12.2008

Major Economic Indicators

Notes: ¹ In real terms ² For all state-owned enterprises and other forms with annual sales over RMB 5 million
³ Jan-Aug 2008
Sources: Heilongjiang Statistical Yearbook 2008, China's Customs Statistics,8.2008

General Background

Heilongjiang - abbreviated as Hei - is situated in China's northeast corner just next to the far-east region of Russia, with an adjoining border of over 3,000 kilometers. Heilongjiang has a total area of 454,000 sq. km. Total population stood at 38.2 million in 2007. Harbin is the provincial capital and other major cities include Qiqihar, Daqing and Mudanjiang.

The province's deposits of gold and graphite are among the largest in China. Other significant mineral and metal deposits include silver, copper, lead, aluminum, tungsten, zinc, molybdenum, crude oil, coal, wood, soda, quartz, marble and mica. The province also ranks first in the production of petroleum which is mainly found in Daqing Oilfield, the oldest and largest oilfield of China. In 2007, production of crude oil in the Daqing Oilfield was 41.7million tones, remaining the first in China.

In recent years, plans are underway to improve the infrastructure for border trade as Heilongjiang's importance is set to be enhanced as Sino-Russian relationship and cooperation strengthen.

Industries

Owing to its fertile soil and unpolluted black earth fields, Heilongjiang is one of the most important grain production bases in China, with a total farmland area of 11.5 million hectares. Heilongjiang has 4.3 million hectares of grassland, making it an important area for animal husbandry in China. Green food industry has been developing rapidly in Heilongjiang. Major green food products are milk, rice and soy bean products.

Composition of GDP (%)

Source: Heilongjiang Statistical Yearbook 2008

In 2007, Heilongjiang's industrial output totalled RMB614.3 billion (+12.9%). In line with the central government's policy in revitalizing the Northeast old industrial bases, Heilongjiang is now restructuring its four pillar industries, namely equipment manufacturing, petrochemical, food processing, energy.

Performance of the six pillar industries (2007)

Source: Heilongjiang Statistical Yearbook 2008

State-owned industrial enterprises still play an important role in the province's industrial development. In 2007, 16.2% of all industrial enterprises in Heilongjiang were state-owned and state-holding, but they accounted for 72.6% of the total gross industrial output value. The province aims to introduce a "property right reform" in the industry sector by inviting new strategic partners, selling off assets at discount, going public, bankruptcy and privatization etc.

Tourism

Heilongjiang has abundant and unique tourist resources with clear seasonal distinction, such as Yabuli skiing site, Wudalianchi, Jingpohu. It is reputed as the "cool province" in china, and becomes a renowned tourist attraction, both in summer or winter.

In 2007, the number of domestic tourists reached 65 million (+25.4%), with tourism receipts of RMB38.0 billion (+21.8%). The number of overseas tourists reached 1.4 million (+32.9%), with the foreign exchange revenue of US$642.7 million (+30.6%). The number of visitors from Hong Kong increased by 8.6% to 30,277.

Foreign Trade

Because of geographical proximity, Heilongjiang's trade tie with Russia is strong. The annual trade fair in Harbin is well established. Trade with Russia amounted to US$10.7 billion in 2007. Japan, the US, Korea, Germany and Hong Kong were other major trading partners.

Major export goods included garments, clothing accessories, mechanical and electrical products, footwear, yarns, fabrics, cereals and cereals flour, etc. Its exports to Hong Kong reached US$189.2 million in 2007(-71.4%).

Major imports included mechanical and electrical products, logs, crude oil, paper pulp, plastic in primary form, and manufactured fertilizers etc.

Compared with other provinces in the coastal regions, Heilongjiang's foreign trade is less reliant on foreign-invested enterprises: FIEs only accounted for 5.7% of the total exports and 9.0% of the total imports in 2007.

Foreign Direct Investment

Sectors that received the largest share of foreign investments included manufacturing (74.8% of the total amount), mining (12.5%), real estate(6.0%) in 2007.

In 2007, Hong Kong is Heilongjiang's largest source of foreign investment. Hong Kong actually invested a total of US$731.6 million, accounting for 35.1% of the total utilized FDI.

Consumer Market

In 2007, annual per capita disposable income of urban households was RMB10,245(+11.6%). Major consumer markets are located in Harbin and Daqing. Heilongjiang also acts as a gateway for consumer products to enter the markets of Russia and the Inner Mongolia Autonomous Region.

Composition of Per Capita Expenditure of Urban Households (%)

Source: Heilongjiang Statistical Yearbook, 2008

Sales in wholesale and retail markets (unit)

Notes: For all state-owned enterprises and other forms with annual sales over RMB 5 million
Source: Heilongjiang Statistical Yearbook, 2008

Major department stores and shopping centres in Heilongjiang include Heilongjiang Daqing Department Store, Harbin Qiulin Co. Ltd., Harbin Central Commercial City and Harbin Department Store. Large retailers come from outside include Carrefour from France, Walmart from the US, Metro from Germany and Gome from Beijing etc.

Economic Indicators of Major Cities (2007)