12.2007

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
³ first quarter of 2007
Sources: Statistical Yearbook of Sichuan 2007, China Statistical Yearbook

General Background

Sichuan is located at the upper reaches of the Yangtze River in southwestern China. It has a total area of 485,000 sq. km. Its total population stood at 81.7 million in 2006.  Chengdu, the capital of Sichuan, is the western hub for business and trade.

Sichuan is rich in natural resources and has the most well developed industrial sector in the region. Sichuan is also one of the major agricultural production bases in China, its output of rice, wheat, rapeseed, citrus fruit, peach, sugar cane, sweet potato and Chinese herbs all account for a significant share of China’s total.

The private sector in Sichuan has grown fast in recent years.  By the end of 2006, there were about 209 thousands of private enterprises, increased by 147% from just 84.5 thousands in 2002. Sichuan has developed a number of famous local enterprises and brands, including the country's largest color TV producer -- Changhong Electric Group Co. Ltd.; steel company -- Panzhihua Steel Group, alcohol manufacturers -- Wuliangye Group, Jiannanchun Group and Luzhoulaojiao; medicine manufacturers -- Di'ao Group Company and Di'kang Group; and animal feed company -- New Hope.

Industries

Sichuan is strong in agriculture.  In 2006, its added value in the primary industry ranked 4th among all provinces.

Composition of GDP (%)

Source: Sichuan Statistical Yearbook 2007

Sichuan is one of the most industrialized provinces in western China, its total value-added industrial output amounted to RMB278.7 billion in 2006. While heavy industries (68.5% of the total output value in 2005) such as coal, energy and iron and steel remain as dominating sectors, the province has also established a light manufacturing sector comprising building materials, wood processing, food, silk processing, etc.

Sichuan's production of colour TV, natural gas, electricity, steel, cement, Chinese medicine, wine and chemical fibre are the largest among the western provinces.

Output Share of Leading Industry Groups (2006)

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

Sichuan's high-tech industry has been developing fast. In 2006, the value-added generating from high-tech industry reached RMB20.6 billion (+ 23.9%). Sichuan has 76 universities and two state level hi-tech industries development zones -- The Chengdu New and Hi-tech Industries Development Zone (CDDZ), and the Mianyang New and Hi-tech Industries Development Zone (MYDZ).  These zones have attracted a number of internationally renowned IT companies such as Microsoft, Cisco, Intel, IBM and Motorola to set up R&D centers.

Sichuan is richly endowed with herbs (around 5,000 species) and is the home to many senior Chinese medicine doctors. Sichuan is strong in R&D of modern Chinese medicine. Chengdu is selected by the Ministry of Science and Technology to set up the first state-level Modernized Science and Technology Industry Base for Traditional Chinese Medicine. A number of Hong Kong companies have invested in modernising TCM, including New World Group etc.

Tourism

Sichuan has abundant tourism resources: it is home to the giant panda; it has four world natural heritages and nine national AAAA grade nature parks, the largest number in China. Its internationally famous scenic attractions include Mt. Emei, Jiuzhaigou Valley and Dujiangyan Irrigation System.

Source: Sichuan Statistical Yearbook 2007

Foreign Trade

Foreign trade grew strongly in the past few years. Major export markets included the US, Hong Kong, India and Japan. Major exports are machinery & electric equipment, video & audio appliances, textile materials and products, base metals and related products.

Major import sources were the US, Japan, Germany and South Korea. Major imports included machinery and electric equipment, video and audio appliances, transport equipments and minerals.

As a result of increased foreign investment in recent years, foreign trade conducted by foreign investment enterprises has risen. In 2006, exports and imports conducted by FIE increased by 71% and 114% respectively, accounting for 21% and 34% of the province's total exports and imports respectively.

Foreign Investment

Sichuan came first in attracting FDI among all western provinces. Utilized FDI increased by 36.2% to US$1.2 billion in 2006, mostly from Hong Kong (32.2% of the total), British Virgin Island (BVI), Singapore and Taiwan. Utilised FDI from BVI and Taiwan increased by 194% and 151% respectively.

FDI in Sichuan

Source: Sichuan Statistical Yearbook, 2007

In 2006, most investments in Sichuan are channeled into the real estate and manufacturing industries. In 2006, utilised FDI in real estate grew by 64.2% to US$549 million, accounting for 43.6% of the total, while that of manufacturing grew by 18.3% to US$439 million.    

By the end of 2006, 125 of the fortune 500 companies have invested in Sichuan, such as Intel, Onsun, Sony, Masrsk, UPS, Sanyo and Kingfisher etc., most of them are located in Chengdu.

Consumer Market

Sichuan has the biggest consumer market in western China. In 2006, total retail sales of consumer goods in Sichuan grew by 14.8% to RMB342 billion.  In 2006, annual per capita disposal income of urban households reached RMB9,350 (+11.5%).

Composition of Per Capita Expenditure of Urban Household (%)

Source: Sichuan Statistical Yearbook, 2007

Since China fully liberalizes the retail and wholesale distribution sector, the expansion of foreign retail enterprises into Sichuan has speeded up in recent years. Major foreign retail enterprises include Metro from Germany, Carrefour from France, Trust-mart, Pacific from Taiwan, Itoyokado from Japan, and Parkson from Singapore.

Economic Indicators of Major Cities (2006)

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