Shanxi province has a strong industrial structure with the emphasis on energy and raw materials and based on the country’s energy demands, competitive resources, and local industrial tradition.

Shanxi’s industrial structure can be characterized in the following ways. It has an energy sector that is a pillar of industry and integrated with infrastructure. Energy has been a pillar for Shanxi province for a long time and has accounted for 14 percent of the GDP, 30 percent of total industrial output, 42 percent of net industrial output, and 20 percent of provincial revenues.

It exhibits economic competitiveness at fairly low cost, high productivity, and large output and it occupies a decisive place in Shanxi province and the country at large.

After the central government decided to build Shanxi into al base for energy, heavy industry, and chemicals, the energy industry developed by leaps and bounds. And, since energy and transportation still create bottlenecks of China’s industrial development, Shanxi has become more valuable with its coal and electric power exports.

In addition, Shanxi plays an important role in the raw materials and machinery sectors.