Fushun

Overview and Geography

Fushun, the nearest neighbor city of Shenyang, is a petrochemical industry city. Fushun prefecture consists of four districts (Xinfu, Wanghua, Dongzhou, and Shuncheng), three counties (Fushun, Xinbin and Qingyuan) and two economic development zones (Fushun Economic Development Zone and Fushun Shengli Economic Development Zone). Fushun has a total population of 2.23 million, composed of 1.46 million living in urban areas and 880,000 in rural areas.

Fushun is a multi-ethnic city with 34 different ethnic groups accounting for 27.5 percent of population. Main ethnic minorities are the Manchu, Korean, Hui, Mongolian, and Xibe. Fushun is 40 kilometers from Shenyang Taoxian International Airport, 200 kilometers from the seaport of Yingkou, and 400 kilometers from the Port of Dalian, linked by expressway and railway. Fushun has international shopping malls, supermarkets, convenient stores, and the four-star Fushun Friendship Hotel for accommodation.

Fushun is warmer than Shenyang in summer with more rain, and colder in winter. Spring and autumn are short. Annual average temperature is 13.9°C, precipitation 827 mm. In a typical year, it will be snowing 24 days, and the depth of frost penetration is 1.2 – 1.4 m. The terrain of Fushun is elevated in the east and south, with an average altitude of 400 – 500 m, and with forest in the mountains. The western and northern regions have hills and plains. Average altitude there is 100 – 300 m. Fushun is surrounded by mountains on three sides and crossed by the Hunhe River.

Economic Development and Business Sectors

Regional GDP of Fushun was 69.86 billion RMB (about 9.98 billion USD) in 2009, 9.6 percent more than 2008. Fixed assets investment jumped 30.5 percent to 49.6 billion RMB (7.09 billion USD). Consumption increased 5.9 percent and reached a per-capita rate of 9,265 RMB (1,324 USD), at a disposable income per capita of 13,557 RMB (1,936 USD) and average salary of 30,828 RMB (4,404 USD). Main industrial products of Fushun are coal (5.40 million tons in 2009), steel (3.69 million tons), iron (3.88 million tons) and finished steel (3.46 million tons), primarily produced by 58 large and medium-sized enterprises. Employment concentrated in manufacturing (84,968 persons), mining industry (34,786), public administration (26,266), education (23,446), and health and social welfare (10,420).

With an industrial history of over one hundred years, Fushun is a city of heavy industry. Petrochemical, coal and metallurgy are the most essential sectors, supplemented by machine building, electronics, light industry, textiles, and chemical industry. Fushun is a production base of quality fuel oil, paraffin, synthetic lubricants, hydrogenation catalysts and petrochemical catalysts.

Fushun Petrochemical Company is China’s biggest oil processing enterprise and has a capacity of processing 9.2 million tons of crude oil per year, soon to increase to 12 million tons. The output of refinery products will total 10 million tons and of chemical products 4.5 million tons.

By reform and construction, the city strives to reach the following top ranks: global No. 1 in output of paraffin, light wax, and ethylene produced with new technologies; Asia No. 1 in the output of alkyl benzene; China No. 1 in the output of polythene, styrene, aliphatic alcohol, and propylene oxide. Fushun has decided to give priority to the development of the petrochemical industry and the fine chemical industry. A representative project in this regard is China North Petrochemical City. The city has Fushun Economic Development Zone, Gaowan Economic Zone and several other development zones, all of them providing preferential investment policies.

The local government implements a strategy to develop two areas and two zones: West Shenyang-Fushun New Area, East High-tech Industrial Area, South Ring Industrial Zone, and Hunhe River Ecological View Compound Zone. The first three are mainly focused on industries in new materials, advanced equipment manufacturing, petrochemical industry, and oil shale processing. The Hunhe River Ecological View Compound Zone is a supporting area for services and recreation.

Petrochemical: the city has 45 petrochemical enterprises with assets of 24.3 billion RMB (3.4 billion USD) and 33,000 employees.

Metallurgy: the city has 31 metallurgical enterprises with assets of 5.8 billion RMB (0.8 billion USD) and 23,000 employees.

Coal: the city has 8 coal production enterprises with assets of 4.8 billion RMB (0.7 billion USD) and 230,000 employees.

Machinery and Electronics: the city has 35 machinery and electronic processing enterprises with assets of 710 million RMB (102 million USD) and 9,582 employees.

Building Materials: the city has 10 building materials production enterprises with assets of 470 million RMB (67 million USD) and 3,117 employees.

Light Industry and Textile Industry: the city has 70 enterprises with assets of 2.1 billion RMB (0.3 billion USD) and 12,000 employees.

Energy: the city has 15 enterprises with assets of 2.3 billion RMB (about 300 million USD) and 1.0 million employees. The major part of the city’s energy industry is the power industry, which consists of 4 enterprises, an installed capacity of 1.3 GW and annual generating capacity of 6,500 GWh. That is more than the annual energy consumption of Latvia or Luxembourg.

The rural economy has also developed in Fushun. Agriculture has been industrialized, regional distribution and professional management improved. A series of products has been defined as the focus of agricultural industrialization: edible mushrooms, wild herbs, Chinese forest frogs (Rana temporaria sinensis), traditional Chinese medicine, high-quality rice, wood products, livestock, poultry and fruit.

Foreign Investment and Foreign Trade

So far, foreign enterprises from 38 countries have invested in Fushun, mainly in light industry, chemical industry, real estate, electric power, machinery, metallurgy, medicine, textiles, utilities, building materials, and oil processing. Foreign direct investment was 312.84 million USD in 2009. A growing number of industrial enterprises is active on overseas markets with increasingly competitive products. Total 2009 import value of Fushun was 429.57 million USD (+26%), export value 458.81 million USD.

Focus of Investment Strategy

Petrochemical

  1. Build China North Petrochemical City by focusing on Fushun Fine Chemical Industry Park to develop the petrochemical industry.
  2. Petrochemical industry: focus on ethylene and other key projects and build a world-level industrial pattern featured by “oil, chemical, fiber, plastics, and lotion”.
  3. Fine chemical industry: Use local resource advantages to develop high-end multifunctional fine chemical products and develop the bio-chemical industry, the pharmaceutical industry and pharmaceutical intermediates.

