|Market Profiles on Chinese Cities and Provinces|
Major Economic Indicators
Notes: 1 In real terms 2 For all state-owned enterprises and other forms with annual sales over RMB 5 million
Guizhou has a total area of 176,167 sq.km. Guizhou - abbreviated as Qian - is situated in the mountainous part of the Yunnan- Guizhou Plateau in Southwest China. Total population stood at 37.6 million in 2007. Almost half of the population is ethnic minorities.
Guizhou has rich mineral resources. Among the 123 kinds of discovered minerals, 22 kinds ranked among the top three in the nation in terms of reserves. The province's reserves of phosphorus ore and bauxite ranked first and second respectively in China. Its reserve of coal is the highest among southern Chinese provinces, and is the fifth largest in China. Guizhou is also rich in natural resources for hydro-electricity generation.
With significant improvements in irrigation and terrace-farming, Guizhou has a strong agricultural sector. The province is one of the main producers of tobacco and its output ranked third in the country. Tea products, vegetables and some exotic fruits are famous both at home and abroad. Thanks to its biodiversity, Guizhou also has large varieties of herbs for industrial and medicinal uses.
The primary sector still accounted for 17.2% of the GDP. Major agricultural products include corn, rice, tobacco, tubers and rapeseeds. The output of tobacco ranked second in China, accounting for 11% of the national total. The province has over 3,700 types of herbs and is one of the leading producers of Chinese medicine in China. Animal husbandry and cash crop of local characteristics will be the growth areas of the farming industry.
Composition of GDP (%)
Source: Guizhou Statistical Yearbook, 1996, 2008
The structure of Guizhou's industrial output reflects the natural resources of the province. In 2006, electricity, heat and gas accounted for 23.6% of the industrial value-added, while smelting and pressing of ferrous and non-ferrous metal accounted for another 15%. Manufacturing industries are mainly located at Guiyang and Zunyi.
Major Industry Groups# (2007)
Notes: # For all state-owned enterprises and other forms with annual sales over RMB 5 million
Guizhou is also a major base for supplying electricity from the western part of China to the eastern part. In coming years, the province will focus on utilizing its abundant coal and inexpensive electricity to become the power base of South China.
Traditionally, Guizhou is strong in tobacco and brewing (beverages) industry, and accounted for 11.4% and 8.4% of the province's industrial value-added in 2007 respectively. Maotai wine is famous at home and abroad. In the 11th Five Year Programme period, the tobacco and brewing industries share a strategic direction of building well-known brands.
Guizhou is also an important base of building material and chemical industries. The province will further develop pharmaceutical products, tobacco and food industries. Some famous industrial corporations in Guizhou included Huangguoshu Group Co, Guizhou 3537 Shoes-Making Factory, Guizhou Shenqi Group, Guizhou Yibai Pharmaceutical Corporate Co Ltd etc.
Guizhou is a popular tourist destination. It has 12 state-level scenic areas and 6 state natural reserves such as Huangguoshu Waterfall, Dragon's Palace, Zhijin Cave, Hongfeng Lake, etc.
In 2007, the number of overseas tourist increased by 33.8% to 430,000, generating a foreign exchange earning of US$129.2 million (+12.2%). The number of domestic tourists reached 62.2 million (+31.9%) with a total revenue of RMB50.4 billion (+33.4%). Tourist from Hong Kong and Macao reached 130,500 (+39.9%).
Major export markets were the US, Vietnam, Japan and Australia. Major export products were chemicals and related products, base metal and related products, machinery and equipment and minerals.
Major import items included minerals, plastics and related products, machinery and equipment. Major sources of import were India, Thailand, Australia and Canada.
In 2007, the amount of utilised foreign direct investment totalled US$126.5 million (34.8%). The majority of FDI were channelled into the manufacturing and real estate sectors. These two sectors accounted for 48.3% and 38.5% respectively of the total inflows of FDI in 2007.
Foreign investors are encouraged to invest in autoparts, tourism and light industries, particularly in textiles, food-processing, medicines and health products. Guizhou would like to co-operate with foreign investors in upgrading its major industrial enterprises, developing hi-tech industries, transforming its old urban districts and improving its infrastructure.
To boost the development of the central and western regions in China, the State Council has granted further tax incentives to foreign-invested enterprises (FIEs) in China. Under the existing policy, FIEs are entitled to a three-year tax reduction and exemption. The policy allows foreign-invested enterprises in the central and western regions to enjoy another three years of preferential tax rate when the current preferential term expires. The tax rate can be further reduced to 10% when an enterprise is proved to export more than 70% of its annual output.
Retail sales of consumer goods of Guizhou grew by 19.1% to RMB82.2 billion in 2007. In 2007, per capita disposal income of urban household reached RMB10,678 (+17.1%).
Growth in retail sales has been accelerating in recent years. Guiyang is the largest consumer centre accounting for 34% of the total sales. The second largest centre is Zunyi, accounting for 20% of the total sales.
Composition of Per Capita Expenditure of Urban Household (%)
Source: Guizhou Statistical Yearbook, 1996, 2008
By end-2007, there were 1,940 commodity markets, or wholesale marts, trading different kinds of light industrial or consumer products. These markets serve as an effective platform for sourcing and selling.
Major department stores and shopping centres in Guizhou include Guizhou Department Store and Guiyang Department Store. Investors from outside Guizhou include Hualian from Beijing, Wal-mart from the US.
Economic Indicators of Major Cities (2007)
Source: Guizhou Statistical Yearbook, 2008