City Introduction of Zhejiang, China: Cixi

Major Economic indicators (2007)

Source: Cixi Economic and Social Development Report 2007

Introduction

Cixi, a county-level city under the administration of Ningbo, is situated in the coastal area of eastern Zhejiang Province. It is situated only 70 km from Ningbo-Zhoushan Port, one of the most important deep-water ports in China. The country’s economic hub, Shanghai, is just on the other side of the sea, while Hangzhou, the capital city of Zhejiang province, is only 145 km away to its west.

Ningbo Lishe Airport, 60 km away on the southeast of Cixi, offers flights from Ningbo to Beijing, Shanghai, Guangzhou, Hong Kong, Seoul and other major domestic and international cities. One end of the Hangzhou Bay Bridge (connecting Hangzhou and Shanghai) is located in Cixi. Additionally, the Hangzhou-Ningbo expressway runs through the city, connecting it with the other two major cities in Zhejiang.

Economic Features

In 2007, the city’s GDP amounted to RMB 53.1 billion, up 14.6% from the previous year. Its industry and service sectors are the main contributors to the city’s economy, accounting for 62.0% and 33.3% of the city’s GDP respectively.

The city’s economy is dominated by the light industry, which generated RMB 56.9 billion worth of industrial output from enterprises with designated size and above, accounting for 58.6% of the city’s total. Its private economy is also a driving force that has accelerated the city’s development. In 2007, private enterprises with designated size and above contributed RMB 61.2 billion in industrial output value, accounting for nearly two third of the city’s total.

Home appliances, textiles, machinery, plastic fibers, metallurgy and chemical building materials are major industries in the city. Their industrial output hit RMB 62.9 billion, making up 64.9% of the city’s total. Cixi is one of the largest small home appliance producing hubs in China, with over 9,000 home appliance makers gathered there.

It also witnessed strong growth in foreign trade and foreign investments. In 2007, its export value rose 25.3% year-on-year to US$5.1 billion, while import value climbed 13.2% year-on-year, reaching a total of US$831 million. Its main foreign trade partners include the U.S., Russia and Africa. The export value of mechanic and electronic products reached US$3.8 billion, accounting for 75.6% of the city’s total. Within the same year, it also attracted 26 foreign-funded projects. Utilized FDI hit US$386 million in 2007.