Province Introduction of China: Ningxia

Key Information













































 
  
 
 

Introduction
The Ningxia Hui Autonomous Region lies along the western part of the Yellow River and is bordered by Inner Mongolia to the north and west, Shaanxi to the east and Gansu to the south. The region was once a part of the Silk Road that connected China with central Asia and Europe.  

Economic Overview
During the 10th Five-Year Plan period, Ningxia’s economy maintained a rapid pace of growth, narrowing the gap between the average level of growth in the region and the nation’s average level of growth. In 2006, Ningxia’s GDP reached RMB 70.7 billion (12.5% more than 2005) and per capita GDP amounted to RMB 11784.   
 
The industrial sector leads the economy with a 49.2% contribution to the GDP. The service sector follows with a 39.6% contribution and agriculture contributes the remaining 11.2%. The value-add of the agriculture, industrial and service sectors was RMB 7.9 billion (up 6.1% from 2005), RMB 34.8 billion (up 18.5%), and RMB 28 billion (up 9%) respectively.  

  

 
In 2006, fixed asset investment kept a steady growth, with total fixed asset investments reaching RMB 51.5 billion. Total urban fixed asset investment in was RMB 43.9 billion, accounting for 85.2% of the total investments. Manufacturing, with the largest amount of fixed asset investment at RMB 8.7 billion, ranks first. Real estate, production and supply of electricity, gas and water, transport storage and post, and mining are the other industries that rank in the top five in terms of total fixed asset investment. 
  

 





















In 2006, the consumer market continued to expand, with total retail sales of consumer goods hitting RMB 19.9 billion - 14.1% more than 2005. Major consumer markets in this region are located in the capital of Yinchuan, and major department stores and shopping centers include Xinghua Shopping Centre, Yingchuan Department Store, Ningxia Hualian Commercial Building, and Yinchuan Xincheng Department Store. Per capita disposable income of urban residents amounted to RMB 9177, an increase of 13.4% from 2005. Food weighs in as the highest expenditure of urban households, comprising 33.9% of per capita expenditure. Clothing, household articles, medicine and medical services, transportation and communication, recreation, cultural activities and education, and residence accounted for other significant expenditures.   
   
Agriculture
Due to the irrigation provided by the Yellow River, Ningxia has a well developed agricultural sector which has earned its reputation of being “an oasis in a desert”. Ningxia’s major crops include rice, wheat, maize, beans, sugar beet and Chinese wolfberries. Rice is its most famous produce, giving Ningxia the nickname “Pearl of the Northern Frontier”. In 2006, the total output of grain reached 3.1 million tons, up 3.7% from 2005.  
   
The mountainous area in the south of Ningxia is suitable for both forestry and animal husbandry. The region has broad prospects for the development of the stock rearing and livestock processing industries. In 2006, meat production in the region amounted to 26.6 thousand tons (an increase of 2.8% over the last year), while milk production totaled 64.7 thousand tons (a rise of 11.9% over 2005). However, due to the bird flu pandemic in 2006, the production of poultry and eggs dropped by 26.3% and 19.6% respectively in comparison with the previous year.  
 
Ningxia is a region that enjoys many days of sunlight. The temperature varies greatly between day and night, which is favorable to the accumulation of sugar in fruits and fruit production. In 2006, there were 5.6 thousand acres of Chinese wolfberries, an increase of 8.7% from 2005, while west melon yielded 8.4 million tons, up 1.2 times from 2005. 
 
Industry
Industry in Ningxia is developing very rapidly. Many industrial enterprises, such as those in the coal, electric power, metal, petroleum, machinery, chemical, building materials, and textile industries, have been established here. In 2006, industrial value-add was RMB 28.8 billion, representing an increase of 18.5% from 2005.  
 
The coal industry is the pillar of Ningxia’s industrial sector. Based in the Shizuishan mining area, a complete system was set up - from excavating and washing to comprehensive utilization. Much of the coal mined in this area is supplied to the steelworks in Baotou and Jiuquan for steel making. In 2006, the total industrial output of coal production reached RMB 6.8 billion, rising by 21.8% from 2005. 

Services
Due to macro control, the property market has gradually cooled down. In 2006, the commercial housing industry saw sales of 3.8 million square meters, up 0.5% from 2005. However, the sales revenue of commercial housing dropped by 7.2% from the previous year to RMB 7.8 billion. 3.4 million square meters of residential area were sold.