Metallurgy

  1. Adopt appropriate advanced technologies to transform traditional industries and enhance comprehensive strength.
  2. Develop a large-scale, intensive and specialized metallurgical industry.
  3. Rely on Fushun Special Steel Shares Co., Ltd., Fushun New Fugang Co., Ltd. and Fushun Aluminum Co., Ltd. to develop high-quality, specialized and special products.
  4. Build the first-rate China north quality steel production base.
  5. Build first-rate China north aluminum and aluminum alloy research and production base.

Coal

  1. Boost the development of alternative industries and substitutive industries.
  2. Utilize oil shale, coal-bed methane, and residual coal to develop deep processing industries.
  3. Focus on comprehensive resource utilization to establish a new resource development system.

Machinery and electronics

  1. Adopt advanced technologies by relying on the existing basis to upgrade product level and scale.
  2. Focus on the production of engineering machinery, petroleum machinery, general-purpose machinery, electrical porcelain appliances, and TV sets. Adopt strategies featured by precision, high efficiency, automation, flexibility, and integration.
  3. Mass-produce complete sets of integrated electromechanical equipment.

Building materials

  1. Adopt new technologies to vigorously develop new products.
  2. Raise production capacity to increase the proportion of high-grade special cements.
  3. Utilize local resources to vigorously develop new building materials and light materials.

Light industry and textile industry

  1. Utilize local resources to vigorously develop fine and deep processed products.
  2. Prioritize eight categories of products, including plastics, wax products, chemical fiber, and household chemicals.

Energy

  1. Expand production capacity by performing energy conservation, consumption reduction and improving technical equipment.
  2. Build the two sets of 600,000 KW generators of Liaoning Power Plant, two sets of 300,000 KW generators of Fushun Power Plant, one set of 100,000 KW generator of Fushun Mining Group Co., Ltd., and one set of 570,000 KW generator of Fushun Economic Development Zone.

Anshan

China’s Capital of Iron and Steel

Anshan is located in the middle of the Liaodong Peninsula. The city’s name is derived from the shape of two mountains in the southern suburb, which resemble the shape of a horse’s saddle (“Siemualin” in Manchu language). Since Anshan is the cradle of China’s iron and steel industry, the city is known as “China’s Capital of Iron and Steel”.

The city has a population of 3.52 million, 1.78 million of them are living in urban areas. The prefecture of Anshan administers Haicheng City, Taian County, Xiuyan Manchu Autonomous County, and the four urban districts Tiedong, Tiexi, Lishan, and Qianshan.

Physical Geography

Anshan has rich forest vegetation covering the east mountain area, with a forest coverage rate of 50 percent. The mountain area abounds in apple, pear, chestnut, and tussah. Nanguo Pear is one of the city’s popular specialties. With a cultivated area of 253,000 hectares, the plains of west Anshan produce corn, rice, soybean, and peanut.

Anshan has proven reserves of 51 kinds of mineral resources. Iron ore is the most important with 10 billion tons, accounting for a quarter of the country’s total. Proven reserves of magnetite are 2.3 billion tons, accounting for 80 percent of the country’s and a quarter the world’s reserves. Talc reserves are 60 million tons, 40 percent of the China total. Xiuyan (serpentine) jade reserves are 2.1 million tons, 60 percent of the world. Xiuyan jade has been determined as top candidate to become China’s national stone. In December 2006, Xiuyan Manchu Autonomous County was named “China’s Capital of Jade” by the China Mining Association.

Located in the center of the Bohai Rim Economic Circle, Anshan is an important city in the Shenyang-Dalian Golden economic belt and an essential linkage between the megalopolis in the middle of Liaoning and Liaodong Peninsula Economic Development Zone. The city is located 89 kilometers to the south of Shenyang and 270 kilometers to the north of Dalian.

Changchun-Dalian Railway and Shenyang-Dalian Expressway run through the city from north to south. Haicheng-Goubangzi Railway and Haicheng-Xiuyan Railway run through the city from east to west. The oil pipeline between Daqing and Dalian passes through the city. Additionally, numerous highways link all towns and townships and provide convenient access to the city.

Economic Development

Due to the continuous development in the past decades, a complete range of industries has been set up in Anshan, with the iron and steel industry dominating.

In 2009, the GDP of Anshan was 173.05 billion RMB (about 24.72 billion USD), an increase of 12.6 percent over the previous year. The value added of scale enterprises was 67 billion RMB (9.6 billion USD), the value added of the tertiary sector was 62.8 billion RMB (9 billion USD), 19.2 percent more than 2007. The fixed assets investment in 2009 was 87.5 billion RMB (12.5 billion USD). The overall consumption was 43.6 billion RMB (6.23 billion USD). Per capita disposable income of urban residents was 16,630 RMB (2,361 USD), and the annual consumption per capita 12,065 RMB (1,723 USD).

There are 87 large- and medium- sized industrial enterprises in Anshan. They mainly produce raw iron (16.83 million tons in 2009), steel (16.11 million tons), finished steel (16.78 million tons), cloth (170 million meters) and silk (2,474 tons).

Employment was almost evenly distributed among the three sectors as follows: primary sector 492,000 persons, secondary sector 570,000 persons, tertiary sector 752,000 persons. They were mainly employed in manufacturing (157,983), education (39,796), construction (38,331), public administration (35,400), and health and social welfare (22,592). Only a relatively small number of 122,000 people was employed by private companies, while state-owned enterprises still account for most jobs. The 2009 average salary was 30,434 RMB (4,347 USD).

Anshan Iron and Steel Group Corporation (An Steel) is the leading manufacturer, ranking eighth among the world’s most competitive iron and steel producers. Main technology, equipment, and production have reached an internationally advanced level. With the emergence and introduction of a number of famous national companies, the industrial competence of Anshan is also increasing.

Industrial Mix

The industrial complex of Anshan is emerging with the rapid development of industrial zones. Currently, main industrial areas of Anshan are Dadaowan, Lingshan, the Anshan High-tech Zone, Ningyuan, and the Tanggangzi High-tech Agriculture Zone.

