SICHUAN PROVINCE
General Background
Sichuan - abbreviated as Chuan -
is located in the Southwest region and is known as the "Land of
Abundance". The province's capital is Chengdu which enjoys the
same preferential policies as a coastal open city.
Sichuan is one of the major agricultural
production bases in China. Grain, including rice and wheat, is the major
product with output that ranked first in China in 1999. Commercial cash
crops include rapeseeds, citrus fruits, peaches, sugar canes and sweet
potatoes. Sichuan also had the largest output of pork among all provinces
and the second largest output of silkworm cocoons in China in 1999.
Sichuan is rich in mineral resources.
It has more than 132 kinds of proven underground mineral resources of
which reserves of 11 kinds including vanadium, titanium and lithium
are the largest in China. The Panxi region alone possesses 13.3% of
the reserves of iron, 93% of titanium, 69% of vanadium, 83% of cobalt
of the whole country.
Infrastructure
Railways £ Chengdu is a major railway hub in China's central and western
regions. It is linked with different parts of the country by major railway
lines such as the Baoji-Chengdu, Chengdu-Chongqing and Chengdu-Kunming.
In the 10th Five-Year plan period (2001-2005), railway transportation
of the province will further improve as two arterial railways -- the
Shanghai-Chongqing (via Sichuan) line and the Sichuan-Beihai line --
are complete.
With domestic developed technology,
the provincial government started the construction of the first magnetic
levitation train rail at Chengdu -- Qingcheng township in April 2000.
The rail will be a 425-meter low-speed tourist trail line upon completion.
Highways £ At the end of 2000, the total length of highways in Sichuan
reached 1,000 kilometers, the longest among all the provinces in Western
China. To speed up the economic development of Sichuan, the provincial
government has planned to invest Rmb60 billion in highway development
in the 10th Five-Year Plan, including the construction of
the Chengdu Shanghai National Trunk, Chengdu Beihai National trunk and
highways linking Chongqing-Changsha and Chengdu-Tibet. The total length
of highways is expected to increase to 1,700 km by 2005 while the travel
time between Chengdu and all other adjacent provinces (excluding Tibet)
will be reduced to less than 8 hours. With an extensive highways network
linking up major ports and provincial capitals, Sichuan is equipped
with good facilities to act as a logistic centre for the western part
of China.
Air Transport £ Chengdu Shuangliu Airport is now the largest international
airport in Southwest China. At present, it has scheduled international
flights to Hong Kong, Bangkok, Singapore, Japan and the Republic of
Korea. While the Shuangliu Airport is currently being modernised and
expanded into a state-class hub airport, four new domestic airports
are or will be built in Guangyuan, Mianyang, panzhihua and Jiuzhiguo.
Telecommunications £ Sichuan has a fairly advanced telecommunications network comprising
digital microwave, optic fibre, satellite, programme-controlled telephones,
pagers and mobile phones. By the end of 2000, the number of fixed line
telephones in Sichuan reached 8.23 million, that represented a 9.8%
penetration rate for the whole province and 46.7% in the urban area.
The number of mobile phones users increased to 2.63 million.
Hydropower £ Sichuan possesses the country's largest reserves of hydropower
resources that are estimated at more than 110 million kWh. The Ertan
Hydroelectric Project, with an installed capacity of 3.3 million kWh,
was completed and began operation in 2000.
Industries
Sichuan is one of the major industrial
bases in Western China. In 2000, added value of industrial output in
Sichuan totalled Rmb189.4 billion, an increase of 13.5% over 1999. In
addition to heavy industries such as coal, energy, iron and steel industry,
the province has established a light manufacturing sector comprising
building materials, wood processing, food and silk processing. Chengdu
and Mianyang are the production bases for textiles and electronics products.
Deyang, Panzhihua and Yiban are the production bases for machinery,
metallurgy industries and wine respectively. The wine production of
Sichuan accounted for 21.9% of the country’s total production in 2000.
To accelerate development of Sichuan
into a hi- and new technology industrial base, investments are encouraged
in electronics and information technology, machinery and metallurgy
(including automobiles), hydropower, pharmaceutical, food and beverage
industries.
Tourism
Sichuan's beautiful landscapes and
rich historic relics have made the province a major centre for tourism.
The Jiuzhaigou and Huanglong Temple are listed among the "World
Legacies of Nature" by the United Nations. Other famous tourist
spots included Leshan Buddha, Ermei Mountains, Dujiangyan, Qingcheng
Mountain and Hailuogou.
