Xining Business Guide - Economic Overview

Xining Business Guide - Economic Overview


Vital Statistics (2006)

GDP: RMB 28.16 billion
GDP per Capita: RMB 13,326
Economic Growth Rate: 14.5%
Population: 1.27 million (urban) - 0.86 million (rural)
FDI: US$3.69 billion
Annual Average Wage: RMB 20,984
Government Effectiveness Rating: 103rd
2006 Chinese Cities Competitive Rating: 162nd

Economic Overview
Xining is the capital city and center of politics, science and technology, culture, education, transportation and trade in China's Qinghai Province. Its GDP comprises a full one-third of the Province's total and the city now benefits from the country's large-scale development program for the western regions. The city has begun an aggressive transformation and renewal program and is currently expanding its Southern New District.

Xining sits on the Qinghai-Tibetan plateau, an agricultural and pasturing area with mixed Han and Tibetan culture and which throughout ancient times was an important stop along the East-West trade route. Xining has unique and beautiful scenery and many places of interest. Within a 2 hour drive, there is a famous Buddhist monastery known as the ''Taer Lamasery'' where there are precious relics and ancient scrolls of Tibetan scriptures.

The city's GDP has experienced robust growth over the past 6 years with a 12% annual average increase; higher than the national average. In 2006, Xining's GDP reached 28.16 billion RMB, investment in fixed assets reached 14.1 billion RMB and gross retail sales revenues reached RMB 11.95 billion. GDP per capita was 13,326 RMB in 2006, ranking 382nd among 659 Chinese cities.



Economic Contribution Ratios by Sector

In 2006, the economic contribution ratio of the primary industries including agriculture, forestry, animal husbandry and the fisheries represented 4.40% of GDP; the economic contribution ratio of the secondary and value-added industries and construction represented 48.95%; while the economic contribution ratio of the tertiary sector represented 46.65%.

Composition of GDP (%)

Sector 1995 2000 2006
Primary 12.37 7.96 4.40
Secondary 52.53 39.05 48.95
Tertiary 35.10 52.99 46.65


Foreign Trade Overview

In 2006, Xining's total import/export volume amounted to US$584.80 million including US$90.31 million worth of imports and US$494.49 million in exports, resulting in a trade surplus of US$404.18 million. Main exports include ferrosilicon, machine tools, cotton, yarn, carpets, glue and cutlery. Xining mainly exports to Asian countries, but has trade relationships with over 50 nations and regions. Japan, South Korea, the US, Hong Kong and Taiwan are the main export markets for Xining. Imports mainly come from Australia and the EU.

Foreign Trade and Cultural Ties
Xining holds a series of important festivals throughout the year to help strengthen investment and cultural ties, including the ''Tulip Festival'', the ''Qinghai Economic Conference'', the ''Tibetan Blanket Exhibition'', the ''Qinghai Lake International Road Race'' and the ''Qinghai Cultural Tourism Festival.'' These events attract increasingly more domestic and foreign visitors to Xining to travel and to make investment decisions. Xining has established sister-city relationships with cities in South Korea, Japan and Russia, as well as domestic cities including Shanghai, Jinan and Shenyang.

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