SHAANXI PROVINCE
General Background
Shaanxi - abbreviated as Shaan
or Qing - is situated in the Northwest region. The province is divided into three sections - the Northern
Shaanxi Plateau, the Guanzhong Plain and the Qinba Mountainous Region. The provincial capital is Xi'an
which enjoys the same preferential policies as a coastal open city.
The northern part of Shaanxi
has abundant reserves of coal, natural gas and petroleum. Shenmu and Fugu are major production bases
of fine quality coal in China
with a total deposits of more than 160 billion tons. Natural gas reserves proven in Shaanxi
reaches 200 billion cubic metres.
The province is also rich in metal and non-metallic mineral reserves.
Among the 91 kinds of minerals found in Shaanxi,
27 have reserves that are ranked among the top three in China.
With one of the most fertile plains - Weihei Plain -
in western China,
Shaanxi grows a wide range
of agricultural products such as grains, cereals, cotton, tobacco and
fruits. In 2000, output of apples in Shaanxi
ranked the top in China,
accounting for 1/5 of the nation¡¦s total production.
Infrastructure
Railways ¡Ð Major railway lines linking up Shaanxi and other provinces
include Lanzhou-Lianyungang, Baoji-Chengdu, Yangpingguan-Ankang, Baoji-Zhongwei
and Xi'an-Ankang. Xi'an
cargo railway station is one of the top-grade stations in China,
handling 36 million tons of cargoes annually.
To accelerate the development of Western China,
new railways including Xi'an-Hefei line and Baoji-Lanzhou line will
be constructed. Major sections of the Xi¡¦an-Nanjing line is also under
construction With the completion
of Baoji-Lanzhou line, the travel time between Shaanxi
and Gansu is estimated
to shorten from 9 hours to 5.5 hours.
Highways ¡Ð Xi'an is the pivot of highways in the province. Major highways include Xi'an-Lintong,
Xi'an-Baoji and Xi'an-Tongchuan and a new highway between Tonggua and
Baoji is under construction.
To further improve the overall accessibility of the province,
the provincial government will invest a total of Rmb52.3 billion in
roads and highways in the 10th Five-Year Plan. Total road length of the province will increase by 4,000 kilometres
to 48,000 kilometres by the end of 2005.
Air Transport ¡Ð Xi'an Xi¡¦anyang
International Airport has more than 95 domestic lines to major cities
in China and international air routes to Hong Kong, Macau, Japan, Thailand,
Singapore, South Korea, Saudi Arabia and European countries. During the 10th Five-Year Plan, expansion and reconstruction
works will be taken in a number of domestic airports at Hanzhong, An'kang,
Yan'an and Yulin to improve air transportation in the province.
Telecommunications ¡Ð By the end of 2000,
the number of fixed-line telephone subscribers, pager users and mobile
phone users reached 3.5 million, 1.5 million and 1.5 million respectively.
There are nearly 200,000 internet users as well. In addition to the
nine main optic-fibre trunks with a total length of 7,319 kilometres,
Shaanxi¡¦s telecommunication
network is supplemented with satellite systems and inter-exchange stations.
Energy Supply ¡Ð At present, Shaanxi
has 0.67 million kW installed capacity for power generation. In view of the abundant supply of coal,
oil, natural gas and hydropower in Shaanxi,
the government plans to construct a number of power plants to raise
the electricity generation capacity to 1.0 million kW by 2005. A total of nine stations using coal, hydropower
and natural gas will be built.
Besides, a new oil pipeline (Lanzhou-Chengdu-Chongqing) will
be constructed to transmit oil from the northwest region to the southeast
region. The pipeline will
pass through 30 counties and cities in Gansu,
Shaanxi and Chongqing
with an annual oil transmission capacity of more than 5 million tons
and is expected to operate in June 2002.
Industries
In 2000, the added value of industrial output in Shaanxi
increased by 9.6% over 1999 to reach Rmb55.1 billion. In the 10th Five-Year Plan, Shaanxi
development targets will focus on five sectors : hi-tech, fruit production
and processing, energy, military technology and tourism.
Xi¡¦an, one of the strong electronic
industrial bases in China,
has become an IT powerhouse since the implementation of the opening
and reform policy. In 2000,
over 90% of the province¡¦s software enterprises were located in Xi¡¦an,
generating a sales income of Rmb3.2 billion. Xi¡¦an has also
become the largest Internet data centre in Northwest China
with over 1,000 servers and an investment of Rmb5 million to facilitate
the development of its IT industry.
Under the ¨Military-to-Civilian¡¨ initiative, a number
of military enterprises in Xi¡¦an
have converted their technologies and production capacities to develop
and produce products for commercial purpose.
Marked examples include the Xi¡¦an Aircraft Co., Xi¡¦an-Volvo
Automobiles and Shaanxi Changling Refrigeration.