In 2000, about 462,000 overseas tourists
(+23.7%) visited the region and generated a total revenue of US$120
million, an increase of 25.3% over 1999. As tourism industry is one
of the major focus areas in Sichuan’s 10th Five-Year Plan,
provincial government set up a Tourist Information and Advisory Services
Centre in Chengdu in April 2001 to promote the industry. Besides, in
order to attract new financial resources and management techniques to
improve the industry performance, Sichuan government has announced recently
its plan to transfer the operating rights of 10 selected scenic spots,
including Jiuzhaigou and Huanglong Temple to private operators.
Consumer Market
Sichuan's retail sales of consumer
goods reached Rmb152.4 billion in 2000, increased by 10.2% over 1999.
The largest consumer centre is located in Chengdu, which accounted for
36% of the province's total sales.
There are about 60 shopping malls
(over 5,000 sq.m.) in the province. In addition to local departments
stores and shopping centres like Chengdu Renmin Department Store, Chengdu
Department Store and Chengdu Hualian Commercial Building, foreign investors
have also entered the retail market to tap the vast markets of Sichuan
and Chengdu in particular. Foreign retailers in Chengdu include Yokado
Department Store, Lafayett Department Store and Carrefour.
Scientific Research
Capacity
With 43 universities, 184 state-owned
science and technology research institutes and more than 1.2 million
scientists and engineers, Sichuan holds a leading position in scientific
researches in areas like high-molecular chemistry, leather, nuclear
technology, technology of aerospace and aviation, stomotological medicine,
genetic engineering and optical fiber communication. Besides, Xichang
is the hi-tech research centre in rocket launching.
The West Software Park, approved
by the Ministry of Science and Technology in 1997, is one of the four
State-level computer software centres to develop domestic computer software
industry. The park aims at developing applied software for State-designated
key industries, providing specialized product training programmes for
users and cultivating small and medium-sized software firms.
With a rich endowment in herbs (around
4,500 species), large number of senior Chinese medicine doctors and
research institutes like Chengdu University of Tradition Chinese Medicine
(TCM), Sichuan is also strong in research and development of modern
Chinese medicine. Ranked the top in China, the total amount of output
from medical and pharmaceutical industry in Sichuan reached Rmb8.7 billion
in 1999, of which Rmb4.6 billion was contributed by TCM. At present,
over 300 research projects are being undertaken in Chengdu, and many
of them are close to success. With this outstanding performance, Chengdu
is selected by the Ministry of Science and technology to set up the
first state-level Modernized Science and Technology Industry Base for
TCM.
Given Sichuan’s advantage in science
and technology development, and the preferential policies provided for
hi-tech industrial investment by the provincial government, it attracts
a number of internationally renowned IT companies such as Microsoft,
Cisco, Intel, IBM and Motorola to invest and set up research and development
centres.
Foreign Trade
Sichuan exports increased by 23.1%
to US$1.4 billion in 2000. Major exports included chemicals and industrial
raw materials, steel products, garments and textiles, silk yarn and
fabrics, electronics and power generation equipment. Major exports markets
were Hong Kong, Japan, the US, Iran and Russia.
Imports dropped by 14.3% to US$1.3
billion in 2000. Major imports included aviation equipment, electronic
components, electrical appliances, automobile spare parts, chemical
raw materials, steel products, non-ferrous metals, electronics and machinery.
Major import sources were Japan, Hong Kong, the US, France and Germany.
Hong Kong is one of the major trading
partners of Sichuan. In 1999, the province's exports to Hong Kong totalled
US$322.8 million, accounting for 18.6% of the total. As for imports,
17.2% of the total province's imports was from Hong Kong, amounting
to US$242.9 million.
Foreign Investment
By the end of 2000, 5,481 foreign
investors invested in Sichuan, with the total accumulated contractual
and utilized foreign investment reaching US$14.0 billion and US$7.3
billion respectively. Over 60 multinational enterprises on Fortune 500
like Siemens, Procter & Gamble, Toyota and Motorola have established
their presence in the province.
In 1999, there were 62 Hong Kong-invested
projects with a total contracted investment amount of US$103.1 million
in Sichuan. Actual utilized foreign investment was US$82.3 billion.
Hong Kong's investments were mainly concentrated in manufacturing, real
estate, transportation, telecommunications and construction industries.
