24.7.2001

 

ANHUI PROVINCE（安徽省）

 

Economic Indicators

	1999		2000
Economic Indicators	Value	Growth	Value	Growth
		(%, y-o-y)		(%, y-o-y)
Area (sq km)	139,427	--	139,427	--
Population (mn)	62.4	0.9	59.9 ^	-4.0
Gross Domestic Product (RMB bn)	290.9	8.1 *	303.2	8.0 *
GDP Per Capita (RMB)	4,710	2.5	n.a.
Disposable Income Per Capita
- urban (RMB)	5,064.6	6.2	5,293.6	4.5
- rural (RMB)	1,900.3	2.0	1,934.6	1.8
Fixed Asset Investment (RMB bn)	70.4	-2.6	86.7	23.2
Added value Output
- primary industry  (RMB bn)	74.1	0.2	73.2	-1.2
- secondary industry (RMB bn)	127.9	2.0	129.5	1.3
- tertiary industry (RMB bn)	88.9	9.4	100.5	13.1
Retail Sales (RMB bn)	97.9	5.9	105.4	7.7
Inflation (Retail Price Index, %)	-2.2		+0.7
Exports (US$ bn)	1.7	12.8	2.1	29.3
- by FIEs (US$ bn)	0.29	11.5	0.4	37.9
Imports (US$ bn)	0.97	24.7	1.6	33.1
- by FIEs (US$ bn)	0.54	50.0	0.55	1.9
Foreign Direct Investments
- number of projects	199	-3.4	247	24.1
- contracted amount (US$ bn)	0.56	129.9	0.64	13.8
- utilized amount (US$ bn)	0.26	-5.6	0.32	21.9

Notes: * In Renminbi real terms

^{^} Latest full population census figure, 1999 figure was estimation based on previous census.

Source: Anhui Statistical Yearbook and State Statistical Bureau, CEIC      

 

General Background

 

Anhui - abbreviated as Wan（皖）- is located at the lower reaches of the Yangtze River, neighbouring Jiangsu and Zhejiang provinces on the East.

 

The provincial capital is Hefei（合肥） which enjoys the same economic preferential policies as an open city in the coastal region.  In 1992, Wuhu（蕪湖）was also designated as an open city along the Yangtze River.

 

Anhui is rich in mineral resources.  Its reserves of coal, iron, copper, sulphur, phosphate and cement rank among the top in China.  The province is also an important supplier of agricultural products.  With fertile soil and plentiful rainfall, the province has a total of 4.24 mn hectares of cultivated land.  Major crops grown include rice, wheat, beans, maize, Chinese sorghum, cotton, silk, peanuts, sesame, tobacco, tea and red jute.  In 2000, the province’s output of cotton & oil-bearing crops ranked the sixth & fourth in the country.

 

Chaohu Lake（巢湖）-- one of the five biggest freshwater lakes in China -- grows a large amount of fresh water products, including fishes, dazha crabs, eels, shrimps, lotus roots and seeds.

 

Eqiao Town in Fanchang County of Anhui is the famous tea market in China.  The province’s tea production reached 43,000 tons in 2000.  Apart from domestic markets, the town also exports to foreign countries such as Russia, Japan and some East Asian countries.   

 

Infrastructure

 

Water Transport － Water transport is convenient in Anhui as three rivers -- the Yangtze River, Huaihe River（淮河）and Xinanjiang（新安江） － flow across most major counties.  Ports at Anqing（安慶）, Wuhu, Tongling（銅陵）and Maanshan（馬鞍山）along the Yangtze River are opened to foreign vessels. Vessels of 5,000 tons-weight can sail through the rivers all year round and shipping services to Hong Kong, Japan, Russia and other South East Asian countries are available.

