30.7.2001

 

INNER MONGOLIA AUTONOMOUS REGION（內蒙古自治區）

 

Economic Indicators

	1999		2000
Economic Indicators	Value	Growth	Value	Growth
		(%, y-o-y)		(%, y-o-y)
Area (sq km)	1,183,000	--	1,183,000	--
Population (mn)	23.6	0.7	^23.8	0.8
Gross Domestic Product (RMB bn)	126.8	7.8 *	140.4	9.9 *
Per Capita GDP (RMB)	5,350	4.8	N/A	N/A
Disposable Income Per Capita
- urban (RMB)	4,770.5	9.6	5,129.1	7.5
- rural (RMB)	2,002.9	1.1	2,038.2	1.8
Fixed-assets Investment (RMB bn)	34.8	9.9	34.7	-0.3
Added Value Output
- primary industry (RMB bn)	34.3	1.5	35.2	2.6
- secondary industry (RMB bn)	51.5	6.0	55.9	8.5
- tertiary industry (RMB bn)	41.0	11.2	49.2	20.0
Retail Sales (RMB bn)	43.7	9.5	48.4	10.8
Inflation (Consumer Price Index, %)	-0.2		1.7
Exports (US$ bn)	0.7	32.7	1.1	57.1
- by FIEs (US$ bn)	0.07	16.7	0.14	100
Imports (US$ bn)	0.6	41.5	1.3	116.7
- by FIEs (US$ bn)	0.04	0	0.04	0.0
Foreign Direct Investment
- number of projects	68	-25.3	95	39.7
- contracted amount (US$ bn)	0.18	36.1	0.26	44.4
- utilized amount (US$ bn)	0.06	-28.9	0.11	63.7

Notes: * In Renminbi real term               

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

Sources: Inner Mongolia Statistical Yearbook, CEIC database

 

General Background

 

Inner Mongolia - abbreviated as Mong（蒙）- stretches along China's northern frontier and border on Mongolia and Russia.  The region can be divided by four main areas : The Inner Mongolia Plateau（內蒙古高原）is the second largest plateau in China with an altitude over 1,000m, the Hetao Plain（河套平原）, Ordos Plateau（鄂爾多斯高原）and Daqing Mountain（大興山地）.

 

The region has temperate continental monsoon climate with remarkable difference in Winter/Summer and day/night temperature.  The average temperature is around -30 ℃ to -10 ℃ in January and 16 ℃to 27 ℃ in July with an average daily temperature contrast of 10 ℃ to 16 ℃.

 

Han（漢）is the largest group in the region, accounting for 80% of total population.  Other ethnic groups include Mongolian（蒙古）, Hui（回）, Manchu（滿）, Daur（達幹爾）, Ewenki（鄂溫克）, Oroqen（鄂倫春）, Korean（朝鮮）, Zhuang（壯）, Tibetan（藏）, Tu（土）, etc. 

 

The region's capital is Hohhot（呼和浩特）, enjoying the same preferential policies as in the coastal open cities.  Other open cities in Inner Mongolia include Manzhouli（滿州里）and Erenhot（二連浩特）.

 

Inner Mongolia has the largest iron mine at Baiyunerbo（白雲鄂博）which is also the largest rare earth mine in China, with the rare earth reserves accounting for 90% of the country's total.  With an extensive coal and iron ores, Inner Mongolia has become an important steel and coal production site in China.  The region's reserves of niobium and natural soda also ranked first in the country.

 

Inner Mongolia is strong in developing agricultural industry.  Agricultural products include wheat, corn, rice, soybeans, sugar beet, oats, millet, Chinese sorghum, maize and potatoes, as well as cash crops such as flax, rape, etc. 

 

Inner Mongolia is the major livestock-breeding base in China.  The region has the largest number of horses, cattle, big-tailed sheep, fine-wool sheep, white goats, camels, etc. and the output of by-product such as sheep's wool, fine wool, cashmere, camel hair cloth, etc. ranked third in the country.  In 1999, milk production in the region also ranked third in the country.

 

Infrastructure

 

Railways － Major railways lines are Beijing-Baotou, Beijing-Tongliao, Baotou-Lanzhou, Harbin-Manzhouli, Jining-Tongliao, and Jining-Erenhot.  The Manzhouli Station and Erenhot Station, which connect the Trans-Siberian Railway in Russia and Mongolia, act as important gateways between China and Europe.  A railway link with the second Eurasia Bridge, leading to Europe via Xinjiang also acts as an artery in north and northwest China. 

