Market Profiles on Chinese Cities and Provinces
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12.2008

TIANJIN MUNICIPALITY

Major Economic Indicators

Economic Indicators

2007

Jan - Aug 2008

Value

Growth
(%, y-o-y)

Value

Growth
(%, y-o-y)

Gross Domestic Product (RMB bn)

505.0

15.2 1

295.2 3

16.3 1

Per Capita GDP

46,122

11.5 1

Added Value Output
- Primary industry (RMB bn)

11.0

1.4 1

5.5 3

2.5 1

- Secondary industry (RMB bn)

289.3

16.5 1

177.4 3

18.4 1

- Tertiary industry (RMB bn)

204.8

14.3 1

112.4 3

14.0 1

Value-added Industrial Output 2 (RMB bn)

295.3

32.8

163.6 3

34.9

Fixed-assets Investment (RMB bn)

238.9

29.1

203.1

39.1

Retail Sales (RMB bn)

160.4

14.5

131.0

24.8

Inflation (Consumer Price Index, %)

4.2

5.9

Exports (US$ bn)

38.1

13.9

28.1

13.2

- By FIEs (US$ bn)

28.3

21.9

19.4

6.9

Imports (US$ bn)

33.4

7.8

26.5

24.5

- By FIEs (US$ bn)

25.9

0.1

19.6

17.9

Utilized Foreign Direct Investment (US$ bn)

5.3

27.8

4.9

59.2

Notes: 1 In real terms  2 For all state-owned enterprises and other forms with annual sales over RMB 5 million
3 First half of 2008
Sources: Tianjin Statistical Yearbook 2008, China's customs statistics 8.2008

General Background

Tianjin has a total area of 11,919.7 square kilometers. Total population stood at 11.2 million in 2007.

Tianjin is one of the four autonomous municipalities along with Beijing, Shanghai and Chongqing, and is an integral part of the Bohai Bay Economic Zone, which is one of the three biggest economic zones in China. With a view to strengthen Tianjin's position as the economic center of the Bohai Bay region, priority has been given to the development of the Binhai New Area in China's 11th Five-Year Programme. Preferential policies, including the establishment of a free trade zone and pilot reforms in the financial sector, have been given by the State Council to support the development of the Binhai New Area.

Tianjin has undergone rapid development in recent years. Per capita GDP amounted to RMB 46,122 in 2007.

Tianjin port, as the largest comprehensive and commercial port in North China, provides services to 300 ports in more than 170 countries and regions all over the world. It handled 309.4 million tons of freight in 2007. Tianjin International Airport is a major cargo freight center in China. The city is well connected to other major cities by dozens of railroads and expressways. Tianjin is the region's largest financial center.

Industries

Being the cradle of China's modern mechanic industry and textile industry, Tianjin is still an important industrial center in China nowadays.

Composition of GDP (%)

2000

2007

Primary

4.3

2.2

Secondary

50.8

57.3

...Industry

46.2

52.7

Tertiary

44.9

40.5

Source: Tianjin Statistical Yearbook 2008

Gross industrial output reached RMB1,050 billion (+20.1%) in 2007. Six pillar industries (electronic information, automobile, new energy resources and environment, metallurgy, petrochemical industry, biotechnology and modern medicine) accomplished a total output value of RMB 729.3 billion, accounting for 72.4% of the total output value of industries above designated size.

Tianjin's industrial development owes much to the rapid growth of high and new tech industry -- electronics and information technology in particular. In 2007, the gross output value of high and new tech industry was about RMB282.5 billion (+41.0%), representing 26.9% of Tianjin's gross industrial output.

Gross Output Share of hi & new tech industry (2007)

% of the
total industrial output

Electronics information

19.6

Photoelectric mechanical electron incorporated

3.5

Biotechnology and Modern Pharmaceutical Industry

1.9

New materials

1.2

New energy sources and Environment Protection

0.7

Source: Tianjin Statistical Yearbook 2008

Meanwhile, a lot of hi-tech enterprises, such as GMCC, Jinyao Group, Nankai Guard Group and Tasly Group have become very competitive.

Foreign enterprises (FIEs) including those from Hong Kong and Taiwan have contributed greatly to Tianjin's industry growth, particularly in high and new tech industry. In 2007, FIEs' industrial output value rose by 14% to RMB498.4 billion, accounting for 47.5% of the total industrial output, and its share in high and new tech industry was 89.5%.

In 2007¡Aoutput value of heavy industry increased by 20.4% to RMB832 billion, accounting for 81.3% of the total industrial output. Large and medium-sized enterprises accounted for 70.3% of the total output.

Tianjin's service sector develops rapidly. In 2007, wholesale and retail trades, transportation and storage, finance, real estate were the four largest service industries, accounting for 24.3%, 14.4%, 14.1% and 9.3% of the total added value in service sector respectively.

