China's Shanxi Province has established a billion-dollar fund dedicated for the development of the region's industries, including its coal sector that the province is known for.
The 50-billion-yuan fund will cater to a number of industries in Shanxi Province. State-owned firms will be reformed and development for listed companies will be implemented, Xinhua reported. The fund will also focus on strategic startup industries as well as various acquisitions and industrial mergers.
Initiated by China United Industries Investment Co. Ltd. and Shanxi State-owned Capital Investment and Operation Co. Ltd., the fund is expected to spur growth in traditional industries in China such as healthcare, environment, and energy.
Shanxi is popular for its rich coal sector and vice governor Wang Yixin said the fund would help the province advance in industrial innovations that will benefit both private and state-owned entities.
Last week, coal firms in Shanxi Province reported that they have started switching to new energy and new processes for the purpose of speeding up development in the sector. Factories have sped up coalbed methane processes with the product now accounting for over 90 percent of China's total produce.
According to China Daily, one such company that has benefited from the transition to clean energy is Shanxi Uni-moon Green Paper. The coal enterprise subsidiary developed a technology that sees the birth of "stone paper" from gangue, a waste produces from coal factories.
The company believes that it can save up to 2.4 million trees if it continues the gangue production process to come up with "stone paper." An annual stone paper produce of 120,000 tons is expected to help reduce the need to cut down trees.
Many small and medium-sized businesses in Shanxi and other provinces have been struggling with costs and capital issues. To help address such problems, Beijing has rolled out supportive policies that aim to ease the burdens on smaller enterprises and startups in Chinese provinces.
Analysts believe that through the billion-dollar fund, Shanxi Province can lead the way in transforming industries that are known to pose potential risks to the environment. The Chinese government has been backing the province's goals of transforming its traditional industries to cope with global competition.
Late in February, the Ministry of Foreign Affairs (MFA) hosted an event that promoted Shanxi Province's efforts in transforming its policies and budget plans to further boost businesses and domestic industries.
"Since the 18th National Congress of the Communist Party of China (CPC), Shanxi has moved with the times and embarked on a new journey of innovative development," Chinese State Councilor and Foreign Minister, Wang Yi, said.