 




Ningxia has an abundance of tourism resources including desert landscapes and the Yellow River civilization. These have attracted both domestic and foreign tourists. In 2006, the total sales revenue of tourism in the province reached RMB 2.6 billion, 18.1% higher than in 2005.   
   
Foreign Trade and Foreign Investment
The region has traded with 115 countries. Key trade partners include the United States, Japan and Australia. In 2006, the annual total import and export value for Ningxia was US$1.4 billion, an increase of 48.8% over 2005. Total exports amounted to US$0.9 billion, up 37.2% over 2005, and key export goods were machinery, chemicals, rubber tires, cashmere, anthracite, and farm and sideline products. Total imports to the region amounted to US$ 0.5 billion, up 77.1%, with key import items being rubber, chemicals and light industrial products.
 
In 2006, the volume of foreign direct investments reached a total of US$0.1 billion, falling by 2.2% from 2005. Hong Kong is still the largest investor of the region. In 2006, Hong Kong signed 6 investment contracts with the region amounting to US$ 15.7 million. Other major investors include Taiwan (US$77,000), Canada (US$2.1 million) and Japan (US$2.1 million).

Major Development Zones 
 
Yinchuan New-and High-tech Development Zone is a key development zone in Ningxia and was given the status of a state-level high-tech industrial development zone in 2001. It has a total area of 32 square kilometers and enjoys similar preferential policies to other such zones, in order to encourage the development of new technology.
 
The pillar industries in this development zone include electronics and information, bioengineering technology, and modern agricultural technology. Currently, the zone has a total of more than 1,400 enterprises, of which 170 industrial high-tech enterprises accounted for 58% of the region’s total. In 2006, the industrial value reached RMB 6 billion. 
 
Education
Education in Ningxia has been developing at a constant pace. As of 2006, Ningxia had 13 universities with 11008 graduates in higher education schools, 24.8% higher than in 2005. Ningxia University was founded in 1952. It is a key university in the region and currently, the university is comprised of 16 academic schools, one public educational department and an International Institute of Education. A state-level key laboratory focusing on a gas conversion project is particularly noteworthy. 
  
Major Cities in Ningxia
There are 5 cities in the Ningxia Autonomous Region. 
  

 







As shown in the table, Yinchuan, the capital city of Ningxia, is the city with the greatest economic growth. It had a GDP of RMB 33.5 billion. The following section presents an overview of Yinchuan. 
   
Yinchuan



















 
Introduction
Yinchuan is the capital of the Ningxia Autonomous Region and is located in the middle of the area irrigated from the Yellow River in Ningxia plain. The city’s main nationalities are the Huis, Hans and Manchus.
 
Yinchuan is one of China’s famous historical and cultural cities. During the Song dynasty, the Western Xia Dynasty (otherwise known as the Tangut Empire) was established in Yinchuan. It was a state that existed for 189 years, from 1038 to 1227. As a result, the current Yinchuan is rich in Xia culture.
 
Investment Climate
Yinchuan has developed a modern comprehensive industrial system that consists of the chemical, machinery, textile, construction material, food, electronics, meters, pharmaceutical and agricultural by-products industries. In 2006, total industrial output amounted to RMB 43.2 billion, up 23.6% from 2005. Additionally, the output of the petroleum processing and coking industry reached RMB 6.8 billion, an increase of 30.4% from 2005.
 
Foreign Trade and Foreign Investment
Yinchuan is the main city attracting foreign investment within the Ningxia Autonomous Region. In 2006, the actual utilized FDI amounted to US$ 32.3 million, 39.2% lower than in 2005. The government provided preferential policies for foreign investors including corporate income tax relief, use of land and transportation subsidies.
 
The capital has kept up trade relations with over 50 countries in the fields of science and technology, education, and culture. In 2006, the volume of total imports and exports reached US$ 0.9 billion, an increase of 69.7% over 2005.
 
Important Travel Information
Yinchuan Hedong Airport is presently connected to more than 20 cities by either direct flights, or through flight transfers in Xian and Beijing. In July 2007, the first international flight was formally launched from Yinchuan Hedong Airport to Hong Kong via Guangzhou. The travel time from Yinchuan to the following major cities is presented below:
- Xi’an
- Beijing
- Shanghai
- Chengdu
- Shenzhen
- Guangzhou
- Hong Kong  1 hour
1 hour 40 mins
3 hours 10 mins
2 hours 25 mins
5 hours 15 mins
4 hours 15 mins
4 hours 45 mins