Zhengzhou Business Guide - Economic Overview

Zhengzhou Business Guide - Economic Overview


Vital Statistics (2006)

GDP: RMB200 billion
GDP per Capita: RMB27,798
Economic Growth Rate: 15.7%
Population: 4.36 million (urban) – 2.88 million (rural)
FDI: US$610 million
Annual Average RMBWage: 18,861
Government Effectiveness Rating: 66th
2006 Chinese Cities Competitive Rating: 52nd 
 
Economic Overview
Zhengzhou, the capital of Henan Province, overlooks the mighty Yellow River in the north and is not far from Mt. Song, one of China's five sacred mountains and home to the famed Shaolin Monastery. The city thus provides idyllic scenery and natural charm to go along with Zhengzhou's rich cultural heritage and long history. Zhengzhou is one of the eight ancient capitals of China and an important birthplace of the Chinese nation. The present-day city plays an important role in connecting the country's 4 geographic and economic corners and is a leading central Chinese city with broad market coverage, acclaimed as the "No. 1 test Market in China" for its diverse and developed commerce.

A major agricultural trading center, the city's trade in grain at the Zhengzhou Commodities Exchange influences not only domestic prices, but world prices as well. It is also an important national transportation hub and communication center as well as an important city along the Eurasian Continental Bridge, through which national projects pass, such as the "West-east gas transfer" program and the "South-north water transfer" diversion project. The Long Hai and Jing-Guang railways, two of the country's main rail arteries also converge in Zhengzhou.

Zhengzhou is one of the state's top 60 cities in term of comprehensive strength and a top 40 city in terms of the investment environment. Zhengzhou has won numerous state and international awards including the "National Famous Historical and Cultural City" award, the "Top Tourist City of China" award, the "National Model City for Cleanliness and Tidiness" award and the "National Model City for Supporting Military Work" award.

Zhengzhou experienced sustained and rapid economic growth in 2006, with total industrial output up by 15.7% to 200 billion RMB, with the private sector economy contributing 110 billion RMB of the total and GDP ranked 24th among Chinese cities. The city's investment in fixed assets reached 103.19 billion RMB and the per-capita disposable income of urban residents climbed to 11,822 RMB.

At the end of 2006, there were 4.13 million people enjoying full employment in Zhengzhou, including 1.205 million in the primary sector, 1.278 million in the secondary industries and 1.642 million in the tertiary sector.


Economic Contribution Ratios by Sector

In 2006, the economic contribution ratio of the primary industries including agriculture, forestry, animal husbandry and the fisheries, represented 3.8% of GDP; the economic contribution ratio of the secondary and value-added industries and construction represented 53.5%; while the economic contribution ratio of the tertiary sector represented 42.7%.

Composition of GDP (%) 

Sector

1990

2000

2006

Primary

12.4

5.7

3.8

Secondary

53.7

49.2

53.5

Tertiary

33.9

45.1

42.7


Foreign Trade Overview

Zhengzhou's import and export volume reached US$0.443 billion in 2006, including US$0.185 billion in exports and US$0.258 of total imports. The foreign trade to GDP ratio climbed from 1.6% in 2005 to 2.1% in 2006. Exported products include garments, coal, automobiles and foodstuffs. Zhengzhou's export commodities are sold to countries and regions all over the globe. In 2006, another 32 local enterprises contracted with foreign companies to proceed with joint venture projects in Zhengzhou, accounting for one third of the province's total joint venture projects.

Foreign Trade and Cultural Ties
Zhengzhou has twinned with 9 cities from around the world and has built friendly relationships with mainland powerhouse cities including Wuhan, Xi'an and Guangzhou. In 2006, 232,000 overseas visitors came to Zhengzhou for sightseeing, traveling, business conventions and other cultural exchange activities including 88,000 from Hong Kong, Macao and Taiwan. 
 
List of Zhengzhou's Sister Cities

Country

City

Date

Japan

Urawa

1981.10.12

United States

Richmond

1994.07.15

Romania

Cluj-Napoca

1995.04.07

South Korea

Chinju

2000.06.17

Russia

Samara

2000.08.18

Namibia

Mariental

2001.01.18

Jordan

Irbid

2002.03.05

Brazil

Joinville

2003.04.23

Germany

Schwerin

2006.04.27

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