President Xi's Shanxi visit: Reviving legacy, forging future

Editor's note: Xin Ge, a special commentator on current affairs for CGTN, is a research fellow at the Institute of Public Policy and Governance, Shanghai University of Finance and Economics (SUFE), and a chair associate professor at the School of Public Administration and Policy, SUFE. The article reflects the author's opinions and not necessarily the views of CGTN.

As China navigates a complex global dynamics while steadfastly pursuing its vision of national rejuvenation, Chinese President Xi Jinping, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, visited Shanxi Province from July 7 to 8.

Xi's tour, including a stop at a memorial hall commemorating the Hundred-Regiment Campaign in Yangquan city and a broader inspection of the province, carry profound contemporary relevance. More than a tribute to history, his remarks resonate deeply with the nation's current priorities, particularly Shanxi's critical role in achieving industrial transformation and high-quality development.

The Hundred-Regiment Campaign, took place from August 1940 to January 1941 during the Chinese People's War of Resistance Against Japanese Aggression, stands as a testament to the Chinese people's indomitable spirit and fierce determination in the face of immense adversity. It also showcases the CPC's strategic capacity, resilience and unwavering commitment to national liberation.

Xi's visit served as a reminder that the Chinese Dream is not merely an economic pursuit, but the continuation of a broader historical continuum – one that demands the same revolutionary spirit, self-reliance and innovative thinking that defined that earlier struggles.

President Xi's visit to Shanxi transcended historical reflection; it firmly looked toward the province's path ahead. Shanxi, as China's leading coal producer, has long been synonymous with abundant mineral resources, with its economy and employment heavily reliant on coal-related industries. However, this dependence is now challenged by the twin imperatives of environmental sustainability and the urgent need for industrial modernization.

Xi's comments, highlighting that "the real economy should not be abandoned, nor should the traditional industries within it," while stressing "industrial transformation and upgrading through technological innovation," offer a balanced yet resolute message. The goal is not to abandon the province's legacy but to profoundly reshape it.

The focus of Xi's inspection was clear: to propel Shanxi towards deeper industrial transformation and high-quality development. This involves a fundamental shift away from reliance on raw material extraction and basic processing toward fostering new quality productive forces.

This concept, central to China's evolving economic strategy, signifies a shift to productivity driven by revolutionary technologies, optimized factor allocation and comprehensive industrial restructuring. It emphasizes harnessing innovation as the primary engine for growth, developing cutting-edge technologies, nurturing emerging sectors such as advanced manufacturing, clean energy and digital economy, and intelligently upgrading traditional sectors.

For Shanxi, forging these new quality productive forces means a multi-pronged approach. First, the province must accelerate the digital and green transformation of its traditional sectors. This involves modernizing its vast coal industry with intelligent mining, clean coal technologies and carbon capture initiatives, while extending the industrial chain to produce high-value chemicals and new materials from coal.

Furthermore, Shanxi is tasked with cultivating strategic emerging industries. This requires targeted investment in research and development and talent to develop sectors like advanced equipment manufacturing, new energy vehicles, information technology and renewable energy. This requires targeted policies, incubator programs and attracting high-tech enterprises.

In addition, achieving this transformation requires optimizing the configuration of key production elements – reforming the management of how land, labor, capital and data to channel resources toward innovative and high-value-added sectors. Central to this effort is cultivating a talent pool aligned with the demands of a modern economy, emphasizing skills development, technical training and education tailored to emerging industries and digital technologies.

Beyond driving internal transformation, President Xi's inspection underscored Shanxi's potential to become a new hub for inland gateway for opening-up. Drawing inspiration from provinces like Sichuan, this vision involves strategically positioning Shanxi within both national and international supply chains. Sichuan's experience offers a valuable model: building multi-modal transport links to Europe and Southeast Asia, nurturing emerging sectors such as electric vehicles, battery technology and photovoltaics, and creating an attractive environment for foreign investment.

For Shanxi, this means first improving connectivity through increased investment in high-speed rail, logistics infrastructure and dry ports to facilitate access to global markets. Equally important is enhancing the local business environment by streamlining administrative procedures, ensuring fair competition and offering attractive incentives to attract both domestic and foreign investors. Finally, establishing open platforms such as special economic zones and industrial parks dedicated to high-tech manufacturing and trade will provide a conducive environment for international collaboration.

Shanxi's trajectory embodies China's overarching pursuit of high-quality development. Rooted in its revolutionary past yet oriented toward a forward-looking vision, the province is actively redefining its development path through technological advancement, sustainable practices, and expanded openness.

President Xi's visit was not just an endorsement but a strategic impetus, energizing Shanxi to accelerate its industrial renewal and cultivate its own new quality productive forces. In doing so, Shanxi stands ready to play a greater role in advancing China's modernization and enhancing its influence in the global stage.

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