Lanzhou Business Guide - Economic Overview

Lanzhou Business Guide - Economic Overview


Vital Statistics (2006)

GDP: RMB 63.8 billion
GDP per Capita: RMB18,022
Economic Growth Rate: 15.0%
Population: 2.04 million (urban) – 1.10 million (rural)
FDI: US$69.7 million
Annual Average Wage: RMB16,960
Government Effectiveness Rating: 86th
2006 Chinese Cities Competitive Rating: 84th

Economic Overview
Among all of the cities dotted along the entire stretch of the Yellow River, Lanzhou is the only one with the river flowing right through the city proper and surrounded by scenic mountain ranges. Lanzhou is a city of strategic importance on the ancient Silk Road and became an important commercial center as early as the Han Dynasty. As a key ethnic representative enclave in China's western region, the city has played an important role in the promotion of cultural exchanges, both in and outside of China.

Located in an area rich in natural resources, with one of the country's largest reserves of ferrous and non-ferrous metals, as well as forming one of the biggest hydro-electric power generating centers in China, Lanzhou is beginning to successfully leverage these resources to become a key industrial base, transportation and communication hub and a center for finance, information, trade, science and technology in Western China.

Combining its rich natural resources and preferential policies under the nation's "Go West"development plan, the city has a solid foundation for sustainable development, offering lower production costs in basic sectors and an excellent supply of raw materials. Lanzhou is now a very attractive destination for both foreign and domestic investment.

In 2006, the Gross Domestic Product (GDP) of Lanzhou was 63.85 billion RMB, up by 12 percent over the previous year. Added value industrial output in the primary sector was 2.8 billion RMB; that of the secondary industries was 29.04 billion RMB; and that of the tertiary industries was 32.54 billion RMB. Its comprehensive economic capacity ranks 94th among all cities in China and 2nd among northwestern Chinese cities, with total fixed capital investment reaching 29.82 billion RMB.



Economic Contribution Ratios by Sector

Composition of GDP (%)

Sector
1995

2000

2006

Primary
5.5
5.3
3.6
Secondary
58.8
46.8
45.5
Tertiary
35.7
47.9
50.9

 
Foreign Trade Overview
Lanzhou's total import/export volume was US$0.788 billion in 2006. Exports totaled US$0.58 billion and import volume was US$0.208 billion. Major export items include mineral products, mechanical and electrical products, textiles and local agricultural products. The city's major trading partners are Hong Kong, Macao, Taiwan, North America, Southeast Asia, Japan and Western Europe.

 

•  Foreign Trade and Cultural Ties
In the course of developing friendly relations with each of its sister cities, Lanzhou encourages and promotes reciprocal visits by governmental leaders to discuss important issues and sign exchange programs. Lanzhou has also sent 54 students abroad on academic exchanges and great progress has been made since they returned in the fields of food storage and processing, livestock breeding, environmental protection, water treatment and medical services.

Besides exchange and cooperation with international cities, Lanzhou has also built up a wide economic and technological cooperation system with cities in China and has domestically twinned with 16 Chinese cities including Nanjing, Fuzhou, Shenyang, Shijiazhuang, Changchun, Hefei, Xining, Yinchuan, and Lhasa.

Foreign sister cities include Akita City in Japan, Ashgabat in Turkmenistan, Albuquerque, New Mexico in the US, and others from Australia, the UK, Russia and Brazil. 
 

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