Meanwhile, the city is further tapping into its rich black resources, such as oil, coal and natural gas. Its annual oil production is 16 million metric tons, and it is expected to produce more than 30 million tons of coal this year.
Yan'an has seen fast growth of its industries.
"The industrial structure of Yan'an has been optimized significantly in recent years, which has paved the way for further development of the city," Yao said.
But he admitted that the city is still trying to upgrade its industrial structure, and shift from growth dependent on increases in oil and coal production to developing energy and chemical industries that convert its natural resources into value-added products.
"We will improve the output through technology, too," Yao explained.
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