Hunan: Open to the World
Opening-up is the distinct theme at the present time and development is a common trend for all countries in the world. Hunan, located in the knot place between China’s hinterland and the coastal areas, has rosy prospects under the promotion and radiation of powerful economic growth of the coastal areas.
Hunan has rich natural resources, low labor cost and large market, with a population of 65 million, as a magnet attracting all investors. Its unique charm, long stream of Huxiang Culture itself represent an opening and advanced culture full of pioneering spirit and long tempered practice. As early as 190 years ago, Wei Yuan (Hunanese), a first insight man to observe the world in China’s modern history, initiatively proposed the ideology of opening-up to make the country become strong. In the later long history pages, Zeng Guofan and Zuo Zong tang, the leaders of Westernization Movement, and Guo Songtao, diplomat in Qing Dynasty; Huang Xing and Song Jiaoren, revolutionists leading bourgeois revolution by western democratic ideas, were Hunanese who had strong ideology for opening up to the outside world. Hunan in present-day is inheriting the opening tradition of Huxiang Culture, with unprecedented sentiments and dashing spirit，taking big strides to shake off traditional restriction, devoting itself to realize a grand prospects of “industrialization, agriculture industrialization and urbanization”. In recent years, Hunan has made great efforts in building a batch of infrastructure facilities boasting first-class in China with obvious competitive superiority, trying hard to establish hard and soft economic development environment not only adapting market economy quick growth but meeting the demand of internationalization.
The constant improvement and optimization of Hunan’s economic development environment has created favorable conditions to foreign investment, foreign trade and economic cooperation and exchange. The strategy implementation of Hunan’s industrialization, agriculture industrialization and urbanization provides huge commercial opportunities to investors at home and abroad. We believe that vigorously developed Hunan’s economy will merge into the main economic stream of the world with high-spirited gesture and will stand on the key place in China’s economic domain.
Xiaoxiang has great pleasure to greet distinguished guests, Hunan’s waters and mountains are filled with sincere and real sentiments. An opening Hunan is extending its huge arms to welcome friends from all corners of the world for visiting, investment, business talks and touring.
Located in central subtropical zone, Hunan has a continental wet monsoon climate, with sufficient sunshine, plentiful rain and distinct four seasons. Its annual temperature averages 16℃-18℃, sunshine time 1300-1800 hours, frost free time 278-300 days and precipitation 1,200-1,700mm.Hunan has favorable conditions for agricultural production.
Hunan has made brilliant achievements in economic construction in the past 20 years since reform and opening up. In 2004, its GDP reached RMB 561.226 billion yuan, up by 12.0%, ranking 12th in China. GDP per capita is RMB 9,117 yuan calculated based on the permanent residing population. The proportions of its primary, secondary and tertiary industries stand at 20.6%, 39.5% and 39.9%.
1. A) Agriculture
Hunan enjoys exceptional advantages in developing agriculture. As an old saying goes, when Hunan and Guangdong have reaped rice, food for all the Chinese will suffice. Hunan's output capacity of main farming and sideline products are in leading position of China. Output of rice, ramie, tea Oil, tung oil stand first in China; live pigs stand second and tea in forth. Oranges, tobacco, fresh water fish and etc. are listed in top 10 of total output in China.
Main farming products output in 2004
Unit: 10,000 M.T
|
Product Name |
Absolute amount |
Increase rate compared previous year % |
|
Grain
Edible oil
Rape seed
Cotton
Sugarcane
Tobacco
Vegetable |
2810.26
139.61
106.97
20.62
110.76
18.93
2315.33 |
15.0
11.1
13.9
26.4
-22.2
1. 2
1.1 |
Main animal husbandry products output in 2004
|
Product name |
Unit |
Absolute amount |
Increase rate compared previous year % |
|
Live pig
Cattle
Sheep
Meat
Egg
Milk |
10,000 heads
10,000 heads
10,000 heads
10,000 M.T
10,000 M.T
10,000 M.T |
7039.57
185.01
790.54
696.15
88.10
6.66 |
5.7
10.0
9.5
6.1
2. 7
26.8 |
B) Industry
Hunan has evolved a complete industrial system. A considerable capacity has been formed in the production of main industrial products. In 2004 total output value of industry in Hunan amounts to RMB 178.114 billion yuan, up 15.9% over the previous year and the output value of industries above the scale was RMB 119.814 billion, up by 24.1%. The ten superiority industries such as equipment manufacturing, iron and steel, non-ferrous metals, cigarette, foodstuff, electronics and IT, new materials completed the increased value of RMB 91.197 billion yuan, inched up 26.5%. Hunan ranks among China's top ten places as regards the output of 30 of its 62 major industrial products. For example, it is No. 1 in the production of lead, zinc and antimony, No. 2 in the production of pesticides and railway wagon, No. 2 in cigarette making. Other leading products include sulfuric acid, chemical fertilizer, timber, iron alloy, machine-made paper and paperboard, raw coal and cement are on the top ten places.
