9.8.2001

HEILONGJIANG PROVINCE（黑龍江省）

 

Economic Indicators

	1999		2000
Economic Indicators	Value	Growth	Value	Growth
		(%, y-o-y)		(%, y-o-y)
Area (sq km)	454,000	--	454,000	--
Population (mn)	37.9	0.5	36.9^	-2.7
Gross Domestic Product (RMB bn)	289.7	2.4 *	325.2*	8.1 *
Per Capita GDP (RMB)	7,660	1.8	N/A	N/A
Disposable Income Per Capita
- urban (RMB)	4,595.1	7.6	4,912.6	6.9
- rural (RMB)	2,165.9	-3.9	2,165.9	-0.8
Fixed-assets Investment (RMB bn)	67.5	0.6	74.1	9.8
Added Value Output
- primary industry (RMB bn)	37.6	-20.0	35.3	6.2
- secondary industry (RMB bn)	158.9	5.4	188.5	18.6
- tertiary industry (RMB bn)	93.3	9.5	101.4	8.7
Retail Sales (RMB bn)	101.6	7.0	109.4	7.7
Inflation (Consumer Price Index, %)	-3.9		-1.7
Exports (US$ bn)	1.5	-23.1	2.4	60
- by FIEs (US$ bn)	0.2	4.5	0.3	50
Imports (US$ bn)	1.5	23.3	1.6	6.7
- by FIEs (US$ bn)	0.2	-4.5	0.2	0.0
Foreign Direct Investment
- number of projects	313	25.2	260	-16.9
- contracted amount (US$ bn)	0.4	-28.8	0.3	-29.3
- utilised amount (US$ bn)	0.3	-39.5	0.3	-5.5

Notes : * In Renminbi real terms                     

^ Latest population census, 1999 figure was estimate based on previous survey.

Sources : China Statistical Abstract, CEIC database

 

General Background

 

Heilongjiang - abbreviated as Hei（黑）- is situated in China's northeast corner just south of the far-east region of Russia, with an adjoining border of over 3,000 kilometres.  Some 50% of its area is mountainous, including the heavily forested Da Xing-an and Xiao Xing-an Mountains（大、小興安嶺）.

 

Harbin（哈爾濱）, the provincial capital, together with Heihe（黑河）and Suifenhe（綏芬河）are approved by the State Council to enjoy the same preferential economic policies as coastal open cities. Other major cities include Qiqihar（齊齊哈爾）, Daqing（大慶）and Mudanjiang（牡丹江）.

 

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 production of petroleum which is mainly found in Daqing Oilfield（大慶油田）, which is the earliest and largest oil field in China.  Output of crude oil reached 54.5 million tons in 1999, ranking the first in China and accounting for 1/3 of the country's total.  The province is also endowed with one-third of the China's timber resources.

 

Heilongjiang is one of the largest producers of beans, corn, fiber crops and beetroots in China.  The city's abundant pastureland and large forest zone provide favourable grazing condi­tions for horses, cows, sheep, pigs and other wild and domestic fowls.  Milk production is the highest in China and fur-bearing animals such as squirrel, marten and otter can be found in the mountains.

 

Infrastructure

Water Transport － The port of Harbin is the province's largest inland transport centre on the Songhua River（松花江）.  By now, the province has 22 state-level ports, the second largest in China after Guangdong in terms of number.

 

Railways － There are frequent train services to the ports of Dalian in Liaoning and Vladivostok in Russia.  Electrification of HaDa Railway（哈大鐵路: Harbin-Dalian 哈爾濱－大連）is completed recently.  Besides, a new railway network from Harbin to Changxing（長興）in Zhejiang will be built.  The railway network will link with the HaDa railway and a 170-kilometre-long ferry passage from Dalian to Yantai in Shandong.  It will further extend from Shandong to Zhejiang and running through Shanghai and Jiangsu in order to improve China's existing railway network in Heilongjiang, Jilin, Liaoning, Shandong, Jiangsu and Zhejiang upon completion. Another major provincial railway, the Suidong line (绥阳-东宁线), which links Dongning to major Russian Far East ports, is under construction.

