Hefei Business Guide - Economic Overview

Hefei Business Guide - Economic Overview


Vital Statistics (2006)

GDP: RMB107.4 billion
GDP per Capita: RMB 23,205
Economic Growth Rate: 17.5%
Population: 1.96 million (urban) – 2.74 million (rural)
FDI: US$722 million
Annual Average Wage: RMB 21,905
Government Effectiveness Rating: 38th
2006 Chinese Cities Competitive Rating: 35th
 

Economic Overview
Hefei, the capital of Anhui Province, is well-known as one of China's greenest cities and as an important base for science and education in China. It was first officially established as a county during the reign of Emperor Ying in the Qin Dynasty. The city is also called "Luzhou", because it was the seat of the government of Luzhou in the Qing and Ming dynasties. Historically, Hefei has always been a commerce and trade center of national importance.

Hefei became one of the national top 50 cities in terms of comprehensive strength in 1992 and by 1994 the State Council confirmed that the Hefei National High and New Technology Industrial Development Zone would be one of the industrial parks to be opened to APEC countries in 1997. In 2002, Hefei became one of the national pilot cities for urban IT development.

Hefei is also a city of light industry, with many well-known domestic brands. The city has racked up a number of awards and designations including "national garden city", "national sanitary city" and "national class A city". Hefei was one of the top Chinese cities in terms of greatest investment value and investment potential in the eye of multi-national enterprises in 2006, one of the best commercial cities in mainland China and one of the best investment cities according to a report by the Zhejiang Entrepreneurs Association in 2006.

In 2006, Hefei's GDP reached a new record high of 107.39 billion RMB, up by 17.5%. The city's total investment in fixed assets was 82.48 billion RMB and fiscal revenue was 16.78 billion RMB.



Economic Contribution Ratios by Sector

In 2006, the economic contribution ratio of the primary industries including agriculture, forestry, animal husbandry and the fisheries, represented 5.75% of GDP; the economic contribution ratio of the secondary and value-added industries and construction represented 47.55%; while the economic contribution ratio of the tertiary sector represented 46.70%.
Composition of GDP (%)

Sector 1990 2000 2006
Primary 28.72 11.40 5.75
Secondary 45.31 46.82 47.55
Tertiary 28.97 39.98 46.70

Foreign Trade Overview
In 2006, Hefei's total volume of import and exports totaled US$4.88 billion including US$3.41 billion in exports and US$1.47 billion in imports. Hefei has trade relationships with over 130 nations. Exports are mainly electromechanical products, and also textiles, clothes, food and plastic products. Top destinations of exports are the US, the EU, ASEAN, Japan and South Korea, which account for 60% of all exports. Imported products are mainly electromechanical products such as machine tools, internal combustion engines, paper-making machinery and metering devices.

Foreign Trade and Cultural Ties
Hefei has established friendly city relations with 10 cities from 10 nations. In October 2006, Hefei held a cultural and art festival for its international sister cities, which promoted friendship, boosted economic and cultural development, as well as expanding the city's international image.

Hefei's Sister Cities
 

Nation City Date
Japan Kurume 1980.05.20
Sierra Leone Freetown 1984.03.20
Burundi Bujumbura 1986.07.07
U.S. Columbus 1988.11.17
Denmark Alborg 1989.04.22
Spain Lleida 1998.04 .04
S. Korea Wonju 2002.06.20
Australia Darebin 2003.10.29
U.K. Belfast 2005.06.13
Germany Osnabrueck 2006.06.05

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