Industrial increased value of Hunan in 2004
Unit: RMB100 million
|
Index |
Absolute amount |
Increase rate compared previous year % |
|
Industry increase |
1198.14 |
24.1 |
|
Including: State owned and State controlled shareholding enterprises |
678.07 |
21.7 |
|
Including: Collective ownership enterprises |
73.78 |
7.4 |
|
Shareholding enterprises |
423.91 |
27.3 |
|
Foreign funded and Hongkong. Macao, Taiwan investment enterprises |
96.64 |
25.6 |
|
Including: Light industry |
428.15 |
23.8 |
|
Heavy industry |
769.99 |
24.3 |
Table 4. Main product output of the industries above scale of Hunan in 2004
|
Product name |
Unit |
Absolute amount |
Increase rate compared previous year % |
|
Yarn |
10,000 M.T |
23.91 |
18.3 |
|
Cigarette |
100 million pcs |
1350.17 |
10.8 |
|
Household refrigerator |
10,000 set |
61.17 |
36.8 |
|
Primary energy source production volume |
10,000 M.T. of standard coal |
3146.40 |
14.9 |
|
Raw coal |
10,000 M.T |
3036.15 |
18.5 |
|
Petroleum oil processing amount |
10,000 M.T |
610.36 |
19.5 |
|
Power generating capacity |
100MKW |
605.18 |
16.8 |
|
Crude steel |
10,000 M.T |
804.07 |
36.5 |
|
Steel products |
10,000 M.T |
802.11 |
36.6 |
|
Ten kinds of non-ferrous metals |
10,000 M.T |
117.43 |
8.3 |
|
Cement |
10,000 M.T |
3358.22 |
10.7 |
|
Sulphuric acid |
10,000 M.T |
169.19 |
15.3 |
|
Alkali |
10,000 M.T |
18.86 |
19.5 |
|
Caustic soda |
10,000 M.T |
30.67 |
24.4 |
|
Chemical fertilizer |
10,000 M.T |
213.77 |
23.1 |
|
Car |
10,000 units |
8.92 |
33.8 |
|
Program controlled exchanger |
10,000 lines |
5.36 |
430.7 |
Profit amount of industries above scale of Hunan in 2004
Unit: RMB 100 million
|
Index |
Absolute amount |
Increase rate compared previous year % |
|
Total profit |
156.51 |
55.3 |
|
Including: State owned and State controlled shareholding enterprises |
80.45 |
61.7 |
|
Including: Collective ownership enterprises |
7.73 |
61.7 |
|
Shareholding enterprises |
42.27 |
30.9 |
|
Foreign funded and Hongkong. Macao, Taiwan investment enterprises |
26.82 |
42.8 |
|
Including: large and medium sized enterprises |
110.56 |
45.4 |
|
Total profit |
450.64 |
34.3 |
C) Foreign Trade
At present Hunan has established business relationship with 170 countries and regions in the world and developed 3000-odd export products including 50 bulk commodities with export volume amounted over USD 10 million such as zinc, manganese, lead, antimony and non-ferrous metals, textiles, garments, chemicals, color display tube, firecrackers and fireworks, ceramics, ferroalloy, steel, shoes and hats, rice, tea, vegetables, case and bag, pigs, graphite. The total volume of export and import in 2004 was USD 5.438 billion, up by 45.5%, including USD 3.098 billion in export increased 44.3%and USD 2.340 billion in import up by 47.2%. The general import and export volume was USD 4.721 billion, inched up 41.6%, and the processing trade was USD 550 million, increased by 64.7%. According to the classification of enterprise features, the state owned enterprises had an export and import value of USD 3.132 billion surging 37.5%; the collective enterprises USD 283 million up by 17.4%; private owned enterprises USD 952 million increased 111.9%; the foreign funded enterprises USD 1.070 billion rose 39.2%. The export to EU, Japan, USA, Hong Kong, ASEAN countries had a quick growth. Among the export commodities, the farming products accounted for USD 230 million, an increase of 24.0%; the mechelectronic products amounted to USD 606 million, up by 40.7% .
