1 Background

In recent years, the author has concerned about the difficult situation in resource depletion regions, especially in minority areas, including Shiguai District in Baotou which city belongs to Inner Mongolia Autonomous Region of China. The field research in Shiguai District had been done during past 2 years, and we have interviews with the employers and employee of the companies in Shiguai District, and also interviewed with the residents in that area and the officials of the local government. But the literatures related to this topic are very few. 

Shiguai District has 300 years history of coal mining. At the end of 20 century, coal resources in that area had been found in the situation of depletion. It was officially approved as one of resource-exhausted cities (districts) by Inner Mongolia Autonomous Region in 2009, and was approved as one of resource-exhausted cities by Chinese State Council in 2011.

2 Related Policy

The resource depletion led some cities faced serious ecological destruction, recession and the unemployment pressure. There was an urgent need for government to give policy support to these cities.

The Chinese State Council issued a policy in 2007 to give financial support to the resource depletion cities to upgrade their industries. Since 2008, the Chinese State Council approved the applications reported by the National Development and Reform Commission jointly with the Ministry of Land and Resources and the Ministry of Finance, so that 69 cities have been approved as the resource-exhausted cities.

According to the policy of the Chinese State Council, the central budget totally transfer payment of funds of 30.3 billion Yuan to the 69 cities since 2008, includes 13.5 billion Yuan in 2011.

Shiguai is one of the 69 cities; it has been approved as the resource-exhausted district in 2011. Actually, Shiguai government began to build industrial parks to change the predicament and upgrade the industries since 2001.

3 Case Study  

3.1 The introduction of Shiguai district

3.2 At the difficult situation

3.3 Find a new hope

3.4 Industrial park development review

4 Research findings   

Facing the closure of mines, a large numbers of laid-off workers, environmental pollution and geological disasters caused by extensive mining for many years, the district government made decisive decisions to establish Shiguai industrial park in 2001. The local government made every effort to overcome the difficulties, achieving industrial upgrading in Shiguai District and realize economy development. Shiguai experienced the economic restructuring from extensive to intensive.

5 Conclusion 

5.1 Local government and enterprises have played the very important role in upgrading industry in resource depletion regions for minority areas coordinately when the central government issued the preferential policies for resource depletion regions;

5.2 Beside central government, local government also gave preferential policies to industrial parks to realize industrial upgrading;

5.3 Shiguai government began to build industrial parks to change the predicament since 2001, the cities those began earlier to upgrade their industries, the effects of upgrading industries are better.