GUANGXI ZHUANG AUTONOMOUS REGION

General Background

 

Guangxi Zhuang Autonomous Region - abbreviated as Gui - is situated at the west of Guangdong province on the coast of the Beibu Gulf.  Since Guangxi is the only western province that has a coastline, it assumes a very important role in the Western Region Development Program, especially as a major sea port for imports and exports.

The population of ethnic minorities accounts for nearly 40% of its total population.  Major ethnic groups include the Zhuang, Yao, Miao, Hui, Yi and Shui.

The region's capital is Nanning. In 1985, most coastal counties and towns in Guangxi were designated by the State as open regions to foreign investors and enjoyed favorable economic policies. The open regions cover Liuzhou, Guilin, Beihai, Wuzhou, Fangcheng, Qinzhou, Guigang, Taipu, Cangwu and Yulin. In addition, the State further opened two border cities, Pingxiang and Dongxing, in 1992.

Guangxi is rich in natural resources.  With 96 kinds of mineral deposits found, including the largest deposits of tin, manganese and Indium in the country, the region has emerged as a major nonferrous metal production base. Guangxi also has the largest reserve of lime. Besides, Guangxi is also rich in timber and forestry resources.

With a sub-tropical climate and fertile soil, Guangxi produces a large number of cash crops, including sugarcane, palm-oil seeds, bananas, pineapple and rosin. Among them, output of sugarcane and fruits is the largest in the country.

The Beibu Bay is one of the most important tropical fishing grounds in China, abundant aquatic produces such as shrimp, shell fish, squid, pearl, and oyster can be found along its 1,595 km-long coastal line. Beihai and Hepu are Guangxi's major fishing ports which are favorable for breeding seafood produces. Guangxi also produces some of the best pearls in the world. 

 

Infrastructure

 

Water Transport Beihai, Qinzhou and Fangcheng are Guangxi's major ports with more than 23 berths for 10,000-tons vessels.  Inland river ports such as Nanning, Wuzhou and Guigang are also significant in the region.  Guangxi has plans to build eight new berths for 10,000-ton ships in Beihai to increase its total handling capacity to 20 million tons upon completion. Moreover, the No.9 and No.10 Berths of the Fangcheng Port, as well as the second-phase of the Xijiang Sailing Project are under construction. By end-2000 Guangxi had more than 30 deep-water berths with an annual handling capacity over 25 million tons. At present, it takes about three days for vessels to sail from Fangcheng and Wuzhou to Hong Kong.

Railways Major railways in Guangxi include Xianggui lineHunan-Guangxi, Qiangui lineGuizhou-Guangxi, Nankun lineNanning-Kunming, Lizhan lineLitang-Zhanjiang, Zhiliu linePanzhihua-Liuzhou, Jiaoliu lineJiaozuo-Liuzhou, Qinbei lineQinzhou-Beihaiand Liqin lineLitang-Qinzhou.  Moreover, the three major ports in the region are connected by the Nanning-Fangcheng line and the Qinzhou- Beihai line.

Highways Nanning, Liuzhou and Guilin are the land transportation hubs in Guangxi. Major expressways crossing Guangxi include the Guilin-Beihai Expressway, include the Liugui ExpresswayLiuzhou-Guilin, Nanliu ExpresswayNanning-Liuzhou, Liangjiang ExpresswayGuilin's Downtown-Guilin's Liangjiang International Airport.  New expressways, including Liuzhai-Jingcheng-Nanning Expressway and Nanning-Beihai Expressway, Nanning-Wuzhou Highways and Nanning-Pingguo Highways, Shuiren- Nanning Expressway are under construction or being planned.

Recently, the region has opened a transport route for passenger linking Pingxiang port with Lang Son in Vietnam.  The opening of the transport route will help boost Sino-Vietnamese border trade and tourism.  Besides, Guangxi also plans to open a water-land transport route for passenger from Nanning to Vinh Ha Long in Vietnam.

To cope with the Western Region Development Strategy, the Guangxi government will expedite construction of highways within the region that forms an integral part of the Southwest Sea Passage Expressway. The government is expecting that within 5 years, the frame of the Southwest Sea Passage Expressway should be compeleted, making it the most convenient passage for the Southwestern provinces including Chongqing and Sichuan to access the sea.

