Industrial Restructuring and the Selection of Pillar Industries in Qinghai Province, China

Based on the data from the Qinghai Statistical Yearbook 2009, the evolution course of industrial structure and the developmental status of pillar industry is analyzed. The pillar industries in Qinghai Province are analyzed and revaluated from four aspects, which cover demand and income elasticity, location quotient, contribution rate and interrelationship between industries. Through analyzing the problems and causes of the industrial structure of Qinghai Province, we know that the output structure of the three main industries has seriously departed from the employment structure; the pillar industries mainly concentrated on the fields of resource exploitation and primary processing; the interrelationship between the industries is low; and the development between the light and heavy industries are imbalanced. With the globalization and the further implementation of national preferential policies on western development, Qinghai Province follows the following principles in the restructuring of industrial structure in order to carry out the scientific thought of development and the “Ecological province” strategy. Firstly, the restructuring of industrial structure should be guided by market and scientific and technological progress. Secondly, it should fully display the regional advantages. Thirdly, it should attach importance to the developmental status and prospect of relevant accessory industries. Fourthly, the restructuring should be helpful to the labor transfer and reemployment of rural surplus labor forces. Suggestions on the selection of pillar industries and optimization of industrial structure are put forward. Qinghai Province should accelerate the restructuring of industrial structure, strengthen the support on pillar industries and lay stress on the introduction of the capitals, technologies and talents.