Changsha: Broader industrial foundation
Local authorities in Changsha vow to build the capital of Hunan province into one of the premier cities in Central China by increasing its industrial output to 1 trillion yuan ($163.4 billion) within three years.
Already a major city in the region, Changsha is a leading player in many industries, especially heavy machinery, and home to State-owned giant Zoomlion Heavy Industry Science and Technology Co. The city ranks first nationwide in scale and revenues for heavy machinery.
But due to weak global demand, the industry’s output fell 30 percent in the first five months of this year from the same period in 2012.
As a result, Yi Lianhong, the city’s newly appointed top political leader, proposed forging a more balanced industrial structure by continuing to boost other industries in Changsha.
Among them is the auto industry, which saw a 50 percent rise in its output in the first five months from the same period last year.
It is expected to have an even greater impact with the new Shanghai Volkswagen auto plant that began construction in May.
Designed to produce 1,600 vehicles daily, the plant will generate an estimated 70 million yuan in tax revenues a day, said analysts.
Other industries such as new materials, electronics, and biomedicine all registered year- onyear growth rates of more than 20 percent in the first half of this year.
To further fuel the city’s industrial performance, local authorities have been encouraging local companies to develop new products.
Statistics from the government show that 21 technological innovation alliances have been set up to facilitate research and development in electronics, manufacturing, materials, agriculture and environmental protection.
Zhao Yuesi, director of the city’s industry and information commission, said Changsha’s industrial output is projected to reach 900 billion yuan in 2013 and 1.2 trillion yuan in 2015.
The city government is also striving to double the value of its service industry in the next three years.
Official statistics show that the service industry had revenues of 253.5 billion yuan in 2012, an annual increase of 12 percent, accounting for 40 percent of the city’s GDP.
Liu Suyue, Party chief of Changsha’s commerce bureau, predicted that the city will realize its goal in 2017 when services will have revenues of 530 billion yuan, some 45 percent of the city’s overall GDP.
The Changsha government is also taking measures to increase the income of locals. In 2012, full-year per capita disposable income was 30,288 yuan for urban residents and was 15,057 yuan in rural areas, both ranking first among cities in Central China. Contact the writers at lifusheng@chinadaily.com.cn and fengzhiwei@chinadaily.com.cn