II. Economy
i. GDP
In 2005, the GDP in Ningxia was 59.94billion Yuan, among which the output value of first industry has increased 6.978 billion Yuan, the secondary industry 27.782 billion Yuan, and the tertiary industry 25.18 billion Yuan. And their proportion in Ningxia’s economy accounts for 11.64%, 46.35% and42% respectively. Further, our GDP per capita in 2005 reached USD 1,242.
ii. Resources, Industry and Agriculture
Natural Resources
Land resources
There are 19 million hectares of arable land in Ningxia, with 3.5 hectares per capita, ranking the second in the country. There are also 10.673million hectares of barren land ready to be cultivated, which is one of the 8 provinces having over 10 million hectares of barren land waiting for cultivation. As one of the ten pastoral areas around the country, Ningxia has 45 million hectares of grassland suitable to be developed. With more than 5.6million hectares of land being irrigated by Yellow river, Ningxia plain is one of four gravity irrigation areas in China.
Mineral Resources
Ningxia has rich mineral energy and non-metal resources such as coal, gypsum, petroleum, natural gas, potter’s clay, quartz sandstone, barites., with the explored of over 50 kinds. The average potential natural resource per capitals is 1.6 times as that of the state, ranking5th in the country. There are 31.5 billion tons of assured deposits, and 202.7 billion tons of estimated reserves that rank fifth in China. Ningxia has 9 among 10 famous coal brands around the country. Particularly, the quality of Taixi Coal is very excellent, rivaling the world-renown coal of Vietnam due to its “three low” and “six high” characteristics (i.e. low ash, low sulfur, low phosphorus; and high caloric capacity, high specific resistivity, high rate of lump coal, high chemical activity, high recovery rate of the jet, high mechanical strength), which is well received in more than 10 countries around Asia, Europe and North America.
Now the coal producing capacity in Ningxia is more than 25 million tons. It should be stressed that Ningdong coalfield is one of the largest coalfields in China, with the explored reserves of 30 billion tons, which is designated as one of the 13 top coalfish ends by the state. The explored reserve of gypsum in Ningxia is more than 4.5 billion tons, with above half of them having the first grade quality. Ningxia has potentially 27 million tons of explored reserve of petroleum to be exploited. The explored natural gas reserves in the Shaanxi-Gansu-Ningxia basin is over 200 billion m3, which is one of the super-huge gas if ends in the world. Ningxia’s also rich in quality silicon with huge potential reserves, whose explored reserve is more than 17 million tons. In addition, other mineral resources such as phosphrite,flintstone, gold, iron ore and copper are readily available.
Water Resources
The reserves of Ningxia’s water resources are 2.054 million kw. The average discharge of Yellow river through Ningxia is 32.5 billion m3, with 4billion m3 utilized water resources readily available per annum.
Industries
Ningxia has coal, electrical, metallurgical, chemical, and mechanical material industries as well as food processing, taxtile and paper making capabilities. In 2005 the industrial added value was 22.829billionyuan, taking up 38.1% of GDP.
Coal and Intensive Processing Industries
The coal industry is one of the pillar industries of Ningxia Province. Backed upon the high quality Taixi Coal, Ningxia has gradually developed several industries, such as the activated charcoal, carbon, electrode paste, silicon carbide, and carburizing agent,etc. Ningxia has started constructing a coal base leveled at 100 million tons production yearly and an electricity delivery base leveled at 20 million kilowatts yearly, transmitting the power from the West to the East.
Chemical Industry
Backed on the gas field, Ningxia has established petroleum processing base with a production of 2 million tons. The annual output of urea will amount to about 1.6million tons after the energy expansion, and that of nature rubber tires is 5 million sets, that of calcium carbide is more than1.5 million tons. After the establishment of the third large-scaled fertilizer installment with an annual output of 400 thousand tons of synthetic ammonia and 800 thousand tons of urea, Ningxia will be the largest natural gas fertilizer base nationwide. Besides , a project of 1.5 million sets of all steel meridian tires yearly and 10 million steel meridian tires is undergoing. Based on such a powerful productivity of calcium carbide, Ningxia can now produce 1 million tons of PVC through the calcium carbide approach.
Ningxia will be the largest PVC production base throughout the country.
Metallurgical Industry
Supported by abundant energy and resources, Ningxia has developed large-scaled metallurgical industry. Presently the productivity covers an annual output of 580 thousand tons of electrolytic aluminums, an annual output of 120 thousand tons of ferrosilicon, an annual output of 60 thousand tons of steel and iron, an annual output of 10 thousand tons of metal magnesium and large-scaled on-ferrous metal (i.e. tantalum, niobium and beryllium), ranking the second and first nationwide respectively.
Mechanical Industry
The main mechanical products in Ningxia are machine tools, bearings, hoist cranes, coal mining machinery, electrical machinery, instrument measuring appliances and farm machinery,etc. Ningxia has established the first intellectualized machine tool manufacturing company within the country—The Little Giant Machine Tool Corporation, the first-class steel casting corporation—Ningxia Changcheng Xuqi Casting Co., Ltd and Northwest Bearing Group. All the above mentioned companies are rather competitive both at home and abroad.
