Economic transformation initiative sees Shanxi flourish

Province leveraging its unique industry, culture to boost widespread development and opening-up across all sectors

Since the beginning of this year, the North China province of Shanxi has demonstrated strong development momentum, in terms of advancements in economic transformation and industrial upgrades; infrastructure construction; market resilience and opening-up to the outside world.

In recent years, Shanxi has implemented an overall economic transformation initiative that features upgrading traditional industries and fostering emerging sectors as new growth drivers.

The coal mining industry, the traditional pillar sector of Shanxi's economy, is the major target of the province's industrial upgrading.

One example is Huo'erxinhe Coal Industry based in the city of Changzhi.

The company, a subsidiary of Shanxi Coal International Energy Group, has been using the latest digital technologies to upgrade its operations for increasing efficiency and improving safety.

Jin Zaixin is a monitoring worker for safety devices at the company's coal mines. During a recent interview with the local media, Jin said the use of digital technologies has led to "an efficiency beyond his imagination".

Before the interview, he just detected a problem with a feeder switch.

"It took only three minutes to identify and solve it," Jin said. He explained that this was because of the use of a wearable augmented reality device.

"It is connected with monitoring sensors in the mining shafts and features an automatic imaging function," Jin said. "This allows us to quickly detect problems and solve them even without entering the shafts."

Smart coal mines

Over the past two years, driven by innovative technologies and cutting-edge products, Shanxi has seen the emergence of a great number of intelligent coal mines, laying a solid foundation for its move toward energy revolution.

To date, the province has a total of 244 intelligent coal mines and 1,594 mining shafts with smart operations, according to local statistics.

The statistics also show that intelligent coal mines now produce 60.48 percent of Shanxi's total coal output. In a broader sense, coal mines with advanced operations, which include digitalization and automation, contribute to more than 83 percent of the province's coal output.

Zhang Shili, an executive of the Changcun Coal Mine affiliated to Lu'an Chemical Group based in the southeastern Shanxi city of Changzhi, is also a deputy to the 14th National People's Congress.

When attending the third session of the 14th NPC which concluded on Tuesday in Beijing, Zhang spoke highly of the current coal mining industry transformation featuring intelligent upgrades.

"Intelligent coal mining is a revolutionary transformation of the industry," he said. "The fundamental changes, especially in terms of safety, efficiency and environmental benefits, can be clearly sensed by our workers and the management as well."

Zhang suggested more innovative technologies be used in the coal mining industry in Shanxi as well as the entire country, pushing coal mining operations toward the direction of advanced, diversified and low-carbon development.

While Shanxi is devoting much energy to the intelligent upgrades of traditional coal-mining operations, it is also encouraging the cultivation and development of emerging industries as a crucial part of its economic diversification.

Cutting-edge tech

The strategic emerging industries in the province now include such tech-intensive sectors as semiconductors, digital technologies, life sciences and high-speed magnetic levitation trains.

Enguang Technology based in the southwestern Shanxi city of Yuncheng, for instance, recently debuted its artificial intelligence-empowered wearable device for emergency rescue.

"This watch-like AI wearable device features highly accurate sensors and 4G and Bluetooth technologies, offering disease monitoring and prevention, rescue and other services for patients in critical conditions," said Zhao Yongshi, board chairman of the company.

He also noted that this device has some functions reaching internationally advanced levels, especially in the aspects of the early warning and detection of cardio-cerebral infraction.

During the 15th International Invention Fair in the Middle East held from Feb 16-19 in Kuwait, the ultra-high-speed low-vacuum tube magnetic levitation transportation system from Shanxi won the highest prize after the assessment by a panel of experts, showing a worldwide endorsement of cutting-edge technologies from the province.

The system, also known as maglev train or "high-speed flying train" in China, was developed by a Datong-based laboratory jointly founded by Shanxi and China Aerospace Science and Industry Corp.

The lab features the development of the high-speed flying train and a full-size test line as the crucial infrastructure for the train's trial operations.

The inauguration of the lab and groundbreaking of the test line took place in May 2021. The purpose of the lab is to provide a key test platform for maglev technology.

The maglev train, which developers said can have a travel speed of 1,000 kilometers per hour, is designed to run inside a virtually air-free tube to reduce resistance.

In August 2024, a successful test on the test line was completed in Datong's Yanggao county, marking the project entering the midterm test phase.

In the years to follow, Shanxi's sci-tech authorities said that the province will continue to strengthen fundamental research in sciences and technologies, aiming to improve its overall innovation capacity.

In the following years, Shanxi will implement 30 key provincial-level sci-tech projects and 150 research and development projects at various levels. The projects will include two provincial-level laboratories, two fundamental sciences research centers, three industrial parks for energy technologies and three innovation bases for the integration of technologies and industries.

High-level opening-up

Through expanding the channels for international trade, such as international cargo flight services and the freight train services destined for Europe, Central Asia and Southeast Asia, Shanxi is pushing its opening-up initiative to a higher level.

On Dec 21, a China-Europe train loaded with domestic cars arrived at the Bely Rast Station in Moscow, Russia, after traveling more than 8,000 km.

"This China-Europe train, departing from Changzhi city, marked the beginning of the operations of China-Europe freight trains in the southeast of Shanxi," said an executive of Huayuan Land Port International Intermodal Transport (Shanxi) Co, one of the operators of the China-Europe freight train service in the province.

The China-Europe freight train service allows Shanxi-made products to expand internationally at a lower cost directly from their doorstep, significantly enhancing local companies' confidence in pursuing overseas opportunities.