 

A new railway which links from Jining（集寧）to Zhanggiakou in Hebei Province will be built.  Travel time will be shortened by approximately 5 hours between Hohhot and Beijing upon completion.

 

Highways － The highway network in the region is fairly developed and the Hohhot-Baotou Expressway is the major highway in Inner Mongolia. One major project in the Tenth Five-Year Plan is the upgrading of the Hohhot-Baotou Expressway and the construction of the Hohhot-Laoyemiao（呼和浩特－老爺廟） Expressway. 

 

Air Transport － Hohhot airport has more than 47 air routes to major cities in China, Mongolia and Russia.  Chartered flights to Hong Kong are also available.

Telecommunications － In recent years, Inner Mongolia had invested heavily to improve telecommunication. By February-2001, the telephone popularization rate in the region jumped from 7.5% in 1998 to 32.2% and subscribers for mobile phone reached 1.1 million.

 

Power Supply － With the power generating capacity of 6.2 million kWh, the region has become a major power supplier for China's Northeast Power Grid, the Beijing-Tianjin-Tangshan Power Grid, and Mongolia.

 

To provide more electricity to the Bejing-Tianjin-Tangshan Power Grid, the central government plan to invest RMB5.1 billion to build a hydro power plant at Nierji（尼爾基）. The power plant should be completed by 2006, near the end of the Tenth Five-Year Plan.

 

Industries

 

In 2000, Inner Mongolia's industrial output increased by 16.9% to Rmb70.4 billion.  Industries are mainly located at Hohhot, Baotou（包頭）, Chifeng（赤峰）and other cities such as Jining（集寧）, Wuhai（烏海）, Tongliao（通遼）and Manzhouli（滿洲里）.

 

Inner Mongolia is an important base of iron and steel industry. The role of the Baotou Iron and Steel Company（包頭鋼鐵公司）is significant in the development of this industry in China.  Textile industry is one of the significant industries in the region.  Famous wool enterprise, Ordos Group（鄂爾多斯集團）, has established sales offices in various countries such as Hong Kong, the US, the UK, etc. 

 

In coming years, the region will concentrate on farming, animal husbandry industry, tertiary industry, product processing, metallurgy, energy industry, raw and processed material industry, forestry, chemical industry, building materials industry, tanning and foodstuffs, etc. 

 

Tourism

 

The scenery of the State largest five grand prairie and ethnic folklore contribute much to the tourism resources in Inner Mongolia. Famous scenic spots included the Xilin Gol League prairie（錫林郭勒大草原）, the Mausoleum of Genghis Khan（成吉思汗陵）, the tomb of Wang Zhaojun（昭君墓）, the Temple of Five Pagodas（五塔寺）, the murals in the Han tombs at Horinger County（東漢壁畫）, the Haozhao Monastery（遼代佛塔）, Dazhao Lamasery (大召) etc.

 

In 2000, over 391,900 tourists (+6.4%) visited the region and generated total revenue of US$126 million, an increase of 5% over 1999.  Besides, Inner Mongolia will co-operate with other 9 provinces and autonomous regions in establishing a tourism information network and arranging a tourism fair bi-yearly.  Concerned parties include Qinghai, Sichuan, Gansu, Shaanxi, Shanxi, Henan and Shandong provinces, as well as Ningxia Hui autonomous regions. 

 

Consumer Market

 

Retail sales of consumer goods in the region totalled Rmb48.4 billion in 2000, an increase of 10.8% over previous year.  Among which, Baotou is the largest consumer centre accounting for 18% of the total sales.  Other major retail centres are Chifeng and Hohhot, accounting for 16% and 14% of the total sales respectively.

 

Major department stores and shopping centres in Inner Mongolia include Inner Mongolia Minzu Market（內蒙古民族商場股份有限公司）, Baotou Department Store（包頭市百貨大樓集團公司）, Inner Mongolia Tianyuan Commercial Building（內蒙古天元商廈）, Inner Mongolia Xinshiji Mall（內蒙古新世紀廣場）, Chifeng Department Store（赤峰市百貨大樓）, etc. 

Foreign Trade

Inner Mongolia's exports grew by 57.1% to US$1.1 billion in 2000, with the share of rare earth metal and light industrial products such as carpet and garment, both accounting for 25% of total exports.

 

Hong Kong was Inner Mongolia’s 3^rd biggest export market. In 1999 Mongolia exported US$123 million to Hong Kong.

 

Imports increased by 116.7% to US$1.3 Billion in 2000.  Major import items included chemical raw material and agricultural product.  Major import sources were Russia, Mongolia, Australia, Germany and the US. 

