Market Profiles on Chinese Cities and Provinces
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12.2008

SHANXI 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)

569.6

14.2 1

510.6

11.6 1

Per Capita GDP

16,945

20.9

Added Value Output
- Primary industry (RMB bn)

31.3

0.1 1

20.3

2.3 1

- Secondary industry (RMB bn)

339.5

17.9 1

321.0

11.8 1

- Tertiary industry (RMB bn)

198.9

10.5 1

169.3

12.4 1

Value-added Industrial Output 2 (RMB bn)

268.2

21.0 1

272.6

15.8 1

Fixed-assets Investment (RMB bn)

266.6

25.7

208.4

27.8

Retail Sales (RMB bn)

191.4

18.6

173.0

23.8

Inflation (Consumer Price Index, %)

4.6

8.5

Exports (US$ mn)

6,533.0

57.8

6,790.6 3

65.3

- By FIEs (US$ mn)

898.8

34.6

868.2 3

58.4

Imports (US$ mn)

5,037.5

102.5

3,689.3 3

15.3

- By FIEs (US$ mn)

581.3

28.3

608.8 3

67.3

Utilized Foreign Direct Investment (US$ mn)

1,343

184.5

1,120 3

150.0

Notes: 1 In real terms 2 For all state-owned enterprises and other forms with annual sales over RMB5 million
3 Jan-Aug 2008
Sources: Shanxi Statistical Yearbook 2008, China's customs statistics 8.2008

General Background

Shanxi - abbreviated as Jin - has a total area of 156,600 square kilometers. Total population stood at 33.9 million by the end of 2007.

Historically, Shanxi was well known for the "Jin Merchants" who were forerunners in foreign trade and national financial services. Shanxi is now the most important energy source base in China with abundant reserves of coal, magnesium, bauxite and fireclay.

In Shanxi's 11th Five-Year Programme, it will improve the traditional industries of coal, coke, metallurgy and electrical power and develop new pillar industries such as coal chemical, equipment manufacturing, material and tourism.

Industries

In 2007, more than half of the province's GDP was attributed to industry, and the share of the services sector in GDP declined slightly in 2007.

Composition of GDP (%)

2006

2007

Primary

5.1

4.7

Secondary

58.3

60.0

....Industry

52.7

54.8

Service

36.6

35.3

Source: Shanxi Statistical Yearbook 2008

Shanxi's heavy industry dominated the industry sector, accounting for 94.6% of the province's total industrial value-added in 2007.

Value Added Share of Leading Industry Groups (2007)

% Share of total industrial value-added

Coal Mining and Dressing

38.6

Smelting and Pressing of Ferrous Metals

16.8

Petroleum Processing, Coking and Nuclear Fuel Processing

11.4

Electric Power, Heat Power Production and Supply

9.1

Smelting and Pressing of Non-ferrous Metals

4.8

Source: Shanxi Statistical Yearbook 2008

Tourism

Shanxi is a city with a long history and profound cultural connotation, for example, Datong Yungang Grottoes and Ancient City of Pingyao have been listed in the "World Culture Heritage Directory". In 2007, Shanxi received 737,888 overseas tourists, bringing foreign exchange revenue of US$222 million (+35.0%). It also attracted 85.3 million domestic tourists, generating revenue of RMB56.4 billion (+35.9%).

Foreign Trade

The top three largest overseas markets were the US, Japan and South Korea. Major exports included minerals, base metals and related products, accounting for 77.9% of total exports.

Cuba is the leading source of imports, followed by Australia and India. Major imports included minerals, machinery, electric equipment, etc.

In 2007, Hong Kong was one of Shanxi's largest trading partners. Shanxi exported US$186.7 million to Hong Kong and imported US$14.5 million from Hong Kong.

Foreign Investment

Foreign investment in Shanxi was rising steadily. Of the total contracted FDI in Shanxi in 2007, manufacturing, lease & business affairs services accounted for the largest share, reaching 27.9% and 27.4% respectively.

In 2007, the major sources of overseas investment were Hong Kong, Britain Virgin Islands and the Bahamas, from which the utilized FDI accounted for 59.2%, 24.3% and 2.5% respectively of total utilized FDI.

In coming years, Shanxi will continue to emphasis on encouraging foreign investors to participate in technology improvement of traditional advantageous industries, such as coal industry, coke industry, metallurgy industry and electric power industry.

Consumer Market

In terms of per capita disposable income of urban residents, Shanxi reached RMB11,565 in 2007, up by 15.3% from 2006.

Composition of Per Capita Expenditure of Urban Household (%)

2000

2007

Food

35.5

32.1

Clothing

13.0

13.1

Household articles

6.8

5.9

Medicine & medical services

7.6

7.9

Transportation & communications

8.5

12.7

Recreation, cultural & education

13.9

13.0

Residence

10.9

12.2

Source: Shanxi Statistical Yearbook 2008

In recent years, more and more foreign retail enterprises emerged in Taiyuan, e.g. Sams and Wal-mart from the US, Carrefour from France, Metro from Germany. Domestic retail chain enterprises which run well in Taiyuan include Hualian, Meet All, etc. Domestic retail chains grew rapidly in quantity in recent years due to the stimulation from foreign competitors.

Economic Indicators of Major Cities (2007)

GDP
(RMB bn)

Per Capita GDP
(RMB)

Industrial Output
(RMB bn)

Retail Sales
(RMB bn)

Taiyuan

125.5

36,377

178.5

51.6

Datong

49.1

15,581

61.6

18.5

Yangquan

27.3

20,836

35.0

9.8

Jincheng

42.0

18,926

46.4

11.6

Source: Shanxi Statistical Yearbook 2008