Shanxi has established a regular service network for freight trains to reach overseas destinations, with support from several railway companies in Shanxi and the rest of the country. There are 15 routes dedicated to China-Europe freight train services, reaching 48 major cities in 16 countries.

Taiyuan Wusu International Airport, the leading international airport in Shanxi, is also expanding its overseas business in recent years.

On Oct 21, a 737-800 cargo plane carrying 11.2 metric tons of locally made products departed from the Taiyuan airport and arrived in Almaty in Kazakhstan about six hours later. This marked the inauguration of airborne cargo transportation between Shanxi and Central Asian countries.

Shanxi now has three airports — one in Taiyuan and the others in Datong and Yuncheng — operating international cargo transportation service. In 2024, Shanxi's airborne cargo and mail throughput reached 2,581 tons.

The comprehensive, multimodal transportation system of Shanxi is helping local enterprises go global.

Taiyuan Heavy Machinery Group, for instance, has now exported its high-quality train wheel sets and other products to more than 60 countries and regions.

Shanxi Construction Investment Group, a major local company involved in overseas construction service, has also made its presence in 60-plus countries and regions.

Xinghuacun Fenjiu Group, based in the Shanxi city of Fenyang, is now among the top three exporters in China's white liquor industry. Its products have been sold to more than 60 countries and regions, through its dozens of overseas dealers and thousands of outlets in foreign countries.

Shanxi is offering a beneficial environment for opening-up, especially in the areas of international trade and investment.

To help Shanxi enterprises go global and attract foreign investors to Shanxi, the province has arranged for local companies to attend major trade fairs in China and overseas, including the China Import and Export Fair in Guangzhou and the China International Import Expo in Shanghai, helping them exhibit their products and network with international businesses.

The Shanxi Brands on the Silk Road, organized by the Shanxi Provincial Committee of China Council for the Promotion of International Trade, is a major overseas marketing campaign for local products.

Last year, the events were held in Kazakhstan and Russia in August; Turkiye and Morocco in September; and Britain and Spain in October, fully exhibiting Shanxi's investment and trade opportunities to overseas businesses.

During the third session of the 14th Shanxi Provincial People's Congress held in January, the government work report delivered by governor Jin Xiangjun endorsed Shanxi's achievements in developing a hub of opening-up in China's inland regions and required further efforts in deepening opening-up and stabilizing foreign trade and investment.

To this purpose, Shanxi is developing more platforms for opening-up, such as the construction of a cross-border e-commerce pilot zone, an innovation demonstration zone for imports and the comprehensive bonded zone in Wusu, Taiyuan.

Market resilience

Shanxi saw a steady recovery of market demand in 2024. Statistics show that the province's total retail value of consumer goods reached 818.05 billion yuan ($112.89 billion) last year, growing 2.5 percent year-on-year.

The growth momentum is expected to be sustained or to accelerate this year thanks to stimulating incentives offered by the government.

One such move is the trade-in subsidy policy announced by the Shanxi Provincial Department of Commerce in early January.

According to the policy, consumers buying certain new products through the trade-in practice can enjoy government subsidies of up to 20 percent of the retail prices.

The practice covers a range of products including mobile phones, laptops, automobiles, electric bikes and household appliances.

At an outlet of electronics retail giant Suning in Taiyuan city, huge posters reading "20 percent subsidy from the government, 10 percent subsidy from the retailer and 15 percent subsidy from the suppliers" attracted a flock of customers.

A local resident surnamed Wang was among the buyers. She couldn't help her excitement after buying a smartphone. "The multiple subsidies helped me save nearly 1,000 yuan buying the smartphone," she said. "That's a very good deal."

Driven by the subsidy policy, Shanxi reported retail sales of 878 million yuan worth of automobiles, 413 million yuan worth of household appliances and 871 million yuan worth of digital products through the trade-in practice by Feb 11, according to local statistics.

Tourism boom

The tourism industry is another sector featuring strong market demand. Statistics show that the number of tourist visits in Shanxi during the eight-day Spring Festival holiday period in late January and early February increased 22.2 percent from the same period last year. And the total revenue generated from the visits grew 30.03 percent year-on-year.

Combining tourism with culture proved to be a big draw to tourists.

The city of Xinzhou, for instance, attracted a great number of tourists during the period because of a range of traditional cultural activities that were held.

When attending a cultural carnival featuring folk dances, boating on land, a molten iron show and a parade highlighting the hit video game Black Myth: Wukong, a German tourist, who asked to remain anonymous, said the Spring Festival shows were more attractive than the game.

Shanxi is the place with the largest number of cultural and historical sites featured in the game of Black Myth: Wukong, which became immediately popular worldwide following its release in August.

Authorized by the game's developer, Shanxi has launched a tourism campaign called Travel in Shanxi with Wukong since last August, bringing a great number of tourists to Shanxi to see what the historical sites featured in the game really look like.

Shanxi is also promoting its rural tours by integrating tourism with agriculture.

Last year, the province promoted 19 rural tour routes, which cover 90 sites, among tourists throughout the country and from the rest of the world.

Local statistics show that the rural tourism sector garnered a total revenue of 11.29 billion yuan in 2024, increasing 4.1 percent year-on-year.

Shanxi also views ice and snow as a precious asset to attract tourists. The tourism administration of the province recently revealed a road map to Shanxi's 38 ice and snow sports venues for tourists to choose from.

Winter tourism again shows a deep integration between tourism and ice and snowrelated sports.

For instance, many winter sports venues in Shanxi are adjacent to popular tourism destinations, offering visitors the choices of taking part in sports, sightseeing, enjoying local food and relaxing.

Zhang Qi and Li Yao contributed to this story.