 

Railways － Anhui has a well-connected network of railways which provide easy transportation to different parts of the country.  Major railways running through the province include the Wangan Lines（皖贛線）,  Jinhu Lines（京滬線: Beijing-Shanghai 北京－上海）, Lianyungang-Lanzhou（連雲港－蘭州）, Bengbu-Wuhu（蚌埠－蕪湖）, Suxian-Fuyang（宿縣－阜陽）, Nanjing-Tongling（南京－銅陵）, Fuhuai Railway（阜陽－淮南）, Xuanhang Railway（宣杭線）and He-Jiu Railway（合肥－九江）. The Beijing-Kowloon Railway（京九線: 北京－九龍）also runs across the western part of the province. 

 

As part of the State's key projects in developing the western region, the Xi'an-Hefei railway which runs 955 kilometers has begun construction.  The railway will run through Shaanxi, Henan, Hubei and Anhui and will be completed by 2005.

 

Highways － Major highways include the Hefei-Nanjing and the Hefei-Wuhu Expressways.  Under the Tenth Five-Year Plan period (2001-2005), the province will construct 7 expressways with total investment of Rmb30 billion.  Upon completion, travelling time will be shortened to 3 hours from east to west and 6 hours from south to north. 

 

Those expressways will connect Nanjing-Bangbu-Luohe（南京－蚌埠－漯河）, Hangzhou-Hefei-Xinyang（杭州－合肥－信陽）, Nanjing-Tongling-Jiujiang（南京－銅陵－九江）, Hangzhou-Huangshan-Jingdezhen (Jiangxi) （杭州－黃山－景德鎮）, Xuzhou-Fuyang(Henan)-Xinyang（徐州－阜陽－信陽）, Shangqiu-Fuyang-Anqing-Jingdezhen（商丘－阜陽－安慶－景德鎮）and Shangqiu-Hefei-Huangshan-Quzhou（商丘－合肥－黃山－衢州）.

 

Besides, construction of an expressway linking Huangshan and Hangzhou in Zhejiang Province has been started.  The Anhui section of this four-lane expressway will run 82 km from the Tunxi District of Huangshan to Yulingguan Pass on the border of the two provinces.  The section is scheduled to complete by end-2003.  Travelling time from Huangshan to Hangzhou is expected to reduce from six hours to three hours.  It will also be linked to the Shanghai-Hangzhou and the Hangzhou-Ningbo expressways.

 

Air Transport  － Airports in the cities of Hefei, Huangshan, Anqing, Wuhu, Fuyang provide services to more than 23 domestic cities including Beijing, Shanghai, Guangzhou, Fuzhou and Dalian.  Both the Hefei Luogang Airport（駱崗機場）and the Huangshan Airport（黃山機場）are international airports which have direct flights to Hong Kong. 

 

Between 2001-2005, the province will expand its airport in Hefei, Huangshan and Fuyang.  Hefei Airport is expected to expand its handling capacities of passenger and cargo to 929,000 and 23,000 tons respectively.  The estimated passenger and cargo handling capacities for the Huangshan Airport will reach 480,000 and 4,500 tons respectively.

 

Telecommunications － Anhui's telecommunications networks improve rapidly in recent years.  By end-2000, mobile phone and pager users reached 2.1 million and 2.7 million respectively.  Internet was also popular in the province and there were around 270,000 users in the year.

Gas Supply － Under the “West-to-East gas transmission” project, a major gas pipeline with total length of 4,200 kilometers will be built.  The pipeline will start from the Tarim Basin in Xinjiang and ends at Shanghai, running through Gansu, Shaanxi, Shanxi, Henan, Anhui and Jiangsu and Ningxia.  It aims to deliver gas from the western region (China's major gas production base) to central provinces, Yangtze River Delta areas and the eastern regions.  The first phase of the project is scheduled to start this year and finished by 2003. 

 

Hydropower － The first set of generators at the Gangkouwan Reservoir of Anhui has started operation. The reservoir is located on the Shuiyangjiang, a tributary of the Yangtze River.  Its capacity is 940 million cubic meters and generates 113 million kWh annually.  Its operation will greatly enhance the flood control capability of Anhui and Jiangsu provinces and improve the power supply to the nearby city of Xuancheng.

