ABSTRACT

The story in the heavy industry sector is one of growth based on the province' s coal reserves . Outlining the prospects for Shanxi under the Seventh FYP, governor Wang Senhao announced that planned invest­ ment would be 17 billion yuan RMB, an increase of 75 per cent over the Sixth FYP. Of this , over four-fifths was for the coal and power industries , and railway projects . 1 5 The emphasis on the extraction industries is directly related to the development of the heavy industry sector as a whole . For example , thermal-powered electricity generating plants in Shanxi made use of the province' s coal resources to boost out­ put by 83 per cent between 1980 and 1986, and other coal-intensive industries such as pig iron and steel production have also benefited from being located locally . 1 6 Not all coal-intensive industries have been successful : the production of chemical fertilizers fell by roughly a fifth between 1984 and 1986 . 1 7 None the less , those industries that supply the mining and energy sectors have seen their production levels soar . For example, the output of the mining equipment industry increased by 83 . 8 per cent during 1985 , and then by a further 2 1 . 9 per cent the following year . The production of electricity transformers similarly increased by 3 1 .9 per cent and 1 3 . 6 per cent during the same years . 1 8

Although there has been some progress in the production of manufac­ tured goods , all other industries in Shanxi exist in the shadow of the coal industry . State coal-mines alone employ 1 4 . 3 per cent of the pro­ vincial work force , and the industry ' s share of the output value of all industry is a massive 20. 8 per cent . With the electricity-generating industry accounting for 6 .4 per cent of the total , the two industries alone produce more output value than the whole of the light industrial sector .