Air Transport 5 airports are located in Guilin, Nanning, Liuzhou, Beihai and Wuzhou. The Guilin Liangjiang International Airport which opened to traffic in May 1997 offers direct flights to both domestic and international destinations. The airport has opened two international air routes - Fukuoka in Japan and Seoul.  Guangxi now offers more than 100 domestic and international air routes.

Telecommunications The region has invested heavily in telecommunication in recent decade.  By 1999, mobile phone subscribers in Guangxi reached 746 thousand and the popularization rate was 1.6 mobile phones for every 100 persons.

Electricity By end-2000, Guangxi had an installed power-generating capacity of 28.3 billion kWh.   Construction of Longtan Hydropower Plant on Hongshui River is well on its way. The plant will have an installed generating capacity of 4.2 million kWh upon completion and for long term, it will have 5.4 million kWh.  This big project will be second only after the Three Gorges Water Control Project on the Yangtze River in terms of installed generating capacity. The constructions of the Qinzhou natural gas power plant and Baise hydro power plant are also well underway.

 

Industries

 

In 2000, Guangxi's industrial output reached Rmb99.3 billion and industries are mainly located in Liuzhou, Nanning, Wuzhou, Guilin and Beihai.  Pillar industries in the region include sugarcane and food processing, nonferrous metal, automobiles and machinery. Guangxi has the countryˇs largest aluminum production base, the Pingguo Aluminum Manufacture, which is also the largest in Asia . Guangxi is the largest sugarcane production base in China.  Total outputs of sugarcane accounted for 39% of the country's total reaching 32.2 million tons in 1999. 

Machinery industry is significant in Guangxi.  It comprises automobiles, heavy mining machinery, electrical & electronics, instruments & apparatus, standard parts and components, packing machinery, metal components, agricultural machinery, shipbuilding machinery, craning machinery. The Liuzhou Engineering Machine Shareholding Company is the largest engineering machine producer in China. Guangxi Yuchai Machine Shareholding Company manufactures the largest number of internal combustion engines. The province also has a strong chemical industry. It is the largest turpentine producer in China.

Guangxiˇs light industry is also well developed. Liuzhou Cement Factory is the largest cement producer in China (China is the largest cement producer in the world).

In recent years, Guangxi has successfully promoted many brandnames including Liuzhou's "Wuling Light Automobiles", Liuzhou's "Heimei" (Black-Girl) Toothpaste and Guilin's "Xiangshan" Lychee.

 

Tourism

 

The beautiful landscapes and colorful ethnic culture make Guangxi one of China's well-known tourist spots. There are more than 3 state-level scenic spots and 7 state-level historical & cultured protection units in Guangxi. The "Lijiang Scenes" in Guilin and numerous underground grottoes in both Guilin and Liuzhou are the most famous attractions. Guangxi also has the Beihai Silver Beach, which is the most beautiful beach in China. Other major tourists attractions include the Ethnic Minority Culture and Tradition Observations, the Sino-Vietnam border, Ling Qu, Qingan National Forest Reserve.

Tourism has become one of the most important tertiary industries in Guangxi.  In 2000, about 1.23 million tourists, including 0.51 million foreigners (+35.1%) visited the region (+59.5%) and generated revenue of US$307 million (+29%).

 

Consumer Market

 

Retail sales of consumer goods in Guangxi rose by 8.6% to Rmb85.9 billion in 2000.  Major consumer centres are located at Nanning and Liuzhou, accounting for 17% and 9% of the region's total. 

Major department stores and shopping centres in Guangxi include Nanning Department Store, Guangxi Business Tower, Nanning Trade Market, Nanning Heping Business Center, Nanning Minzu Business Center, The Liuzhou Zhongtang Shareholding Corp. Ltd., Guilin Department Store Shareholding Corp. Ltd., Liuzhou Baixin Shareholding Corp. Ltd., Liuzhou Industrial & Commerce Building Shareholding Corp. Ltd.and Nanning Nanfang Building.

 

Science and Technology

Guangxi leads China in several key research areas. One of them is agriculture technology. In 2000, it has completed the first gene bank for aniseed and golden camellia. It has also made breakthroughs in curing animal septemia.

 

Foreign Trade

 

Guangxi's exports totalled US$1.6 billion in 2000 (+34.4%) and US$340 million was handled by foreign-invested enterprises.  Major export goods were garments, food, cement, textiles, electronic components and building materials.  Major export markets included Hong Kong, Vietnam, the US, Japan and the Netherlands. 