Tourism
Shaanxi has abundant cultural
and historical relics that can be explored to develop tourism. There are 72 tombs of kings and emperors
in Xi'an, including the
Qingshihuang's terra-cotta army which is highly praised as the eighth
world wonder. Other famous
historical relics include the site of Lantian Ape Man, Xi'an Forest
of Steles, Wild Goose Pagoda, Famen
Temple, Huaqing Pool, etc.
The province also has magnificent scenery with beautiful mountains
such as Taibai Mountain,
Huashan Mountain
and Lishan Mountain.
As a result of extensive marketing programmes like tourist
fairs and improvements in tourism facilities such as hotels, Shaanxi
recorded considerable growth in its tourism industry in recent years. In 2000, over 710,000 tourists (+12.7%)
visited the region and generated revenue of US$280 million, an increase
of 3.7% over 1999.
Consumer Market
In 2000, retail sales of consumer goods in Shaanxi
increased by 9.1% to Rmb60.8 billion.
Major department stores and shopping centers in Shaanxi include
Xi'an Minsheng Group and Xi'an Jiefang Department Store with total sales
of Rmb859 million and Rmb725 million recorded in 1999 respectively,
amongst the first 50th departments stores with largest sales in the
country.
Apart from department stores, chain stores and supermarkets
have also expanded rapidly in the province. In 2000, Shaanxi Haixing Supermarket which
operates 46 supermarket outlets recorded a sales revenue of Rmb179 million
that ranked 34th among all supermarket chains in China.
Science and Technology
Shaanxi ranks third in terms
of overall R&D capability after Beijing
and Shanghai. It has more than 2,000 science and technology
research institutes, of which 50 are recognized as reaching the advanced
level in the country. Besides,
it has 10 key national labs and 50 specialized labs under government
agencies. The province's
research capabilities are particularly strong in military, space and
agricultural technology. Output
from hi-tech industry reached Rmb10.2 billion in 2000.
To accelerate development of hi-tech industries in the
10th Five-Year Plan period, five research and production bases will
be established with focuses on the following sectors: digital electrical
appliances, computer and network products, mobile telecommunications,
electronic accessories and parts, and electronic products. Through cooperation with the research
institutes like Xi¡¦an Jiaotung University, Northwest
Polytechnic University
and Northwest University,
the government will establish a software park in Xi'an Hi-tech Industrial
Development Zone to enhance the development of computer software industry.
Foreign Trade
In 2000, Shaanxi's
exports increased sharply by 30.3% to US$1.3 billion, of which exports
of electrical products/machinery and garments soared by 49% and 69%
respectively. The province's
major exports included textiles, garments, machinery, electronic components
and devices and medicinal raw materials, and its major export markets
were Hong Kong, Japan,
Malaysia,
Singapore
and Iran.
Imports increased slightly by 0.2% to US$1.1 billion
in 2000. Major import items
included synthetic fibre, machinery, chemicals and pharmaco-raw material,
electronic equipment and instruments, ferrous and non-ferrous metal. Major import sources were Japan,
Hong Kong, the US,
Germany
and the UK.
Hong Kong was the major trading partner of
Shaanxi. The total amount of goods exports to Hong
Kong reached US$208 million in 1999 (+ 17.7%), the largest
among all trading partners.
Foreign Investment
In 2000, Fujian
approved 215 foreign-invested projects (+36.9%) with contracted foreign
capital of US$500 million (+17.0%). The province actually utilized US$288
million in that year. By the end of 2000, Shaanxi
had a total number of 2,357 foreign companies with a cumulative investment
of US$4.5 billion. Multinational
corporations like Philips, Coca-Cola, Mitishbish Electric Power Equipments
Co. Ltd and Siemens have established joint ventures in Shaanxi.
In the coming years, foreign investments are encouraged
to invest in infrastructure, chemicals and pharmaceuticals, metallurgy,
machinery and electronics, food processing and building materials.
To boost the development of the central and western regions
in China,
the State Council has granted further tax incentives to foreign-invested
enterprises (FIEs) in China. Beginning from January 2001, foreign-invested
enterprises in the central and western regions would enjoy another three
years of preferential tax rate at 15% on top of the existing preferential
treatment (exemption of profit tax for the first two years and 50% reduction
for three years thereafter). The tax rate can be further reduced to 10% when an enterprise
is proved to export more than 70% of its annual output in terms of value.
