Market Profiles on Chinese Cities and Provinces
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12.2008

QINGHAI 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)

78.4

12.5 1

68.4

13.2 1

Per Capita GDP

14,257

11.7 1

Added Value Output
- Primary industry (RMB bn)

8.3

4.4 1

6.2

3.5 1

- Secondary industry (RMB bn)

41.8

14.9 1

39.1

18.8 1

- Tertiary industry (RMB bn)

28.2

11.7 1

23.1

8.0 1

Value-added Industrial Output 2 (RMB bn)

31.5

22.7 1

15.6 4

23.5 1

Fixed-assets Investment (RMB bn)

48.7

16.2

15.7 4

19.1

Retail Sales (RMB bn)

20.8

15.7

17.9

21.2

Inflation (Consumer Price Index, %)

6.6

12.4 4

Exports (US$ mn)

385.9

-27.8

264.7 3

8.4

- By FIEs (US$ mn)

16.4

42.8

35.8 3

778.8

Imports (US$ mn)

226.2

92.4

172.3 3

37.1

- By FIEs (US$ mn)

94.2

171.4

132.4 3

198.7

Utilized Foreign Direct Investment (US$ mn)

310.0

12.7

-

-

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 4 Jan-May 2008
Sources: Qinghai Statistical Yearbook 2008, China's customs statistics 8.2008

General Background

Qinghai is located in northwestern China, on the Qinghai-Tibet Plateau. And it is named after Qinghai Lake, the largest inland plateau lake. The total area is 722,300 square kilometers, taking up 1/8 of the country's total area. It is fourth largest province in terms of area after Xinjiang, Tibet and Inner Mongolia Autonomous Regions. Its population stood at 5.5 million at end-2007.

Owning the reputation of the "Water Tower of China", Qinghai is the origin of many rivers such as Yangtze River, Yellow River and Mekong River. In addition, it is rich in minerals, hydropower, agro-husbandry and tourism. Therefore, an important ecological status and abundant resources are the most distinct features of Qinghai.

Industries

Qinghai is a large province in resources such as pastoral resource, hydropower resource, mineral resources, saline resources, petroleum & gas resources. The natural resources endowment has a great influence on shaping the industry structure of Qinghai.

Composition of GDP (%)

2000

2007

Primary

30.9

10.6

Secondary

23

53.3

....Industry

8.6

44.0

Tertiary

46.2

36.1

Source: Qinghai Statistical Yearbook 2008

In 2007, the four pillar industries: petroleum & natural gas industries, hydropower generating industry, nonferrous metal industry and saline chemical industry contributed to 81.7% of the total added value of industrial output.

Value-added Share of Pillar Industries (2007)

% share of industrial value-added

Petroleum & natural gas industries

26.7

Nonferrous metal industry

26.2

Saline chemical industry

16.0

Hydropower generating industry

12.8

Source: Qinghai Statistical Yearbook 2008

Tourism

Qinghai is indeed a paradise for sightseeing, with 408 scenery spots, of which, 11 are of international-level, 52 are of national-level and 84 are of provincial level. Some representative scenery spots include Qinghai Lake, Mount Sun & Moon, Longyang Gorge and Gold & Silver Meadow. Cultural tourism resources include Kunlun Culture, Folk Customs of Tu and Sala and Ta'er Monastery.

2007

% change

Number of domestic tourist (million)

10.0

23.5

Income generated (RMB bn)

4.6

31.4

Number of overseas tourist (thousand)

50.0

25.0

Foreign exchange income (US$ mn)

15.9

19.5

Source: Qinghai Statistical Yearbook 2008

Foreign Trade

Major export items included aluminum & rolled aluminum, silicon, yarn, woolen fiber, etc. Major export markets included Japan, the US and Korea.

Major imports were aluminum oxide, Medical instruments and equipment, Cars and car chassis, etc.

Foreign Investment

In 2007, foreign investments in Qinghai were mainly engaged in manufacturing industries (40.1% of the contracted amount), production of electricity, gas and water.

Hong Kong is the biggest source of FDI in Qinghai, accounting for 59.2% of the province's contracted FDI in 2007, followed by the US (19%) and Virgin Islands (16.5%).


FDI in Qinghai

1991-2007

2007

No. of contracts

491

37

Contracted amount (US$ mn)

2,562.3

416.0

Utilised amount (US$mn)

1,526.3

310.0

Source: Qinghai Statistical Yearbook 2008

Consumer Market

In 2007, retail sales of consumer goods rose by 15.7% to RMB20.8 billion and annual per capita disposal income of urban households was RMB10,276 (+14.2%). Major consumer markets are located in Xining which accounted for 66.7% of Qinghai's total retail sales.

Composition of Per Capita Expenditure of Urban Household (%)

1995

2007

Food

51.4

37.3

Clothing

14.0

12.0

Household articles

6.7

6.5

Medicine & medical services

5.5

8.2

Transportation & communications

4.7

10.5

Recreation, cultural & education

7.9

12.7

Residence

3.5

8.5

Source: Qinghai Statistical Yearbook 2008

Qinghai's consumer expenditure pattern has undergone structural changes over the last decade with relatively less on food and more on services.

Major department stores and shopping centers in Qinghai include Xining Department Store, Xining Xidan Malls, Hualian Commercial Building.

Economic Indicators of Major Cities (2007)

Region

GDP
(RMB bn)

Per Capita GDP (RMB)

Industrial Output#
(RMB mn)

Retail Sales
(RMB mn)

Xining

34.2

15,999

49,410

13,899

Haixi

20.2

47,009

25,952

2,644

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