12.2007

JIANGSU PROVINCE

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-Aug 2007
Sources: Jiangsu Statistical Yearbook 2007, China's customs statistics 9.2007

General Background

Jiangsu is the most densely populated province in China. With a total area of 102,600 square kilometers, Jiangsu had a population of 75.5 million in 2006.

Jiangsu's GDP ranked the third in China in 2006, after Guangdong and Shandong, accounting for 10.3% of the national total.

The southern Jiangsu area -- Suzhou, Wuxi, Changzhou, Nanjing and Zhenjiang, which is part of the Yangtze River Delta economic region, is the province's economic hub. GDP of the southern Jiangsu area was RMB1,348.6 billion, accounted for 62.5% of Jiangsu's total GDP in 2006.

Jiangsu has a strong private sector. The famous economic development model Southern Jiangsu model is mainly about private sector economic development, especially industrial development. By the end of 2006, there were about 599 thousand of private enterprises, increased by 109% from just 286 thousand in 2002.

Major Indicators of Jiangsu's Regions (2006)

Notes: # For all state-owned enterprises and other forms with annual sales over RMB 5 million
Sources: Jiangsu Statistical Yearbook 2007

Industry

In 2006, Jiangsu's GDP ranked 3rd in China, and its value-added of secondary and tertiary industry ranked 3rd and 2nd among all provinces respectively.

Composition of GDP (%)

Source: Jiangsu Statistical Yearbook 2007

Historically, Jiangsu had a much stronger light industry sector. However, after 1993, growth of the heavy industry sector accelerated and overtook that of the light industry.

Composition of Industrial Output (%)

Notes: For all state-owned enterprises and other forms with annual sales over RMB 5 million
Sources: Jiangsu Statistical Yearbook 2006

The pillar industries in Jiangsu are electronics, telecommunications, chemicals, textiles, machinery, equipment and metallurgy. The share of industrial output of the seven pillar industries was 60.4% of the nation's total in 2006.

Output Share of Leading Industry Groups (2006)

Source: Jiangsu Statistical Yearbook 2007

In recent years, technology-intensive industry and capital-intensive industries (such as electronic and telecommunications etc.) have been developing fast. Jiangsu is moving towards the development of new and high technology products. Jiangsu is now an important IT manufacturing base. Many Taiwanese IT manufacturers are attracted to invest in Kunshan and Wujiang.

Jiangsu has successfully promoted many famous brands such as Chunlan Air-conditioner, Younger Suits, Senda Shoes, Bosideng Down coat, Skyrun Garment, Little Swan Washer, Shinco DVD, Hubao Shirt, Hengshun Sauce & Vinegar.

Tourism

Jiangsu is a famous destination for tourists with 16 cities being awarded the title of China Excellent Tourism City. In 2006, Jiangsu received 199 million (+15.7%) domestic tourists and 4.5 million (+18.4%) overseas tourists.  Overseas tourists generated a total of US$2.8 billion (+23.3%) foreign exchange revenue.  Tourists from Hong Kong increased by 14.8% to 474 thousand in 2006.

Foreign Trade

Jiangsu's industries have become more externally-oriented in recent years. Manufactured goods accounted for 98.7% and 90.8% of the province’s exports and imports respectively.  Major exports included machinery for office use & automatic data processing equipment, electronic machinery, equipment & accessories, telecommunication & recorders and textiles and garments. Major export markets included the US, Japan and Hong Kong. In 2006, exports to Hong Kong increased by 14.4% to US$15.6 billion.

As a manufacturing base, major imports included electronic machinery, equipment & accessories, instruments & equipment for professional, scientific & control use, special industrial machinery of particular use and organic chemicals etc. Major import sources included Taiwan, Japan and South Korea.  Imports from Hong Kong stood at US$1,247 million in 2006.

Foreign investment

Jiangsu ranked top in attracting foreign direct investment (FDI, utilized amount) among all provinces and municipalities in 2006, accounting for 25.1% of China’s total.

FDI in Jiangsu

Source: Jiangsu Statistical Yearbook 2007

Foreign investments in Jiangsu are mainly engaged in the manufacturing sector, particularly in telecommunication equipments, computer, machinery, chemical products and textiles.  In 2006, utilized foreign direct investment in the manufacturing sector amounted to US$13.7 billion, accounting for 78.7% of the total FDI.

Jiangsu’s services sector is attracting an increasing share of FDI. In 2006, FDI in the service sector amounted to nearly US$2.9 billion, accounted for 16.7% of the total, while this share was only 6.5% in 2001. Real estates accounted for 9.4 % of the province’s total utilized FDI in 2006.

Hong Kong, Japan, Singapore and Taiwan are the top overseas investors in terms of cumulative actual FDI.  Hong Kong companies have invested in various manufacturing industries, e.g. Fountain Set Holdings has a knitting & dyeing factory, Vicwood Group has a wood products factory etc.

Wholly foreign-owned company has overtaken joint venture as the dominant mode of FDI in recent years.

Changes in the mode of Actual FDI in Jiangsu (%)

Source: Jiangsu Statistical Yearbook 2007

Consumer Market

Jiangsu was the third largest consumer market in 2006, after Guangdong and Shandong. Retail sales of consumer goods reached RMB662 billion, accounting for 8.7% of China’s total in 2006.  In 2006, annual per capita disposal income of urban households reached RMB14,084 (+14.3%).

Composition of Per Capita Expenditure of Urban Household (%)

Source: Jiangsu Statistical Yearbook 2007

Major foreign-invested retail enterprises that have established their presence in Jiangsu include Wal-mart from the US, Metro and OBI from Germany, Carrefour from France, B&Q from UK, Auchan from France, and China Resources from Hong Kong. Meanwhile, indigenous enterprises have also grown quickly, for instance, Su’guo, Su’ning, Wenfeng Big World.

Economic Indicators of Jiangsu Cities (2006)

Source: Jiangsu Statistical Yearbook 2007