Xi'an Business Guide - Economic Overview

Xi'an Business Guide - Economic Overview


Vital Statistics (2006)
GDP:  RMB 145 billion
GDP per Capita: RMB 17,794
Economic Growth Rate:  13.0%
Population:  3.72 million (urban) – 4.51 million (rural)
FDI:  US$825 million
Annual Average Wage: RMB 20,316
Government Effectiveness Rating:  57th
2006 Chinese Cities Competitive Rating:  44th 
 
xi'an Business Guide - Economic Overview
Xian, known as Chang'an in ancient times, is one of the nation's most popular tourist attractions. One of the four great ancient capitals of the world during the Tang Dynasty, it now serves as the capital of Shaanxi Province. Present day Xian is an important economic, technological, commerce, trade and cultural center in the vast domain of central and western China .

China's entry into the WTO and the implementation of the Central Government' s "Go West" strategy in 2001, which began the process of large-scale development of the country's western regions, has resulted in an unprecedented opportunity for Xian's current economic rise and renewal. Xian offers foreign investors a unique environment with its inherent advantages in science, technology, education, tourism, commerce and trade, manifested and reflected in both its ancient and modern civilizations, existing industrial bases and its golden location connecting the country's East and West and North to South.

In 2002, Xian was recognized, together with five other Chinese cities- Shanghai, Shenzhen, Tianjin, Suzhou and Wenzhou- as the ''The most innovative and vigorous in the World''  by the United Nations Industrial Development Organization (UNIDO).

In 2006, the Gross Domestic Product (GDP) of Xian was 145 billion RMB, up by 12.3 percent over the previous year and its total investment in fixed assets reached 106.7 billion RMB. Xian is ranked 38th in terms of comprehensive economic strength among all Chinese cities and 44th in the 2006 Chinese Cities Competitive Ratings Survey.

Xi'an's principal strategic industry is IT and high-tech. There are more than 800 high-tech enterprises in Xi'an, and heavyweight firms like Intel, Sybase, SPSS, Fujitsu, NEC, Sorun, and Platform all have a presence in the Xi'an National Hi-tech Industrial Development Zone. Other industries driving Xi'an's growth are equipment manufacturing, tourism, service industries and cultural industries.

Among Xi'an's strategic economic advantages are its highly-trained workforce (with relatively low wage and salary levels), and the presence in the city of some of China's most prestigious universities, with a strong focus on science, technology and engineering.

The city's has ambitious economic development plans: its industrial orientation will encompass four more development zones and two more industrial bases. This will build on the success to date of the city's Economic and Industrial Development Zones. The Xi'an National Hi-tech Industrial Development Zone is already Xi'an's most important economic contributor, and the Xi'an Economic & Technological Development Zone, with its focus on modern manufacturing and hi-tech infrastructure has already attracted investment from major players like Coca Cola, GM, Siemens, Rolls & Royce, Mitsubishi, Volvo and ABB.

Economic Contribution Ratios by Sector
In 2006, the economic contribution ratio of the primary industries, which include agriculture, forestry, animal husbandry and the fisheries, represented 4.9% of GDP; the economic contribution ratio of the secondary and value-added industries and construction represented 42.4%; while the economic contribution ratio of the tertiary sector represented 52.7%.

Composition of GDP (%)

 

2000

2006

Primary

6.7

4.9

Secondary

47.9 

42.4

Tertiary

45.4

52.7

 

 Foreign Trade Overview
In 2006, Xi'an's total import/export volume was US$4.2 billion, with export volume amounting to US$2.7 billion and import volume totaling US$1.4 billion. Major exports include hi-tech products, mechanical and electrical products and fruits. Xi'an's major export trade markets were Europe, the U.S.A and Japan. Imports mainly came from Japan, Germany, Belgium, the U.S.A and Sweden. Xi’an has begun to focus on developing new markets in Russia, Central Asia, the ASEAN region, Latin America and Africa.

 

  1. Foreign Trade and Cultural Ties
    Xi'an has 17 sister cities in 15 countries from around the globe and regularly conducts scientific, academic and cultural exchanges to promote mutual understanding and friendship. The first diplomatic mission; the Royal Thai Consulate settled in Xi’an in 2006 as well.

 List of Xi'an's Sister Cities

Name of City

Country

Date of Establishment

Nara

Japan

Feb., 1, 1974

Kyoto

May, 10, 1974

Funabashi

Nov., 2, 1994

Kyongiu

Korea

Nov., 18, 1994

Katmandu

Nepal

Sept., 12, 1996

Ispahan

Iran

May, 7, 1989

Lahore

Pakistan

June, 20, 1992

Scotia

Turkey

Sept., 8, 1996

Edinburgh

UK

April, 15, 1985

Dortmund

Germany

July, 22, 1992

Pau

France

Sept., 15, 1986

Lasi

Romania

Dec., 6, 1994

Dniepropetrovsk

Ukraine

Oct., 27, 1995

Kansas

USA

April, 29, 1989

Quebec

Canada

May, 11, 2001

Brasilia

Brazil

Nov., 5, 1996

Cordoba

Argentina

March, 11, 2002

 

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