Imports remained basically unchanged in 2000, totaled about US$700 million.  Major import goods included fertilizer, diesel and crude oil, chemical raw materials, steel products, etc.  Import sources mainly came from Hong Kong, Vietnam, Japan, the US and Germany.  

Hong Kong was Guangxi's 2nd largest trading partner, accounting for about 20% (238 million) and 2% (14.2million) of the region's exports and imports respectively.  The largest trading partner, however, was Vietnam, accounting for 18% (218.1 million) and 6.6% (46.2 million) of the region's total.

More than 10 sites along the Sino-Vietnam border have been opened for border trade such as Pingxiang, Dongxing, Shuikou, etc.  Major exports were building materials, pesticides, bicycles, electric fans, sewing machines, machinery, beer, textiles and thermos bottles whereas major import goods included fruits, lumber, marine products rubber and minerals.

 

Foreign Investment

 

In 2000, the actual utilized amount of foreign investment declined by 17.4% to US$525 million.

Foreign direct investments mainly involved in real estate, energy, infrastructure construction and export-oriented manufacturing projects.  Besides, foreign investments are also encouraged to invest in the sectors of primary industries, hi-tech industries, building materials, agriculture comprehensive development projects and technology upgrade of existing manufacturing enterprises.

Hong Kong is the largest source of foreign investment in Guangxi.  By-end 1999, contracted foreign investment from Hong Kong amounted to US$270 million. Hong Kong also has the biggest number of enterprises in Guangxi, with 2728 total. Other major investors included Taiwan, the US, and Canada.   Most foreign investments were located around Guilin, Nanning, Wuzhou, Liuzhou and Fangchenggang.  

Liuzhou, the major industrial city in Guangxi, approved 336 foreign-invested projects and attracted foreign capital of US$25.8 million in 1999.  These projects were mainly in the sectors of infrastructure, environmental protection, agriculture and tourism.  In coming years, the city will more concentrate on the development of hi- and new-tech electronic and mechanical projects.

Nanning is another major industrial cities in Guangxi.  It approved 432 foreign-invested projects in 1999 with actual investment of US$97.8 million.   For Guilin, it had approved more than 524 overseas-funded projects with investment of US$107 million in 1999.  The city aims to improve its infrastructure, public amenities at scenic sites, etc. in coming years. 

Guangxi is included in the Western Region Development Strategy since 2000.  To boost the development of the central and western regions in China, the State Council has granted national treatment and further tax incentives to foreign-invested enterprises (FIEs) in China.  Under the existing policy, FIEs are entitled to a three-year tax reduction and exemption.  The new policy allows foreign-invested enterprises in the central and western regions to enjoy another three years of preferential tax rate when the existing preferential tax period expires.  The tax rate can be further reduced to 10% if an enterprise is proved to export more than 70% of its annual output in terms of value.

 

Economic Indicators of Major Cities (1999)

 

 

 

 

 

Population

GDP

Industrial Output

Retail Sales

Utilized FDI

Cities

('000)

(RMB bn)

(RMB bn)

(RMB bn)

(US$ mn)

Nanning           

2,859 (+0.5%)

27.4 (+6.2%)

18.7    (+2.7%)

13.7  (+8.7%)

97.8  (-34.9%)

Liuzhou            

1,804 (+0.7%)

17.5 (+5.4%)

27.1    (+1.8%)

6.6  (+4.7%)

25.8  (-12.5%)

Qinzhou           

3,148 (+1.1%)

12.8 (+7.5%)

6.2     (-1.5%)

4.9 (+8.9%)

8.7  (-72.9%)

Wuzhou           

2,707  (-2.6%)

11.6 (+2.5%)

11.4     (+1.8%)

5.2 (+8.3%)

45.1  (-27.1%)

Guilin               

4,792(+32.4%)

27.6 (+165%)

22.2    (+91.3%

10.4  (+108%)

107.0  (-11.5%)

Beihai              

139.5 (+1.2%)

10.8 (+3.8%)

8.8     (+1.1%)

3.1 (+6.9%)

43.4  (+58.9%)

Fangchenggang

771 (+1.3%)

5.5 (+5.7%)

3.9     (+5.4%)

1.9 (+5.6%)

8.7  (-66.7%)

Note: Figures in  (   ) represent year-on-year growth               Source: Statistical Yearbook of Guangxi, 1999

 

Major Economic & Technological Development Zones (ETDZ)

 

There were two state-level hi- & new-tech development zones, one state-level holiday resort zone, and two border-trade economic development zones, as well as 29 provincial-level ETDZs in Guangxi :

1.  Nanning Hi- & New-Tech Industrial Development Zone, located in the suburb of Nanning city, was approved by the State Council in December 1992 to develop capital-intensive and high value-added technologies.  Foreign investments are encouraged to develop biology engineering, new building materials and information technology.

