Industrial restructuring

He actually sees the global economic downturn as a blessing that offers the opportunity to restructure local industries.

"We noted the industries with huge energy and resource consumption were the first victims during the economic crisis," Wang said. "This is the right time for us to promote a resource-saving and environmentally friendly economy."

Rich coal reserves and low electricity prices in Ningxia gave rise to many heavily resource-consuming industries, which are also the major sources of pollution.

Since last year, the autonomous region has shut down more than 400 small papermaking and metallurgy enterprises that could not meet environmental standards.

In addition, all coal-fired power plants in Ningxia are now required to install desulfurizing equipment. In 2008, Ningxia ranked the second in China in the rate of emission reduction.

The environmental protection initiative will also benefit the region's agricultural industry. With improved water and air quality, the output and quality of crops are expected to improve significantly.

With its agriculture benefiting from a developed irrigation network using water diverted from the Yellow River, Ningxia is now called a "new land of plenty".

Yet Wang said the government recognizes there is still a need to save water in agricultural production.

"Because of the dry environment in Ningxia, the Yellow River is the major water source for agricultural production. We should improve the efficiency of irrigation, saving more water for the lower reaches because the river belongs to the whole nation," Wang said.

(China Daily May 19, 2009)