Economy Profile of Sichuan

Great achievements during the 10th Five-Year-Plan Period(2001-2005)

During the 10th Five-Year-Plan Period (2001-2005),the Sichuan people, under the correct leadership of the Central Committee of the Communist Party of China, held high the great banner of Deng Xiaoping’s theory and the important thought of the “Three Represents”, relied on the concept of scientific development, grasped the good opportunity of Western Development, boosted the implementation of the “Three Shifts”, pushed forward Sichuan’s stride in development, made great economic achievement, took major step in building an all-round well-off society, and made progress in different filed.

In 2005, Sichuan’s GDP registered 738.51 billion yuan (about US$96.61billion),up 12.6 percent over 2004 and up 69.8 percent over the year 2000.The annual average growth rate was 11.2 percent. The proportion of agriculture, industry and the service sector was adjusted from 24.1:36.5:39.4 in 2000 to 20.3:41.3:38.4 in 2005.Ranking the ninth in the country and the first in West China.

The ordinary budgeted revenue of the local finance was 83.04 billion yuan (about US$ 10.19 billion),up 23.6 percent over 2004 and a 1.4-fold increase over 2000.The ordinary budgeted expenditure was 108.22 billion yuan (about US$ 13.28 billion),up 20.9 percent over 2004 and a 1.4-fold increase over 2000.Rangking the first in West China.

In 2005, investment in fixed assets amounted to 346.2 billion yuan (about US$42.48 billion),up 30.7 percent over the previous year. From 2001 to 2005, investment in fixed assets registered 1,164.77 billion yuan (about US$142.92 billion),a 1.1-fold increase over the 9th Five-Year-Plan Period (1996-2000).Ranking the first in central and West China.

In 2005, the increased value of industry of scale was 203.44 billion yuan (about US$24.96 billion), up 23 percent over 2004 and 1.4-fold increase over 2000. Its net profit surpassed 30 billion yuan (about US$3.68 billion), up around 30 percent over 2004 and 3.5-fold increase over 2000.

In 2005, the grain output reached 34.09 million tons. Farmers’ per capita net income amounted to 2,802.8 yuan (about US$343.9 ), an increase of 223 yuan (about US$27.36)over 2004 and 899 yuan (about US$110.3)over 2000.Meat output rose from 6.413 million tons in 2000 to 9.492 million tons in 2005.

In 2005, tourism earnings reached 72.13 billion yuan (about US$8.85 billion), up 27.4 percent over 2004. The province received 1.0628 million overseas tourist and earned US$316 million in foreign exchange, up 10 percent and 9.4 percent respectively over 2004, setting an all-time high record.

Achievements in building an economically strong province in West China

Rose picture of the electronic information industry

Brought along by the investment projects of the Intel, Zhongxin International and Younisen, the electronic information industry in the Chengdu National High-tech Development Zone is gaining momentum. The zone is strong in digital frequency products, integrated circuits, software and information safety products. Advantageous enterprises in Sichuan such as Changhong, Go Tel and Maipu are diving force behind the province’s economic growth. Some multinationals have set up research and development centers in Chengdu. They include Symens and Nokia. Molex, the world’s second largest electronic connector manufacturer, has invested in Chengdu Export Processing Zone.

New achievements of the tourism sector

Centring upon natural, ecological, historical and cultural tourism, Sichuan has improved infrastructure in the tourism sector. In 2005,it held the Third Sichuan Tourism Development Conference and the First Sichuan Winter Tourism Development Conference. Tourism has become a pillar industry in the province. It was the first to start the red tourism programme which became a new growth point in 2005. Jinayou, Yibin, Ya’an, Panzhihua and Luzhou won the laureate of China’s Excellent Tourist Cities in 2005, bringing the number of Sichuan cities with the title to 14 and ranking first in West Sichuan. In 2005,Sichuan’s tourism earnings were 15.51 billion more than in the previous year and 46.32 billion more than in the year 2000, a 1.8-fold increase compared with the year 2000.