Textile Industry
Ningxia is the most influential cashmere circulation &distribution center and processing & export base in China. Presently Ningxia has an annual productivity of 3,000 tons of plush free cashmere, 500 tons of cashmere strip,300 tons of cashmere yarn and 1,200thousand pieces of cashmere sweaters.
The nationally famous trademark St.Edelweiss has been established and a large number of cashmere processing and export enterprises have well developed, such as the representative Ningxia St. Edelweiss Stock Company, Ningxia Alpha Cashmere Company, Ningxia Master Cashmere, and Ningxia Jiayuan Cashmere Company.
Papermaking Industry
Ningxia has abundant resources of wheat straw and reed, and cheap industrial chemicals used for papermaking. With the expansion of fast-growing poplars and silkworm bases and the increase of forestry, wood-pulp raw materials will be richer. Presently the annual output of paper-making capacity has reached380 thousand tons, and will have been 1,600thousand tons by 2010.
Building Materials Industry The proven reserves of cement limestone insignia have been 520 million tons, the estimated amount being 44.7 billion tons.
The gypsum reserves reach an amount of4.5 billion tons. The proven reserves of quartz sand have been 15 million tons, and the estimated amount is 1.6 billion tons. The potential of the building material industry is huge backed by its energy superiority.
Therefore, Ningxia becomes an important base for building materials, with an annual cement production of 6 million tons.
Distinctive Local Pharmaceutical Industry Ningxia has rich TCM resources.
Above 50 kinds of TCM barbs are commonly used such as fruit of Chinese wolfberry, licorice root, bitter bean, Chinese ephedrine, Trigonenella feonum-gracum, Astragalus mongholicus, radix stellariae, Cistanche salsa, cynomorium songaricum, scabish etc. Ningxia has formed a distinctive pharmaceutical industry system, including health products of Chinese wolfberry and bitter bean etc. Ningxia has become one of important bases for producing raw materials of antibiotics due to its dry climate, rich materials, low cost of labor and advanced fermentation technology. Currently, Ningxia can produce hydrochloric acid tetracycline, erythromycin, tyrosine, salinomycin andVb12.
New Material Industry
It is the most competitive and promising hi-tech industry in Ningxia. Based on the existing new materials and their related industries, Ningxia places emphasis on developing four large-scale distinctive new material industries such as rare metals (tantalum, niobium, and beryllium), magnesium and magnesium alloy, aluminum and aluminum alloy and carbon-based materials.
Agriculture Resources
Ningxia is privileged with rich land resources, convenient conditions of irrigation and good sunshine and heat, which are benefit coal to the growth of melon and fruit, wolfberry, licorice root and mahuang; moreover, they are also benefit coal to the planting of the vintage grapes and potatoes, and the raising of silkworms, cowhand sheep. The eastern foot of Helanshan Mountain located in the Yinchuan plain is the best grape-growing area in China. The area irrigated with Yellow River grows high quality crops, grapes, melons and fruits, and sugar content of its watermelons, apples and grapes is 15%-20% higher than Central China. The yield of single crop rice per mu amounts to 700 kilograms. Ningxia is one of the twelve commodity grain bases and one of ten demonstration farmlands inching. 29% products are from livestock farming in agriculture. There is 1,230,000mu water area in Ningxia, among which150,000 mu of water area is suitable for aquiculture. With increased varieties of high-quality aquatic products as grass carp, silver carp, crucial carp, carp, freshwater shrimp and crab, Ningxia has great potential in aquiculture.
iii. Business Data
Import and Export
In 2005, the import and export volume has reached 970 million dollars, among which sum of export has reached 690 million dollars. By the end of 2005, there are 671enterprises approved to import and export goods, 21 enterprises with export sum over10 million dollars. There are 800 kinds of products exported to the foreign countries and areas, among which the products with export sum over 10 million dollars include ferrosilicon, magnesium, cashmere ant alum, primary aluminum lingo ,garment, tire, intensive casting, cyanogens, high purity silver, hydrochloric acid tetracycline, activated carbon, carbon additive, erythromycin, tyrosine and so on. According to Catalogue of High-Tech Products of Export in China, the export sum of high-tech products reached 228million dollars, which amounted to 33.1%of total export value; the export sum of mechanical and electrical products reached63.85 million dollars, which amounted to9.3% of total export value.
Utilizing Foreign Funds
In 2005 the actual utilization of foreign funds has reached 141 million dollars, there are 32 new approved projects with direct foreign investment with the contractual value reaching 191 million dollars, among which 24 projects of manufacture industry directly invested by foreign investor has contracted with contractual value of 162million dollars; the contractual value of 16million dollars are directly invested by the foreign enterprises. The actual investment of foreign funds has reached67.12 million dollars.
Foreign Cooperation
In 2005, the turnover of international project contract and labor service cooperation has reached4.19 million dollars. There are 9 foreign aid projects implemented in Ningxia in2005.
Import Technology
In 2005, Ningxia has finished 12projects by importing foreign technology, the import foreign funds reached 48 million dollars. The import technology mainly involved technology of consultation service in the past, and changed into advanced technologies with patent, for instance, coal chemical industry, wind and electricity power, bearing and so on.
Commodity Circulation
Related Articles:
Doing Business in Ningxia Hui Autonomous Region of China: I. Survey
Doing Business in Ningxia Hui Autonomous Region of China: III. Investment
Doing Business in Ningxia Hui Autonomous Region of China: IV. Development Zone
