditional industries to be transformed and upgraded to modern industries. Modern service industry was regarded as most important part on the adjustment of economic structure and upgrading of industry. Continuous industry and alternative industry were developed at the same pace. Balance attention was placed on the deep-processing of traditional industries and cultivation of new emerging industries, which would not only help to expand the industrial chain and improve industrial power, but upgrade the level of industries and establish multiple, open and modern industrial system as well.

Chenzhou city also well played the roles of its advantage that it is adjacent to Guangdong province, HK and Macau on the transformation process. Supported on the construction of national South Hunan undertaking industrial transfer demonstration zone, Chenzhou city took active actions on the construction of international open platform with the functions of great transportation, industrial park, custom declaration, and logistic. It became one of the cities with best industrial park platform in Midwest of China.

In recent three years, more than 1300 transfer enterprises were introduced into Chenzhou city. Capitals, talents, information flows which flied to southeast of China in earlier days flied back there.

The transformation road followed by Chenzhou city was to improve the transformation by upgrading the weak points. It promoted the industrial transformation by the governance of mining industry, which helped to get rid of the dependence on resource path. It implemented the industrial transformation development plan of upgrading of traditional advantageous industries, cultivation of strategic new emerging industries, increasing of industrial parks’ economy , acceleration of modern service industry, upgrading of modern agriculture, and upgrading of green development capacity, which is a sustainable development road.

The transformation road followed by Chenzhou city was to improve the transformation by reform. It formed a new development pattern with the pioneer of strategic new emerging industries, support of traditional advantageous industries and comprehensive and coordinate development of modern service industries by promoting lower-end industries with higher-end industries, upgrading traditional industries with emerging industries, improving investment with more consumption, and promoting production with service, which is an innovative development road.

In recent three years, the annual increasing rate for the added value of high-tech, electronic information and advanced device manufacturing of scaled industries were 34.1%, 75.4% and 40% respectively. Advanced manufacturing industries, modern service industries and some other up-rising stars contributed 69% GDP of Chenzhou city.

Chenzhou city’s transformation was promoted on the basis of Chenzhou city’s practical condition with Chenzhou style. It followed the general concept of reform and innovation and created a new transformation road for the resource-oriented city with Chenzhou features, which helped to present a “Chenzhou sample” for the sustainable development of other resource-oriented cities of China.