Jiang said Shandong's total GDP this year is expected to hit 4.9 trillion yuan, an increase of 9.5 percent from 2011 and slightly lower than last year's target of 10 percent.

Shandong's provincial development plan has set high goals for economic growth and quality of life this year, said Jiang Daming, governor of the eastern coastal province.

"The government will make every eff ort to improve the industrial structure, foster new areas of economic growth and meet the new economic and social development targets," Jiang said at the ongoing National People's Congress and the Chinese People's Political Consultative Conference meetings, which opened in Beijing on March 3.

Jiang said Shandong's total GDP this year is expected to hit 4.9 trillion yuan, an increase of 9.5 percent from 2011 and slightly lower than last year's target of 10 percent.

"The rate, which is also 1.4 percentage points short of actual GDP growth last year, has been set purposefully," Jiang said.

"Instead of rapid growth, our major focus is on improving our economic development pattern to balance growth with quality and efficiency," Jiang explained.

Meanwhile, the governor said the province will work to drive market demand and fi ght infl ation. Offi cials aim to keep infl ation under 4 percent and ensure the total retail sales of consumer goods continues to rise by 15 percent.

A huge budget

To reach the targets, the government proposed a budget of 3.1 trillion yuan for fi xed-asset investments, up by 17 percent from last year.

About 2.66 trillion yuan, or 86 percent of the total package, will be invested in emerging industries, technological innovation, construction of urban and rural infrastructure, water and energy conservation, and environmental protection. Also, a portion will be used to raise the quality of life within the province.

A total of 1,000 projects focusing on high-tech innovation will be launched to accelerate the restructuring of traditional industries.

Furthermore, 10 advanced industrial zones and parks will be established to support emerging industries like alternative energy, advanced materials, new medicines, marine economy and information technology.

The government will also fund the establishment of a number of national-level technology innovation centers for industries such as marine science and engineering, biomedicines, machine manufacturing, and electronic communications.

Jiang said the coastal province is poised to get more active in the global economy.

The government predicts a 10 percent growth in the province's foreign trade, which is expected to hit $260 billion this year. It is actively encouraging more foreign investment in sectors like advanced manufacturing, modern services and modern agriculture.