The regional industrial development strategy is to build Anshan into a pattern of “one base and four industries”. Anshan will focus on the iron and steel production base of An Steel, and simultaneously develop four other industries which are metallurgical equipment manufacturing, minerals deep processing, chemical raw materials, and textiles. An industrial cluster of steel and steel processing has come into being in Anshan.

Also, a rural economy pattern is emerging. Haicheng, a county level city of Anshan prefecture, is now planning five economic zones. This will develop Haicheng into a new industrial area with Haicheng Economic Development Zone and Teng’ao Economic Development Zone playing a significant role.

Foreign Investment and Foreign Trade

One of the first cities to implement the opening-up policy on the Liaodong Peninsula, Anshan has established trade relations with more than 100 countries and regions. Foreign direct investment has increased quickly during the past several years.

The number of foreign-funded enterprises in the city totals 660. A host of domestic and foreign enterprises have invested in the city, including Nanya Plastics Corporation of Formosa Plastics Group, Owens Corning, Formosan Rubber Group, US China Express Group, Tsingtao Brewery Company, and Zhongyou TIPO Group.

The import volume of Anshan was 1.53 billion USD in 2009, an increase of 1.6 percent over 2008. The export volume was 1.04 billion USD. Foreign trade of Anshan has been changing in regard to trade partner countries. Anshan is no more solely relying on export to ASEAN countries and Taiwan. Exports to Japan and South Korean have grown rapidly, and the export to Australia, the United States and Europe also increased.

To fill international trade and communications with life, Anshan maintains twinning relations with Amagasaki (Japan), Sheffield (UK), Lipetsk (Russia), Birmingham (US), Bursa (Turkey), and Ansan (South Korea).

Living in Anshan

Shenyang Taoxian is the closest airport, and Anshan public transportation relies on taxi and bus. International shopping malls and supermarkets include Parkson, Carrefour, and TESCO. Two five-star hotels are the Five Ring Grand Hotel and the New World Hotel.

Welcome to Invest in Anshan

To refine the investment environment, Anshan has taken the lead to set up public administration service centers at municipal and county levels. Project examination time and approval procedures have been reduced by 83.5 percent. The city has introduced a series of policies and stipulations to regulate the soft environment. An “Honest and Credible Anshan” project has been launched and more government information has been made public, aiming to establish credibility systems of the government, of enterprises and individuals.

Dalian

Shining Pearl of the Northeast Coast

Hong Kong is said to be the “Pearl of the East”, and Liaons from Dalian are proud their hometown is called the “Shining Pearl of the Northeast”. Dalian was the first city in Northern China to be opened for foreign business in 1984, one of 14 coastal cities in China. Today, Dalian is a key international port city with a vibrant economy and a diversified culture.

Geographical Location

Facing the Yellow Sea to the east and the Bohai Sea to the west, Dalian is located at the southern tip of the Liaodong Peninsula. There are six administrative districts, three county-level cities and one county. The area of Dalian prefecture is 13,238 square kilometers, with an area of the city proper of 2,415 square kilometers. In 2009, Dalian had 5.85 million inhabitants and listed as the 14th largest city of China by population.

Like the spring city San Francisco, Dalian is surrounded by water on three sides. The city is located in a warm temperature zone with pleasant average temperatures: a monthly high of 27.3°C in summer and a low of -7.7°C in winter. The city has sunny days up to 60 percent of the year and a fairly low annual precipitation of 590 to 800 mm.

Facing Japan and Korea to the east and located in the Northeast Asia Economic Zone and the Bohai Rim Economic Circle, Dalian serves as a significant gateway linking northern China with other countries and regions. It is a hub of seaport logistics, finance and trade, industrial information services as well as commerce and tourism.

Public transportation in Dalian is convenient. Besides bus and taxi, Dalian is the only city in China that still keeps running a modernized traditional tram, which has a history of more than 100 years.

Economic Development

The economy developed quickly over the past decade. In 2009, the total GDP of 434.95 billion RMB (about 62.14 billion USD) was composed of a secondary sector share of 48.9 percent, a tertiary sector of 43.9 percent, and a primary sector of 7.2 percent.

The private economy and the foreign-invested economy are growing faster than any other in Dalian. Accordingly, employment grows mainly in these two sectors, and they both rank highest in the province. Of the 3.83 million Liaons employed in Dalian, 34.7 percent were working in the private economy, while the provincial average stands at 14.8 percent. Also, the average salary in Dalian was higher than anywhere else in Liaoning, 38,766 RMB (about 5,538 USD). In 2009, most people were employed in manufacturing (414,044) and the least in mining (2,300). The disposable income of urban citizens per capita was 19,014 RMB (about 2,716 USD). Quick economic growth in Dalian is not only due to the increase in industry and service sectors, agriculture also plays its role. Output of fruits and aquatic products both rank the highest in Liaoning.

Industrial Pattern

Like the composition of economic development in northeast China, Dalian’s mission of development has two sides. First, Dalian holds the position as one of the leading cities in overall economy, and has a critical mass of large and medium-sized enterprises. Secondly, Dalian is the entry gate for the opening up of the entire northeast due to its location, environment, and industrial history.

Dalian will be built into an international shipping and logistics center, will be the base for petrochemical industry, shipbuilding, high-tech equipment manufacturing, and for electronic information and software development.

Leading companies in these industries have been in Dalian for some time, or started setting up operations. In shipbuilding, Dalian Shipbuilding Heavy Industry Co., Ltd. and Dalian New Ship Heavy Industry Co., Ltd. are the two biggest shipbuilders in China. As for petrochemical industry, Dalian Petro and West Pacific Petro are in the lead, as are Dalian Steel and Dalian Machine Tool Group Corporation in equipment manufacturing. Dalian is strongly focusing on its development of information technology and software industry with the entering of Intel, IBM, and other international IT companies.

Dalian Port is the most important container port in northeast China, with 196 berths and a terminal length of 33.3 kilometers in 2009. There are 85 international container shipping lines with more than 300 ships per month. About 90 percent of the container trade in northeast China is transferred in Dalian.

