Profiles of China Provinces, Cities and Industrial Parks

Major Economic Indicators

Notes:     ¹ In real terms  ² For all state-owned enterprises and other forms with annual sales over RMB 5 million
               ³ Jan-Jun 2011  ⁴ Jan-Jul 2011
Sources: Zhejiang Statistical Yearbook 2011, Zhejiang Statistical Bureau, China’s Customs Statistics, 12.2010, 8.2011

General Background

Zhejiang has a total area of 104,116 square kilometers. Its total resident population stood at 54.4 million in 2010.

The northeastern Zhejiang area is part of the Yangtze River Delta metropolitan region（長江三角洲大都市圈）and is the province’s economic hub, whose GDP reached RMB1815.4 billion, accounting for 65.5% of the total in 2010. It covers 6 cities — Hangzhou（杭州）, Ningbo（寧波）, Jiaxing（嘉興）, Huzhou（湖州）, Shaoxing（紹興）, Zhoushan（舟山）.

Future economic development in Zhejiang will cluster in three economic belts: (1) from Beilun to Ningbo and cities along the Shanghai – Hangzhou - Ningbo Expressway, including Shaoxing, Jiaxing and Huzhou; (2) coastal cities of Wenzhou; (3) along the Zhejiang – Jiangxi, Wenzhou-Taizhou railways.

Zhejiang’s private sector has developed very quickly. The total number of private enterprises reached 684 thousand as of June 2011, compared to 406 thousand in 2006.  Private enterprises accounted for 41% of the province’s total value-added industrial output in 2010.

Industries

Composition of GDP (%)

Source: Zhejiang Statistical Yearbook 2011

Light industries play an important role in the province’s industrial sector. In 2010, the value-added of light industries was Rmb444.3 billion, accounting for 42.7% of the total. The labor intensive industries, namely textiles and products for culture and education etc. have predominant advantages.

Famous products include garment and textiles (esp. socks and ties), chemical fiber, leather products, wooden furniture, toys, household appliances and paper etc. Many famous national brands have emerged e.g. Wahaha（娃哈哈）, Youngor（雅戈爾）, Auxgroup（奧克斯） etc. Zhejiang’s output of a number of products, including chemical fibre, cloth, paper boards, cement, chemical pesticide and ICs ranked among the highest in the country.

Since 2000, heavy industries such as electrical equipment and machinery, raw chemical materials and chemical products etc. have developed rapidly, and the value-added of heavy industries accounted for 59.3% of the total output in 2010.

Gross Industrial Output Share of Leading Industry Groups (2010)

Source: Zhejiang Statistical Yearbook 2011

The Hangzhou Bay area（環杭州灣）is an important IT industry base after Beijing and Shanghai. The province is also aiming at speeding up the development of other hi-tech industries, in particular, biotechnology, medicine, new materials and other related industries.

Tourism

Zhejiang has a beautiful landscape with 14 state level scenic areas, including the West Lake（西湖）, Putuo Mountain (普陀山), Double Dragon Cave（雙龍洞）. In 2010, Zhejiang received 295 million (+20.9%) domestic tourists with a tourism receipt of RMB304.6billion (+25.7%) and 6.8 million (+20.0%) overseas tourists with foreign exchange revenue of US$3930 million (+21.9%).

Foreign Trade

Foreign trade grew significantly in the last few years. In 2010, the value of exports and imports increased 6.9 times and 6.4 times respectively from 2001. Major export markets include the US, Japan and Germany. Exports to Hong Kong amounted to US$6443.9million in 2010.

Major export items included electrical and mechanical products (43.8% of total), garments and related products (13.8% of total), textiles and related products, and other high-tech products.

Major importing sources include Japan, Taiwan and South Korea. Major import items included electrical and mechanical products 22.3% of total), high-tech products, plastics in primary forms and farm products.

Foreign Investment

FDI in Zhejiang

Source: Zhejiang Statistical Yearbook, 2011

Hong Kong is the largest source of FDI in Zhejiang. In 2010, Hong Kong investors signed 991projects with contracted investment amount of US$14.2 billion, utilized investment amount of US$7.3 (+25.4%) billion. Hong Kong investments in Zhejiang are mainly in property and infrastructure development, logistics and manufacturing industries like textiles and petrochemicals.

Examples of Hong Kong companies in Zhejiang include The Hong Kong and China Gas Co. (natural gas pipeline and piped-gas), New World Services Holdings (Water Plant), Hutchison Whampoa (Container Terminal), Shui On Land and Shui On Properties (property project) etc.  Examples of Zhejiang companies listed in Hong Kong include Zhejiang Expressway Co Ltd, Zhejiang Glass Co Ltd, Geely Holding Group, Bao Ye Group etc.

Other major investors (in terms of utilized capital) came from Virgin Islands, the US, Japan, Singapore and Taiwan. MNCs that have invested in Zhejiang include Motorola, Toshiba, and Siemens etc.

Encouraged sectors for foreign investment include synthetic materials, petrochemical, new building materials, communications, bio-engineering, agricultural-processing, new & hi-technology, as well as some under-developed tertiary industries.

Consumer Market

In 2010, Zhejiang's retail sales of consumer goods reached RMB 1016.3billion. Per capita disposal income of urban household reached RMB27359 (+6.9%).

Composition of Per Capita Expenditure of Urban Household (%)

Source: Zhejiang Statistical Yearbook 2011

Major consumer markets are located in Hangzhou, Ningbo, Wenzhou, Shaoxing, Taizhou and Jiaxing.  Various forms of modern operation such as chain stores, supermarkets and convenience stores are growing fast. Yiwu China Commodity City is the No.1 professional market for small commodities in China, and a famous international purchasing base, where UN has set up its own purchasing centre.

Economic Indicators of Major Cities (2010)

¹ For all state-owned and other forms of enterprises with annual sales over RMB 5 million
Source: Zhejiang Statistical Yearbook 2011