 

Highways － The province has a well-developed transportation network pivoting from Harbin. The Shenha Expressway（瀋哈高速公路）from Shenyang to Harbin, one of the longest four-lane highway in China so far, is now under construction.

 

To expand border trade with Russia, the Heilongjiang government is trying to make Dongning a major trading portal. The construction of several highways connecting Dongning and several major Russian ports is underway.

 

Air Transport － Harbin Airport provides regular flight services to places like Hong Kong and Russia. Other major airports are located at Jiamusi, Mudanjiang, Heihe, and Qiqihar.  Recently, the longest domestic air route in China has been opened which stretches from Jiamusi City（佳木斯）in Heilongjiang to Sanya City（三亞）in Hainan（海南）.  Meanwhile, another new air route between Jiamusi and Shenzhen in Guangdong was also put into operation.

 

Telecommunications － Communications are well-developed in Heilongjiang. There are 3.47 million mobile phone users and 200,000 internet users in Heilongjiang by the end of 2000.  Recently, Erisson has set up a new joint venture with the Heilongjiang Mobile Telecom Company.  The new company, Heilongjiang Erisson Technology Co. Ltd. is the ninth joint venture of Erisson in China and will mainly engage in R&D and technological services in both domestic and international market. 

 

Electricity － There are 1,700 rivers providing ample resources for hydroelectric power generation.  At present, the total capacity of hydroelectric power is over 6 million kWh, while the capacity of thermal power plant is around 3.6 million kWh.

 

Industries

 

In 2000, Heilongjiang's industrial output rose by 13.9% to Rmb245.9 billion.  Industries are mainly located at Daqing, Harbin and Qiqihar.

 

Electronics, automotives and animal feed industries, all of which depend on imported capital and advanced technology, have become the province's pillar industries.  The province's heavy industries such as the mining industries contribute a large percentage to the province's economy. Future development will be focused on five indus­tries: petrochemical, automobiles and spare parts, electronics, foodstuff and pharmaceuticals.

 

Tourism

 

In 2000, the province received 551,700 tourists (+35.5%) and generated revenue of US$189 million (+27.7%).  Harbin's major tourist attractions include its picturesque Songhua River（松花江）, Harbin Summer Concert（哈夏音樂會）, Ice & Snow Festival（冰雪節）, Ice Lantern（冰燈）and winter swimming（冬泳）. Other famous attractions include the Confucious Temple（文廟）, the Temple of Bliss（極樂寺）, Hui-ning - the ancient Capital of Jin Dynasty（金代上京會寧府）, Yuquan Hunting Resort（玉泉狩獵場）, Siberia Tiger Park（東北虎林園）, Mountain Songfeng（松峰山）, Zhalong Crane Natural Reserve（扎龍自然保護區）, Jingbo Lake（鏡泊湖）and underground forest（地下森林）.

 

Consumer Market

 

In 2000, retail sales of consumer goods increased by 7.7% to Rmb109.4 billion.  Major consumer markets are located in Harbin and Qiqihar.  Major retail enterprises in Heilongjiang include Heilongjiang Daqing Department Store（黑龍江大慶百貨大樓）, Harbin Qiulin Co. Ltd.（哈爾濱秋林股份有限公司）, Harbin Central Commercial City（哈爾濱中央商城）and Harbin Department Store（哈爾濱百貨大樓）.

Foreign Trade

 

In 2000, exports increased by 60% to US$2.4 billion.  Major export items included textiles, garment, electronic parts, soybeans and footwear.

 

Imports amounted to US$1.6 billion, an increase of 6.7% over 1999.  Major import goods were machinery, petrochemicals, light industrial and textile products .

 

Hong Kong was Heilongjiang’s 3rd biggest trading partner. In 1999, the province’s total trade with Hong Kong amounted to US$ 116.4 million, of which exports amounted to US$68.3 million and imports amounted to US$48.1 million. Other major trading partners were Russia, Japan, S. Korea and Taiwan.

 

Mudanjiang is one of China's major border trade centres, accounting for nearly 70% of the province's total border trade.  In 1999, Mudanjiang's border trade reached US$1 billion.  Its major export goods included light industrial products, textiles, food, electronic equipment, vegetables, agricultural by-products and ornaments.  To further boost the city's exports to Russia, Mudanjiang plans to establish an export processing zone by merging a smaller export processing zone, a hi-tech demonstration area and an economic development park.  In light of Russia's huge demand for farm product and, in particular, pork and processed pork, Mudanjiang also considers building export bases for fruits, vegetables, flowers and processed pork.