Classification of import and export of Hunan in 2004
Unit: USD 100 million
|
Index |
Absolute amount |
Increase rate compared previous year % |
|
Total volume of import and exports |
54.38 |
45.5 |
|
Volume of export: |
30.98 |
44.3 |
|
Including: general trade |
27.62 |
12.6 |
|
processing trade |
3.36 |
61.4 |
|
Including: mechelectronic products |
6.06 |
40.7 |
|
Including: hi-tech products |
0.60 |
32.3 |
|
Volume of import: |
23.40 |
47.2 |
|
Including: general trade |
19.59 |
45.1 |
|
processing trade |
2.15 |
70.1 |
|
Including: mechelectronic products |
11.36 |
12.1 |
|
Including: hi-tech products |
1.85 |
19.1 |
Export volume to main countries and regions in 2004
Unit: USD 10,000
|
Country |
Export |
Increase rate compared previous year % |
Import |
Increase rate compared previous year % |
|
America |
47486 |
60.3 |
17789 |
74.5 |
|
Hong Kong
EU |
53595
51799 |
41.0
42.4 |
2015
43523 |
59.2
-1.4 |
|
Japan |
32173 |
48.8 |
46381 |
28.7 |
|
ASEAN |
25281 |
42.4 |
7665 |
30.0 |
|
R.O.Korea |
16872 |
59.2 |
29510 |
6.0 |
|
Russia |
3841 |
-11.8 |
2459 |
183.6 |
|
Taiwan China |
9760 |
46.5 |
4575 |
37.6 |
Foreign investment promotion has obtained outstanding results. In 2004 the contracted value of foreign investment amounted to USD 2.826 billion and actually utilized amount of foreign funds totaled USD 1.637 billion, including 636 newly approved foreign direct investment projects, up by 25.0% from a year ago. The contracted value of foreign direct investment amounted to USD 2.607 billion, surging 94.7%, and actually utilized amount of foreign direct investment totaled USD 1.418 billion, rose 39.3%. The actually introduced funds from other provinces amounted to RMB51.053 billion yuan, inched up 52.2%. By the end of 2004, the aggregate number of foreign-funded projects approved by the province had come to 7658, the contracted value of foreign investment amounted to USD 14.352 billion and actually utilized amount of foreign funds totaled USD 9.991 billion.
Foreign economic cooperation had a great increase. In this year the newly signed foreign contract projects, labor cooperation and design and consulting contracted value amounted to USD 614 million, an increase of 57.1% compared with previous year. The business volume completed reached USD 462 million, up by 19.8%. The labor service designated to foreign countries amounted to 6503 persons, increased 29.4%.
D) Science and Education and Public health
Hunan boasts remarkable sci-tech achievements and is reinforced in the key Sci-tech projects and has great strength in tackling sci-tech problems. In 2004, Hunan won 943 achievements in science and technology, 147 provincial Sci-tech Progress Prizes including 15 Class A Prizes, 52 Class B Prizes and 80 Class C Prizes. The province has started 24 key sci-tech projects and signed 19370 technical project contracts with transaction value of RMB 4.083 billion yuan. In 2004 the patents submitted for approval amounted to 7693 cases with 3281 patents awarded. The added value of hi-tech products amounted to RMB 38.833 billion in the year, climbed 27.9%. There are 17 national key labs, 6 state level engineering and technology research centers and 22 provincial level engineering and technology research centers.
The education undertakings is developed in an all-round way with the higher education scale constantly expanded. Hunan possesses 81 key or regular colleges and universities, 8 colleges increased from a year ago. This year saw 206,800 students admitted by the colleges and universities increased 6.69%, There are 639,000 students studying in the colleges and universities, up 18.95%. The number of newly admitted students for master degree amounted to 10700 grew 23.95%. There are 26100 students studying for postgraduate degree, up by 34.3%, including 4742 for doctor degree and 21341 for master degree. 833 private owned schools and colleges in the province held 636,000 students.
The medical care and healthy undertakings are in further development. By the end of 2004, Hunan has 4,016 medical institutions, including 721 hospitals, 45 outpatient departments,100 special disease prevention and cure institutes, 142 disease prevention and control institutes, 132 women and children health care institutes, 50 public health supervision institutes, 2627 town and township public health centers, 233,300 professional medical staff, 80,000 doctors and assistant doctors, 54,800 nurses in registration.
Development Plan
The province will take people’s interests and welfare as the principal to build up the overall well-to-do society as the target, make great efforts to promote industrialization, urbanization and agriculture industrialization process. On the basis of optimizing economic structure and raising benefit, Hunan will strive for doubling GDP by 2008 compared with that in 2000 and redoubling before 2020, basically achieving the industrialization and building a perfect market economy system and much vigorous opening economy system. The urban residents number will have a great increase. The difference between industry and farming, urban and rural area, and the tendency of regional gap expansion will be progressively changed. At that time the social insurance system will be complete, and the job opportunities will keep growing, and the socialist democracy will become amplifying, and the socialist law system will be perfect, and population quality will have obvious improvement, capability of sustainable development will obviously enhanced, thus stepping into a development road that economy is unceasing thriving, society continuously getting progress, living standard uninterruptedly rising and ecological environment constantly improving.
2005-12-22 |