China's Fastest Growing Provinces: The Demographics
China's Fastest Growing Provinces: The Demographics
At the recent Economist China Summit, Michael Koenig and Christophe Bezu, of Bayer and Adidas respectively, emphasized that Central China would experience renewed growth and development as per capita GDP and household disposable income increased at the same time that the coastal areas experienced a slowdown.
Last week, we featured the top five fasted growing cities in China, Hefei, Baotou, Shenyang, Changchun and Hohhot. Today, we look at the five of the emerging provinces: Inner Mongolia, Shaanxi, Hunan, Jilin, Hubei. It is no real surprise that they are all inland.
Inner Mongolia Autonomous Region
Inner Mongolia region is blessed with natural resources. It has large coal reserves, iron reserves and forests. Coal and electricity generation is seen as the key industries for the economic development. Presently, Inner Mongolia provides Beijing with a third of its power supply and this rate is likely to increase as more projects are underway to utilize wind generated power. The region's low quality transportation system has hindered development as well the lack of modern logistics functions like information systems and refrigerated or cold chain facilities. Despite these, the region was able to post robust growth in the past years.
- Inner Mongolia is China's third largest province with a total area equal to that of France and Spain combined
- The province has the second largest coal reserves in China worth an estimated 223.2 billion tons and some 89 percent of the world's known 150 types of mineral resources
- Han Chinese compose 80 percent of the population with around 17 percent being Mongols. Other nationalities living in the province include Daur, Evenks, Oroqin, Hui, Manchus and Koreans
- Oil reserves are estimated to be as much as 4 billion tons
- Wind farming for electricity production is a growing energy source
The region has 83,000 kilometers of highway connecting 95 percent of townships. The ongoing Inner Mongolia Transport and Trade Corridor project will upgrade its highway infrastructure and should improve international trade when it is completed this year.
There is a total of 8,058 kilometers of railway that links the region to the country's national network and internationally to Russia and Europe. Most major cities in the province can be reached by rail. The region has 18 international-border ports including Manzhouli and Erenhot, the two biggest rail ports in the country.
There are 10 airports in Inner Mongolia. The most important being the Hohhot International Airport and the Baotou Airport which serves the region's largest industrial city.
Inland river navigation is limited. Only the upper section of the Huang-Ho river, as far as Ho-k'ou is considered navigable. Thus the preferred way of transport in the region is either by road or air.
Economy and Investment climate
The region's natural resources have fuelled economic development notably in coal, power generation, and forestry related industries. In 2009, GDP was RMB974 billion, an increase of 16.9 percent from the previous year. Its rapid growth rate surpasses most of its provincial neighbors and its economy today is especially impressive given that the province's GDP was at a mere RMB391 billion in 2005.
Per capita GDP in the region is the highest in central China at RMB25,092 as well as per capita disposable income at RMB12,378. During the same period, utilized foreign investment was US$2.15 billion. Exports reached US$2.95 billion while imports were at US$4.8 billion.
The region plans to double coal output by 2010 to 500 million tons of coal a year. Currently, the region delivers a total of 55.5 billion kilowatts to its neighboring provinces.
Another major industry in the region is milk production. Due to its rich natural grasslands, there are many large milk producing facilities located in the region. In 2007, food company, Nestle, invested on its third dairy factory in the country the Nestle Hunlunbuir facility at an initial investment of RMB130 million.
The country's top coal producer, Shenhua Group Corporation, also has plans for a liquefied coal-oil project worth US$6.6 billion. Upon completion, the project will use 3.45 million tons of coal annually to make 1.08 million tons of liquid products including diesel oil, liquefied petroleum gas and naphtha.
Local authorities encourage investment in the industries of energy, chemicals, metallurgy, equipment manufacturing, processing of farm produce, and high-tech products.
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