11.2007

Major Economic Indicators

Notes: ¹ In Renminbi real term ² For all state-owned and other forms of enterprises with annual sales over RMB 5 million
Sources: Hebei Economic Yearbook 2006, 2007, China's Customs Statistics

General Background

Hebei has a total area of 187,700 square kilometers. Total population stood at 69 million in 2006.

Hebei is included in the Jing-Jin-Ji (Beijing-Tianjin-Hebei) Economic Zone and the Bohai Bay Economic Region. With a consumer group of nearly 120 million, the Jing-Jin-Ji Economic Zone captures more than 10% of the overall market capacity in the mainland. Thanks largely to its advantageous position, Hebei's GDP ranked the 6th among all provinces and municipalities in 2006.

Industries

Hebei is a major agricultural base in China. In 2006, gross output value of agriculture ranked the 3rd in the country. This contributed a lot to the development of related processing industries, such as dairy product industry.

Hebei's industry is dominated by heavy industry. In terms of gross industrial output, the share of heavy industry increased from 69.4% in 2000 to 77.1% in 2006.

Composition of GDP (%)

Source: Hebei Economic Yearbook 2007

Metallurgy industry (including smelting and pressing of ferrous metals) recorded the most rapid growth in recent years. In 2006, the industry of smelting and pressing of ferrous metals was the most important in terms of output as well as profit. Other industries that enjoyed fast growth included pharmaceutical products and electronics.

Output Share of Leading Industry Groups (2006)

Notes: # For all state-owned enterprises and other forms with annual sales over RMB 5 million
Source: Hebei Economic Yearbook 2007

Tourism

Hebei is a popular tourist destination in northern China with many historical sites such as the Chengde Summer Resort, the Shanhaiguan Pass of the Great Wall, the Beidaihe Summer Resort, the Eastern Tombs and Western Tombs of the Qing Dynasty.

In 2006, Hebei received 725 thousand overseas tourists, of which 71 thousand (+34.7%) came from Hong Kong, Macao and Taiwan. The overseas tourists brought foreign exchange revenue of US$243 million (+16.2%).

Foreign Trade

Major export markets were the US, Australia, Japan, South Korea and Taiwan. In particular, exports to India surge at a very rapid pace of 137.3% in 2006. Major exports included crude oil, cotton, yarn and fabrics, iron and steel, antibiotic and food. Exports to Hong Kong reached US$346 million.

Imports mainly came from Australia, Brazil, the US, Germany, India, Japan and South Korea. Imports of primary products like raw material and resources enjoyed a fast growth.

Foreign Investment

In 2006, the bulk of FDI flows into manufacturing, which accounted for 72.8% and 88.4% of the total contracted and utilized FDI respectively. Among all industries of the services sector, real estate took up 33.2% of the actual investment in 2006, reaching US$51 million.

FDI in Hebei

Source: Hebei Economic Yearbook, 2007

Hong Kong is the largest source of foreign investment in Hebei. In 2006, actual investment by Hong Kong enterprises amounted to US$863 million, accounting for 42.9% of the total. Other major sources of investment were the US, South Korea and Japan.

Apart from Shijiazhuang, Tangshan, Qinhuangdao and Langfang which are traditionally popular destinations for foreign investment, Handan and Chengde have emerged to become attractive destinations for foreign investors in recent years. Many of the world's large enterprises have established presence in Hebei, such as Siemens, Danone, Kimberly-Clark, Microsoft, GM etc. In coming years, foreign investments are encouraged in the areas of machinery, building materials, chemicals, infrastructure, pharmaceuticals, electronics, textiles and real estate development.

Consumer Market

Annual per capita disposal income of urban households reached RMB10,305 (+13.2%). Major retail centers are located in Shijiazhuang, Tangshan, Handan and Cangzhou. Total retail sales of these four cities amounted to RMB189 billion, or around 56% of the province's total.

Composition of Per Capita Expenditure of Urban Household (%)

Source: Hebei Economic Yearbook 2005, 2007

Hebei acts as the distribution center for the northeastern, northwestern and northern regions of China. Major department stores and shopping centers in Hebei include Shijiazhuang Beiguo Commercial City, Baoding Department Group, Tangshan Department Store and Shijiazhuang Dongfang City Plaza.

Besides, many foreign supermarkets have invested in Hebei, such as Carrefour from France, Rt- Mart and Trust-Mart from Taiwan. Supermarket chain stores and related logistics and services are developing rapidly.

Economic Indicators of Major Cities (2006)

Source: Hebei Economic Yearbook, 2007