In the 10th Five-Year
Plan, Sichuan will concentrate on the improvement of product quality
and competitiveness of its state-owned enterprises. Besides, the Sichuan
government has decided to transform Chengdu into a hi-tech industrial
centre, developing electronic information, bio-technology, new materials
and integration of optics and machinery. Besides, efforts will be devoted
into five sectors -- electronics and information technology, hydropower,
machinery and metallurgy, chemical and pharmaceutical, food and beverage
-- to enhance them as pillar industries. Besides, tourism industry is
another key sector for Sichuan’s future development.
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)
|
|
|
|
Added value of
|
|
|
|
Population
|
GDP
|
Industrial Output
|
Retail Sales
|
|
Cities
|
('000)
|
(Rmb bn)
|
(Rmb bn)
|
(Rmb bn)
|
|
Chengdu
|
10,036
|
119.0
|
44.1
|
50.0
|
|
Mianyang
|
5,202
|
31.1
|
5.5
|
9.4
|
|
Neijiang
|
4,186
|
13.3
|
4.5
|
4.0
|
|
Deyang
|
3,758
|
24.3
|
9.2
|
7.2
|
|
Yibin
|
5,041
|
17.9
|
7.5*
|
6.2
|
|
Panzhihua
|
1,018
|
10.8
|
7.6*
|
3.6
|
|
Zigong
|
3,148
|
14.3
|
5.6
|
3.9
|
* Added value output from
secondary industry
Major Economic &
Technological Development Zones (ETDZs)
Sichuan currently has 50 development
zones, which specialize in new and hi-tech and service sector. There
are 2 state-level ETDZs which are located in Chengdu and Mianyang. Some
international renowned corporations such as AT&T, Motorola, Coca-Cola,
Siemens and Fuji have invested in the development zones.
Other major development zones included
Chengdu New and Hi-tech Industrial Development Zone, Chengdu Economic
& Technology Development Zone, Ziyang Economic and Technological
Development Zone, Chengdu Phoenix Mountain Tertiary Industrial ETDZ,
Chengdu Xindu Industrial Development Zone and Chengdu Industrial Park
for Taiwan and other Foreign Investors.
Economic Indicators
|
|
1999
|
2000
|
|
Economic Indicators
|
Value
|
Growth
|
Value
|
Growth
|
|
|
|
(%, y-o-y)
|
|
(%, y-o-y)
|
|
Area
(sq km)
|
485,000
|
--
|
485,000
|
--
|
|
Population
(mn)
|
85.5
|
0.7
|
83.3
|
|
|
Gross
Domestic Product (RMB bn)
|
371.2
|
5.6 *
|
401.0
|
9.1 *
|
|
Per
Capita GDP (RMB)
|
4,452
|
5.2
|
|
|
|
Income
Per Capita
|
|
|
|
|
|
-
urban (RMB)
|
5,510
|
6.8
|
5,894
|
7.6*
|
|
-
rural (RMB)
|
2,697
|
-1.5
|
2,768
|
3.9*
|
|
Fixed-assets
Investment (RMB bn)
|
88.6
|
2.6
|
101.6
|
14.7
|
|
Added
Value Output
|
|
|
|
|
|
-
primary industry (RMB bn)
|
94.9
|
0.8
|
97.8
|
3.1
|
|
-
secondary industry (RMB bn)
|
155
|
1.4
|
172.4
|
11.2
|
|
-
tertiary industry (RMB bn)
|
121.3
|
9.2
|
133.7
|
10.2
|
|
Retail
Sales (RMB bn)
|
138.3
|
6.5
|
152.4
|
10.2
|
|
Inflation
(Consumer Price Index, %)
|
-1.5
|
|
0.1
|
|
|
Exports
(US$ bn)
|
1.2
|
-4.1
|
1.4
|
23.1
|
|
-
by FIEs (US$ bn)
|
0.16
|
26.7
|
0.25
|
55.1
|
|
Imports
(US$ bn)
|
1.6
|
33.2
|
1.3
|
-14.3
|
|
-
by FIEs (US$ bn)
|
0.27
|
43.9
|
0.37
|
36.2
|
|
Foreign
Direct Investment
|
|
|
|
|
|
-
number of projects
|
195
|
-12.2
|
|
|
|
-
contracted amount (US$ bn)
|
0.5
|
3.6
|
|
|
|
-
utilized amount (US$ bn)
|
0.3
|
-8.4
|
0.4
|
28.1
|
Notes :
