the eight economic regions of china. 2 the eight economic regions of china a. national economy –...

THE EIGHT ECONOMIC REGIONS OF CHINA

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The Eight Economic Regions of China

A. National Economy – Misleading

A decade ago, to talk about China’s national economy was seriously misleading. It was really a series of provincial economies,

which traded little with each other, let alone the outside world. Everywhere had its own set of factories producing a similar set of

goods – hence the hundreds of car plants, steel mills, cement works and so on across the country. The biggest reason for this

was the lack of transport infrastructure, and even today, China has fewer miles of railway than the US had at the time of its civil

war in the 1860s. As such, the country is still basically a set of regional economies.

B. Regional Economies – Methodology

Fiducia has grouped China’s provinces into regions based on the following statistical and non-statistical criteria:

• administrative provinces

• population density

• GDP, per capita GDP and long-term GDP growth

• per capita disposable income

For each statistical criterion, the provinces were given percentage rankings, and the rankings weighted according to the relative

importance of the criterion. Then for each province, the weighted rankings were summed across all statistical criteria, and the

results plotted in gray scale on a map of the Chinese provinces. The patterns which emerged were cross-referenced with the

non-statistical criteria, and the regional economies determined.

• trade value and per capita trade value

• FDI and per capita FDI

• infrastructure

• tradition, culture and dialect

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Northwest• Xinjiang• Gansu• Ningxia• Shaanxi• Inner Mongolia

Northeast• Heilongjiang• Jilin• Liaoning

Greater Beijing• Beijing• Tianjin• Hebei• Shandong

Greater Shanghai• Shanghai• Jiangsu• Zhejiang

Greater Guangdong• Guangdong• Fujian• Hainan• (Hong Kong)• (Taiwan)

Southwest• Sichuan• Yunnan• Guizhou• Guangxi• Chongqing

West•Tibet• Qinghai

Central• Hubei• Hunan• Henan

• Anhui• Jiangxi• Shanxi

C. Regional Economies – Eight in Total

China has eight economic regions: Greater Beijing, Greater Shanghai, Greater Guangdong, Central, Northeast, Northwest, West and Southwest.

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D. Regional Economies - Strategy Development

‘The Eight Economic Regions of China’ displays the diversity between these regions in the series of thematic maps which

follow. Recognising and understanding the diversity between these regions, and thereby avoiding the pitfalls of generalisation,

is fundamental to developing a workable strategy in China:

• It is the first step in determining where to focus business activities, for example, investment locations or target markets.

As such, ‘The Eight Economic Regions of China’ indicates which regions should be further investigated, and which

regions should be ruled out for the time being.

• As the diversity between regions is not static, it is important to consider both the current levels of diversity, and the

growth rates of each region. As such, ‘The Eight Economic Regions of China’ also suggests which regions have the

greatest future potential, and which regions have reached more mature stages.


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1. Population(10,000s) 1999

11,348*YoY Growth: 1.4%

13,162YoY Growth: 0.5%




10,240YoY Growth: -4.7%


* Excluding Hong Kong and Taiwan:Hong Kong’s population (in 10,000s) is 672Taiwan’s population (in 10,000s) is 2,193

Key: Regions are shaded according to year-on-year growth, the regions with the highest growth are shaded most heavily, and the regions with the lowest growth are shaded most lightly.

766YoY Growth: 1.5%

Source: China Statistical Yearbook

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2. Population Density(People Per Sq Mile) 1999

885YoY Growth: 1.4%*


342YoY Growth: 0.4%


10YoY Growth: 1.5%

76YoY Growth: -4.7%

458YoY Growth: 0.9%

* Excluding Hong Kong and Taiwan:Hong Kong’s population density (in people per sq mile) is 15,924Taiwan’s population density (in people per sq mile) is 1,579 (1998)


897YoY Growth: 0.7%


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3. GDP(100 million RMB) 1999

12,485*YoY Growth: 7%

17,098YoY Growth: 8%

8,739YoY Growth: 6%


344YoY Growth: 11%

5,099YoY Growth: 7%

9,913YoY Growth: 4%

* Excluding Hong Kong and Taiwan:Hong Kong’s GDP (in 100 millions) is 13,180 RMBTaiwan’s GDP (in 100 millions) is 21,933 RMB (1998)

Note: Gross Domestic Product refers to the final products of all resident units in a country during the given period of time.

Regions are shaded according to year-on-year growth, the regions with the highest growth are shaded most heavily, and the regions with the lowest growth are shaded most lightly.



