一、The categories and leading industries
　　 Zhanggong District is an urban district characterized by industrial economy with products from 29 categories of industry like metallurgy, machinery, paper-making, chemicals, medicine, food, clothing, electronics, etc; its industrial output accounts for one-seventh of the total industrial output of Ganzhou’s 18 counties (cities, districts). It is also one of China’s major nonferrous metal product bases. Its thulium, tungsten and molybdenum products sell briskly in more than 50 countries and regions, including the United States, the Republic of Korea, Canada, Japan, etc. Biopharmaceuticals, machine-made paper, air compressor, offset press, generators and other industrial products also have a good share in overseas markets.
At the beginning of the nation’s Tenth Economic Five-Year Plan period, the five leading industries of Zhanggong District, nonferrous metal smelting processing, machinery equipment manufacturing, light textile, IT, and pharmaceutical biotechnology industries, had already taken shape, among which nonferrous smelting processing, machinery equipment manufacturing and light textile had already gained impetus, their supporting role for Zhanggong’s industry becoming more and more obvious.
　　 There are 10 enterprises of nonferrous metal smelting and processing industry in Zhanggong District, including Ganzhou Qiandong (Holdings) Ltd., Ganzhou Special Precision tungsten and molybdenum Ltd., Ganzhou 801 Tungsten Industry Company, Ltd., Ganzhou Hongfei Tungsten and Molybdenum Materials Ltd., Ganzhou YiIHao Perfect Techtronic Industries Ltd. Ganzhou Haofeng metallurgical chemical Holdings Ltd., Ganzhou Hongmao Tin Solder Company, etc. Their major products are tungsten and molybdenum products, thulium, series products of cobalt and solder products. The total volume of profits and tax were 228 million Yuan in 2005.
　　 There are 14 machinery and equipment manufacturing enterprises in Zhanggong District, including Gas Compressor Co. of Jiangxi, Ganzhou Power Equipment Company Ltd., Ganzhou Stars Machinery Co., Ltd., Ganzhou Huizhong Precision Forging Ltd., Ganzhou Jinhuan Magnetic Separation Equipment Limited, Ganzhou Power Equipment Company, Ltd. Ganzhou Pump Manufacturing Enterprises, etc. Their major products include series of gas compressors, type 1 and type II pressure vessel products, dual off single (double) offset point printers, hydro-generator groups, TF series of diesel generators, three-phase induction motors, thulium permanent magnet synchronous motors, various synchronizer models, single and multi-stage pumps, SLDN main ring pulsating high gradient magnetic separators, etc. The total profit and tax in 2005 reached 52.56 million Yuan.
　　 There are 10 enterprises in Zhanggong District in the field of light textile industry, including Ganzhou Huajin Paper Co., Ltd., Ganzhou Pesticide Branch Company of Gannan fruit industry Co., Ltd. Kangming Weaving and Dyeing Textile Engineering, Ltd., Ganzhou chlorine and alkali manufacturing Ltd. Ganzhou, Xinyang Chemical Industries Limited, Ganzhou Mingji knitted textile enterprises, Ltd, etc. Their major products include office paper, calcium carbide, carbon ink, pesticides, alkali liquor, textiles, clothing, etc. The total profits and taxes were 63.884 million Yuan.
二、Major measures taken and principal achievements made during the national 10th Five-year Economic Plan period
　　 1. Give higher priority to the development of industry and provide more support to superior enterprises so as to enhance the industrial output and scale
　　 During 2001-2005, the district Party Committee and government focused on the improvement of industry as a strategic measure to make people better off and to make the district advanced, and included it as Zhanggong District’s national economic development program in the national 10th Five-year Economic Plan. In 2001, the district Party Committee and government made the “decision to focus on the development of industry and further acceleration to the industrial development ". In 2003, in order to carry out the Province’s policy of further acceleration to the industrial development, the district Party Committee delivered the “opinions on furthering open up, deepening innovation and accomplishing the extraordinary development of economy”. In 2004, in order to implement the strategic plan "connecting with the Yangtze River, the Pearl Rive , and Fujian Province and constructing a brand-new Ganzhou " by Ganzhou Party Committee and government, the district Party Committee and government made the decision to accelerate the development of our district’s industrial economy. The publication of all these documents established an overall strategy to focus on the development of industry. We seek to promote the increase in the overall volume, the scale, and the overall quality of industrial economy through investments introduction, structural innovation, bankruptcy elimination, capita reorganization, etc.