 

At present, there are 18 ports in the region and they act as important passages among China, Mongolia and Russia.  Bordering on Mongolia and Russia, the region enjoys a geographical advantage in developing the frontier barter trade via two main ports, Manzhouli and Erenhot, which can reach Eastern and Western Europe through Russia.  In 2000, Manzhouli alone had traded US$698 million.  Major export products included agricultural products and garment while major import goods included timber, plastic and chemical product, etc. 

 

Foreign Investment

 

In 2000, foreign investment increased by 64.7% to US$111 million and 39.7% to 95 in terms of actual utilized capital amount and number of foreign-invested projects.  However, contracted foreign investment increased by 44.4% to US$260 million in the year.

   

Major sources of investment came from Taiwan, Hong Kong, the US, Australia and Republic of Korea.    Foreign investments were mainly engaged in the sectors of manufacturing, agriculture, forestry, animal husbandry, etc.

 

In coming years, foreign investment are encouraged in the sectors of agriculture, animal husbandry, energy, environmental protection, building materials, chemicals, metallurgical industries, electronics, computer and communication equipment.

 

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 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.

 

Economic Indicators of Major Leagues and Cities (1999)

Cities	Population ('000)	GDP (Rmb bn)	Industrial Output (Rmb bn)	Retail Sales (Rmb bn)
Baotou         包頭	2,078 (+0.9%)	21.4   (+7%)	41.8   (+27.1%)	7.8   (+6.8%)
Chifeng        赤峰	4,463 (+1.1%)	15.4   (+4.1%)	12.3   (+17.1%)	6.8   (+7.9%)
Hohhot        呼和浩特	2,078 (+1.7%)	15.6(+9.1%)	20.7   (+13.7%)	6.2   (+10.7%)
Hulunbeier  呼倫貝爾盟	2,717 (-0.1%)	14.5   (+5.1%)	7.6     (+85.4%)	5.1   (+8.5%)
Tongliao       *通辽	3,072 (+1.1%)	13.6(+10.7%)	11.1   (+7.8%)	4.0   (+9.1%)
Bayanaoer    巴彥淖爾盟	1,799 (+1.6%)	10.4   (+1%)	5.4     (-14.2%)	2.9   (+7.4%)

Note: Figures in  (   ) represent year-on-year growth

Source: Inner Mongolia Statistical Yearbook,2000

*. In 1999, Zhelimu League was renamed Tongliao City.

 

Major Economic & Technological Development Zones (ETDZs)

 

1.          Hohhot Ruyi Economic and Technological Development Zone（呼和浩特（如意）經濟技術開發區）is one of the state-level ETDZ in Inner Mongolia.  Approved by the State Council in 1992, it aims at developing industries of electronics, textile, machinery, light and foodstuff, biological and medical, fine chemicals, etc.

 

2.          Baotou Rare Earth High and New Technological Development Zone（包頭稀土高新技術產業開發區）is another state-level ETDZ.  It is a leading rare earth producer in China.  So far, there were 253 enterprises in the zone and attracted Rmb2.2 billion. 

 

3.          Manzhouli Border Economic Cooperation Zone（滿州里邊境經濟合作區）, a state-level ETDZ, aims at developing light and clothing industries, electronic and high scientific products.

 

4.          Erenhot Border Economic Cooperation Zone（二連浩特邊境經濟合作區）was established in 1993 and it has taken an important role in border trade with Mongolia. 

 

Other economic development zones in Inner Mongolia include:

 

1.      Linhe Economic and Technological Development Zone（臨河經濟技術開發區）- mainly engages in grain processing, food drink processing, building materials, motor car repair and assembly. 

 

2.      Jinchuan Economic and Technology Development Zone（金川經濟技術開發區）- mainly engages in textiles, machinery, electronics, computer system, telecommunication equipment, chemicals, food, metallurgy and building materials, etc.   

 

3.      Chifeng Qiaoxi Economic and Technological Development Zone（赤峰橋西經濟技術開發區）

4.      Chifeng Hongshan Comprehensive Development and Test Zone（赤峰市紅山綜合開發試驗區）

5.      Hohhot Jinchuan Resources and Technological Development Zone（呼和浩特金川資源經濟開發區）

6.      Hulunbeir Perfecture Hailar Economic and Technological Development Zone（呼倫貝爾盟海拉爾經濟技術開發區）

7.      Xingan Perfecture Arshan Economic Development Zone（興安盟阿爾山經濟開發區）

8.      Tongliao Economic and Technological Development Zone（通遼市經濟技術開發區）

9.      Chifeng Pingzhuang Economic Development and Test Zone（赤峰平莊經濟開發試驗區）