Tourism also contributes significantly to economy growth in Dalian. Every year from May to September, Dalian is crowded with tourists from all parts of China, and even all over the world. In 2009, Dalian received 34.12 million Chinese and 1.05 million foreign tourists, which was 14.1 percent and 35.8 percent of the total number of tourists to Liaoning.

The financial sector also develops quickly in Dalian. The city has 15 foreign banks, the highest number of foreign banks in north China, and 7 foreign insurance companies. They either set up branches here or opened representative offices. Financial institutions in Dalian have connected their settlements networks to more than 150 countries, which makes Dalian the biggest regional international settlements center. Dalian Commodity Exchange (DCE) is one of the three most active futures exchanges in China and even the world’s most active in plastic futures and second in soybean futures.

An emerging industry in Dalian is the exhibition industry. Since the opening up of Xinghai International Exhibition Center in 1996, more than 300 exhibitions have been held, including China Dalian Import and Export Fair, Dalian International Garment Fair, and exhibitions and fairs in automobile, home appliance, furniture, hardware, fisheries, electronic and communication products. The Summer Forum of the Davos World Economy has been held twice in Dalian and the organizers now set up a coordination office here.

Foreign Trade and Investment

Dalian is among the top cities in China in terms of foreign investment volume. The city attracted the highest foreign direct investment (FDI), one third of the total in Northeast China. In 2009, the amount of FDI was 6.00 billion USD. More than 13,000 foreign invested companies are listed in Dalian, including 90 of the Global Fortune 500. Some major foreign companies in Dalian include General Electric, Goodyear, Pfizer, Dell, Accenture, Hewlett Packard, IBM, NEC, Wal-Mart, LG, Hyundai, Posco, Carrefour, Thyssen Krupp Co, Nokia, and Sony Ericsson. Dalian also profits from its historic connections with Japan. Mitsubishi, who ran the Dalian shipyard many decades ago, started co-operating with Dalian in shipbuilding again in the 1980s. Canon, Toshiba, Mabuchi, Sanyo, Panasonic, Hitachi have all established production sites in the city.

Dalian Foreign Direct Investment Projects
(in million dollars)
Investment volume Registered capital Contracted FDI Import volume
West Pacific Petrochemical Co., Ltd. 10,130 2,580 1,100 28,900
Dalian Container Terminal Co., Ltd. (DCT) 4,800 1,600 1,600
Volkswagen Automatic Transmission Co. Ltd. 3,880 1,300 78
Intel Dalian Fab 68 Factory 2,500 500 500
Canon Dalian Business Machines Co., Ltd. 2,400 81 81 1,000
COSCO (Dalian) Shipyard Co., Ltd. 2,200 72 59 1,000
Panasonic Automotive Systems Co., Ltd. 2,14 2,400 1,070 2,040

Due to its geographical advantage and economic strength, Dalian has the biggest foreign trade volume in Liaoning province. The import and export volume of Dalian kept increasing over the past decades. In 2009, the import volume of Dalian was 20.06 billion USD, 68 percent of total Liaoning imports. The export volume of 21.77 billion USD was 65 percent of the provincial total.

Dalian maintains twinning relations, “Sister Cities”, with 18 cities in 14 countries:

  • Kitakyushu, Maizuru, and Imari (Japan)
  • Oakland, Houston (US)
  • Bremen, Rostock (Germany)
  • Le Havre (France)
  • Glasgow (UK)
  • Vancouver (Canada)
  • Incheon (South Korea)
  • Vladivostok (Russia)
  • Pointe-Noire (Congo)
  • Adelaide (Australia)
  • Ohrid (Macedonia)
  • Genoa (Italy)
  • Cienfuegos (Cuba)
  • Sevastopol (Ukraine).

International Events and Honors

Festivals and Events Month Year
Dalian Spring Fireworks Festival First lunar month Annually
Dalian International Walking Festival April/May Annually
Dalian Sophora Japonica Festival May Annually
China Dalian Import & Export Commodities Fair May Annually
China International Software and Information Service Fair June Annually
Dalian International Beer Festival and Beach Carnival July/August Annually
Dalian International Fashion Festival September Annually
China (Dalian) International Garment & Textile Fair September Annually
Dalian International Marathon Race October Annually
Summer Davos Sept 6 – Sept 8 2007
China CSIA-ICCAD Annual Conference Oct 11 – Oct 12 2007
Honorary titles Awarded by Year
UN-Habitat Award UN 1999
Award for Best Practices to Improve the Living Environment UN (Dubai) 2000
Global 500 Roll of Honor for Environmental Protection Projects UN 2001
Global 500 Roll of Honor for Environmental Achievement UN 2001
Investment-grade Credit Rating Report: A- World Bank 2003
Top 10 Cities of Economic Vitality CCTV 2004
Top 10 Commercial Cities in Chinese Mainland, ranking No. 3 Fortune 2004
Top 10 Livable Cities in China, ranking No. 2 Business Week 2005
Model City for Internationalization of Software Industry MOST 2005
State-level Model City in Science and Technology MOST 2005
Top 10 International Cities in China, ranking No. 2 IUCC 2005
Top 10 Cities of Folklore Festivals in China CTFFFF 2005
Best Tourist City of China CNTA, WTO 2007

Shenyang

Capital of Liaoning Province

Shenyang is the economic, transportation, commercial, political and cultural center of Liaoning, and the seat of the Provincial Government and the People’s Congress. Often compared with Beijing, Shenyang is not only similar to the national capital because of the Manchu “Forbidden City” lying in the midst of the traditional downtown area, but also similar in regard to its function as a regional center for the entire Northeast of China.

Shenyang has 7.165 million inhabitants, with 4.642 million dwelling in the city proper. According to the United Nations list of urban agglomerations, Shenyang ranks 52nd among the world’s most populated cities, and 10th within China. In the ranking of “Most Competitive Cities of China 2010”, Shenyang ranks 10th in Mainland China and 14th among 294 cities in Greater China (including Hong Kong, Macao, Taipei and Kaohsiung). This index is published annually by the China Academy of Social Science, comparing eight indicators: human resources, enterprises, industries, public sector, living environment, business environment, innovation, and social environment.

