City Introduction of Shandong, China: Binzhou

Major Economic Indicators (2007)

Source: Binzhou Economic and Social Development Report 2007

Introduction

Binzhou is situated in the northern part of Shandong Province. Lying in the lower reaches of the Yellow River, the city borders Dongying to the east, Zibo to the south, Dezhou and the provincial capital of Jinan to the west and the Bohai Sea to the north. It covers an area of 9,600 sq km and has a population of 3.7 million. Enjoying a temperate monsoon climate, Dongying has four distinct seasons with hot summers and chilly winters.

The transportation in Binzhou is convenient. The Jinan-Qingdao Highway, the Beijing-Binzhou Highway, State Highway 205 and State Highway 220 connect the city with Beijing, Tianjin and other cities in Jiangsu Province and Shandong Province. The construction of a 10,000-tonnage wharf in Binzhou Port was completed in 2007. Qingdao Port, the world's seventh largest port by cargo traffic in 2007, is merely 3.5 hours' drive from the city.  It takes only 1 hour to drive from Binzhou to Jinan Airport and 3 hours to Qingdao Airport.

Binzhou has abundant natural resources, such as fresh water, oil and natural gas. The Yellow River, running across the city, ensures the sufficient fresh water. The city is an important exploration area of the Shengli Oilfield, the second largest oilfield in China.

Economic Features

The GDP of Binzhou rose 16.9% year on year to RMB 103 billion in 2007, ranking twelfth among the cities in Shandong and comprising nearly 4% of Shandong’s total. The value-added output from secondary industry rose 15.8% year on year to RMB 63.8 billion, accounting for 62% of the city's economy. The private economy, witnessing a significant growth, contributed 62.1% of the city's GDP.

The value-added output from light industry was RMB 30.7 billion in 2007, up 21.6% year on year, while that from heavy industry amounted to RMB 23.6 billion, up 28.7% year on year. The value-added output from light industry and heavy industry constituted 61.2% and 38.8% of the city's total value-added industrial output, respectively.

The major light industries in the city include textiles and garments, agricultural products processing, bio-pharmaceuticals and electronic information, while heavy industries consist of shipbuilding, auto and auto parts, and petrochemicals. Befar Group, Weiqiao Textile, Shandong Lubei Group, Qixing Group and Yuhua Group are the major players in Binzhou.

Befar Group was set up in 1968 and started operation in 1970. It is a leading private manufacturer of petrochemicals, fine chemicals and salt chemicals, chloro-alkaline and thermoelectricity in China. In 2007, the assets of the group totaled RMB 8.2 billion, while its sale revenue surpassed RMB 16.2 billion.

Weiqiao Textile is headquartered in Zouping County of Binzhou. It is a private producer of cotton yarn, grey cloth and denim. In 2003, it went public on the Hong Kong Stock Exchange. In 2007, it produced 6.6 million tons of cotton yarn, 1.4 billion meters of grey cloth and 124 million meters of denim.

The service sector generated value-added output of RMB 28.2 billion in 2007, contributing 27.4% of the city's economy. The city invested over RMB 2 billion into the development of the tourism industry in 2007 and attracted about 3.4 million tourists. The tourism revenue in this city topped RMB 2.1 billion in 2007, up 22.3% year on year.

The city’s foreign trade value totaled US$3.4 billion in 2007, with a rise of 24.3% year on year. The export value was about US$1.9 billion, up 18.9% year on year. The main exports of the city are textiles, garments, and mechanical and electronic products, which accounted for 56.3%, 11.9% and 8.1% of the city's total, respectively. Regions and countries in Asia, Europe and North America remain the major export destinations of the city.

In 2007, a total of 55 foreign-invested companies were given approval to set up in the city, and contractual foreign investment hit US$442 million. The utilized FDI in the city amounted to US$410 million by the end of 2007.