10.2008

Major Economic Indicators

Notes: ¹ In Renminbi real term ² For all state-owned and other forms of enterprises with annual sales over RMB 5 million ³ first half of 2008
Sources: Statistical Yearbook of Sichuan 2008, Sichuan Statistical Bureau, Sichuan Department of Commerce

General Background

Sichuan is located at the upper reaches of the Yangtze River in southwestern China. It has a total area of 485,000 sq. km. Total resident population stood at 81.3 million in 2007. Chengdu, the capital of Sichuan, is the western hub for business and trade.

Sichuan is rich in natural resources and has the most well developed industrial sector in the region. Sichuan is also one of the major agricultural production bases in China, its output of rice, wheat, rapeseed, citrus fruit, peach, sugar cane, sweet potato and Chinese herbs all account for a significant share of China's total.

The private sector in Sichuan has grown fast in recent years. It is estimated that the private sector accounted for 50.2% of the GDP in 2007. By the end of 2006, there were about 209 thousands of private enterprises, increased by 147% from just 84.5 thousands in 2002. Sichuan has developed a number of famous local enterprises and brands, including the country's largest color TV producer -- Changhong Electric Group Co. Ltd.; steel company -- Panzhihua Steel Group, alcohol manufacturers -- Wuliangye Group, Jiannanchun Group and Luzhoulaojiao; medicine manufacturers -- Di'ao Group Company and Di'kang Group; and animal feed company - New Hope.

Industries

Sichuan is strong in agriculture. In 2007, its added value in the primary industry ranked 3rd among all provinces.

Composition of GDP (%)

Source: Sichuan Statistical Yearbook 2008

Sichuan is one of the most industrialized provinces in western China. While heavy industries (68% of the gross industrial output value in 2007) such as coal, energy and iron and steel remain as dominating sectors, the province has also established a light manufacturing sector comprising building materials, wood processing, food, silk processing, etc.

Sichuan's production of colour TV, natural gas, electricity, steel, cement, Chinese medicine, wine and chemical fibre are the largest among the western provinces.

Output Share of Leading Industry Groups (2007)

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

Sichuan's high-tech industry has been developing fast. In 2007, exports of high-tech products reached US$1.7 billion (+70.5%), accounting for 19.2% of total exports. Sichuan has more than 70 universities and two state level hi-tech industries development zones - The Chengdu New and Hi-tech Industries Development Zone (CDDZ), and the Mianyang New and Hi-tech Industries Development Zone (MYDZ). These zones have attracted a number of internationally renowned IT companies such as Microsoft, Cisco, Intel, IBM and Motorola to set up R&D centers.

Sichuan is richly endowed with herbs (around 5,000 species) and is the home to many senior Chinese medicine doctors. Sichuan is strong in R&D of modern Chinese medicine. Chengdu is selected by the Ministry of Science and Technology to set up the first state-level Modernized Science and Technology Industry Base for Traditional Chinese Medicine. A number of Hong Kong companies have invested in modernising traditional Chinese medicine, including New World Group.

Tourism

Sichuan has abundant tourism resources: it is home to the giant panda; it has four world natural heritages and nine national AAAA grade nature parks, the largest number in China. Its internationally famous scenic attractions include Mt. Emei, Jiuzhaigou Valley and Dujiangyan Irrigation System.

Foreign Trade

Foreign trade grew strongly in the past few years. Major export markets included the US, Hong Kong, India, Russia and Japan. In 2007, exports to Hong Kong increased by 78% to US$1.5 billion, accounting for 17.8% of Suchuan's exports. Major exports are machinery & electric equipment, video & audio appliances, textile materials and products, base metals and related products.

Major import sources were the US, Japan, Germany, South Korea and Taiwan. Major imports included machinery and electric equipment, video and audio appliances, transport equipments and minerals.

As a result of increased foreign investment in recent years, foreign trade conducted by foreign investment enterprises has risen. In 2007, exports and imports conducted by FIE increased by 85% and 62% respectively, accounting for 25% and 49% of the province's total exports and imports respectively.

Foreign Investment

Sichuan came first in attracting FDI among all western provinces. Utilized FDI increased by 24% to US$1.5 billion in 2007. Utilized FDI from Hong Kong accounted for about 38% of the total FDI in 2007. Other major investors in 2007 included British Virgin Island (BVI) and Singapore.

By the end of 2006, 125 of the fortune 500 companies have invested in Sichuan, such as Intel, Onsun, Sony, Masrsk, UPS, Sanyo and Kingfisher etc., most of them are located in Chengdu.

Consumer Market

Sichuan has the biggest consumer market in western China. In 2007, total retail sales of consumer goods in Sichuan grew by 17.4% to RMB402 billion. In 2007, annual per capita disposal income of urban households reached RMB11,098 (+18.7%).

Composition of Per Capita Expenditure of Urban Household (%)

Source: Sichuan Statistical Yearbook, 2008

Since China fully liberalizes the retail and wholesale distribution sector, the expansion of foreign retail enterprises into Sichuan has speeded up in recent years. Major foreign retail enterprises include Metro from Germany, Carrefour from France, Trust-mart, Pacific from Taiwan, Itoyokado from Japan, and Parkson from Singapore.

Economic Indicators of Major Cities (2007)

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