THE EIGHT ECONOMIC REGIONS OF CHINA

2 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

3 The Eight Economic Regions of China 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.

4 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. The Eight Economic Regions of China

5 1. Population (10,000s) ,348* YoY Growth: 1.4% 13,162 YoY Growth: 0.5% 10,621 YoY Growth: 0.4% 17,713 YoY Growth: 0.6% 35,529 YoY Growth: 0.7% 10,240 YoY Growth: -4.7% 24,239 YoY Growth: 0.9% * Excluding Hong Kong and Taiwan: Hong Kong’s population (in 10,000s) is 672 Taiwan’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. 766 YoY Growth: 1.5% Source: China Statistical Yearbook

6 2. Population Density (People Per Sq Mile) YoY Growth: 1.4%* 1,619 YoY Growth: 0.5% 342 YoY Growth: 0.4% 1,236 YoY Growth: 0.6% 10 YoY Growth: 1.5% 76 YoY Growth: -4.7% 458 YoY Growth: 0.9% * Excluding Hong Kong and Taiwan: Hong Kong’s population density (in people per sq mile) is 15,924 Taiwan’s population density (in people per sq mile) is 1,579 (1998) 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. 897 YoY Growth: 0.7% Source: China Statistical Yearbook

7 3. GDP (100 million RMB) ,485* YoY Growth: 7% 17,098 YoY Growth: 8% 8,739 YoY Growth: 6% 18,140 YoY Growth: 4% 344 YoY Growth: 11% 5,099 YoY Growth: 7% 9,913 YoY Growth: 4% * Excluding Hong Kong and Taiwan: Hong Kong’s GDP (in 100 millions) is 13,180 RMB Taiwan’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. 15,855 YoY Growth: 7% Source: China Statistical Yearbook

8 4. Per Capita GDP (RMB) ,002* YoY Growth: 5% 12,990 YoY Growth: 7% 8,228 YoY Growth: 5% 8,951 YoY Growth: 7% 5,106 YoY Growth: 3% 4,491 YoY Growth: 9% 4,979 YoY Growth: 12% 4,090 YoY Growth: 3% * Excluding Hong Kong and Taiwan: Hong Kong’s per capita GDP is 196,137 RMB Taiwan’s per capita GDP is 100,014 RMB (1998) Note: Gross Domestic Product refers to the final products of all resident units in a country during the given period of time. 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. Source: China Statistical Yearbook

9 5. Total GDP Growth (%) * ** *Excluding Hong Kong and Taiwan **Excluding Tibet Note: Gross Domestic Product refers to the final products of all resident units in a country during the given period of time. 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. Source: China Statistical Yearbook

10 6. Per Capita Disposable Income of Urban Residents (RMB) ,696 YoY Growth: 9% 5,440 YoY Growth: 12% 5,597 YoY Growth: 6% 4,981 YoY Growth: 8% 5,982 YoY Growth: 7% 4,686 YoY Growth: 7% 7,673 YoY Growth: 11% 8,209* YoY Growth: 4% * 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. 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. Source: China Statistical Yearbook

11 7. Actually Used FDI (100 million RMB) 1999 * Excluding Hong Kong and Taiwan ** Excluding Tibet 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. 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. 842 YoY Growth: -12% 584 YoY Growth: -11% 1,342* YoY Growth: -5% 117 YoY Growth: -25% 0.5** YoY Growth: N/A 254 YoY Growth: -10% 35 YoY Growth: -10% 140 YoY Growth: -46% Source: China Statistical Yearbook

12 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. 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. 131 YoY Growth: -47% 640 YoY Growth: -13% 330 YoY Growth: -12% 1,182* YoY Growth: -6% 48 YoY Growth: -26% 7** YoY Growth: N/A 72 YoY Growth: -10% 34 YoY Growth: -6% * Excluding Hong Kong and Taiwan ** Excluding Tibet Source: China Statistical Yearbook

13 9. Value of Import and Export (100 million RMB) YoY Growth: 11% 23 YoY Growth: 16% 634 YoY Growth: -2% 965 YoY Growth: 6% 5,794 YoY Growth: 13% 1,505 YoY Growth: 11% 7,319 YoY Growth: 22% 13,212* YoY Growth: 7% * Excluding Hong Kong and Taiwan: Hong Kong’s trade value (in 100 millions) is 29,554 Taiwan’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. 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. Source: China Statistical Yearbook

Per Capita Value of Import and Export (RMB) YoY Growth: 16% 297 YoY Growth: 14% 262 YoY Growth: -3% 272 YoY Growth: 5% 3,271 YoY Growth: 12% 1,417 YoY Growth: 10% 5,561 YoY Growth: 21% 11,642* YoY Growth: 6% * Excluding Hong Kong and Taiwan: Hong Kong’s per capita trade value is 439,785 RMB Taiwan’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. 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. Source: China Statistical Yearbook

China Topographic Map (Including Provinces and Capitals)

China Dialects Map (Including Dialect Groups)

China Railways Map (Including Train Numbers)

18 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

19

20

21