Major Economic indicators (2007)

Source: Lu'an Economic and Social Development Report 2007

Introduction

Lu'an lies in the western part of Anhui Province, on the northern foot of the Dabie Mountain. It borders the provincial capital Hefei to the east, Anqing to the south, Xinyang of Henan Province to the west, and Huainan and Fuyang to the north. Covering an area of 17,976 sq km, it is the largest city in Anhui.

Located in the transition area between the subtropical zone and the warm temperate zone, the city enjoys a moderate climate with average temperature around 15-16 Celsius. Lu'an has plentiful agricultural products, such as crops, tea, vegetables and geese. It also has abundant mineral resources, such as iron ore, natural gas, marble and quartz. Huoqiu Zhouji Iron Ore Field, the fifth largest iron ore field in China, consists of 9 iron ore deposits and has proven iron ore reserve of 1.65 billion.

Lu'an has a well-established traffic infrastructure. State Highway 312, State Highway 206 and State Highway 104 make the city easily accessible by highway, while the Hefei-Jiujiang railway and the Nanjing-Xi'an Railway connect the city with major cities along the railways. Hefei Luogang Airport, situated within one hour's drive from Lu'an, provides another option for reaching the city.

Economic Features

The GDP of Lu'an reached RMB 43.9 billion in 2007, ranking seventh out of 17 in Anhui Province. The city's economy witnessed a growth of 15.2%, 1.2% higher than in the previous year. The service sector, which accounted for 38.4% of the city's GDP, is the largest contributor to the city's economy.

The city is a major agricultural producer and supplier in Anhui Province. In 2007, the value-added industrial output from the city rose 7.2% year on year to RMB 11.2 billion, comprising 25.5% of the city's GDP. The city produced 4.4 million tons of crops and 0.2 million tons of oil plants, accounting for 15.3%, 9.1% of Anhui Province's total crop and oil plant output, respectively.

The secondary sector generated value-added output of RMB 15.9 billion in 2007, accounting for 33.8% of the city's GDP. The value-added industrial output from enterprises with designated size and above soared 42.5% to RMB 9.5 billion, for which heavy industry and light industry accounted 54.5% and 45.4%, respectively. Though the city's industrial sector is growing quickly, it still lags behind other large cities in Anhui Province. It lacks large competitive companies and listed companies.

Metallurgy, machinery, electricity and power production and supply and chemicals are the pillar industries in the city. Rich iron ore resources make the city a large iron ore mining base in Anhui. In 2007, the iron ore output in the city exceeded 6 million tons, ranking second in Anhui after Maanshan. Other major industrial products include electricity, fertilizer and tractors.

The city has a booming consumer market. In 2007, the sales of consumer goods rose 18.0% year on year to RMB 16.1 billion, making up 6.7% of Anhui's total. The city attracted nearly 4 million tourists in 2007, which brought a total tourism income of RMB 2 billion.

The foreign trade value saw a steady growth. In 2007, the total foreign trade value amounted to US$250 million, representing a rise of 24.2% year on year. The export value hit US$230 million, up 20.0% year on year, while the import value was US$20 million, up 150% year on year. The export value of mechanical and electronic products soared 39.5% year on year to US$33.1 million, comprising 14.4% of the city's total export value. North America is the city's major export destination. Exports to this region reached US$85.8 million, accounting for 36.8% of the city's total export value.

In 2007, the utilized FDI in the city stood at US$57.9 million, with a sharp rise of 66.3% year on year. The manufacturing sector and the real estate sector attracted 63.7% and 6.8% of the total utilized FDI in the city.

Cultural Highlights

Lu'an has a long history. During the Spring-and-Autumn Period and the Warring States Period, the region belonged to Jiujiang Shire, which was under the control of Chu State. It has been called Lu'an since 121BC, during the Han Dynasty. The city is home to Lu Opera, a kind of traditional opera, and reveres Gao Tao, the son of Huang Di, whose judicial activity and legal thoughts deeply influenced ancient legal culture in China.

Tourist Attractions

Tian Tang Zhai, also know as the stockaded village of paradise, is the most popular tourist attraction in Lu'an. The village's lands contain a vast forest park and a national nature reserve. The higheast peak in the area is Tiantang Ding (paradise peak), which is also the highest peak in the Dabie Mountains. Tian Tang Zhai is famous for its waterfalls. There are over 100 waterfalls in this area. The most famous one is called the Plunging Waterfall. Other scenic spots in Liu'an include the Bao'en Temple and Ancient City Wall of Shouyang County.

Liu'an is well-known for marinated dishes such as marinated ribs, marinated beef and marinated duck. It also has diverse flavored snacks, such as Steaming Paozi (a kind of flour food stuffed with vegetables and meat), Salt Bean-curd Slice and Pork Noodles.