Market Profiles on Chinese Cities and Provinces
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1.2009

LIAONING PROVINCE

Major Economic Indicators

Economic Indicators

2007

Jan - Sep 2007

Value

Growth
(%, y-o-y)

Value

Growth
(%, y-o-y)

Gross Domestic Product (RMB bn)

1,102.4

14.5 1

881.5

13.8 1

Per Capita GDP

25,729

13.5 1

Added Value Output
- Primary industry (RMB bn)

113.3

4.0 1

5.4 1

- Secondary industry (RMB bn)

585.3

19.7 1

17.8 1

- Tertiary industry (RMB bn)

403.7

10.3 1

9.4 1

Value-added Industrial Output 2 (RMB bn)

504.7

21.0 1

497.8

19.0 1

Fixed-assets Investment (RMB bn)

743.5

30.7

665.2

37.2

Retail Sales (RMB bn)

403.0

17.3

358.0

22.1

Inflation (Consumer Price Index, %)

5.1

6.2

Exports (US$ bn)

35.3

24.7

35.9 3

24.3

- By FIEs (US$ bn)

17.7

17.8

17.1 3

20.7

Imports (US$ bn)

24.1

20.3

26.0 3

34.0

- By FIEs (US$ bn)

13.7

11.6

14.7 3

37.4

Utilized Foreign Direct Investment (US$ bn)

9.1

52.0

9.5

40.2

Notes: 1 In real terms 2 For all state-owned enterprises and other forms with annual sales over RMB 5 million
3 Jan-Oct 2008
Sources: Liaoning Statistical Yearbook 2008, China's customs statistics 10.2008

General Background

Liaoning has a total area of 148,000 square kilometers. Population stood at 42.3 million as at end-2007.

Among the three provinces of Northeast China, Liaoning is the largest in terms of GDP, accounting for 47% of the total of Northeast China. In 2007, the province's GDP ranked the eighth among all the provinces and municipalities in China. It has a coastline of 2,178 km.

Liaoning has rich mineral resources with large deposits of coal and iron ore. The Liaohe Oilfield is one of the largest oilfields in China. Liaoning's reserves of boron, magnesite, diamonds and jade also rank the top in China.

In its 11th Five Year Programme (2006-2010), Liaoning vowed to achieve average annual growth of 11%, so that in 2010, GDP per capita would be 2.5 times that of 2000. The government would facilitate the development of equipment manufacturing, deepen the processing of raw materials and breed the high and new technology sector.

Industries

Composition of GDP (%)

1997

2007

Primary

13.2

10.3

Secondary

48.7

53.1

....Industry

43.8

47.2

Tertiary

38.1

36.6

Source: Liaoning Statistical Yearbook 2008

Liaoning has over 100 year's history of industrial development. It has been a major center for heavy industry and raw materials. In 2007, heavy industry accounted for over 80% of Liaoning's value-added industrial output in 2007.

Value-added Share of Leading Industry Groups (2007)

% share of total industrial
value-added #

Smelting and pressing of ferrous metals

15.5

Petroleum processing and coking

9.2

General purpose machinery

7.9

Transport equipment

7.0

Food processing from agriculatural products

5.2

Petroleum and Natural Gas Exploiting

5.0

Electrical machinery and equipment

4.0

Chemical materials and products

4.0

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

Liaoning is one of the most important raw materials production bases in China. In 2007, the raw materials industry accounted for 46.3% of industrial value-added, of which, building materials industry increased by 32.1%, metallurgy industry and petrochemicals industry grew by 17% and 8.6% respectively. Major products included pig iron, steel, crude oil processing, tires, glass, cement etc.

Meanwhile, Liaoning is an important production base of equipment and machinery industry in the country, of which Shenyang and Dalian are the major industrial centers. The equipment manufacturing industry accounted for 25.6% of industrial value-added in 2006. Some enterprises such as Shenyang Jinbei Co. Ltd., Shenyang SIASUN Robot Co. Ltd., Daxian Group Co. Ltd., Shenyang Machine Tool Co. Ltd., Northeast Electric Transmission and Transformation Equipment group Corporation take significant roles in their own sectors including electric power, automobiles, machine tool, machinery, etc.

