Taiyuan Business Guide - Economic Overview

Taiyuan Business Guide - Economic Overview


Vital Statistics (2006)

GDP: RMB 101.3 billion
GDP per Capita: RMB 29,497
Economic Growth Rate: 11.5%
Population: 2.79 million (urban) – 0.65 million (rural)
FDI: US$138 million
Annual Average Wage: RMB21, 424
Government Effectiveness Rating: 97th
2006 Chinese Cities Competitive Rating: 64th

Economic Overview
Taiyuan, nicknamed the "home of coal and iron" because of its rich natural resources, is located in the Taiyuan Basin in the central part of Shanxi Province. The city borders on the Taihang Mountains to the east and the Luliang Mountains to the west, while the Fenhe River flows through the city providing an idyllic natural setting.

Taiyuan has experienced a sustained period of rapid economic growth and in 2006 the gross domestic product of the city totaled 101.3 billion RMB, up 11.5 percent over the previous year. The industrial output of Taiyuan's secondary and tertiary industries increased by 10.5% and 13.2% respectively in 2006 and these figures were higher than the average figures of the Province and the entire nation. Per capita GDP in Taiyuan reached 21,424 RMB in 2006.

Taiyuan's GDP ranks 63rd among all Chinese cities and its investment in fixed assets reached 50.11 billion RMB for 2006, representing an increase of 17.8 percent over the previous year. There are 1.66 million people in Taiyuan's highly skilled workforce.

Since the first five year planning period of "new" China, Taiyuan has been a key city for central government investment and is also one of the Chinese space program's key satellite launching areas and home to the Taiyuan Satellite Launch Center. A key military city throughout ancient times, Taiyuan was the place of many dynastic battles and remains a bastion of military and cultural heritage.



Economic Contribution Ratios by Sector
In 2006, the economic contribution ratio of the primary industries including agriculture, forestry, animal husbandry and the fisheries, represented 1.9% of GDP; the economic contribution ratio of the secondary and value-added industries and construction represented 46.9%; while the economic contribution ratio of the tertiary sector represented 51.2%.

                                                  Composition of GDP (%)

Sector

2000

2004

2006

Primary

9.7

3.0

1.9

Secondary

46.5

55.0

46.9

Tertiary

43.8

42.0

51.2

Foreign Trade Overview
The number of import and export enterprises in Taiyuan has increased to 400 with a total annual trade volume of US$4.11 billion, of which US$2.43 billion came from exports mainly comprised of coal, coke, stainless steel, magnesium, electromechanical products, aluminum, active-carbon and sports equipment shipped to 166 different countries and regions around the globe.

Taiyuan exported US$350 million in coal, US$454 million of coke, US$183 million worth of magnesium and US$446 million of stainless steel. The export of electromechanical products accounted for 17.7% of total exports, with volume of US$428 million including products such as machine parts, data processing equipments (up 60.9%), hand-held wireless telephone sets (up 269.5%) and axles for railcars and locomotives (up316.2%).

Exports to South Korea, Japan, Germany, the US, India, Australia, Belgium, Brazil, Russia and Taiwan accounted for 70% of total exports.

Foreign Trade and Cultural Ties
By June 2007, Taiyuan had twinned with 11 foreign cities, which include the city of Douala in Cameroun, Chemnitz in Germany, Saratov and Syktyvkar in Russia, Launceston in Australia, Himeji in Japan, Newcastle upon Tyne in the United Kingdom, Nashville and Lubbock in the United States, Zululand in South Africa and Lyon Villeurbanne in France.
 

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