　　 The main moves for focusing on industry and supporting superior enterprises are as follows. 1) Make clear the layout of industry. There are one zone ( Shahe Industrial Zone) and two special industrial branch zones ( Shuidong and Shuixi) in the planning and distribution of Zhanggong District industry development. The focus of Shahe Industrial Zone are the development of industries such as machinery and equipment manufacturing, pharmaceuticals, IT industry, modern light textile industry; the main focus on Shuidong special industrial branch zone is non-ferrous metal smelting industry; and the main focuses on Shuixi special industrial branch zone are chemical paper making industry and deep processing of non-ferrous metals. 2) Determine leading industries. Five leading industries are chosen and industrial clusters are formed. One is nonferrous metal processing industry which processes tungsten and molybdenum, thulium and cobalt; the second is machinery and equipment manufacturing industry which focuses on generators, air compressors, mainly of automobiles and spare parts; another is light chemical textile industry which focuses on chemical papermaking, and knitted garments; another is the biopharmaceutical industry; and the fifth is IT industry. 3) Nurture leading and pillar industries. First, an industrial development work leading group will be established which commands by principle leaders, in charge by branch leaders and implemented by relevant functional departments of the government; second, the five industrial development leading groups will be set up respectively in order to coordinate industrial development plans; third, 20 key enterprises in the leading and pillar industries will be chosen and given support; fourth, a service mechanism is to be establish for key enterprises in order to create a favorable environment for development. 4) Build and perfect incentive mechanism for the growth of enterprises (establish enterprise development funds, establish industrial loan interest subsidies for technological innovation projects, establish objective appraisal of industrial enterprises, make economic efficiency ((revenue)) level, range for the investment in fixed assets), all these reward systems will enable the enterprises to develop to a higher level. 5) Encourage enterprises to cooperate with universities and research institutes so as to quicken the transformation of scientific research findingss into productive forces; 6) Foster the four kinds of qualified personnel through training, introducing, and promotion (industrial enterprise operators, technology marketing professionals, skilled workers, and management personnel).
During the 10th National Five-year Economic Plan period, the non-ferrous metal smelting and processing industry (specializing in tungsten and molybdenum, thulium, and cobalt), machinery and equipment industry (specializing in power generation equipment, air compressor, auto and spares), modern light chemical industry lead by Ganzhou Huajin Paper Co. had played a leading role in stimulating the growth of other related industries. By the end of the national 10th five-year economic plan, the heavy industry specializing in non-ferrous metal smelting and processing industry and compressor processing industry had become a leading industry in the district, with an extra value of 598 million Yuan and an average annual growth rate of 57.9%; the light industry specializing in paper industry developed strongly, with an industrial extra value of 235 million Yuan, and an annual growth rate of 83.2%. The total industrial extra value of the three pillar industries accounted for 87.6% of industrial output in this district, showing the effect of the strategy of “giving higher priority to the development of industry”.
　　 2. Encourage technical reform and innovation to improve the major strength of the Enterprises in the competition
During the 10th Five-Year Plan period, there were 42 programs of technological reforms in industrial enterprises above the district level, with a total investment of 22.901 billion Yuan. Among the investment, the capital assets were 17.0244 billion Yuan, making up 74.34% of the total investment. Enterprises of the dominant industry invested 10.1244 billion Yuan for capital assets, accounting for 59.45% of the total amount of the capital assets investment. In the leading enterprises, the core enterprises made larger amount of investment, and there were 11.9590 billion Yuan invested by the following enterprises: Ganzhou Yihao Youme Technology Co., Ltd, Ganzhou Qiandong Industry Group Co., Ltd, Ganzhou Sophisticated Tungsten & Molybdenum Co., Ltd, Ganzhou Whole Set Electricity Equipment Co., Ltd, Jiangxi Gas Compressor Co., Ltd, Ganzhou Huajin Paper Industry Co., Ltd, Jiangxi Qinfeng Pharmacy Co., Ltd and Jiangxi Yiyuan Multi-Media Technology Co., Ltd. And the amount made up 52.22% of the total investment. In terms of technological reforms, there was an increase of 16 programs of industrial enterprises above the district level and 18.0502 billion Yuan of funds during the 10th Five-Year Plan period, compared with the 26 programs and 4.8508 billion Yuan during the 9th Five-Year Plan period, and the funds in the 10th Five-Year Plan period was 4.72 times as much as that in the 9th Five-Year Plan period.