The administrative structure of Shenyang Prefecture includes nine city districts, one county-level city and three counties, with a total area of 13,000 square kilometers, in which the city proper takes 3,495 square kilometers.

Geographical Location

Situated in the south of Northeast China and the middle part of Liaoning Province, Shenyang embraces stretches of plains with mountains and hills concentrated in the southeast. The Liaohe River, Hunhe River, and Xiushuihe River pass through the city. Shenyang features a semi-humid continental climate with temperatures between -29°C and +36°C, and an average of +8.3°C. Annual precipitation is 500 mm and the annual frost-free period is 183 days. Affected by monsoon, Shenyang sees concentrated rainfall with sharp temperature differences and four distinct seasons.

Being the biggest city of northeast China with a broad range of industries, Shenyang is both the center of the Northeast Asia Economic Zone and the Bohai Economic Rim. Throughout history, the city held a major strategic position for the military.

Shenyang and seven other major cities within a distance of 150 kilometers make up the Shenyang Metropolitan Area. These eight cities are specialized in either basic or processing industries supplementary to each other. They have abundant resources and highly related technologies.

Transportation in Shenyang is well developed and constantly being extended. Shenyang Taoxian International is the biggest airport in northeast China. The railway and highway network matches the highest level in China. In terms of waterways, the seaports of Dalian and Yingkou are less than 400 kilometers from Shenyang, and another seaport in the vicinity, Jinzhou, is under construction.

Metropolitan Development Strategy

On April 6th 2010, the China State Council approved the proposal of the Liaoning Provincial Government to develop the Shenyang Economic Area as a reform area. Along with the Shanghai Pudong Lujiazui Area and the Tianjin Binhai New Area, Shenyang is now the 8th national reform pilot area.

The Shenyang Economic Area covers eight cities: Anshan, Fushun, Benxi, Yingkou, Fuxin, Liaoyang, Tieling, and in the center the city of Shenyang. This metropolitan area, known as “Shenyang Metro”, has a population of 23.6 million on 75,000 square kilometers, an urbanization rate of 65 percent, and a density of 314.7 inhabitants per square kilometer. Subject of the new pilot area is modern industrialization, which aims to gradually set up a new development model of modern industry with advanced science and high technology, significant economic impact, low energy consumption, little environmental pollution, and full exertion of local human resources. It is expected that some breakthroughs can be made in important fields and critical points with the reforms.

Chen Haibo, Mayor of Shenyang explained: “With the approval of Shenyang Economic Area as national strategy, Shenyang Metro is looking at an enormous opportunity for development. We will try to enlarge both the economy and the size of the city, first to build Shenyang into an important national equipment manufacturing base, and then into the central metropolis of Northeast Asia.”

Next to equipment manufacturing, Shenyang is also planning to develop various industries in the primary, secondary and tertiary sector, including infrastructure construction, new energy, new materials, electronic information systems, bio-pharmacy, environmental protection and energy conservation, scientific and technological innovation, cultural innovation, modern logistics, and many more.

Economic Development

China’s heavy industry has its roots in Shenyang, core sector is equipment manufacturing. Heavy industry was developed in the early period after the founding of the People’s Republic of China, both in Shanghai and in Shenyang. Shenyang today encompasses 142 industries, and 3,033 industrial enterprises above designated size: these are (1) all state-owned enterprises and (2) private enterprises with annual sales of over 5 million RMB (about 0.7 million USD).

In 2009, the city’s regional GDP has reached 426.85 billion RMB (about 60.98 billion USD). Investment in fixed assets was 351.99 billion RMB (about 50.29 billion USD), foreign direct investment 5.31 billion USD. The disposable income of urban citizen per capita was 18,474 RMB (2,639 USD). The average salary level in Shenyang was 37,937 RMB (5,419 USD).

The city had a total active labor force of 3.26 million, including 790,000 working in the primary sector, 898,000 in the secondary sector and 1,567,000 in the tertiary sector. Within the secondary sector, manufacturing took the lion’s share (309,688) over construction (46,946). In the tertiary sector, employment in education was strong (110,082), along with public administration (86,186), health and social welfare (58,046). State units are still the main employers in Shenyang, since only 578,000 were employed by private companies.

The pace of strategic adjustment of the state-owned economy has accelerated, with foreign and private sectors growing rapidly. Urban development space and industrial layout were expanded and optimized. Automobile and auto parts equipment manufacturing, electronic information, chemical and pharmaceutical industries have taken shape and are now one of the engines of the city’s economic development. The ability of scientific and technological innovation and corporate research and development has kept improving and a number of competitive products and enterprises emerged. The pace of urban infrastructure construction has accelerated and soft environment further improved. Shenyang has seen substantial economic and social development as well as brisk improvement in people’s living standards. As a result of sustainable development policies with attention to the environment, Shenyang has won the titles “National Environmental Protection Model City” and “National Forest City”.

Foreign Trade and Investment

Shenyang has a central role in foreign trade. Both imports and exports increased significantly from 2005 to 2008. Foreign direct investment in Shenyang grew quickly to reach a share of 34 percent of all foreign investment in the province in 2009.

To attract more investors to Shenyang, the city government strengthened investment services in the past years, and received acknowledgments from foreign investors in Shenyang. Almost fifty Global Fortune 500 Enterprises are there already, such as BMW, General Electric, Siemens, HSBC, and BASF.

Living in Shenyang

Shenyang is a convenient city to live in, public facilities are easily accessible. Public transportation includes bus, taxi, and the first line of a subway system, which was put into use in September 2010.

Hotels Stars
Kempinski Hotel *****
Sheraton Lido Hotel *****
Shangri-la Hotel *****
Marriott Hotel *****
Friendship Hotel *****
Lexington Hotel ****
Hotel Intercontinental ****

 

Shenyang has basic facilities for foreign and domestic investors, such as international schools and hospitals with clinics for foreigners (see above), international chain hotels, shopping malls and supermarkets such as Wal-Mart, Metro, and Carrefour. The city has many Korean and Japanese restaurants, but also a number of Western restaurants and fast food like MacDonalds, KFCs, and Pizza Hut. Fresh Paulaner beer is brewed at the Kempinski Hotel, and even a Swiss Restaurant, “Heidi’s” can be found next to the Consulates area. In order to become a true metropolis in the near future, the city will pay much attention to further upgrade its level of internationalization, and cater to multicultural needs.

