12.2008

Major Economic Indicators

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

General Background

Shaanxi has a total area of 205,800 square kilometers. Population stood at 37.5 million at the end of 2007. Located in central China and landlocked, it is adjacent to 8 other provinces.

Shaanxi has abundant reserves of coal, natural gas, petroleum, salt and other non-metal minerals. Shenmu and Fugu are major production bases of fine quality coal in China. Together with its rich metallic and non-metallic mineral reserves, Shaanxi's estimated reserves of mineral resources ranked first in the nation.

Shaanxi ranks third in terms of overall R&D strength after Beijing and Shanghai. With more than 1,000 research institutes and over 140 thousand personnel engaged in scientific and technological activities, it is an important scientific research and production base in China's aviation, spaceflight and electronics.

Xi'an, Shaanxi's capital city, is China's ancient capital with abundant cultural and historical assets. With the majority of the province's software enterprises, it now has become an IT powerhouse.

During the 11th Five-Year Programme period (2006-2010), Shaanxi's development targets will focus on 4 sectors: equipment manufacturing, high-tech industries, energy and chemicals and traditional industries (notably food processing). In terms of services sector, its share in GDP is targeted to reach 40%, and the foci are on tourism and cultural industries, as well as also logistics and finance.

Industries

Shaanxi is a major agricultural base. Its agricultural products such as grain, vegetables, cured tobacco, apple and Chinese chestnut are at leading position in China. It is the largest production and processing centre for fruits.

Composition of GDP (%)

Source: Shaanxi Statistical Yearbook 2008

Thanks to its abundant reserves of coal, natural gas and oil, Shaanxi has developed into an important energy production base and it has a well-developed electricity generation sector. There are plans to supply gas and electricity from Shaanxi to eastern China.

Rich resources endowments gave rise to heavy industry. Shaanxi manufactures various types of equipment, e.g. oil drills, grinding machines, lathe, and equipment for railways, mining, electricity generating, and petroleum and chemical processing etc. It also has a sizeable iron and steel making sector.

Shaanxi is a national center for research and production in aviation, aerospace, equipment manufacturing, electronics and agriculture.

Pharmaceutical industry is emerging in Shaanxi and recorded an industrial value-added of RMB 6.6 billion in 2007. As a production centre of traditional Chinese medicine, Xian has been designated as one of the 15 state-level export bases of pharmaceutical products. Famous brands include Shaanxi Jianmin Pharmaceutical, Xi'an-Janssen Pharmaceutical Ltd. and Xi'an-Lijun Pharmaceutical etc.

Output Share of Leading Industry Groups (2007)

Source: Shaanxi Statistical Yearbook 2008

Tourism

Being an important cradle of Chinese civilization, Shaanxi has abundant historic sites, especially in the ancient capital--Xi'an. While the terra-cotta army is highly praised as the 8th world wonder, other popular sites located in Shaanxi include Lantian Ape Man, Xi'an Forest of Steles, Wild Goose Pagoda and Huaqing Pool. In addition, there are also glorious landscapes in Shaanxi where Mount Huashan is located.

Source: Shaanxi Statistical Yearbook 2008

Foreign Trade

In 2007, major export markets included the US, the Netherlands and India. Major exports included electrical and processed agricultural products, minerals, textiles and garments, metals and metal products, electrical/mechanical equipment and transport equipment etc.

Major import items were electrical and optical/health equipment, electrical/mechanical equipment and chemical products etc. Major import sources included the US, Japan and Germany.

In 2007, Shaanxi's exports to Hong Kong reached US$180.2 (+22.5%) million, while its imports from Hong Kong amounted to US$ 4.4 million (+26.6%).

Foreign Investment

Over 51.3% of the utilised FDI went to the manufacturing sector. Up to 2007, some 50 of the world's top 500 enterprises have invested in Shaanxi. MNCs in the province include Nisson, Toshiba, Metro, Pepsi, McDonald's, Carrefour, B&Q, Kingway, BP, Cooper and Nestle etc.

FDI in Shaanxi

Source: Shaanxi Statistical Yearbook 2008

Hong Kong is the largest investor in Shaanxi. In 2007, Hong Kong signed 69 projects (-12.7%), with contractual and utilized investment US$1,015 million (+27.4%) and US$448 million (+21.7%) respectively. Towngas, Hutchison Whampoa and Bank of East Asia are examples of Hong Kong companies in Xi'an. Other major investors included the US, Singapore and Japan. Examples of Shaanxi companies listed in Hong Kong include Lijun International, Haisheng Juice, Xi'an Haitian Antenna, Sungreen etc.

Consumer Market

In 2007, retail sales of consumer goods rose by 18.3% to Rmb 180.1 billion with annual per capita disposal income of urban households reached RMB10,763 (+16.1%). The largest consumer centre of Shaanxi is Xian. The city's retail sales accounted for over half of the province's total in 2007.

In big cities, distribution channels are fast maturing. In 2007, there were some 223 chain store enterprises maintaining over 4,500 outlets in the province. Foreign retailers like Carrefour, B&Q and Metro have presence in Xi'an.

In 2007, expenditure on services accounted for 33% of the consumer's budget. Transport and communications, medicine & healthcare services and housing have gained in relative share.

Composition of Per Capita Consumption Expenditure of Urban Household (%)

Source: Shaanxi Statistical Yearbook 2008

Economic Indicators of Major Cities (2007)

* For all state-owned and non-state-owned enterprises with annual sales over RMB 5 million
Source: Shaanxi Statistical Yearbook 2008