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: Xinjiang Statistical Yearbook 2007, China's customs statistics 6.2007

General Background

Xinjiang is the largest autonomous region of China. It has a total area of 1,664,900 square kilometers. Total population stood at 20.5 million in 2006. It is located in the utmost northwestern part of China, closely connected in trade with Central Asia countries.

Xinjiang is China's largest growing base of cotton, lavander and hop. Lavender planting areas and production in Ili district both account for 90% of the nation's total. Besides, with the second largest pastureland, Xinjiang is one of the major sheep farming areas and fine-wool production base in China.

Xinjiang is rich in energy resources. It has the largest reserves of oil, natural gas and coal in the country. Its coal reserves account for 40% of the country's total. The oil and gas reserves found in Tarim, Junggar and Turpan-Hami basins in the region account for one-fourth and one-third of the country's total.

Xinjiang's reserves of mineral resources are great as well. There are more than 130 kinds of mineral deposits founded. The region's reserves of beryllium and mica are the highest in China. Some of the region's granite products such as "Xinjiang Red", "Tianshan White" and "Snowflower Black" are famous brands in the country. The country's largest copper mine is also located in Xinjiang.

As stated in Xinjiang's 11th Five-Year Plan, the Xinjiang government will accelerate the development of information, biotech, energy and environmental protection industries.

Industries

Xinjiang is a major agricultural base and primary industry still accounted for 17% of GDP in 2006. Sugar beet and fruits, of which, Yili apple, Korla pear, seedless white grape and Hami melon are famous at home and abroad.

Composition of GDP (%)

Source: Xinjiang Statistical Yearbook 2007

Karamay, Urumqi, Bayangol are the major industrial centers in Xinjiang, accounting for 73% of the total industrial output. Oil and petrochemicals, food and beverage, textiles, metallurgy, building materials, and electric power are the pillar industries of Xinjiang.

Output Share of Leading Industry Groups (2006)

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

Heavy industries form the fundamental part of Xinjiang's industrial development. In 2006, gross industrial output value of heavy industry grew by 28.6% to RMB238 billion, or 88.7% of the autonomous region's total industrial output.

In 2006, state-owned and state-holding enterprises still dominated Xingjiang's industrial production, accounting for 83% of the region's total gross industrial output value. But the private sector has been developing well in recent years. It is expected more private companies will be established in Xinjiang leverging on the region's natural resources.

Tourism

Xinjiang has abundant tourist resources, owning 56 categories of tourist resources, out of 68 categories of the whole nation. Well-known scenic and historical interests include Heavenly Lake, Bosteng Lake, ruins of Loulan and Gaochang Ancient City.

Source: Xinjiang Statistical Yearbook 2007

Foreign Trade

In 2006, major exports included tomato jam, raw cotton, cotton yarn, leather shoes and TV sets etc. Major exports markets included Kazakhstan, Kirgizistan, Pakistan, Azerbaijan and the US.

Major imports included rolled steel, medical equipment, crude oil, oil products and fertilizers etc. Major imports sources were Kazakhstan, Uzbekistan and Kirgizistan.

Border trade reached US$ 6.5 billion in 2006, accounting for 71.2% of the region's total trade. There are 16 ports open for border trade with neighboring countries.

In 2006, imports were mainly conducted by state-owned units, which accounted for 65% of the total, but private enterprises dominated exports with a share of 61%.

Foreign investment

FDI in Xinjiang

Source: Xinjiang Statistical Yearbook 2007

FDI in Xinjiang remains relatively low, owing to its sparse population and underdeveloped transport network. In 2006, Xinjiang's major investments came from Denmark (22.1% of the total utilized FDI), Australia (8.6%), Hong Kong (7.7%) and Singapore (6.5%). The top 3 sectors which utilised the most foreign capital were: production and distribution of electricy, gas & water, manufaturing, mining & quarrying.

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 western China. From 2004, the tax rate can be reduced to 10% when an enterprise is proved to export more than 70% of its annual output in terms of value. Besides, the region's government also exempts the foreign investors from paying the 3% profit tax to the local government if the business has an operating period exceeds 10 years.

Consumer Market

In 2006, retail sales of consumer goods grew by 14.1% to RMB72.8 billion and annual per capita disposal income of urban households reached RMB8,871 (+11.0%). Urumqi, the largest consumer center in the region, recorded RMB23.1 billion retail sales of consumer goods in 2006, accounting for 36% of the region's total retail sales value.

Composition of Per Capita Expenditure of Urban Household (%)

Source: Xinjiang Statistical Yearbook 2007

Major department stores and shopping centres in Xinjiang include Urumqi Tianshan Department Store, Urumqi Youhao Department Store, Xinjiang Department Store, Urumqi Pacific Department Store and Tulufan Department Store etc. Besides these indigenous retailers, foreign retailer Carrefour has also established in Xinjiang.

Economic Indicators of Major Cities (2006)

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