 

Industries

 

The province has developed a comprehensive industrial base that include coal, metallurgy, petrochemicals, building materials, machinery, textile and garments, electronics and other light industries in recent years.  In 2000, industrial output of the province reached Rmb170 billion.  The province’s industries are mainly located at Hefei, Anqing, Wuhu, Fuyang and Maanshan.

 

Anhui is an important production base of mining and refineries.  The Huainan and Huaibei Coal Mines are the largest coal production bases in Southeast China.  Maanshan Iron & Steel Corp. is one of China's largest iron and steel complexes with an annual production capacity of 3 million tons of iron and steel products.  The Anqing General Petrochemical Works is one of the largest petrochemical enterprises in China with an annual output of 300,000 tons synthetic ammonia and 520,000 tons urea.  Ningguo Cement Works is also one of the largest cement factories in China with an annual output of 1.5 million tons of cement.  Huainan General Power Plant ranks top within the thermal power plants in China with an aggregate capacity of 12.3 billion kWh.

 

Tongling is an important copper base in the country.  The annual output of copper by the Tongling Nonferrous Metal Corp. ranks top in China.  The city has also become the country's largest electronic material production base approved by the Ministry of Science and Technology.  Both the output and market share of some of its products, such as film for electronic purpose, ranked top in the country for years.  

 

Hefei is a famous technology-oriented city in east China, where the prestigious Chinese University of Science and Technology and the Hefei Branch of the Chinese Academy of Sciences are located.  The city has been formally accepted as a member of the World Technopolis Association (WTA).  The association which is aimed at promoting the scientific and technological development of member cities, enhancing international exchanges to coordinate the transfer of technological findings between members. 

 

Tourism

 

Anhui has 5 state-level scenic zones including Huangshan（黃山）, Jiuhua Mountain（九華山）, Tianzhu Mountain（天柱山）, Langya Mountain（瑯琊山）and Qiyun Mountain（齊雲山）and other 20 provincial-level tourist spots.  In 2000, around 318,400 tourists (+26.8%) visited Anhui and generated revenue of US$86 million (+28.4%).

 

Consumer Market

 

In 2000, retail sales of consumer goods of the province rose by 7.7% to Rmb105.4 billion.  Major consumer markets are located at Hefei, Anqing, Fuyang, Chuzhou and Luan Prefecture and major retail enterprises include Chuzhou Department Store（滁州市百貨大樓）, Anhui Commercial Capital（安徽商之都）and Fuyang International Trade Shopping Centre（安徽省阜陽國貿商城）.

 

Foreign Trade

 

In Jan-Apr 2001, Anhui’s exports slightly reduced by 0.3% to US$650.8 million while its imports also declined by 19.2% to US$444.1 million.  In the same period, Hefei’s exports decreased by 6.7% to US$304.4 million and imports declined by 30.3% to US$161.2 million.

 

In 2000, Anhui's exports grew by 29.3% to US$2.1 billion.  Major exports included garment, copper, cotton, steel products, coal, etc.  Major export markets included the EU, the US, Japan, Hong Kong and the Asean countries. 

 

Imports rose by 33.1% to US$1.6 billion in 2000.  Major imports included technological equipment, industrial raw materials, agricultural goods and consumer products.  Major import sources were Japan, the EU, Hong Kong, the US and Republic of Korea.

 

In 1999, Hong Kong’s total trade with Anhui was US$104.7 million.  Of which, export to Hong Kong was US$95.5 million (-30.7%) and import from Hong Kong was US$9.2 million (+5%).

 

Foreign Investment

 

In 2000, contracted and actual utilized foreign direct investment in Anhui increased by 13.8% and 21.9% to US$0.64 billion and US$0.32 billion respectively.  The province approved 247 (+24.1%) foreign invested projects in the year.