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4. Per Capita GDP(RMB) 1999



8,228YoY Growth: 5%

8,951YoY Growth: 7%

5,106YoY Growth: 3%

4,491YoY Growth: 9%


4,090YoY Growth: 3%

* Excluding Hong Kong and Taiwan:Hong Kong’s per capita GDP is 196,137 RMBTaiwan’s per capita GDP is 100,014 RMB (1998)




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5. Total GDP Growth(%) 1991 - 1999

565*

587

377

479

412

340**

352

364

* Excluding Hong Kong and Taiwan** Excluding Tibet


Key: Regions are shaded according to growth, the regions with the highest growth are shaded most heavily, and the regions with the lowest growth are shaded most lightly.


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6. Per Capita Disposable Income of Urban Residents(RMB) 1999

4,696YoY Growth: 9%


5,597YoY Growth: 6%

4,981YoY Growth: 8%

5,982YoY Growth: 7%

4,686YoY Growth: 7%



* Excluding Hong Kong and Taiwan

Note: Disposable Income of Urban Residents refers to the income of households which can be used for daily expenses, i.e. total income minus taxes and other current transfers.



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7. Actually Used FDI(100 million RMB) 1999


Note: Foreign Direct Investment refers to the investments inside China made by foreign enterprises, economic organisations and individuals (including overseas Chinese, Hong Kong Chinese and Chinese enterprises registered abroad) for the establishment of WFOE’s, JV’s and COE’s.


842YoY Growth: -12%

584YoY Growth: -11%

1,342*YoY Growth: -5%

117YoY Growth: -25%

0.5**YoY Growth: N/A 254

YoY Growth: -10%

35YoY Growth: -10%

140YoY Growth: -46%


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8. Per Capita Actually Used FDI(RMB) 1999

Note: Foreign Direct Investment refers to the investments inside China made by foreign enterprises, economic organisations and individuals (including overseas Chinese, Hong Kong Chinese and Chinese enterprises registered abroad) for the establishment of WFOE’s, JV’s and COE’s.


131YoY Growth: -47%

640YoY Growth: -13%

330YoY Growth: -12%

1,182*YoY Growth: -6%

48YoY Growth: -26%

7**YoY Growth: N/A

72YoY Growth: -10%

34YoY Growth: -6%



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9. Value of Import and Export(100 million RMB) 1999

481YoY Growth: 11%

23YoY Growth: 16%

634YoY Growth: -2%

965YoY Growth: 6%





* Excluding Hong Kong and Taiwan:Hong Kong’s trade value (in 100 millions) is 29,554Taiwan’s trade value (in 100 millions) is 17,928 (1998)

Note: Value of imports and exports is measured by location of Foreign Trade Managing Units. This refers to the actual value of imports and exports carried out by corporations which have been registered by the local custom house and are vested with the right to run trade businesses.



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10. Per Capita Value of Import and Export(RMB) 1999

469YoY Growth: 16%

297YoY Growth: 14%

262YoY Growth: -3%

272YoY Growth: 5%





* Excluding Hong Kong and Taiwan:Hong Kong’s per capita trade value is 439,785 RMBTaiwan’s per capita trade value is 90,483 RMB (1998)

Note: Value of imports and exports is measured by location of Foreign Trade Managing Units. This refers to the actual value of imports and exports carried out by corporations which have been registered by the local custom house and are vested with the right to run trade businesses.



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11. China Topographic Map (Including Provinces and Capitals)

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12. China Dialects Map (Including Dialect Groups)

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13. China Railways Map (Including Train Numbers)

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Hong Kong

Ningbo

Fuzhou

Xiamen

Dalian

Tianjin

Kaohsiung

To Nagasaki

To Yokohama

To Vladivostok

To Manila, Sydney….

To Singapore, Jakarta, Bangkok…

Zhanjiang

Huang He(Yellow River)

Chang Jiang(Yangtze River)

Lancang Jiang(Mekong River)

Yarlung Zangbo Jiang(Brahmaputra River)

Zhu Jiang(Pearl River)

15. China Waterways Map (Including Navigable Rivers, Ports and Sea Routes)

Da Yunhe(Grand Canal)

Hangzhou

Beijing

Heilong Jiang(Black Dragon River)

Yantai

Qingdao

Shanghai

the eight economic regions of china. 2 the eight economic regions of china a. national economy –...

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yoy growth

growth rates

set of regional economies

longterm gdp growth

statistical criterion

nonstatistical criteria

chinas provinces

series of provincial