Qinghai Province (in simplified Chinese 青海省) actually has a low economic output. As it mainly relies on local mineral resources, ecology and biological resources, the development has great potential but yet now, it was still slow. On the other hand, this province actually has comparative advantage in industries like chemical fertilizers, animal husbandry, non-ferrous metals, etc. In 2007, the province’s GDP reached 76.096 billion yuan, which has an increase of 12.5%. In 2006, the official opening of the Qinghai-Tibet Railway took place and it made Qinghai’s tourism, special crafts and farm produce processing industry gradually develop rapidly.

In fact, Qinghai has a quite rich source of oil, which is mainly found in the Qaidam Basin. Since 1954, the exploration and exploitation of petroleum in Qaidam Basin had started. So far, Qinghai’s oil and gas output had reached 4.59 million tons. It is clearly good.

In order to make Qinghai Province a more prosperous province, some basic infrastructures should be established so allow people or businessmen to use so that they would be able to set up their business branches in Qinghai more easily. If there are no basic infrastructures like airport or well roads being provided for the businessmen, they would hardly choose this province as a production base. Therefore, the first step for this province to achieve success should be the basic construction.

Of course, careful planning should be conducted. In Qinghai, there are some precious rare animals and if they are harmed by the construction of the infrastructures, it is clear that Qinghai would lose attractions. Therefore, a balance should be worked out so that the environment could be protected and also the economy of this province would be developed well.

At present, visiting Qinghai is not very easy because the traffic to it is not very convenient. Therefore, another thing that the government should strive to do is to provide a convenient transport network. In the future, it is hoped that Qinghai would develop gradually and turn into one of the influential provinces in China.