　　 During the 10th Five-Year Plan period, more than 10 million Yuan had been used to develop new products in the whole district, aiming to boost industry by making use of the driving force of the top brands. Cooperated with the North China Jiaotong University, Jiangxi Gas Compressor Co., Ltd developed the brake compressors used in acceleration of the train. Cooperated with Tianjin Institute of Transmission Equipment and Institutes of Electric Machines of Harbin University, Ganzhou Whole Set Electricity Equipment Co., Ltd developed waterwheel dynamo and electric machine equipment. Cooperated with Jiangxi Metallurgy Institute, Ganzhou Qiandong Industry Group Co., Ltd, developed thulium metal products. Jiangxi Qinfeng Pharmacy Co., Ltd, cooperated with Chinese Medicine Institute of China University of Pharmacy, developed new medicines. Cooperated with universities of large and medium size and national organization of scientific research, these key industrial enterprises quickened the pace of the technological innovation and progress. During the five years, there were 34 kind of products developed in machine equipment production industry, light chemistry and textile industry, color metallurgy machining and food industry, 20 of which won the prize for new products at provincial level.
　　 Industrialization driven by informationalization. From 2002, the key enterprises paid more attention to technological reforms on informationalization and elevation of industrialization of the enterprises. Ganzhou Whole Set Electricity Equipment Co., Ltd improved the management of enterprise by informationalization with a total investment of 15 million Yuan. Ganzhou Qiandong Industry Group Co., Ltd developed the office software with a total investment of 4 million Yuan. Jiangxi Gas Compressor Co., Ltd developed the KRM management system and initiated technology center of the provincial level with a total investment of 10 million Yuan. Technological reforms on informationalization of these enterprises has blazed a new way to enterprise management and improved the level of production, management and competitiveness of the enterprise.

　　3. Remarkable achievements in carrying out the policy of “prospering the district by promoting industry”
In recent years, under the judicious leadership of higher party and government departments, and guided by the thought of “Three Represents”, Zhnaggong District commission and local government thoroughly and consistently put into effect the spirit of 16th Party Congress, the 3rd, 4th and 5th plenary sessions of 16th CPC Central Committee, and took as the central task of promoting the process of new industrialization. The strategy of “driven by opening-up policy and prospered by industry” had been adhered to, and the stress was laid on the breaking point of “furthering enterprise reform, enlarging and strengthening pillar industries and key enterprises and constructing satisfactory industrial parks”. Based on this, we pioneered our spirit and inspired our creative mind, focusing on what we need to improve and worked consistently on it. Therefore, our industrial economy has made considerable achievements. Since carrying out the strategy of strengthening industry in 2001, our district has taken enterprise reforms as its guidance, inviting investments attentively to perfect modern enterprise system, made every effort to foster industries and key enterprises. As a result, our industrial economy has achieved a consistent, stable and healthy development. In 2005, the district-level and above enterprises completed a total output value of 3.612 billion, with a sales income of 3.37 billion and profits and taxes of 390 million, increasing 128%, 135%, and 609% respectively. All the economic indices ranked better among the provincial counties (cities, districts), and the district was awarded “Prize for contribution to fostering industry” for four successive years.

三、Goals, plans, and measures for industrial development during the 11th Five-Year Plan period
　　 During the 11th Five-Year Plan period, the major industrial indices are to be increased at an average of above 20%. By 2010, the industrial increase is to ensure an increase of 1.5 billion, hopefully 2 billion; the sales income is to ensure a total of 8.5 billion, hopefully 10 million; the accumulative input in fixed assets is to reach 3 billion, hopefully 4 billion.
