City Introduction of Zhejiang, China: Jinhua

Jinhua

Major Economic indicators (2007)

Source: Jinhua Economic and Social Development Report 2007

Introduction

Lying in central Zhejiang Province, Jinhua is adjacent to Taizhou to the east, Lishui to the south, Quzhou to the southwest, Shaoxing to the northeast and the provincial capital, Hangzhou, to the northwest. China Commodity City,,the largest commodity market in China,,is located in Yiwu, a county-level city of Jinhua.

Jinhua is a transport hub in Zhejiang Province. The Jinhua-Wenzhou Railway and the Jinhua-Jiande Railway start from the city, while the Zhegan (Zhejiang-Jiangxi) Railway, State Highway 330 and the Hangzhou-Jinhua-Quzhou Highway run across the city. The Hangzhou Xiaoshan International Airport and the Yiwu Airport are within 1 hour’s drive from Jinhua’s city center. Ningbo-houshan Port, the second largest port in mainland China in terms of container throughput in 2007, is 3 hours’ drive from Jinhua.

Jinhua enjoys a subtropical monsoon climate, with warm, moist weather and four distinct seasons. The camellia, which usually blossoms between January and March, is the city’s official flower. The official tree is the camphor tree, whose leaves have a glossy, waxy appearance.

Economic Features

Jinhua has witnessed stable economic development. In 2007, Jinhua’s GDP grew 14.8% from the previous year to RMB 146.2 billion, ranking seventh among the cities in Zhejiang Province. The industrial sector, the largest contributor to the city’s economy, gained RMB 79.3 billion in value-added output, accounting for 54.2% of the city’s GDP.

The city’s major industries are textiles, metal products manufacturing, transportation equipment manufacturing, pharmaceuticals, electricity production and supply, and electronic information. The total gross industrial profit from these industries comprised 53.5% Jinhua’s total.

Hengdian Group, the most famous firm in Jinhua, was originally set up in 1975. It has grown from a small silk plant into a large group covering electronics, pharmaceuticals and chemicals. In 2007, the group’s sales revenue exceeded RMB 17 billion.

The service sector contributed less to Jinhua’s economy than the industrial sector. In 2007, the value-added output from the service sector grew 15% year on year to RMB 59.2 billion, comprising 40.5% of Jinhua’s GDP. With a booming commodity market, Junhua saw sales of consumer goods soar 16.8% year on year to RMB 56.3 billion, about 9% of Zhejiang’s total sales of consumer goods.

Jinhua’s foreign trade value amounted to US$8 billion in 2007, an increase of 29% from a year earlier. The export value stood at US$7.6 billion, with a rise of 30% year on year. The export of mechanical and electronic products rose 34.7% to US$3.5 billion, accounting for 46% of the city’s total export value.

In 2007, the city government approved 148 foreign-funded enterprises with total investments amounting to US$814.6 million. The city’s utilized FDI was US$506 million in 2007. The utilized FDI in the industrial sector comprised 91% of the city’s total.