Visitors view tulip flowers in Jinan Botanic Garden in Jinan, capital of East China's Shandong province, April 17, 2016. (Photo/Xinhua)
The GDP growth rate of Shandong, a coastal province in East China, was 7.3 percent in the first half of 2016, well above the national average of 6.3 percent, and the GDP was 3.17 trillion yuan ($475.4 billion), ranking third in the country.
To ensure sustainable economic growth, and adapt to the current economic climate, known as the "new normal", Shandong government has implemented a series of programs to push forward supply-side structural reform.
Cutting overcapacity in nine industries
Shandong province is getting rid of loss-making companies, or "zombie companies" in nine sectors: steel, cement, sheet glass, electrolytic aluminum, shipping, oil refining, tire, chemical and coal.
It has already shut down four iron and steel companies, 58 coal mines and cut coal capacity by 16.25 million tons.
The province also has achieved remarkable progress in seven other industries.
Destocking
Based on the demand of different groups of customers, Shandong government has carried out a destocking campaign in the property market, goods manufacturing sector and farm products market.
The local government has issued package policies on real estate destocking, such as lowering down payments, reducing mortgage interest, and providing subsidies to homebuyers.
In order to boost farmers'income, the government is building a logistics networks to connect cities and villages, and promoting e-commerce business in rural areas.
The government is also helping companies to sell manufactured goods by organizing leading firms to produce personalized goods.
Reducing enterprises' burden
Shandong is aggressively pushing forward steps to lower enterprises' burden.
The measures include accelerating added-value tax reforms, giving subsidies to companies to reduce costs on innovation, provide support to small- and micro-firms on financing, and reduce companies' payment on social insurances.
The government is implementing market-oriented electricity price reform. This year, the companies in Shandong province will save 50 billion yuan on electricity bills.
Financial reform
According to the local financial authority, Shandong is expanding direct financing paths for companies. So far, its direct financing has increased 28 percent year on year to reach 355.7 billion yuan.
Shoring up the weak spots
Shandong will speed up its infrastructure projects to meet the new supply-side reform, including creating new high-speed railways, expanding expressways, rebuilding old villages, and creating "smart cities".
The province will also build national-level technology hubs to attract talent and train students to promote innovation capacities.
Furthermore, it will spend 80 percent of fiscal fund to improve people's livelihood including rebuilding shantytowns and schools, and 1.7 billion yuan will be used to fight against poverty.
