Chongqing municipality
Major Economic Indicators
| Economic Indicators |
2006
|
Jan - Jul 2007
|
|
Value
|
Growth
(%, y-o-y)
|
Value
|
Growth
(%, y-o-y)
|
| Gross Domestic Product (RMB bn) |
349.2
|
12.2 1
|
167.8 3
|
14.5 1
|
| Per Capita GDP |
12,457
|
13.4
|
|
|
| Added Value Output |
|
|
|
|
| - Primary industry (RMB bn) |
42.6
|
-5.5 1
|
|
|
| - Secondary industry (RMB bn) |
150.1
|
16.9 1
|
|
|
| - Tertiary industry (RMB bn) |
156.5
|
14.0 1
|
|
|
| Value-added Industrial Output2 (RMB bn) |
84.5
|
18.0 1
|
62.9
|
23.3 1
|
| Fixed-assets Investment (RMB bn) |
245.2
|
24.9
|
136.8
|
34.2
|
| Retail Sales (RMB bn) |
140.4
|
15.4
|
93.0
|
16.9
|
| Inflation (Consumer Price Index, %) |
|
2.4
|
|
3.0
|
| Exports (US$ mn) |
3,093.1
|
29
|
2,225.2
|
30.8
|
| - By FIEs (US$ mn) |
483.5
|
34.7
|
370.9
|
44.7
|
| Imports (US$ mn) |
2,218.2
|
21
|
1,512.0
|
19.1
|
| - By FIEs (US$ mn) |
1,563.0
|
30.0
|
1,230.9
|
30.9
|
| Foreign Direct Investment |
|
|
|
|
| - Number of projects |
223
|
7.2
|
134
|
30.1
|
| - Contracted amount (US$ mn) |
1,115.6
|
37.5
|
1,869
|
236.5
|
| - Utilized amount (US$ mn) |
696.2
|
40
|
502
|
66.7
|
Notes: 1 In real terms 2 For all state-owned enterprises and other forms with annual sales over RMB5 million 3 First half of 2007
Sources: Chongqing Statistical Yearbook 2007, China's customs statistics 7.2007
General Background
Chongqing has a total area of 82,400 square kilometers. Total population stood at 32 million by the end of 2006.
Chongqing is the youngest but the largest autonomous municipality in China. The establishment of the Chongqing municipality in 1997 represented a major breakthrough of China's initiatives to speed up economic development in the central and western regions. The Three Gorges Project which has positive implications in areas such as tourism, relocation of residents and environment protection is expected to stimulate development of Chongqing's economy, as well as the western region as a whole.
Industries
Chongqing is one of the old industrial bases of China. It is a major automobiles, military, iron & steel and aluminum industry centre in China.
Composition of GDP (%)
| |
2004
|
2006
|
| Primary |
16.2
|
12.2
|
| Secondary |
44.3
|
43.0
|
| .....Industry |
34.8
|
35.3
|
| Service |
39.5
|
44.8
|
Source: Chongqing Statistical Yearbook 2005, 2007
Chongqing’s industry is dominated by heavy industry. In 2006, heavy industry accounted for 65.6% of the municipality’s total industry value added, and received a larger portion of foreign investment than the light industry sector.
Output Share of Leading Industry Groups (2006)
| |
% Share of total
industrial output
|
| Transport Equipment |
35.1
|
| Smelting and Pressing of Ferrous Metals |
7.0
|
| Electric & Hot Power Production & Supply |
6.8
|
| Raw Chemical Materials and Chemical Products |
5.9
|
| Smelting and Pressing of Non-Ferrous Metals |
5.5
|
| Electric Equipment and Machinery |
4.9
|
| Nonmetal Mineral Products |
4.1
|
| Ordinary Equipment |
4.1
|
Source: Chongqing Statistical Yearbook 2007
High-tech Development
Chongqing High-Tech Industrial Development Zone is a national high-tech development zone approved by the State Council in March 1991. By the end of 2006, there were 13,225 enterprises operating in it, employing nearly 118 thousand persons.
