Chinese President Xi Jinping has stressed the importance of independent innovation and reform during the second day of his inspection tour in Shandong.

During his time in Yantai Wanhua Industrial Park, Xi Jinping hailed the enterprise' effort to foster innovation.

"You have undergone an excellent course of development. It's tough but successful. The reason for your success, in my opinion, is the pursuit of independent innovation. Nothing is impossible. Spirit is needed anytime. As ancient patriotic poet Qu Yuan said 'the road ahead will be long and our climb will be steep.'"

Xi Jinping also called for state-owned enterpriese to step up the transformation into modern corporations through reform.

His trip also included a visit to a leading producer of drilling rigs.

One of the company's products, Bluewhale I, was used last year in China's extraction of combustible ice, an oil equivalent.