City Introduction of Zhejiang, China: Shaoxing

Major Economic indicators (2007)

Source: Shaoxing Economic and Social Development Report 2007

Introduction

Shaoxing is situated in the northeastern part of Zhejiang Province in the Yangtze River Delta. Lying on the mouth of the Qiantang River, it neighbors Hangzhou in the west, Ningbo in the east and Yiwu in the southwest. The city covers an area of 8,256 sq km and has a population of 4.4 million.

The city is only 120 km from Shanghai, the economic and financial hub of China. The two airports in Shanghai, Shanghai Pudong International Airport and Shanghai Hongqiao Airport, are within 1.5 hours’ drive, while Hangzhou Xiaoshan International Airport and Ningbo Lishe International Airport are within 1 hour’s drive. The Shanghai-Hangzhou-Ningbo Railway and The Shanghai-Hangzhou-Ningbo Highway traverse the city. The city also has convenient water transportation. Ningbo-Zhoushan Port, the second largest port in China in terms of container traffic in 2007, is 106 km away.

With its subtropical monsoon climate, the city enjoys warm, moist weather and has four distinct seasons. The average temperature is 16.5°C.

Economic Features

In 2007, the GDP of Shaoxing increased 14.3% from a year earlier to RMB 197.1 billion, ranking 32nd in mainland China and fourth in Zhejiang Province. Secondary industry, the largest contributor to the city’s economy, contributed 60.6% of the city’s GDP.

Shaoxing’s major industries are textiles, machinery, pharmaceuticals and chemicals, and electronic information. Shaoxing is a traditional textile production hub. In 2007, the gross industrial output from textile industry hit RMB 130 billion, accounting for about 4.3% of China’s total industrial output from textile industry. In 2007, there were about 62,000 firms engaged in the textile industry in Shaoxing. The sales revenue from the small and medium-sized textile enterprises comprised about 58% of the total sales revenue from textile industry in 2007. Huafu Group, Cifu Fiber, Tiansheng Holding and Yuandong Group are the leading textile products manufacturers in the city.

Examples of major companies in Shaoxing include Hailiang Group and Zongheng Holding. Hailiang Group, founded in 1989, is a company specializing in copper processing and nonferrous metal trading. In 2008, its export value amounted to US$1.5 billion and its sales revenue surpassed RMB 30.3 billion. Zongheng Holding was set up in 1995 in Shaoxing Paojiang Industrial Zone. Its business covers petrochemicals, metallurgy, energy, and real estate. Its annual sales revenue exceeded RMB 15 billion in 2006.

The value-added output from the service sector rose 14.1% from the previous year to RMB 66.8 billion in 2007, making up 33.9% of the city’s GDP. As a popular tourism destination, Shaoxing generated revenue of RMB 18.6 billion from the tourism industry, with a rise of 26.7% year on year.

Foreign trade value in Shaoxing rose 38.3% to US$19.3 billion in 2007, making up 10.9% of Zhejiang’s total. The export value grew 31.5% to US$13.8 billion, accounting for 10.8% of Zhejiang’s total. Major export destinations are the U.S., the UAE and India. In 2007, exports of textile and garments exceeded US$9 billion, about two third of the city’s total export value.

Shaoxing attracted contractual investments of US$2.4 billion in 2007, while the utilized FDI in the city increased by 13.7% to US$1.1 billion. Thailand-based Lotus and Japan-based Panasonic have established businesses in the city.