Welcome to Invest in Shenyang

With rapid economic growth, Shenyang is facing great development opportunities. The government has decided to build the city into a national equipment manufacturing center, a trade and logistics center and a financial center in Northeast China by 2012. Shenyang wants to become a key growth pole in boosting the economic development of the entire region. Given its favorable location, profound industrial foundation, and the latest national policies, Shenyang is sure to prosper and become one of the most attractive investment destinations in China.

3. Liaoning Economy

Strong Growth During and After the Global Crisis

According to preliminary data, Liaoning realized a GDP of 1,827.8 billion RMB (about 276 billion USD or 203 billion Euro) in 2010. The province ranked about the same as the Czech Republic, and seventh among the 31 provinces and municipalities of China (excluding Hong Kong, Macao and Taiwan). Already in 2009, Liaoning surpassed Shanghai in terms of GDP, and confirmed its strong position among globally leading economic regions.

In 2009, the global financial crisis effected only the exports but had much less impact on the overall economy than in any other competing region both within China and globally. The chart shows GDP growth from 2004 to 2009. The following industries particularly leaped forward in Liaoning in 2009:

Total Profits and Taxes Realized Billion RMB Billion USD Growth
Building materials 9.3 1.3 + 35.6 %
Agricultural product processing 19.5 3.0 + 19.3 %
Equipment manufacturing 42.9 6.0 + 17.2 %

The registered urban unemployment rate in Liaoning was 3.7 percent in 2010, which was 0.2 percentage points lower than 2009, and lower than the national average in both years. This rate, however, does not include unemployment in rural areas.

Key Economic Indicators

Liaoning Key Economic Indicators 2009 2008
Million USD Growth Million USD Growth
Gross Domestic Product 220,547.50 13.1% 193,828.74 13.1%
Added Value of Primary Industry 20,712.93 3.1% 18,747.03 6.3%
Added Value of Secondary Industry 114,503.00 15.6% 108,164.03 15.5%
Added Value of Tertiary Industry 85,331.58 12.1% 66,917.68 11.2%
Total Investment in Fixed Assets 191,405.36 30.5% 144,261.42 34.8%
Total Value of Imports and Exports 62,920.00 -13.1% 72,440.00 21.8%
Total Value of Exports 33,440.00 -20.5% 42,050.00 19.0%
Total Value of Imports 29,480.00 -3.0% 30,380.00 25.8%
Amount of Foreign direct Investment 15,440.00 28.5% 12,020.00 32.1%
Budget Revenue of Local Government 23,290.88 17.3% 19,526.00 25.3%
Budget Expenditures of Local Government 39,256.33 24.5% 31,006.03 22.1%

Agriculture

The fertile land of the Liaohe River valley makes Liaoning a natural choice for agriculture. While traditionally associated with industrial development in China, the province is also a major agricultural, animal husbandry, forestry and fisheries base. Despite a serious drought in 2009, the agricultural sector has grown to 141 billion RMB (about 20.7 billion USD) with 3.1 percent growth rate. Meat production has increased to over 4 million tons with 7 percent growth while grain output dropped 14.5 percent because of the drought.

Industry

In 2009, the secondary sector grew 15.6 percent to 782 billion RMB (114 billion USD). Equipment manufacturing, including general equipment, transport equipment and electric machinery, increased 18.3 percent, accounting to one third of industrial value. Metallurgy and petrochemical industry grew 23.8 percent and 6.8 percent, agricultural processing climbed 24 percent. Production of automobiles and steel ships grew over 50 percent.

Service Sector

Liaoning has a long history of service sector activity and is the key logistical hub for all of Northeast China. In 2009, the service sector has developed rapidly and reached a value of 85.3 billion USD. Financial services, particularly banking and insurance have developed well in recent years with support from the State. Loans in Renminbi and foreign exchange of the financial institutions reached over 1,622 billion RMB (about 237 billion USD) with 11 percent increase, while savings deposits totaled 2,335 billion RMB (341 billion USD) with 6.8 percent growth. The logistics sector increased by over 11 percent and sales of the real estate industry grew by 41 percent.

Foreign Trade and Investment

Liaoning has maintained trade ties with 208 countries and regions. Exports particularly remained strong to Japan, South Korea, Singapore, the European Union, and the United States. In 2008, imports and exports of Liaoning reached 72.4 billion USD with a 21.8 percent increase. Specifically, exports grew by over 42 billion USD, accounting for 58 percent of the total foreign trade volume.

In 2009, foreign investment was USD 15.4 billion, 28.5 percent more than in 2008. Liaoning remained No. 3 in attracting foreign investment in China, following Jiangsu and Guangdong. Meanwhile, domestic investment even climbed up 30 percent to 250 billion RMB (about 36.6 billion USD). Liaoning is becoming a more and more attractive location for investment, specifically in electromechanical products, high-tech products and in the service sector. Hong Kong investors have poured in business in Liaoning, accounting for over 50 percent of total foreign investment. Trade activities are undertaken primarily with northeast Asian countries, particularly with Japan and South Korea, which accounted for 20 percent and 10 percent of the total in 2009.

Industries Foreign Direct Investment in 2009 Growth
Secondary Sector 7.4 billion USD + 30.5 %
Tertiary Sector 7.9 billion USD + 27.6 %
Total 15.4 billion USD + 28.5 %

Business seeking inroads into China via Liaoning also benefit from the province’s own market. In 2008, retail consumption amounted to about 70 billion USD, with 22 percent annual increase. In recent years, Liaoning enterprises also invested more and more overseas. In 2009, they invested a total of USD 1,040 million, including project and labor contracts. More than 74,000 Liaons worked overseas under such contracts.