Tourism

Various tourist routes such as visiting former residence of celebrities, famous street travel, Xiqing Folk Custom travel and Binhai New Area travel have been launched in Tianjin.

  

2007

% change

Number of overseas tourist (thousand)

1,032

17.1

Foreign exchange income (US$ mn)

779

24.4

Source: Tianjin Statistical Yearbook 2008

Foreign Trade

Major exports include machinery and transport equipment, chemicals and related products, animal and vegetable oils, fats and wax, etc. Major export markets were the US, Japan, South Korea, Hong Kong and Germany.

Major imports were machinery & transport equipment. Major import sources were Korea, Japan the US and Germany.

Foreign Investment

Utilised foreign investment increased by 27.8% to US$ 5.3 billion in 2007. In 2007, 7.8 billion of contracted investment went to manufacturing sector, and 4.4 billion went to real estate. These two sectors took up 62.9% of the total capital of contracted investment in 2007. Industry of new energy resources (such as wind electric power generation, seawater desalination and new cell) became the new area in attracting FDI.

FDI in Tianjin

Cumulative at
the end of 2007

No. of contracts

20,357

Contracted amount (US$ bn)

77.8

Utilised amount (US$ bn)

39.7

Source: Tianjin Statistical Yearbook 2008

Hong Kong is the leading investor in Tianjin. By the end of 2007, Hong Kong signed a total of 6,210 agreements with contractual investment amounted to US$27.3 billion, utilized investment amounted to US$12.4 billion. In 2007 alone, Hong Kong signed 260 agreements with contractual investment of US$5.3 billion, and utilized investment at US$1.5 billion. Other major sources of foreign investment included the US, Japan, BVI, Korea and Singapore.

Consumer Market

In 2007, Tianjin's retail sales of consumer goods grew by 18.2% to RMB160.4 billion, annual per capita disposal income of urban households reached RMB16,357 (+14.5%).

Composition of Per Capita Expenditure of Urban Household (%)

2000

2007

Food

 40.1

35.3

Clothing

8.9

8.5

Household articles

11.8

6.3

Medicine & medical services

6.6

9.7

Transportation & communications

5.7

10.9

Recreation, cultural & education

12.9

13.6

Residence

9.2

11.8

Source: Tianjin Statistical Yearbook 2008

The function of wholesale trading markets has been strengthened. In recent years, more large-scale commercial establishments have been put into operation, such as Isetan and Wanxiang textile house. Currently there are more than 60 shopping centers with a total area of more than ten thousand square meters in Tianjin.

Some international famous supermarket companies have established chain stores in Tianjin, which include Metro, Makro, Walmart, Osun and Trust-mart. Shanghai Lianhua, Jiangsu Suning, Beijing Gome and other domestic famous trade enterprises also set up supermarkets in Tianjin.

Binhai New Area

Economic Indicators

2007

Share in Tianjin (%)

Value

Growth
(%, y-o-y)

Gross Domestic Product (RMB bn)

236.4

20.5 #

46.8

Added Value Output
- Primary industry (RMB bn)

0.7

-3.9 #

6.4

- Secondary industry (RMB bn)

169.5

17.9 #

58.6

- Tertiary industry (RMB bn)

160.4

17.2 #

78.3

Gross Industrial Output (RMB bn)

628.3

20.8 #

59.8

Fixed-assets Investment (RMB bn)

115.3

33.4

48.3

Retail Sales (RMB bn)

25.6

19.6

16.0

Exports (US$ bn)

24.5

8.4

64.3

Foreign Direct Investment
- Number of projects

398

-20.4

43.9

- Contracted amount (US$ bn)

7.7

24.1

67.0

- Utilized amount (US$ bn)

3.9

17.3

73.6

Notes:  # In real terms
Source: Tianjin Statistical Yearbook 2008

Binhai New Area has a total developed area of 221.95 square kilometers. Total registered population stood at 1.14 million in 2007.

Binhai New Area is established in 1994, located to the east coastal area of Tianjin. The Area comprises three functional districts -- Tianjin Port, TEDA (Tianjin Economic Development Area), TPFTZ (Tianjin Port Free Tax Zone), and five administrative districts -- Tanggu District, Hanggu District, Dagang District, Wuxia Subdistrict of Dongli District and Gegu Town of Jinnan District.

In order to change the current development situation of "fast in the south, but slow in the north", the Chinese government is determined to establish the Binhai New Area as the third economic hub, after Shenzhen and Shanghai Pudong, with a view to stimulate development in the northern part of the country.

The construction of infrastructure progressed quickly, especially for modern transport system construction, including Beijing-Tianjin Express Way, Beijing-Tianjin-Tanggu Express Way Second Line, Expansion of Tianjin Binhai Airport, widening construction of Tianjin Port etc.