Booming development of the hydropower industry

Sichuan abounds in water resources. The Jinsha,Yalong and Dadu rivers have many huge power stations. Ertan, China’s second largest hydropower station, has started operation. The Pubugou Hydropower Station has witnessed the damming of the river. Construction of the 12.6-million kilowatt Xiluodu Hydropower Station,6-million-kilowatt Xiangjiaba Hydropower Station and the 3.6-million-kilowatt Jinping First-class Hydropower Station has started. In 2005, the newly increased installed capacity was 2.72 million kilowatts and the province’s installed capacity amounted to 23 million kilowatts. In 2005, the province generated 95.8 billion kilowatts hours of electricity, up 8.3 per cent over 2004.

The machinery and metallurgical sector is gaining momentum

Sichuan has more than 10 major iron and steel producing enterprises. In 2005, its steel producing capacity reached 12.5 million tons. It real steel output was 9.89 million tons. The Panzhihua Iron and Steel Group’s annual 500,000-ton, 340-millimetre consecutive casting unit started operation. The Second Heavy-Duty Group’s 5-metre-thick rolling mill passed the test in the Baoshan Iron and Steel Group, ending China’s history of not having rolling mills thicker than 4.2 metres. The heavy-duty equipment manufacturing base represented by the Second Heavy-Duty Machinery Plant and Dongfang Electric Group is in Deyang.

Advantages in pharmaceuticals and chemical industrial sector

Sichuan’s modernization base of traditional Chinese medicine has taken shape. The Chengdu National Medicine Export Base has been approved by the Ministry of Commerce. The boiler saltpetre clearance project undertaken by the Dongfang Boiler (Group) Shareholding Co. Ltd and the Huadian Changsha Power Plant has broken foreign monopoly technology.

Time-honoured beverage and foodstuff sector

Sichuan is famous for its liquor and food far and near. The output and sales of Wuliangye, Luzhou Old Cellar, Qiannanchun, Lanjiu, Quanxin and Tuopai is constantly on the rise. The 2005 China Candy and Wine Fair was held in Chengdu, further boosting the mingling of Sichuan’s liquor with the international market. The industrialization and standardization process of Sichuan cuisine is accelerated. More and more Sichuan food bas found its way into the international market.

Breakthrough in opening to the outside world

In 2005, Sichuan’s import and export registered US$7.9 billion, up 15.1 percent over the previous year. Its export registered US$4.7 billion, up 18.1 percent over the previous year, while its import registered US$3.2 billion, up 11 percent. The actual amount of foreign investment it introduced amounted to US$1.1 billion, up 10.1 percent and fulfilling the task of the year. A total of 111 Fortune 500 enterprises have invested in Sichuan. Fourteen invested in the province in 2005. Most foreign –funded enterprises in Sichuan are from USA, Japan and Hong Kong. Their fields of investment focus on manufacturing, real estates, wholesales, and retail sales. In 2005, Germany, South Korea, Thailand and France opened consulates in Chengdu.

The province has sped up infrastructure construction and kept on improving its investment environment. It has 1759 kilometers of expressways and 759 kilometers were increased in 2005. Its railway mileage is 3009 kilometers and 288 kilometers were increase in 2005. Its entire trunk has been electrified. It has completed the renovation and extension of the Chengdu Shuangliu International Airport. In 2005, the airport handled 13.9 million passengers, ranking sixth among Chinese airports of civil aviation. Sichuan has 9 lateral airport of civil aviation and more than 150 domestic and international air routes linking different parts of the world.

Sichuan has pushed forwards regional co-operation. It held the Second Pan-Pearl River Delta Regional Co-operation and Development Forum and Trade Fair, the Sixth Western China International Exposition, the Sixth China Flower Expo and the Second International Conference on the Modernization of traditional Chinese Medicine in 2005 and introduce domestic funds totaling 71.62 billion yuan (about US$8.79 billion), up 49.2 percent over the previous year.