Foreign Trade of Liaoning with the North East Asian Countries 2009

Value of Import and Export (million USD) and Share of Totals

Total % Export % Import %
Total 62,924.99 100.00 33,441.42 100.00 29,483.57 100.00
Japan 12,136.38 19.29 7,710.15 23.06 4,426.23 15.01
South Korea 5,929.08 9.42 3,332.57 9.97 2,596.51 8.81
DPRK 1,159.29 1.84 754.65 2.26 404.64 1.37
Russia 1,106.25 1.76 504.10 1.51 602.15 2.04

Ranking of Liaoning in China

The system of official national and regional statistics in China is developing fast and its reliability is constantly improving. Especially comparisons between regions are a good information basis for decision-making, since discrepancies in data reporting may be assumed to be evenly distributed across the country. Absolute numbers of some statistical criteria are often less relevant than a ranking among regions, which for the purpose of this business guide includes the 31 provinces, province-level cities and autonomous regions of China, but excludes Hong Kong, Macao, and Taiwan. Liaoning ranks 14th in population and 21st in land area, but its GDP was the 8th highest of China in 2008 and even moved up to 7th position in 2009, leaving Shanghai behind. The following list shows the ranking of Liaoning in several criteria, with ranks higher than 14 (population ranking) marked in green to show an above-average performance. All data is for 2008 unless otherwise indicated.

Gross Domestic Product (GDP) Rank GDP Growth and Indicators Rank
GDP 2008 8 Real Growth 2008 7
GDP 2009 7 Real Growth 2009 10
GDP Primary Sector 11 GDP per Capita 9
GDP Secondary Sector 7 Share of GDP Primary Sector 23
Industry 7 Share of GDP Secondary Sector 6
Construction 8 Share of GDP Tertiary Sector 21
GDP Tertiary Sector 9 Wages, Salaries, Earnings Rank
Transport, Storage and Post 9
Wholesale and Retail Trades 6 Average Wages 10
Hotels and Catering Services 9 Average Earnings in Urban Units 10
Financial Intermediation 12 Wages in State-owned Enterprises 8
Real Estate 11 Wages in Collective Enterprises 8
Others 12 Wages in Private, Other Enterprises 9
Transportation Networks Rank Large Industrial Enterprises Rank
Transport Volume Railways 4 Number of Enterprises 5
Transport Volume Expressways 7 Fixed Assets 5
Transport Volume Highways 21 Taxes Paid 8
Transport Volume Waterways 23 Employed Persons 7
Foreign Trade Rank Foreign Visitors Rank
Total Exports 2007 9 1995 13
Total Exports 2008 9 2000 10
Total Imports 2007 9 2007 7
Total Imports 2008 8 2008 6
Foreign Invested Enterprises (FIE) Rank Exports and Imports of FIE Rank
Number of Enterprises 8 Exports 9
Investment 5 Imports 9
Total Registered Capital 5 FIE Share of Total Exports 8
Regist. Capital of Foreign Investors 5 FIE Share of Total Imports 11

 

Natural Resources

Liaoning has 115 different mineral resources, 69 of them with proven reserves. Reserves of iron, boron, magnetite, diamond, talcum, jade, and solvent limestone rank first in China. The province is also rich in nonferrous metals such as gold, silver, copper, aluminum, and zinc as well as non-metallic minerals like asbestos. Oil and gas reserves of the Liaohe oil field account for 15 percent and 10 percent of the nation’s total, crude oil production ranks third in China.

Liaoning has 3.9 million hectares of woodland and a forest coverage of 28.7 percent. Grassland, grass hills and grass slopes total an area of 2.3 million hectares, suitable for the development of animal husbandry.

The Liaoning coastline is rich in prawn, abalone, scallops, sea cucumber and other precious marine products. The province abounds in rice, wheat, corn, sorghum, soybean, peanut, cotton, and sunflower. The Eastern Liaoning Peninsula and the western hilly regions are important production bases for fruits, ginseng and other traditional edible plant favorites, with a high production volume.

As one of China’s five major salt producing regions, Liaoning has more than 66,000 square kilometers of salt fields. The coastal region of Panjin and Yingkou has close to 670 square kilometers of reed pond, an important raw material for the paper industry.

R&D and Innovation

Liaoning has built a strong reputation in science, technology and education. Well developed links between enterprises, universities, and R&D institutions ensure a smooth and efficient technology transfer with practical, marketable innovations and product development matching demand. Liaoning is where applied research enters the market. There are 619 research and development engineering laboratories and 535 alliances established among enterprises, universities and R&D institutions. Over 12,000 patents were issued in 2009.

The business of Liaoning is diverse and dynamic, one tenth of China’s industrial enterprises are located here. They range from heavy industries to state-of-the-art companies in key development sectors, including biotechnology, pharmaceuticals and information technology. The Northeast automotive cluster is one of the largest in China, growing at a rate that is set to rival and surpass South China and Shanghai. Key global investors in the sector include BMW, General Motors, Toyota and VW.

New high technology enterprises continue to locate and develop in Liaoning, and centers of excellence have been established in many cities to cater for their specific needs. Most notable are the hi-tech incubator parks in Shenyang and Dalian, which, through the provision of essential services, encourage and support the development of new science and technology businesses. Special provision is made for overseas businesses or for scholars to establish business within these complexes, to share ideas and to co-operate. In 2008, the added value of hi-tech products reached over 247.3 billion RMB (about 35 billion USD), with 23 percent annual increase.

Human Resources and Remuneration

Liaoning has a well-educated workforce. Young Liaons have a choice of 69 universities and colleges to get their degrees in sciences, arts, engineering, agriculture, medicine and finance. More than 200,000 graduate, 21,000 post graduate and 76,000 postgraduate and doctorate students are on campus. Top universities of Liaoning with a nationwide reputation are Dalian Technical University, Northeastern University, Dalian Maritime University, Liaoning University, Dalian University and Shenyang University.

University graduates are said to be more regionally flexible than blue collar workers. As one of the industrial fundaments of China, Liaoning needs – even more urgently than university graduates – a large number of highly skilled workers. Liaons receive their vocational education at 142 vocational and technical schools with more than 180,000 graduates per year. In recent years, strong support has been given by the State to promote high-quality vocational education and training (VET), including tuition fee waiving and assistance. Liaoning has taken advantage of the national policy and developed into one of the model regions of China for vocational training. Especially the vocational schools of Shenyang, Dalian and Anshan are among the best in the country. Some of them have long-term cooperations with Germany and adopted parts of the “dual system”, globally recognized as exemplary in combining practical training in enterprises with theoretical education at school.

