Dalian Business Guide - Economic Overview

Dalian Business Guide - Economic Overview

Vital Statistics (2006)
GDP: RMB256.9 billion
GDP per Capita:  RMB 42,579
Economic Growth Rate: 16.4%
Population:  3.29 million (urban)-2.43 million (rural)
FDI:  US$2.24 billion
Annual Average Wage:  RMB 19,719
Government Effectiveness Rating:  17th
2006 Chinese Cities Competitive Rating:  17th 
 
Economic Overview
Dalian is the center of foreign trade in Liaoning Province as well as the second largest international commercial harbor in China. It is one of those rare cities that blend the look of a major metropolitan hub and the mindset of an island resort. The Dalian Municipal Government strives to provide the best business and living environments for foreign businesspeople and foreign enterprises. At the beginning of the new century, Dalian was recognized by economists as one of the five internationalized Chinese cities, together with Hong Kong, Beijing, Shanghai and Guangzhou.

Dalian is one of the top five cities in China in terms of concentration of overseas representation. More than 1900 representative offices and agencies have been set up in Dalian by overseas companies and there are eight overseas banks, as well as six foreign financial institutions. The city hosts a number of important international events each year including the Dalian International Fashion Festival, the Dalian Export Commodities Fair and the Dalian International Marathon. Business organizations and governmental conferences and conventions are also held frequently in Dalian; for example, the "WTO Informal Ministerial Meeting" and the "Korean Key Industrial Parks Investment Conference". In 2005, the city hosted more than 400 important economic and trade delegations and over 100 thousand businesspeople from over 70 countries and regions around the world.

Dalian's average GDP growth has been consistently over 10%. In 2006, the gross domestic product (GDP) of Dalian reached 256.97 billion RMB, up 16.5% from the previous year. Per capita GDP reached 42,579 RMB, ranking No.1 among all cities in Northeast China. 80% of all export cargo from northeast China is handled through the Dalian Port, while the total investment in fixed assets reached 146.95 billion RMB, up 32.3% from the year 2005.

Economic Contribution Ratios by Sector
In 2006, the economic contribution ratios of the primary, secondary and tertiary sectors in Dalian were as follows: agriculture, forestry, animal husbandry and the fisheries contributed 5.6%, the secondary, value added and construction industries ratio was 57% while the tertiary sector contributed 37.4% to the city's economy.

Foreign Trade Overview
Dalian has been an international sea port supporting commerce and tourism from Japan, Korea, and other Asian regions for over a century. In 1985, the city was authorized by the State Council to become a preferred economic zone and now enjoys direct provincial-level decision-making authority. Products from Dalian are exported to 170 nations and regions worldwide and the city's total import and export volume reached US$23.52 billion in 2005, an increase of 21% over the previous year. The value of imports was US$11.09 billion, an increase of 19.5% and exports reached US$12.44 billion, an increase of 22.5%.

Foreign Trade and Cultural Ties
Dalian has entered sister-city relations with 18 cities in fourteen countries including Japan, the Republic of Korea, the United States, Canada, Germany, France, the United Kingdom, Italy, Australia, Russia, the Ukraine, Macedonia, Cuba and the Congo. Dalian's major foreign investors are mostly from Asian countries, which account for 70% of the foreign investment in Dalian with the greatest number coming from Japan.
 

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