| Market Profiles on Chinese Cities and Provinces |
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11.2008 ZHEJIANG PROVINCEMajor Economic Indicators
Notes: 1 In real terms 2 For all state-owned enterprises and other forms with annual sales over RMB 5 million General Background Zhejiang has a total area of 104,116 square kilometers. Its total population stood at 46.6 million in 2007. The northeastern Zhejiang area is part of the Yangtze River Delta metropolitan region and is the province's economic hub, whose GDP reached RMB1,239 billion, accounting for 66.0% of the total in 2007. It covers 6 cities --- Hangzhou, Ningbo, Jiaxing, Huzhou, Shaoxing, Zhoushan. Future economic development in Zhejiang will cluster in three economic belts: (1) from Beilun to Ningbo and cities along the Shanghai -- Hangzhou -- Ningbo Expressway, including Shaoxing, Jiaxing and Huzhou; (2) coastal cities of Wenzhou; (3) along the Zhejiang -- Jiangxi, Wenzhou-Taizhou railways. Industries In recent years, the shares of the secondary and the tertiary sectors have been undergoing a steady rise. Composition of GDP (%)
Source: Zhejiang Statistical Yearbook 2008 Light industries play an important role in the province's industrial sector. In 2007, the value-added of light industries was RMB342.5 billion, accounting for 45.2% of the total. The labor intensive industries, namely textiles and products for culture and education and gym etc. have predominant advantages. Famous products include garment and textiles (esp. socks and ties), chemical fiber, leather products, wooden furniture, toys, household appliances and paper etc. Many famous national brands have emerged e.g. Wahaha, Youngor, Auxgroup, etc. Zhejiang's output of a number of products, including chemical fibre, cloth, paper boards, cement, chemical pesticide and ICs ranked among the highest in the country. Since 2000, heavy industries such as electrical equipment and machinery, raw chemical materials and chemical products etc. have developed rapidly, and the value-added of heavy industries accounted for 54.8% of the total output in 2007. Value-added Share of Leading Industry Groups (2007)
Source: Zhejiang Statistical Yearbook 2008
The Hangzhou Bay area is an important IT industry base after Beijing and Shanghai. The province is also aiming at speeding up the development of other hi-tech industries, in particular, biotechnology, medicine, new materials and other related industries. In its 11th five-year programme, the government proposes to develop tertiary sector, so that its share in GDP will rise to 45% in 2010. Logistics, finance, tourism, convention & exhibitions, cultural and real estate services are encouraged. Tourism Zhejiang has a beautiful landscape with 14 state level scenic areas, including the West Lake, Putuo Mountain, Double Dragon Cave. In 2007, Zhejiang received 191 million (+18.3%) domestic tourists with a tourism receipt of RMB182 billion (+19.7%) and 5.1 million (+18.6%) overseas tourists with foreign exchange revenue of US$2,708 million (+27.0%). Foreign Trade Foreign trade grew significantly in the last few years. In 2007, the value of exports and imports increased 5.6 times and 4.9 times respectively from 2001. Major export markets include the US, Japan and Germany. Major importing sources include Japan, Taiwan and South Korea. Major import items included electrical and mechanical products (28.4% of total), high-tech products, telephthatic acid and farm products. Foreign Investment
Foreign investment has been a major driving force of Zhejiang's foreign trade growth. In 2007, foreign-invested enterprises (FIEs) accounted for 36.8% of the province's exports and 49.1% of the province's imports. FDI in Zhejiang
Source: Zhejiang Statistical Yearbook, 2008
Hong Kong is the largest source of FDI in Zhejiang. In 2007, Hong Kong investors signed 1,329 projects with contracted investment amount of US$11.7 (+41.0%) billion, utilized investment amount of US$4.3 (+10.3%) billion. Hong Kong investments in Zhejiang are mainly in property and infrastructure development, logistics and manufacturing industries like textiles and petrochemicals. Examples of Hong Kong companies in Zhejiang include The Hong Kong and China Gas Co. (natural gas pipeline and piped-gas), New World Services Holdings (Water Plant), Hutchison Whampoa (Container Terminal), Shui On Land and Shui On Properties (property project) etc. Examples of Zhejiang companies listed in Hong Kong include Zhejiang Expressway Co Ltd, Zhejiang Glass Co Ltd, Geely Holding Group, Bao Ye Group etc. Other major investors (in terms of utilized capital) came from Virgin Islands, the US and Taiwan. MNCs that have invested in Zhejiang include Motorolla, Toshiba, and Siemens etc. Encouraged sectors for foreign investment include synthetic materials, petrochemical, new building materials, communications, bio-engineering, agricultural-processing, new & hi-technology, as well as some under-developed tertiary industries. Consumer Market In 2007, Zhejiang's retail sales of consumer goods reached RMB621.4 billion. Per capita disposal income of urban household reached RMB20,574 (+8.4%). Composition of Per Capita Expenditure of Urban Household (%)
Source: Zhejiang Statistical Yearbook 2008 Major consumer markets are located in Hangzhou, Ningbo, Wenzhou, Shaoxing, Taizhou and Jiaxing. Various forms of modern operation such as chain stores, supermarkets and convenience stores are growing fast. Yiwu China Commodity City is the No.1 professional market for small commodities in China, and a famous international purchasing base, where UN has set up its own purchasing centre. Economic Indicators of Major Cities (2007)
Source: Zhejiang Statistical Yearbook 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