 

Foreign investments mainly came from Hong Kong, Germany, Singapore, Japan and the UK.  Those foreign projects mainly engaged in the fields of machinery, electronics, textiles, chemical and metallurgy.  Multinational giants such as Sanyo, Hitachi, Mitsubishi, Siemens and Asea Brown Boveri (ABB) have also invested in Anhui. 

 

Hefei is one of the major cities to attract foreign investment.  In Jan-Jun, 2001, the city approved 29 foreign invested projects, accounting for 26.4% of the province’s total.  Its contracted and actual utilized amount were US$114 million and US$77 million respectively, accounting for 43.8% and 60.5% of the province’s total. 

 

In 1999, the province approved 72 HK-invested projects with contractual and actual utilized amount of US$254 million and US$105 million respectively.  By end-1999, there were 1,122 HK-invested enterprises operating in the province.

 

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 new policy allows foreign-invested enterprises in the central and western regions to enjoy another three years of preferential tax treatment when the current preferential term expires.  The tax rate can be further reduced to 10% if an enterprise is proved to export more than 70% of its annual output in terms of value.

 

Moreover, to encourage foreign-invested enterprises in the coastal regions to invest in the inland regions, projects with over 25% overseas equity share will be regarded as foreign-invested enterprises and enjoy the relevant preferential treatments.

 

 

Economic Indicators of Major Cities (1999)

	Population	GDP	Industrial Output	Retail Sales
Cities	('000)	(Rmb bn)	(Rmb bn)	(Rmb bn)
Hefei              合肥	4,299 (0.9%)	29.4   (8.9%)	27.4   (20.3%)	13.4 (9.3%)
Anqing           安慶	5,980 (0.2%)	24.8   (0.1%)	15.2   (15.4%)	8.2   (6.4%)
Wuhu            蕪湖	2,164 (0.6%)	19.3   (6.7%)	12.6   (12.0%)	6.6   (6.5%)
Bangbu          蚌埠	3,300 (1.1%)	18.0   (2.4%)	8.0     (-1%)	6.6   (6.1%)
Huainan         淮南	2,028 (1.2%)	12.6   (4.5%)	9.0     (1.3%)	4.2   (4.7%)
Maanshan      馬鞍山	1,181 (1.4%)	12.4   (5.6%)	11.2   (-5.8%)	3.3   (7.9%)
Huaibei          淮北	1,899 (1.8%)	9.9     (4.8%)	7.6     (-5.6%)	3.0   (6.3%)

Note: Figures in  (   ) represent year-on-year growth         Source: Anhui Statistical Yearbook

Major Economic & Technological Development Zones (ETDZs)

 

Hefei New- and Hi-Tech Industrial Development Zone（合肥高新技術產業開發區）

Covering an area of 35 sq km, the zone was approved by the State Council and established in 1991 to develop microelectronics, biochemistry, radiation technology and other advanced industry.  Nearly 700 enterprises have invested a total of 9.7 billion yuan in the past 10 years, 150 of which are foreign invested ones from the United States, Japan, Canada and Australia, involving over US$600 million of investment. Some well-known enterprises such as Philco Inc from the US, Sanyo from Japan, ABB from the Switzerland and Hyundai from Republic of Korea have also invested in the zone.

 

Wuhu Economic & Technological Development Zone（蕪湖經濟技術開發區）

The zone covers an area of 10 sq km and was approved by the State Council in April 1993.  In 2000, both its GDP and industrial output increased significantly by 25% and 45% to Rmb3.4 billion and Rmb8.5 billion respectively.  The zone also approved 18 foreign invested projects (+12.5%) with contractual amount of US$63 million (+73.5%) in the year.  Major investment came from the US, Canada, Korea, Japan, Singapore, Germany, France and Taiwan.  Pillar industries in the zone include automobiles, new building materials, and electronics.

 

Hefei Economic and Technological Development Zone（合肥經濟技術開發區）

A state-level zone covers 39 sq.km. and was set up in 1993.  The zone mainly focuses in development of machinery manufacturing, chemicals, new building materials, foodstuff and electronic technology.