The province's light industries mainly are the processing of farm products, processed food and beverages, and tobacco. Dalian is a major fashion center in China and The China Dalian International Garment Fair has been held annually to boost the industry.

State-owned and state-holding enterprises still contributed near half of the province's industrial value-added. Liaoning will continue its efforts to restructure large and medium-sized state enterprises.

Tourism

Being the birthplace of Dynasty Jin and Qing, Liaoning has abundant historic sites, such as the National Palace Museum in Shenyang, Xingcheng Ancient City etc. In addition, there are also charming natural landscapes in Liaoning such as Mount Phoenix, White Sand Bay and Xingcheng Hot Spring etc.

2007

% change

Number of domestic tourist (million)

165

25.4

Income generated (RMB bn)

121.5

35.6

Number of overseas tourist (thousand)

200

24.0

Foreign exchange income (US$ mn)

1,228

31.4

Source: Liaoning Statistical Yearbook 2008

Foreign Trade

Liaoning's foreign trade is mainly conducted through the port of Dalian. The province maintains very close trade ties with Japan and South Korea, thanks to geographical proximity.

Major export items included primary products such as agricultural and fisheries products, raw materials including metals, minerals and oil. It also exports automobiles, autoparts and machine tools. Major export markets included Japan, US, South Korea, Singapore and Hong Kong.

Major import items included steel, electronic parts, rubber and tubes. Major import sources were Japan, South Korea and Germany.

Foreign Investment

Liaoning attracted the largest amount of FDI in northern China. Dalian and Shenyang are the most popular destinations of FDI in Liaoning, together accounting for 88% of the total in 2007. The manufacturing sector used to attract the largest share of FDI, but was surpassed by the real estates sector in 2007.

FDI in Liaoning

1980-2006

2007

No. of contracts

35,658

1,844

Contracted amount (US$ bn)

96.2

20.8

Utilised amount (US$ bn)

43.7

9.1

Source: Liaoning Statistical Yearbook 2008

Hong Kong is the largest source of FDI in Liaoning. In 2007, utilised FDI from Hong Kong amounted to US$3.2 billion. Leading Hong Kong enterprises such as Cheung Kong, Hang Lung and New World have invested in the province.

Besides Hong Kong, South Korea, Japan and the US are major sources of FDI. Multinationals invested in Liaoning included General Electric, Siemens, Mitsubishi, Toshiba and Sanyo etc.

Consumer Market

In 2007, retail sales of consumer goods reached RMB403 billion (+17.3%), ranked the 5th in China and 1st in Northern China. Major consumer centers are located in Shenyang and Dalian.

Composition of Per Capita Expenditure of Urban Household (%)

1996

2007

Food

50.1

37.7

Clothing

17.5

10.8

Household articles

4.8

4.7

Medicine & medical services

3.9

9.3

Transportation & communications

4.4

11.0

Recreation, cultural & education

8.7

11.2

Residence

7.0

11.1

Source: Liaoning Statistical Yearbook 1997, 2008

Major department stores and shopping centers in Liaoning include Tianhe Parkson Shopping Center, Dalian Shopping Center Shareholdings Co., Jinzhou Zhongbai Group, Zhongxing-Shenyang Commercial Building, Zhongxing-Dalian Commercial Building, Anshan No.1 Department Store Co., etc.

Shenyang plays an important regional distribution role in northern China. In recent years, a number of wholesale markets such as the Wu'ai Market, Shenyang Furniture City and Shenyang Shoes City have grown rapidly.

Economic Indicators of Major Cities (2007)

Cities

GDP
(RMB bn)

Per Capita GDP
(RMB)

Industrial Output#
(RMB bn)

Retail Sales
(RMB bn)

Exports
(US$ mn)

Shenyang

322.1

45,561

136.8

123.2

3,319

Dalian

313.1

51,630

121.9

98.3

21,453

Anshan

134.4

38,387

53.3

29.9

2,407

Fushun

54.7

24,451

23.6

23.6

663

Benxi

48.5

31,066

25.6

11.6

1,236

Dandong

46.4

19,119

12.1

16.2

1,618

Jinzhou

55.1

17,817

17.9

18.5

957

Yingkou

57.0

24,597

33.4

14.4

1,353

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