The government of Datong in north China's Shanxi Province, known as China's coal-capital, is encouraging local businesses to branch out as it attempts to make its economy more robust and sustainable.

Datong is indeed an emerging economy. Statistics show that the city's gross domestic product (GDP) reached 40.6 billion yuan in 2006, an increase of 8 percent year-on-year. The figure is projected to reach 45.5 billion yuan this year, an 11 percent increase.

The city's recent economic growth can be attributed to the continued efforts of local authorities to advance industrial restructuring, an effort to build a more resource-efficient society.

While continuing to upgrade its pillar coal sector (and related industries like coal chemicals, power and metallurgy), authorities also value the development of "substitute industries" like machinery manufacturing, tourism and modern services.

In recent years, the city's government has encouraged local entrepreneurs to participate in high-level trade and investment fairs held in Shanghai, Hong Kong and Guangzhou.

Participation in such high-level promotional business activities has helped the city to secure 73 new contracts, while importing 32.1 billion yuan in investment capital. So far, 14 of these investment projects have begun construction.

Almost 100 companies from Datong are expected to give presentations at the first China (Taiyuan) International Coal and Energy New Industry Expo, showcasing the city's industrial advantages.

During the promotional event, Datong will launch 123 projects related to coal, coal chemicals, power, metallurgy, electronic machinery manufacturing, materials, tourism and modern logistics.

The city's government said it will highlight 27 selected projects with high-tech advantages and great market prospects, hoping to entice investors.

The selected projects are intended to attract a total of 5.2 billion yuan in overseas funds.

This year's goal in terms of fixed-assets investment increase is 27 percent, according to the government plan.

Sprucing-up infrastructure

To revamp the city's image and improve the lives of locals, Datong's government has begun a process of mass renovation.

Presently, four main roads, 30 lanes and 30 old residential buildings have been retrofitted. The city's exhibition hall and library have also begun the process of renovating.

A new expressway ring around the city is also under construction.

Meanwhile, authorities are revving up for a "green expansion", a bid to improve the city's eco-environment. Currently, the city boasts 905,400 square meters of urban green coverage.

Authorities are also paying attention to the city's more vulnerable groups. The government has financed 1.9 billion yuan to create employment opportunities for laid-off workers from State-owned enterprises, and has established a minimum social guarantee system for rural residents.

About 480,000 square meters of low-priced apartment buildings have also been built, and 1,000 low-income families have been offered spaces in these apartments.

The government invested 500 million yuan in agriculture, forestry, and water and gas supply last year, an increase of 11.8 percent year-on-year.

Fiscal expenditures on education now total 1.2 billion yuan, a 24.7 percent increase year-on-year. Education now accounts for more than 20 percent of the city government's total financial expenditure.

History stokes tourism

With its many historical relics, Datong has rich tourism resources.

The city is endowed with more than 300 historical heritage sites. Among them, 13 are listed as key state-level cultural relic reservations, and 23 are under provincial-level historic protection.

The renowned Yungang Grottoes, established more than 1,500 years ago, are situated 16 kilometers west of the city's urban areas.

With more than 5,000 figures of the Buddha of varying sizes in 53 different caves, the one-kilometer stretch of grottoes provides visitors an opportunity to appreciate the unique beauty of sculpture art from the Northern Wei Dynasty (AD 386-534).

Lofty mountains, historical temples and galleries, and stone inscriptions by historical celebrities are all very appealing attractions.

Hengshan Mountain, one of China's most famous mountains, has long been seen as a can't-miss tourism spot in the city. One particularly famous site is Xuankong Temple. Built against the cliff, it seems as if it's hanging in mid-air. Xu Xiake, a well-known Chinese tourist and writer during the Ming Dynasty (1368-1644), called it one of the wonders of the world.

Datong hopes to capitalize on the city's rich historical resources and develop tourism as an emerging force to spur the growth of local economy.

(China Daily September 17, 2007)