　　 The general principle for accelerating industrial development is that it shall be pulled forward by investment, facilitated by policies, promoted by science and technology, and collaborated by the entire district, and we will take unswervingly a new road to industrialization. It needs the whole district to have a uniform understanding and take concerted action, adopt firmly and carry out carefully the scientific idea for development, take as our guidance optimizing industry structure, enlarging scale, analyzing carefully, plotting reasonably and enhancing core competitiveness of enterprises, to focus on increasing industrial input, transforming ways of accumulation, promoting science and technology advancement, innovating institutional mechanism, and fully elevating technological equipments and management ability in enterprises. It also needs to optimize the environment for industrial development, to help rearrange key elements such as resources and talents to gather in leading industries, key enterprises and industrial parks. Efforts are needed to speed up the formation of electromechanical industry base and nonferrous metal processing base, to tap potentials and to enhance abilities so as to expand to a full extent the total amount of economy and its overall scale.
　　 In order to achieve the goals of industry development assigned in the 11th Five-Year Plan period, the following measures are to be taken.
　　 1. Quicken the pace of the formation of industrial bases and backbone industries, and take active measures in supporting the three leading industries. Electromechanical industry should establish itself on the carrier of Jiangxi Mechanical Industrial Town in Shahe Industrial Region, and by making use of the opportunity of “enterprises drawing out of urban areas and moving in industrial regions”, we shall foster flagship enterprises of electromechanical industry in mechanical industry town, and thus form a leading and radiating force to attract supporting enterprises of various levels of electromechanical industry to gather together and promote the development of electromechanical industrial chain. Industry of nonferrous metal smelting and processing will base itself on the formation of Shuixi base, focusing on the cultivation of mining industrial economy of intensive processing of cobalt, tungsten and thulium, expanding products development and extending low-level products so as to increase the extra value of the products, and thus make our production ability and economic efficiency reach and keep the leading position within the industry. Modern light chemical industry will establish themselves on Huajin Paper Industry, improving technologies and extending potentials, working hard on the development of supporting industries and the formation of raw material bases, expanding the economic scale of the industry and elevating the quality of industrial increase.
　　 2. Keep on carrying out the policy of supporting the superior and the strong. The leadership group of the district for industrial development will be optimized and reinforced, and the leader of the district takes responsibility for providing services. The mechanism of serving and coordinating industrial enterprises will be perfected so as to pave a green channel for industrial development. Meanwhile, the spirit of No. 2006102 document of the district will be put into effect to fulfill aiding responsibility, to solve in time the difficulties and problems, and to create a favorable environment for the development of industry.
　　 3. Perfect the mechanism of encouraging the development and expansion of enterprises. Developmental funds will be set up in enterprises, and awards system will be established to encourage enterprises and individuals who have done well in promoting export, turning in taxes, achieving higher economic targets and adding industrial input in fixed assets. Enterprises are encouraged and instructed to make flexible and full use of favorable policies of the state, the province and the city, such as “the offset of income taxes for technological innovation of state-owned equipments”, “funds for promoting developments of foreign trade by Jiangxi province (middle region)” and “developmental funds for promoting small- and medium-sized enterprises”, and so on.
　　 4. Spare no efforts to promote the introduction of investments. The principle of efficiency will be given prominence to. Much effort will be made to introduce and select investments. The responsibility system of investment invitation will be perfected so as to optimize investment and development environment, and encourage able persons to start new businesses. During the 11th Five-Year Plan period, we will carry on package investment invitation centering round the three leading industries, and making as our central task of bringing in great projects, accessory projects and projects with high tax expectancy. Based on the investigation and analysis of industrial projects for investment invitation, we will focus on the scheming, packing, introducing and generalizing of the introduced projects. Besides, the follow-up service will be strengthened for introduced enterprises, and take an active part in solving difficulties and problems met in the process of their production and management, such as financing, preparation, construction and employment, in order to help new projects to put into an early and full production and to make profits.
　　 5. Develop recycling economy and carry out sustainable development. Efforts will be made to strike a balance between development and economizing, with the latter prior to the former. Much of our attention will be paid to technological transformation and innovation on energy saving, green production, resources recycling in nonferrous metallurgy industry, light industry, chemical industry and textile industry, so as to explore the recycling economy mode, to shift ways of economic increase, and to reduce the overall energy consumption of every 10,000 yuan production by 5%. Efforts will be made to promote the trail production, sale, and implementation of new wall materials in the construction material industry, so as to save land resources, to promote the idea of sustainable development, and to establish a conservation-oriented society.