CHALLENGING GDP OBSESSION

Within 24 hours on Dec. 17, 2013, a total of 18 cement plants in Hebei were demolished, just one of the ways the province is slashing overcapacity. The target is to reduce cement production by 60 million tonnes by the year of 2017.

Cuts are also in the offing in steel production (60 million tonnes), coal production (40 million tonnes) and flat glass (30 million weight boxes).

Setting these targets is no easy job. For years, increasing industrial capacity meant a better place in the regional GDP rankings, even though production may already have been redundant. This resulted in dwindling profits and aggressive pollution.

Changes to the mindset of provincial officials came out of the "mass-line" campaign, which is not only a moral movement but addresses pragmatic concerns.

At the criticism and self-criticism session in Hebei last September, Xi described how determination was the key to structural adjustment. "Do you think the GDP winner takes all? Does a higher ranking make problems seem more decent?" Xi asked. "Over a half of the ten cities with the most serious pollution are in Hebei. Strap yourselves in for some adjustments. That is what you owe the public and history."

Xi's demands might be challenging for local governments, but many officials are relieved to be freed from the yoke of GDP obsession, said Hebei Governor Zhang Qingwei.

"We believe green GDP is a long-term, fundamental solution," Zhang added.

Luquan, a small city in Hebei, was once dubbed a "city of cement" and boasted a cement production capacity of 50 million tonnes. With cuts to overcapacity, Luquan slashed four fifths of its cement output. As the cement industry wanes, information, logistics and recreational services wax.

In 2013 Luquan's industrial electricity consumption fell by 130 million kwh, thanks to cuts in production, but fiscal revenue did not shrink. On the contrary, it increased by 360 million yuan (58 million U.S. dollars).

Since Xi took over as CPC general secretary, the economy has been under pressure and doubts about the sustainability of growth have been heard from abroad.

"It is not impossible for China to secure a faster growth, but we are refraining from seeking it," Xi said. "We would rather take initiative and gear down a little to handle the matter of long-term development with a fundamental solution."

It is not just officials who have changed their perspective. Ordinary people are seeing things differently too.

On an inspection tour about poverty alleviation in December 2012, Xi told Tang Rongbin, a 70-year-old farmer from a Hebei mountain village, that confidence could turn sand into gold. "The General Secretary told me to pay attention to my grandson's education, as hope always lies with the next generation," Tang recalled.

The 70-year-old also sees hope for himself. "I have joined with other villagers and obtained a loan to raise cattle. Selling a calf can bring in about 15,000 yuan," he said.

Xi's visit and the ensuing campaign have brought about changes to the county in many aspects, said Hao Guochi, local Party chief in Fuping.

The most obvious one, he said, happened in people's minds.