12.2007

Major Economic Indicators

Notes: ¹ In real terms ² For all state-owned enterprises and other forms with annual sales over RMB 5 million
Sources: Tianjin Statistical Yearbook 2007, China's customs statistics 9.2007

General Background

Tianjin has a total area of 11,919.7 square kilometers. Total population stood at 10.8 million in 2006.

Tianjin is one of the four autonomous municipalities along with Beijing, Shanghai and Chongqing, and is an integral part of the Bohai Bay Economic Zone, which is one of the three biggest economic zones in China. With a view to strengthen Tianjin's position as the economic center of the Bohai Bay region, priority has been given to the development of the Binhai New Area in China's 11th Five-Year Programme. Preferential policies, including the establishment of a free trade zone and pilot reforms in the financial sector, have been given by the State Council to support the development of the Binhai New Area.

Tianjin has undergone rapid development in recent years. Per capita GDP amounted to RMB 40,961, the 3rd largest after Shanghai and Beijing, among all provinces and autonomous municipalities.

Tianjin port, as the largest comprehensive and commercial port in North China, provides services to 300 ports in more than 170 countries and regions all over the world. It handled 6 million TEUs in 2006. Tianjin International Airport is the largest cargo freight center in China. The city is well connected to other major cities by dozens of railroads and expressways. Tianjin is the region's largest financial center.

Industries

Being the cradle of China's modern mechanic industry and textile industry, Tianjin is still an important industrial center in China nowadays.

Composition of GDP (%)

Source: Tianjin Statistical Yearbook 2007

Gross industrial output reached RMB891 billion (+25.1%) in 2006. Six pillar industries (electronic information, automobile, new energy resources and environment, metallurgy, petrochemical industry, biotechnology and modern medicine) accomplished a total output value of RMB 639 billion, accounting for 74.9% of the total output value of industries above designated size, 1.2 percentage points higher than 2005.

Tianjin's industrial development owes much to the rapid growth of high and new tech industry -- electronics and information technology in particular. In 2006, the gross output value of high and new tech industry was about RMB271 billion (+24.3%), representing 31.8% of Tianjin's gross industrial output.

Gross Output Share of hi & new tech industry (2006)

Source: Tianjin Statistical Yearbook 2007

Meanwhile, a lot of hi-tech enterprises, such as GMCC, Jinyao Group, Nankai Guard Group and Tasly Group have become very competitive.

Foreign enterprises (FIEs) including those from Hong Kong and Taiwan have contributed greatly to Tianjin’s industry growth, particularly in high and new tech industry. In 2006, FIEs’ industrial output value rose by 31.6% to RMB437 billion, accounting for 51.2% of the total industrial output, and its share in high and new tech industry was 88.3%.

In 2006，output value of heavy industry increased by 28.3% to RMB705 billion, accounting for 83% of the total industrial output. Large and medium-sized enterprises accounted for 78% of the total output.

Tianjin’s service sector develops rapidly. In 2006, wholesale and retail trades, transportation and storage, finance, real estate were the four largest service industries, accounting for 26.7%, 14.4%, 10.7% and 9.2% of the total added value in service sector respectively.

Tourism

Various tourist routes such as visiting former residence of celebrities, famous street travel, Xiqing Folk Custom travel and Binhai New Area travel have been launched in Tianjin.

Source: Tianjin Statistical Yearbook 2007

Foreign Trade

Tianjin is an export-processing base for a wide range of products. In 2006, export-processing trade grew by 19.7% to US$21.3 billion, accounting for 64% of total exports. Major exports include electronic and information technology products, automotives spare parts, biological and medical products and petrochemicals, etc. Major export markets were the US, Japan, South Korea, Hong Kong and Singapore.

Major imports were machinery & transport equipment. Major import sources were Korea, Japan the US and Singapore.

Foreign Investment

By the end of 2006, 121 of the world's Top 500 enterprises had invested in Tianjin, such as Motorola, Samsung, Bridgestone, LG, GE, TOYOTA, Honda, Sanyo and 3M. Foreign-invested enterprises (FIEs) are playing an important role in Tianjin's economy.

Actual foreign investment increased by 24.1% to US$ 4.1 billion in 2006, of which 64% flew to manufacturing. Utilised FDI going into the transport, storage and post services increased by 3 times, real estate increased by 1.2 times. In 2006, the services industry accounted for 52.5% of the total contracted amount of FDI, surpassing that of manufacturing. Industry of new energy resources (such as wind electric power generation, seawater desalination and new cell) became the new area in attracting FDI.

FDI in Tianjin

Source: Tianjin Statistical Yearbook 2007

Hong Kong is the leading investor in Tianjin. By the end of 2006, Hong Kong signed a total of 5,950 agreements with contractual investment amount of US$22.0 billion, utilized investment amounted to US$10.9 billion. In 2006 alone, Hong Kong signed 192 agreements with contractual amount of US$2.1 billion, and utilized amount was US$1.9 billion. Other major sources of foreign investment came from BVI, the US, Japan, Korea and Taiwan.

Consumer Market

In 2006, Tianjin’s retail sales of consumer goods grew by 14% to RMB136 billion, annual per capita disposal income of urban households reached RMB14,283 (+13.0%).

Composition of Per Capita Expenditure of Urban Household (%)

Source: Tianjin Statistical Yearbook 2006, 2007

In 2006, the higher-end consumer market was very active.  Sales of automobile grew by 36.0%, jewellry increased by 30.7% and telecommunication equipments by 19.7%.

The function of wholesale trading markets has been strengthened. In recent years, more large-scale commercial establishments have been put into operation, such as Isetan and Wanxiang textile house. Currently there are more than 60 shopping centers with a total area of more than ten thousand square meters in Tianjin.

Some international famous supermarket companies have established chain stores in Tianjin, which include Metro, Makro, Walmart, Osun and Trust-mart. Shanghai Lianhua, Jiangsu Suning, Beijing Gome and other domestic famous trade enterprises also set up supermarkets in Tianjin. Tianjin's indigenous retailer -- Family World is also very competitive.

Binhai New Area

Notes: # In real terms
Source: Tianjin Statistical Yearbook 2007

Binhai New Area has a total area of 2,596 square kilometers. Total registered population stood at 1.1 million in 2006.

Binhai New Area is established in 1994, located to the east coastal area of Tianjin. The Area comprises three functional districts -- Tianjin Port, TEDA (Tianjin Economic Development Area), TPFTZ (Tianjin Port Free Tax Zone), and five administrative districts -- Tanggu District, Hanggu District, Dagang District, Wuxia Subdistrict of Dongli District and Gegu Town of Jinnan District.

In order to change the current development situation of "fast in the south, but slow in the north", the Chinese government is determined to establish the Binhai New Area as the third economic hub, after Shenzhen and Shanghai Pudong, with a view to stimulate development in the northern part of the country.

The construction of infrastructure progressed quickly, especially for modern transport system construction, including Beijing-Tianjin Express Way, Beijing-Tianjin-Tanggu Express Way Second Line, Expansion of Tianjin Binhai Airport, widening construction of Tianjin Port etc.