Economic Indicators
of Major Cities (1999)
|
|
|
|
Total Value
of
|
|
|
Cities
|
Population
|
GDP
|
Industrial Output
|
Retail Sales
|
|
|
('000)
|
(Rmb bn)
|
(Rmb bn)
|
(Rmb bn)
|
|
Xi'an
|
6,745
|
60.9
|
36.9
|
29.8
|
|
Xi¡¦anyang
|
4,795
|
21.1
|
17.8
|
4.8
|
|
Baoji
|
3,567
|
18.3
|
12.4
|
5.2
|
|
Weinan
|
5,220
|
15.2
|
9.1
|
3.9
|
|
Hanzhong
|
3,649
|
13.8
|
6.7
|
3.9
|
|
Yan'an
|
1,939
|
7.9
|
6.0
|
1.9
|
|
Tongchan
|
825
|
3.9
|
2.9
|
1.3
|
Source: Statistical Yearbook of Shaanxi
Major Economic &
Technological Development Zones (ETDZs)
The Guanzhong hi-tech industrial belt in Shaanxi
was set up in 1999 which consists of Xi'an,
Baoji industrial development
zones and the Yangling agricultural high-tech experimental zone. In 2000, the Guanzhong hi-tech industrial
belt achieved total earning of Rmb37 billion, up 23% over the previous
year.
1.
Xi'an Hi-tech Industrial Development
Zone, is one of the state-level development zones. XDZ is also one of the four members in
China which first joined the industrial park network open to APEC members. It mainly engages in the fields of electronic
information, electro-mechanic integration, high efficient and energy-saving
refrigeration technology and biomedical industry etc. By the end of 1999, there were 900 foreign-invested
companies in the zone with registered capital exceeding Rmb4 billion.
Eleven companies on the Fortune 500 such as IBM, Philips and
Intel have set up their establishment and research centres in the zone.
2.
Baoji Hi-tech Industrial Development
Zone, another state-level development zone, focuses on the development
of electronic information technology, integral electromechanical products,
composite materials of rare metals and metal fibers and magnetic materials.
3.
Yangling Hi-tech Agricultural
Development Experimental Zone, mainly focuses on bio-engineering research
activities and new agricultural technology development.
Other economic development zones in Shaanxi
include:
4.
Xi¡¦anyang Hi-tech Development
Experimental Zone, mainly develops textile, electronic components and
electronic products.
5.
Weinan Hi-tech Development Experimental
Zone, mainly engages in fine chemical products such as catalysts, reagents,
sensitive medicines, cohesive agents plastic and additives.
6.
Xi'an Economic and Technological
Development Zone, mainly targets at developing light industry, food
processing, machinery manufacturing, pharmaceuticals, etc.
7.
Xi'an
Qujiang Tourism & Holiday Resort
Economic Indicators
|
|
1999
|
2000
|
|
Economic Indicators
|
Value
|
Growth
|
Value
|
Growth
|
|
|
|
(%, y-o-y)
|
|
(%, y-o-y)
|
|
Area (sq
km)
|
205,800
|
--
|
205,800
|
--
|
|
Population
(mn)
|
36.2
|
0.6
|
36.1^
|
|
|
Gross Domestic
Product (RMB bn)
|
148.8
|
8.4*
|
166.1
|
9.0*
|
|
Per Capita
GDP (RMB)
|
4,101
|
4.2
|
|
|
|
Disposable
Income Per Capita
|
|
|
|
|
|
- urban (RMB)
|
4,654
|
10.3
|
5,124
|
10.1
|
|
- rural (RMB)
|
1,456
|
3.6
|
1,470
|
1.0
|
|
Fixed-assets
Investment (RMB bn)
|
47.8
|
5.0
|
52.9
|
10.7
|
|
Added Value
Output
|
|
|
|
|
|
- primary industry (RMB bn)
|
26.7
|
-5.0
|
27.9
|
4.5
|
|
- secondary industry (RMB bn)
|
63.3
|
6.9
|
73.2
|
15.6
|
|
- tertiary industry (RMB bn)
|
58.1
|
8.2
|
65.0
|
11.9
|
|
Retail
Sales (RMB bn)
|
55.7
|
7.5
|
60.8
|
9.1
|
|
Inflation
(Consumer Price Index,%)
|
-2.2
|
|
-0.5
|
|
|
Exports
(US$ bn)
|
1.0
|
-6.9
|
1.3
|
30.3
|
|
- by FIEs (US$ bn)
|
0.09
|
-19.6
|
0.12
|
33.3
|
|
Imports
(US$ bn)
|
1.1
|
3.5
|
1.1
|
0.2
|
|
- by FIEs (US$ bn)
|
0.2
|
-0.1
|
0.2
|
-0.4
|
|
Foreign
Direct Investment
|
|
|
|
|
|
- number of projects
|
157
|
-19.9
|
215
|
36.9
|
|
- contracted amount (US$ bn)
|
0.4
|
13.6
|
0.5
|
17.0
|
|
- utilized amount (US$ bn)
|
0.2
|
-19.4
|
0.3
|
19.2
|
Notes : * In Renminbi real terms
^
Latest population census, 1999 figure was estimate based
on previous survey.
Sources:
Statistical Yearbook of Shaanxi and State Statistical Bureau, China
Statistical Abstract
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