| Market Profiles on Chinese Cities and Provinces |
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12.2007 HUBEI PROVINCEMajor Economic Indicators
Notes: 1 In real terms 2 For all state-owned enterprises and other forms with annual sales over RMB5 million General Background Hubei has a total area of 185,900 square kilometers. Total population stood at 56.9 million in 2006. The fertile Jianghan Plain in the province is one of the major agriculture and aquaculture bases in China, producing grain, cotton, oil-bearing crops, fishes and vegetables. The province is also very rich in mineral resources. Deposits of phosphate, salt, silica, garnet and marlstone are among the highest in China. Wuhan, the capital city of Hubei, is historically a trading hub reaching out to provinces in central China. Now, it is a major commerce, distribution and transport center on the Yangtze River waterway. Many of China's rail lines go through Wuhan. According to Hubei's 11th 5-Year Plan, it will focus on the development of hi-tech industries like telecom, biotech and optical electronics, as well as further development of existing pillar industries of auto, steel and petrochemicals. Traditional industries like textiles will be upgraded. Industries In the past two decades, tertiary sector was the most fast-growing sector, whose share in GDP expanded from 18.3% in 1980 to 40.6% in 2006. Composition of GDP (%)
Source: Hubei Statistical Yearbook 2007 The province has developed into an important industrial production base. Major industries include metallurgy, automobiles, chemicals and construction materials, foodstuff, machine-building, textiles, electronics and ship-building. Hubei's abundant supply of hydroelectricity (Three Gorges Project) is conducive to heavy industry, which accounted for 71.4% of the total value-added of industrial output in 2006. Value-added Share of Leading Industry Groups (2006)
Source: Hubei Statistical Yearbook 2007 Hubei has formed a relatively comprehensive iron and steel industry production chain including geological prospecting, designing, construction, mining, separation, smelting, rolling. The Wuhan Iron and Steel Corp. is one of the most famous steel giants in China. Hubei is an important base of auto production in China. Hong Kong listed Dongfeng Motor Corp. and Aeolux Automotive Co. are the two key players, especially in western China. Hubei's output of motor vehicles accounted for 7.5% of the national total in 2006. The concentration of automakers has also led to the development of the auto parts industry. Hundreds of auto parts manufacturers, local or foreign, have emerged in Wuhan. The textiles and garment industry has developed into a comprehensive range of products including cotton textiles, wool textiles, linen textiles, knitting, silk textiles, printing and dyeing, chemical fiber, fabric material processing. It has successfully undergone a transformation, from concentrating on clothes to diversifying into intermediate products, e.g. coverings used by auto interiors. In recent years, new and hi-tech industries have shown rapid growth. In 2006, value-added of hi-tech industry reached RMB68.2 billion, an increase of 26% from 2005. A national laboratory in optical electronics was established in Wuhan, and is expected to make the city a national center in optical electronics and laser products. Tourism Hubei is rich in tourism resources. The famous Three Gorges takes the lead in the top 10 famous places of interest in China. Mount Wudang, Yellow Crane Tower and Jinzhou Ancient City are all renowned places for tourists.
Source: Hubei Statistical Yearbook 2007 Foreign Trade Major exports included textile, garment, machinery, electronic component and device and medicinal raw material. Major export markets included the US, Hong Kong and South Korea. Major imports included synthetic fiber, machinery, chemicals and pharmaceutical raw material, electronic equipment and instrument, ferrous and non-ferrous metal. Major import sources included Japan, France and Germany. Foreign Direct Investment Foreign investments mainly involved in the sectors of manufacturing (in particular chemicals, transport equipment and food and beverage production and processing etc), real estate and construction. Multi-national enterprises such as Coca-Cola, McDonald, Siemens, Philips and NEC have invested in Hubei. FDI in Hubei
Source: Hubei Statistical Yearbook 2007 Wuhan is the major destination of FDI in Hubei. In 2006, the cityˇ¦s utilized foreign investment amounted to US$2 billion. Besides Hong Kong, France is another major investor in the city. French investment in Wuhan mainly engaged in automobile industry. Famous enterprises include PSA Peugeot-Citroen, Renault, Carrefour, Societe Generale and the Total-Elf Group. Consumer Market In 2006, retail sales of consumer goods in Hubei rose by 15.1% to RMB341.2 billion and per capita disposable income of urban households reached RMB9,803 (+11.6%). Composition of Per Capita Expenditure of Urban Household (%)
Source: Hubei Statistical Yearbook 1997, 2007 Wuhan has been a major distribution center in central China. It attracts a number of domestic and foreign retail enterprises to invest there in order to tap the market potential of the region. For instance, Jiali Mall of Hong Kong's Luks Industrial, New World Shopping Arcade of New World Development Group and Wuhan Mall of Tak Shun Group. Shanghai Commercial City from Shanghai and Wangfujing Department Store from Beijing have also set up their branches in Wuhan. Major local retail enterprises in Wuhan include Wuhan Department Store, Wuhan Zhongnan Commercial Group, Wuhan Hanshang Group, Wuhan Zhongxing Department Store, Wuhan Yamao Shopping Center. Economic Indicators of Major Cities (2006)
Notes: # For all state-owned enterprises and other forms with annual sales over RMB 5 million | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
