The total output value of large-scale industrial enterprises in the coastal city registered a year-on-year increase of 8 percent in the first three months.

Zhang Xinqi, mayor of Qingdao, said as industrial production is the foundation of the economy and Qingdao will continue to facilitate stable growth of manufacturing while advancing technology upgrading.

"We must focus on developing advanced industries with cutting-edge technologies and high-end manufacturing so that Qingdao can achieve sustained growth amidst China's economic transformation," he said.

Qingdao has formed 10 industrial chains with output values of more than 100 billion yuan ($16 billion) each. Together, they contributed to about three quarters of the city's total output value.

Rail transit equipment, electronic information, automobiles, machinery equipment and home appliances have seen rapid growth in production.

The industries of food, rubber and clothes also saw steady growth.

The shipping industry is on the way to recovery but petrochemicals saw a decline in output due to safety technology upgrades and relocation of plants.

The city's industrial electricity consumption, an important indicator of production level, steadily increased during the first three months, especially in March, according to the committee.

The city government has put 457 projects involving industrial transformation on the agenda of this year. The total investment is 190.8 billion yuan.

The government promised to follow the progress of key projects.

Boosting technological upgrading of companies has always been a focus of the government's work.

In the first quarter, 59 large companies in Qingdao carried out technological upgrades, 16 more than the same period last year.

The government has also signed strategic partnership deals with three banks, who agreed to provide no less than 20 billion yuan of loan within five years to support the technological transformation of local companies. Companies can apply to get the fund.

The city government has mapped out a plan to build Qingdao into a "smart city".

The goal is to widely apply information technology to all aspects of the city's development. This will include a "smart community" to optimize home services and "smart transportation" to help direct traffic and avoid congestion.

To create the "smart city" Qingdao focused on speeding up the development of the software industry, which brought in 21.5 billion yuan in the first three months of this year, 31.5 percent up from that of last year.

A software industrial park with a planned area of 10 million square meters is under construction.

However, the city faces challenges to maintain steady growth rates.

Relocation of some key petrochemical companies has affected output and a sluggish international market has also affected exports.

Some small and medium-sized companies said it was hard to secure loans to expand production.

The government hopes to provide better services to ensure safe and smooth production and will encourage companies to cultivate their own brands. It will also seek ways to establish a credit guarantee system to help solve the financing difficulties of small and medium-sized companies.

Each year Qingdao Fashion Week and the Qingdao Famous Brands and Products Exhibition Week give local companies the chance to showcase themselves to the world.

The two events, which are held at the same time, started in 2001 and over time products on show have diversified.

More than 500 companies brought their own brands to the events this year, which finished on April 29.

xiechuanjiao@chinadaily.com.cn