Market Profiles on Chinese Cities and Provinces
Email ThisRate ThisPrint Friendly

12.2008

JIANGSU PROVINCE

Major Economic Indicators

Economic Indicators

2007

Jan - Sep 2008

Value

Growth
(%, y-o-y)

Value

Growth
(%, y-o-y)

Gross Domestic Product (RMB bn)

2,574.1

14.9 1

2,184.1

13.1 1

Per Capita GDP

33,928

13.7 1

Added Value Output
- Primary industry (RMB bn)

181.6

3.1 1

109.9

3.5 1

- Secondary industry (RMB bn)

1,430.6

15.5 1

1,269.3

13.8 1

- Tertiary industry (RMB bn)

961.9

16.2 1

804.8

13.3 1

Value-added Industrial Output 2 (RMB bn)

1,247.4

18.9 1

1,105.9

15.9 1

Fixed-assets Investment (RMB bn)

1,226.8

21.8

1,066.2

22.9

Retail Sales (RMB bn)

783.8

18.3

705.7

23.9

Inflation (Consumer Price Index, %)

4.3

6.4

Exports (US$ bn)

203.7

27.0

157.8 3

24.0

- By FIEs (US$ bn)

155.6

25.9

116.0 3

20.4

Imports (US$ bn)

145.9

18.0

108.6 3

16.9

- By FIEs (US$ bn)

124.5

15.9

90.6 3

14.2

Utilized Foreign Direct Investment (US$ bn)

21.9

25.6

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: Jiangsu Statistical Yearbook 2008, China's customs statistics 8.2008

General Background

Jiangsu is the most densely populated province in China. With a total area of 102,600 square kilometers, Jiangsu had a population of 76.2 million in 2007.

Jiangsu's GDP ranked the third in China in 2007, after Guangdong and Shandong, accounting for 10.3% of the national total.

The southern Jiangsu area -- Suzhou, Wuxi, Changzhou, Nanjing and Zhenjiang, which is part of the Yangtze River Delta economic region, is the province's economic hub. GDP of the southern Jiangsu area was RMB 1,593.1 billion, accounted for 61.9% of Jiangsu's total GDP in 2007.

Jiangsu has a strong private sector. The famous economic development model --- Southern Jiangsu model is mainly about private sector economic development, especially industrial development. By the end of 2007, there were about 680 thousand of private enterprises, increased by 137% from just 286 thousand in 2002.

Major Indicators of Jiangsu's Regions (2007)

Southern Jiangsu

Middle Jiangsu

Northern Jiangsu

GDP (RMB bn)

1,593.1

462.6

497.6

Retail Sales (RMB bn)

470.7

147.7

165.4

Actual FDI (US$ bn)

14.8

4.7

2.4

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

Industry

In 2007, Jiangsu's GDP ranked 3rd in China, and its value-added of secondary and tertiary industry also ranked 3rd among all provinces respectively. The machinery industry of Jiangsu ranked 1st in China, and Jiangsu is the largest petrochemical industry base of south China.

Composition of GDP (%)

2000

2007

Primary

12.2

7.0

Secondary

51.9

55.6

...Industry

45.0

50.6

Tertiary

35.9

37.4

Source: Jiangsu Statistical Yearbook 2008

Historically, Jiangsu had a much stronger light industry sector. However, after 1993, growth of the heavy industry sector accelerated and overtook that of the light industry.

Composition of Industrial Output (%)

2000

2007

Heavy Industry

56.8

71.1

Light Industry

43.2

28.9

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

The pillar industries in Jiangsu are electronics, telecommunications, chemicals, textiles, machinery, equipment and metallurgy. The share of industrial output of the seven pillar industries was 61.1% of the nation's total in 2007.

Output Share of Leading Industry Groups (2007)

% share of total
industrial output

Electronic and Telecommunications

15.4

Raw Chemical Materials and Chemical Products

9.7

Smelting and Pressing of Ferrous Metals

9.6

Textile industry

8.1

Electric Equipment and Machinery

7.5

Ordinary Machinery Manufacturing

6.2

Transportation Equipment Manufacturing

4.6

Source: Jiangsu Statistical Yearbook 2008

In recent years, technology-intensive industry and capital-intensive industries (such as electronic and telecommunications etc.) have been developing fast. Jiangsu is moving towards the development of new and high technology products. Jiangsu is now an important IT manufacturing base. Many Taiwanese IT manufacturers are attracted to invest in Kunshan and Wujiang.

