Local governments should transform development engines and speed up structural reform in a harsh economic climate, Premier Li Keqiang has said on his inspection trip to Taiyuan, Shanxi province during Jan 4 and Jan 5.

In the Taiyuan Iron and Steel Group Corp, Premier Li said the steel industry, plagued by overcapacity and shrinking demand, should further upgrade structure and improve technology, quality and management.

In the Guandi Mine of the Shanxi Coking Coal Group, Premier Li descended 300 meters onto the mine’s working surface and urged miners to prioritize safety.

“The coal industry is now facing one of the few difficult periods in history. In this situation, we should reduce our output, cut the cost and transfer excessive workers to other industries,” the Premier said.

In the Taiyuan center of the Tsinghua Science Park, Premier Li encouraged innovators to create new industries with their new ideas.

“The Chinese market has great potential and a bright prospect, where new development engines will drive employment,” he said.

Moreover, Premier Li urged a speedier transformation of local shantytowns after a visit to a poor neighborhood in Xinghualing district.

He also encouraged Shanxi to value the spirit of the Jin merchants (the first group of businessmen in China, also known as Shanxi merchants), who were good at discovering and creating new opportunities.