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Zhang Xiaojing, a Beijing-based economist, said though Shanxi's resource-based economy is unique, the pilot zone will "tap experience to be spread across the country".

"Shanxi's economy is a microcosm of the Chinese economy. As China has been consuming more energy and resources, it has to prepare for a shortage of resources and achieve sustainable and eco-friendly development through economic structural reforms," Zhang said.

The Proposal for Formulating the 12th Five-Year Plan (2011-2015) for China's Economic and Social Development released in October does not include the usual target for GDP growth. Instead, it placed economic reform as a priority and paid greater attention to the adjustment of economic structure.

Niu Renliang, vice-governor of Shanxi, also said on Monday that the current Shanxi economic structure is not sustainable.

"Shanxi has powered the economic development of other regions, but with heavy economic, social and environmental consequences for itself."

Since 1949, Shanxi has produced 12 billion tons of coal, of which 75 percent was transported to other regions, said Niu.

This has resulted in Shanxi's dependence on external demand.

A woman works at a textile factory in Yuncheng, North China's Shanxi province, Dec 13, 2010. [Photo/Xinhua]