Jiangsu has successfully promoted many famous brands such as Chunlan Air-conditioner, Younger Suits, Senda Shoes, Bosideng Down coat, Skyrun Garment, Little Swan Washer, Shinco DVD, Hubao Shirt, Hengshun Sauce & Vinegar.

Tourism

Jiangsu is a famous destination for tourists with 21 cities being awarded the title of China Excellent Tourism City. In 2007, Jiangsu received 232 million (+16.6%) domestic tourists and 5.1 million (+15.1%) overseas tourists. Overseas tourists generated a total of US$3.5 billion (+24.5%) foreign exchange revenue. Tourists from Hong Kong increased by 3.2% to 489 thousand in 2007.

Foreign Trade

Jiangsu's industries have become more externally-oriented in recent years. Major exports included machinery for office use & automatic data processing equipment, telecommunication & recorders, electronic machinery, equipment & accessories and textiles and garments. Major export markets included the US, Japan and Hong Kong. In 2007, exports to Hong Kong increased by 8.2% to US$16.8 billion.

As a manufacturing base, major imports included electronic machinery, equipment & accessories, instruments & equipment for professional, scientific & control use, special industrial machinery of particular use and organic chemicals etc. Major import sources included Taiwan, Japan and South Korea. Imports from Hong Kong stood at US$996.1 million in 2007.

Foreign investment

Foreign investments in Jiangsu are mainly engaged in the manufacturing sector, particularly in telecommunication equipments, computer, machinery, chemical products and textiles. In 2007, utilized foreign direct investment in the manufacturing sector amounted to US$15.8 billion, accounting for 72.2% of the total FDI.

Jiangsu's services sector is attracting an increasing share of FDI. In 2007, FDI in the service sector amounted to nearly US$5.2 billion, accounted for 23.8% of the total, while this share was only 6.5% in 2001. Real estates accounted for 15.4 % of the province's total utilized FDI in 2007.

FDI in Jiangsu

2007 Year-end Accumulated

2007

Growth (%)

Number of Projects

84,599

5,842

-16.7

Contracted amount (US$ bn)

332.9

52.7

13.2

Utilised amount (US$ bn)

142

21.9

25.6

Source: Jiangsu Statistical Yearbook 2008

Hong Kong, Korea, Singapore and Japan are the top overseas investors in terms of cumulative actual FDI. Wholly foreign-owned company has overtaken joint venture as the dominant mode of FDI in recent years.

Changes in the mode of Actual FDI in Jiangsu (%)

Mode

1985-2007

2000

2007

Joint Venture

31.7

35.4

15.7

Cooperative Operation

3.6

5.6

1.1

Wholly Foreign Own

64.4

59.0

83.1

Source: Jiangsu Statistical Yearbook 2008

Consumer Market

Jiangsu was the third largest consumer market in 2007, after Guangdong and Shandong. Retail sales of consumer goods reached RMB 783.8 billion, accounting for 8.8% of China's total in 2007. In 2007, annual per capita disposal income of urban households reached RMB16,378 (+16.3%).

Composition of Per Capita Expenditure of Urban Household (%)

2000

2007

Food

41.1

36.7

Clothing

9.2

9.2

Facilities, Article and Service

10.7

6.6

Medicine & Medical Services

5.5

6.4

Transportation & Communications

7.4

12.2

Recreation, Cultural & Education

12.6

15.9

Residence

8.2

9.5

Source: Jiangsu Statistical Yearbook 2008

Major foreign-invested retail enterprises that have established their presence in Jiangsu include Wal-mart from the US, Metro and OBI from Germany, Carrefour from France, B&Q from UK, Auchan from France, and China Resources from Hong Kong. Meanwhile, indigenous enterprises have also grown quickly, for instance, Su'guo, Su'ning, Wenfeng Big World.

Economic Indicators of Jiangsu Cities (2007)

Cities

GDP
(RMB bn)

Per Capita GDP (RMB)

Gross Industrial output
(RMB bn)

Retail Sales
(RMB bn)

Exports
(US$ bn)

Suzhou

229.5

98,620

474.4

58.1

61.2

Wuxi

216.3

92,385

442.2

72.8

21.5

Nanjing

301.6

56,953

538.8

129.6

20.7

Zhenjiang

53.5

52,054

94.6

15.9

2.3

Changzhou

142.0

63,502

339.9

45.5

8.8

Source: Jiangsu Statistical Yearbook 2008