In 2006, gross output value of industry of Chongqing High-tech Development Zone reached RMB52 billion, generating Value-added RMB11 billion. There are 38 institutions of higher education, more than 1000 scientific research institutions with more than 600 thousand employment.
Tourism
There are some famous tourist spots in Chongqing, e.g. the Three Gorges, Dazu Stone Carving. In 2006, Chongqing received 603 thousand overseas tourists and 68 million local tourists, bringing foreign exchange revenue of US$309 million (up 16.8% from 2005) and RMB32 billion (up 15.2% from 2005) respectively.
Foreign Trade
The top three largest overseas markets were the US, Japan and Germany. Major exports included mechanical and electrical products, motorcycles and motor vehicles.
Japan is the leading source of imports, followed by Germany and the US. Major imports included mechanical and electrical products, motor vehicles and high-tech products.
In 2006, Hong Kong was Chongqing's seventh largest trading partner. Chongqing exported US$128 million to Hong Kong and imported US$4 million from Hong Kong.
Foreign Investment
An increasing number of multinational companies have set up operations in Chongqing. These included Nokia, ABB, Sony Ericsson, American Standard, Rockwell, Honda, Suzuki, Isuzu, Yamaha, Mobil, China Bank Group, Hutchison Whampao, Gold Lion Group and Sam Sung, Cocacola. Reportedly, more and more existing foreign companies have committed in investment expansion in recent years.
Inflow of foreign direct investment recorded faster growth in recent years. In 2006, the utilized amount of FDI increased by 40% to US$0.7 billion.
FDI in Chongqing
| |
1979-2006
|
2005
|
2006
|
| No. of contracts |
4,179
|
208
|
223
|
| Contracted amount (US$ mn) |
8,758.7
|
818.8
|
1,115.6
|
| Utilised amount (US$ mn) |
4,898.3
|
515.8
|
696.2
|
Source: Chongqing Statistical Yearbook, 2007
Of the total utilised FDI in Chongqing in 2006, secondary industry accounted for 44.6% and tertiary industry accounted for 55%. Areas that attracted the largest share of foreign investment included manufacturing, real estate and finance sector. The utilised FDI in the manufacturing and financial sectors grew by 99.7% and 879.3% respectively in 2006.
Hong Kong was the largest source of overseas investment in Chongqing in 2006. Hong Kong investors signed 72 contracts with contracted amount of US$421 million, and the utilized FDI from Hong Kong reached US$261 million. Other major investors came from the US, Japan and Singapore.
Foreign investments in some sectors are being encouraged by the Chongqing government. These include infrastructures, traditional Chinese medicine, numerical machine tool, hi-tech industries, and modern services such as banking, insurance.
Consumer Market
Chongqing has a large local market with a total population of 32 million. In terms of per capita disposable income of urban residents, Chongqing reached RMB11,570 in 2006, up 12.9% from 2005. Total retail sales of consumer goods reached RMB140 billion in 2006, an increase of 15.4% from 2005.
Composition of Per Capita Expenditure of Urban Household (%)
| |
2004
|
2006
|
| Food |
37.8
|
36.3
|
| Clothing |
9.8
|
11.1
|
| Household articles |
5.9
|
6.6
|
| Medicine & medical services |
6.7
|
7.5
|
| Transportation & communications |
10.9
|
10.4
|
| Recreation, cultural & education |
15.1
|
15.4
|
| Residence |
11.3
|
10.2
|
Source: Chongqing Statistical Yearbook, 2005, 2007
Chongqing is the retail and wholesale center of southern and western China. The retail industry of Chongqing is very competitive, particularly with the establishment of a number of local and foreign retail enterprises including Carrefour from France, Walmart from the US, Metro from Germany, Gome from Beijing , and the two indigenous retailers -- Chongqing General Trade Group and Chongqing Department Store Co, Ltd.
There are four major shopping areas in Chongqing, namely Jiefangbei, Chaotianmen, Shangpingba and Nan Ping. Chaotianmen market with sales exceeding RMB 10 billion is a major wholesale center in the southern and western China selling a wide range of products such as garment, plastic product and textiles.