 

2.  Guilin Hi- & New-tech Industrial Development Zone, was the first State-level hi- and new-tech industrial development zone among Guangxi and the four other autonomous regions.  The zone's actual utilized foreign investment has exceeded US$56.6 million since 1995 and attracted famous enterprises such as NEC from Japan and Nokia from Finland to invest in the zone.

3.  Beihai Silver Beach Tourist Holiday Zone, was approved by the State Council in October 1992 as one of the 11 state-level vacation and tourism development zones.  A large number of holiday facilities were completed and attracted thousands of both domestic and overseas visitors.  In 1998, Beihai's tourism sector recorded total revenue of US$81 million, an increase of 16% over 1997

4.  Huning Seaboard Economic Corridor Development Zone, Established in June 8th, 1993, the zone is located between Nanning and Qinzhou, and soon became a significant part of the Nanning- Qinzhou economic zone. It has very convenient transportation. It is growing rapidly since its establishment.

5.  Pingxiang Border Trade Development Zone, covering an area of 7.2 sq.km, was approved by the State Council in September 1992 to develop border trade with Vietnam.

6.  Wuzhou Export Goods Processing AreaEstablished on Sept 26, 1991, the Area is designed to development hi-tech export goods, as well as automobile components, assembling, electronics, etc. 

7.  Dongxing Border Trade Development Zone, covering an area of 4.01 sq.km, was approved by the State Council in September 1992 to develop border trade with Vietnam.

Other economic zones in the region include :

1.    Nanning Oversea Chinese Investment Zone

2.    Nanning Economic & Technological Development Zone

3.    Jingdao Development Zone

4.    Nanning Dashatian Economic Development Zone

5.    Guilin Oversea Chinese Tourism Zone

6.    Guilin Balijie Economic and Technology Development Zone

7.    Guiling Xicheng Economic Development Zone

8.    Qinzhou Port Economic Development Zone

9.    Yizhou Chengxi Economic Development Zone

10.    Liuzhou Area Gutingshan Development Zone

 

Economic Indicators

 

 

 

 

1999

2000

Economic Indicators

Value

Growth

Value

Growth

 

 

 

 

 (%, y-o-y)

 

 

 (%, y-o-y)

Area (sq km)

236,661

--

236,661

--

Population (mn)

47.1

0.8

44.9 ^

-4.8

Gross Domestic Product (RMB bn)

195.3

7.7 *

203.6

7.2 *

Per Capita GDP (RMB)

4,148

1.8

N/A

N/A

Disposable Income Per Capita

 

 

 

 

 

 

 

 

  - urban (RMB)

5,619.5

3.8

5,834.4

3.8

  - rural (RMB)

2,048.3

3.9

1,864.5

-9.0

Fixed-assets Investment (RMB bn)

57.9

2.9

66.0

14.0

Added Value Output

 

 

 

 

 

 

 

 

  - primary industry (RMB bn)

55.4

-3.4

53.7

-3.2

  - secondary industry (RMB bn)

69.6

2.6

74.2

6.6

  - tertiary industry (RMB bn)

70.3

8.0

75.7

7.7

Retail Sales (RMB bn)

79.1

7.8

85.9

8.6

Inflation (Consumer Price Index, %)

-2.3

 

 

-0.3

 

 

Exports (US$ bn)

1.2

-23.8

1.6

34.4

  - by FIEs (US$ bn)

0.2

-31.3

0.3

54.5

Imports (US$ bn)

0.7

-17.7

0.7

0

  - by FIEs (US$ bn)

0.3

-33.3

0.2

-19.2

Foreign Direct Investments

 

 

 

 

 

 

 

 

  - number of projects

223

-16.2

246

10.3

  - contracted amount (US$ bn)

0.67

4.9

0.71

5.4

  - utilized amount (US$ bn)

0.64

-28.3

0.52

-17.4

Notes: *In Renminbi real terms     

^ Latest full population census figure, 1999 figure was estimation based on previous census.

Sources: China Statistical Abstract, 2001, CEIC database


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