City Introduction of Fujian, China: Fuzhou

Major Economic Indicators (2007)

Source: Fuzhou Economic and Social Development Report 2007

Introduction

Located by the coast in the east of Fujian, Fuzhou is its provincial capital. It has been nicknamed "Rongcheng" because of the many ficuses (fig trees) inside and outside of the city. Fuzhou Port is the nation's fourteenth largest port, with its freight throughput reaching 57.9 million tons in 2007.

The city has a subtropical monsoon climate, with an average annual temperature of 19℃ and an average rainfall of 900-1200 mm. Surrounded by the Min River and hills, green trees flourish in Fuzhou throughout the whole year. The city is one of China's forest industrial bases.

Due to its location by the coast and the 544 offshore islands nearby, Fuzhou has an abundance of marine resources. The coast line of this city is 1137km long, spanning a third of the province's total coastline. Besides seafood, the city also has natural reserves of clean energy like hydraulic and wind power.

Economic Features

In 2007, the value-added industrial output of Fuzhou reached RMB 79.5 billion, an increase of 19.9% from 2006. The figure is the second highest in Fujian after Quanzhou. Pillar industries in the city include electronics and IT, machinery, and textiles and garments.

The electronic and information industry is Fuzhou's largest pillar industry. Fuzhou is located at the mouth of the Min River, facing Taiwan across the strait. This geographic location puts the city at an advantage in terms of building cooperation with Taiwan's information companies. Such collaborations form the major driving force for this industry. Moreover, the National Development and Reform Commission had also set Fuzhou up to be an information industrial base of the province.

Photo display devices, software and communication equipment are the key products in the electronics and IT industry. In 2007, industrial output of this industry amounted to RMB 54.0 billion, rising 11.3% from 2006 and accounting for 19.6% of the city's total industrial output. Revenue from the software industry amounted to RMB 8.1 billion, accounting for 36.8% of the province's total.

Machinery has been the fastest-developing pillar industry of Fuzhou since 2007. In the first half of 2008, its industrial output increased by 38.9% to RMB 22.8 billion. Many of Taiwan's machinery companies consider Fuzhou as a key gateway to set up business in the mainland. As such, Fuqing, a county level city in Fuzhou, set up Taiwan Machinery Industrial Park to attract investments. As a testimony of Fuzhou’s attractiveness to Taiwanese companies, more than 120 Taiwan machinery companies moved into Fuqing in 2006, representing a substantial portion of Taiwan’s machinery industry. Fujian Motor Industry Group Corp is a key player in this field. In 1995, it set up Southeast Motor, which is the largest joint venture in the automobile industry between mainland China and Taiwan.

In 2007, Fuzhou's foreign trade grew by 12.2% to US$18.7 billion. Fifty-two percent of export products are electronics and mechanical products. Utilized FDI totaled US$1.7 billion, an increase of 5.0% from 2006. Seventy-six Fortune 500 companies have investments in Fuzhou.