 

Foreign Investment

 

In 2000, Heilongjiang approved 260 foreign investment projects (+16.9%), with contracted foreign capital of US$283 billion (-29.3%).  Actually utilised foreign capital remained at aboutUS$ 300million (-0.0%) in 2000.  Major investments mainly came from Hong Kong, Republic of Korea, the US, Taiwan and the UK.

 

Harbin, Qiqihar and Maudanjiang are the major cities in Heilongjiang to attract foreign investment.  The Economic and Trade Fair of China has been held in Harbin annually.  In coming years, Heilongjiang encourages foreign investment in five main fields: infrastructure, agricultural processing industry, State-owned old enterprises, export-oriented enterprises with technical-intensive projects, and tertiary industries.

 

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 rate when the existing preferential tax period 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.

 

Economic Indicators of Major Cities (1999)

	Population	GDP	Industrial Output	Retail Sales
Cities	('000)	(Rmb bn)	(Rmb bn)	(Rmb bn)
Harbin             哈爾濱	9,271   (+0.6%)	88.3 (+8.2%)	41.8   (+10%)	41.2 (+9.0%)
Daqing             大慶	2,458   (+0.3%)	71.3 (+16.5%)	83.6   (19.1%)	7.5   (+7.1%)
Suihua              綏化	5,368   (+0.3%)	31.0 (+0.0%)	6.6     (-1.4%)	9.0   (+7.1%)
Qiqihar            齊齊哈爾	5,537   (+0.6%)	26.8 (+1.9%)	12.7(+14.4%)	11.5 (+5.5%)
Maudanjiang    牡丹江	2,675   (+0.7%)	19.1 (+2.7%)	11.4   (+4.6%)	7.9   (+6.8%)

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

 

Major Economic & Technological Development Zones (ETDZs)

 

There are 5 state-level development zones and 23 provincial-level economic development zones, foreign investment zones and border economic co-operation zones in Heilongjiang.  The five state-level development zones are :

 

1.          Harbin Economic and Technological Development Zone（哈爾濱經濟技術開發區）

Approved by the State Council in April 1993, to develop manufacturing, and scientific & technological development projects including textiles, electronics, automobile, machinery processing, office equipment, building materials, foodstuff and medicine.  Foreign investments in the zone mainly came from the US, Australia etc.  Well-known enterprises such as Coca-Cola, Toyota, etc. have also invested in the zone. 

2.          Harbin Hi- and New- Technological Development Zone（哈爾濱高新技術開發區）

Approved by the State Council in March 1991.  The zone consists of Nangang, Xuefu and Pingfang Development Zones where groups of high and new technical enterprise were established.  Currently, there were 152 foreign-invested enterprises coming from 18 countries in the zone.

 

3.          Daqing Hi- and New- Technological Development Zone（大慶高新技術開發區）

Approved by the State Council in April 1992, the zone is now ready to receive foreign investment, particularly in the sectors of petrochemical and electronics.

 

4.          Heihe Border Economic and Technological Co-operation Zone（黑河邊境經濟合作區）

Approved by the State Council in March 1992, the zone took the geographical advantage of bordering on Russia.  It sets up an external-oriented processing district to promote border trade. The zone focused on the development of tourism, new and hi-tech industries and tertiary industries. Major trading partners were Russia, Japan and Republic of Korea. 

 

5.          Suifenhe Border Economic and Technological Co-operation Zone（綏芬河邊境經濟合作區）Approved by the State Council in March 1992, the zone was divided into China-Russian border transnational economic co-operation quarter, trade centre quarter, technical and industrial quarter, highway bonded and storage in storehouse quarter, railway bonded and storage in storehouse centre and tourism development quarter. The main development is border trade and economic and technology co-operation with Russian, export process, warehousing and transportation, real estate and tourism.  In the first quarter of 2000, Suifenhe City's total trade reached US$184 million, up 52.4% over the same period of 1999.