City Introduction of Jiangsu, China: Yancheng

Major Economic indicators (2007)

Source: Yancheng Economic and Social Development Report 2007

Introduction

Yancheng ("salt city" in Chinese) derived its name from the rich sea salt harvest fields around the territory. It is located in the northeastern part of Jiangsu Province. With the largest land area in Jiangsu, the city is adjacent Lianyungang to the north, Huai'an to the west, Yangzhou and Taizhou to the southwest, Nantong to the south, and the Yellow Sea to the east.

Yancheng has convenient transportation. Yancheng Train Station, which opened in 2006, offers daily trains to Beijing. The Nanjingyan Expressway and the Coastal Expressway have stops in Yancheng, connecting the city with Shanghai. Yancheng Port, consisting of Chenjiagang Port, Haibin Port, Sheyang Port and Dafeng Port, has annual cargo traffic of over 25 million tons. Yancheng Airport offers flights to Beijing, Guangzhou, Wenzhou and Seoul.

Yancheng also has rich oil resources. It has 80 billion m³ of proven oil reserves, the most extensive reserves in East China.

Economic Features

In 2007, the GDP of Yancheng grew 15% from the previous year to RMB 136.8 billion, ranking 7th among the cities in Jiangsu Province. The value-added output from the agriculture, industry and service sectors comprised 19.0%, 46.9% and 34.1% of the city's GDP, respectively.

Auto and auto parts manufacturing and textiles are the two major industries in Yancheng. In 2007, the industrial value-added output from the textile industry reached RMB 11.1 billion, accounting for 25.7% of Yancheng's total industrial value-added output, while that from the auto and auto parts manufacturing industry exceeded RMB 3.4 billion, comprising 7.9% of Yancheng's total.

Yancheng Honghua Textile Machinery is the largest textile machinery manufacturer in Yancheng in terms of gross profit in 2007. The firm began as Sheyang No.2 Textile Machinery Plant, which was established in 1986. In 2002, it became Yancheng Honghua Textile Machinery. Major products of this firm include sizing machines, looms, fine combers, size mixers and dyeing machines.

Dongfeng Yue Da KIA Passenger Car Co. Ltd is a joint venture of Dongfeng, Jiangsu-based Yue Da and Korea-based KIA. The firm, with total investments of US$240 million, has an annual production capacity of 130,000 sedans. In 2007, the firm built the second manufacturing line in Yancheng with investments of RMB 6.8 billion. The new production line is capable of producing 200,000 sedans per year.

The foreign trade value in Yancheng amounted to US$2.4 billion in 2007, an increase of 32.2% from the previous year. The export value reached US$1.4 billion, up 34.9% year on year. Mechanical and electrical products and textiles are the major export products. South Korea and the U.S. remain the largest foreign trade partners of Yancheng.

In 2007, Yancheng attracted US$2.1 billion in contractual foreign investments in 2007, a sharp rise of 118.7% from a year ago. The utilized FDI in the city reached US$935 million, 2.9 times the figure in 2006. Hyundai and LG from South Korea, Fuji Heavy Industrial Ltd and Sumitomo from Japan and Johnson from the U.S. have set up businesses in Yancheng.