Yinchuan Business Guide - Economic Overview

Yinchuan Business Guide - Economic Overview

Vital Statistics (2006)
GDP: RMB33.5 billion
GDP per Capita: RMB 23,506
Economic Growth Rate: 13.4%
Population: 866.7 thousand (urban) 539.3 thousand (rural)
FDI: US$32.34 million
Annual Average Wage: RMB 23,226
Government Effectiveness Rating: N/A
2006 Chinese Cities Competitive Rating : N/A

Economic Overview

Yinchuan, the capital city of the Ningxia Hui Autonomous Region, is a national historic and cultural city with a history of over 1300 years. There are 3 districts, 2 counties and 1 city under the jurisdiction of the Yinchuan Municipal Government. Compared with the eastern cities in China, Yinchuan has a large gap to make up in its economic development. It is one of the few capital cities not listed in China's TOP 50 for comprehensive capacity.

The city's GDP in 2006 was 33.53 billion RMB, with investment in fixed assets of 23.29 billion RMB, local fiscal revenue of 2.95 billion RMB, disposable income per capita of urban residents of 10,068 RMB and net income per capita of rural residents of only 3,800 RMB.

However, Yinchuan is an excellent city for tourism in China, with its distinctive Hui style. The West Xia Imperial Tombs are scattered at the east foot of the Helan Mountain and are known as the ''Oriental Pyramids'' by visitors from foreign countries. Other scenic spots and sites include the China Western Film Production Bas, ancient Great Wall and the Shuidonggou Relics Site. Natural scenic spots include the Helan Mountain, Suyukou Forest Park, the Yellow River, the Hengcheng Ancient Ferry in the east, Shahu Lake (56 km away from Yinchuan) and the reed marshes in the south. The city also has historic and religious architecture such as the Haibao Pagoda, the Chentian Pagoda, the Drum Tower and the Nanguan Mosque.
 
At present, Yinchuan has entered a newly robust period in its economic development and has been selected as a key economic development city in the nation's West. In 2006, the city's GDP saw growth of 13.4% from the previous year and GDP per capita was 23,506 RMB, up by 10.6%.



Economic Contribution Ratios by Sector
In 2006, the economic contribution ratio of the primary industries including agriculture, forestry, animal husbandry and the fisheries, represented 6.6% of GDP; the economic contribution ratio of the secondary and value-added industries and construction represented 46.1%; while the economic contribution ratio of the tertiary sector represented 47.3%.

Composition of GDP (%)
 

Sector 1978 2001 2006
Primary 20.7 10.4 6.6
Secondary 53.0 41.3 46.1
Tertiary 26.3 48.3 47.3

Foreign Trade Overview
In the past five years, Yinchuan's foreign trade has experienced rapid growth. From 2002 to 2006, Yinchuan had US$2.06 billion in imports and exports, annual average increases of 15.9%. The number of export enterprises has increased to nearly 300, with the export market expanded to 110 countries and regions including the US, Japan and Hong Kong. Export commodities are mainly bearings, motor tyres, tetracycline, dicyanodiamide, activated carbon, pure aluminum, ferrosilicon and magnesium. In 2006, the total value of imports and exports was US$892 million, up by 69.7% from the previous year including US$608 million in exports, up by 51.1% and US$284 million in imports, up by 130%. 

Foreign Trade and Cultural Ties
In recent years, Yinchuan has held various trade and economic activities in its four sister cities, promoting trade and economic activities of Yinchuan enterprises such as Ningxia Yinhu Alcohol, Chen Lao Da Pickles, the Xinyue Construction Company and the Yinchuan Tiefa Coal Industry Group. It has joined in large-scale trade and economic activities such as the ''Bishkek International Commodity Fair'', the''Ulan Bator International Commodity Fair'', the ''Hong Kong International Tourism Fair'' and the ''Sino-Saudi Arabia Trade and Economic Cooperation and Investment Promotion Fair''. 

Yinchuan's Sister Cities

Nation City Date
Republic of Kyrgyzstan Bishkek 2000.05.23
Mongolia Ulan Bator 2003.09.03
Japan Matsue 2004.09.24
Namibia Uutapi 2005.08.11

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