In a recent selection by the Ministry of Education, no province had more institutions appointed as model schools for national vocational reform than Liaoning. The Shenyang Automotive Engineering School is a national model school for professions in car manufacturing and repair, the Dalian Computer Vocational School for professions in computer applications, the Shenyang Foreign Service School for professions in hotel management and services, and the Benxi Chemical Industry School is a model school for laboratory specialists and other analytical industry professions.

In 2008, the average salaries and wages of working employees in Liaoning stood at 27,729 RMB (about 3,984 USD). Average salaries in foreign invested enterprises (FIE) were no higher than the level for all enterprises. Liaoning has a first-class workforce, while employers just need to pay medium-level wages compared with other parts of China like Guangdong or Jiangsu. Latest statistics of 2010 show that minimum wages of Liaoning are among the lowest in the coastal provinces of China.

Tourism

Tourist Attractions

The province is rich in tourist attractions, and six of them have been listed by UNESCO as World Cultural Heritage. The most visited sites are located primarily close to or within the cities of Shenyang, Dalian, Anshan, Fushun, Benxi, Dandong and Jinzhou. Main attractions include:

Visitors 2008 Chinese Foreigners
Shenyang 51,610,000 476,357
Dalian 30,000,000 950,045
Anshan 15,300,000 155,055
Fushun 12,200,000 77,201
Benxi 13,900,000 217,816
Dandong 14,200,000 190,762
Jinzhou 8,700,000 114,820
Yingkou 5,850,000 49,670
Fuxin 3,410,000 10,953
Liaoyang 10,300,000 18,080
Panjin 9,800,000 82,110
Tieling 7,200,000 33,054
Chaoyang 7,090,000 7,563
Huludao 8,800,000 35,221
2008 198,360,000 2,418,707
2009 241,948,000 2,507,000

The Great Wall on water (Huludao Jiumenkou Great Wall), UNESCO World Cultural Heritage

Shenyang Imperial Palace (Mukden Palace), UNESCO World Cultural Heritage

Fu and Zhao Tombs of Beiling in Shenyang, UNESCO World Cultural Heritage

Yongling Tomb in Fushun, UNESCO World Cultural Heritage

World’s Largest Jade Buddha, Temple in Anshan

Benxi Water Cave, one of the largest underground water caves in Asia

Dalian Tiger Beach Aquarium, the world’s biggest aquarium of polar animals

Dalian Jinshitan Golf Course

Shenyang Ancient Aerolite (Meteorite)

Panjin Shuangtaizi Natural Protection Zone of Marsh, the world’s second biggest field of reed and home to a large number of cranes.

Tourism to Liaoning developed rapidly in recent years. More visitors are coming as people discover the attractions of the region and the warm welcome offered by the Liaons. The province has much to offer, investors and residents alike, you just have to explore. The promotion of tourism is also part of the regional development strategy, and more and more as of yet undiscovered sites will be easy to reach.

For summer sun, the best time to travel is from May to October. If you prefer winter sports or like to witness unique ice festivals, January and February are the months to visit. There is something for everyone in Liaoning!

Folk Art, Food and Features

Famous among Liaons are the “five favorite” products: sea cucumber, kelp (seaweed), magnolia trees, amber craft of Fushun, and silk flowers. Local natural, agricultural and aquacultural products include Liaoning apples, autumn white pears, hazelnuts, hawthorn, shrimps, clams, abalone, scallops, mink, sable, Chinese Tasar Moth (Antheraea Pernyi), Tussah silk, spine date seed, tobacco, Schisandra shrubs, ginseng, deer antler, and wild ginger leaves (Asarum). Famous Liaoning creations are the Fushun coal sculptures, the feather paintings of Shenyang Imperial Palace, Dalian crystal products, Anshan jade, Benxi ink stone, Fuxin marble, and agate fossils in western Liaoning.

Liaoning cuisine is a major branch of the eight traditional Chinese styles, based on Manchu and northern China dishes. The western favorite “spring rolls” and “Jiaozi” (steamed, cooked, or fried ravioli-like dumplings with hundreds of different fillings) are typical provincial dishes, others include fried shrimp, hot pot, fried sea cucumber, chicken wings, and pancake with smoked meat. Typical home cooking of the Liaons includes sauerkraut, potatoes, and a variety of dishes with corn.

Transportation and Telecommunication

Transportation

Liaoning is a main artery of traffic between Northeast China and the rest of the country, and also a gateway connecting Northeast China with Inner Mongolia and the rest of the world as well as the Eurasian continental bridge. It embraces the seaports of Dalian, Yingkou, Dandong, Jinzhou, and Huludao, which have opened navigation routes with over 140 countries and regions of the five continents.

Six airports, Shenyang, Dalian, Anshan, Jinzhou, Dandong and Chaoyang, are linked to the United States, Japan, Russia, Germany, Korea, and Hong Kong and more than 100 large and medium-sized cities in China. A road network of 50,000 kilometers covers the province, one of the densest networks in China.

A comprehensive integrated transportation network has also been well established which connects the ports as gateways with railways as arteries and roads as backbones, and is supplemented by civil aviation, pipeline transport, and maritime transport.

Telecommunication and Internet

All of Liaoning’s 14 cities under provincial supervision and 44 counties (cities) have access to international and domestic telephone networks. Provincial statistics listed 16 million telephone landlines for 2008, an average of 38 lines per 100 inhabitants. In a comparison with other provinces, Liaoning ranks 6th in the number of fixed telephone subscribers. These 16 million made 3.5 billion minutes of long-distance calls via their fixed line subscriptions and 4.9 billion minutes via IP call.

2008 Telephone Landlines Internet
Users
Shenyang 3,500,000 1,060,500
Dalian 3,125,000 997,300
Anshan 1,556,000 341,900
Fushun 860,000 252,200
Benxi 478,000 162,900
Dandong 815,000 251,200
Jinzhou 1,048,000 267,800
Yingkou 685,000 210,500
Fuxin 565,000 147,600
Liaoyang 563,000 186,200
Panjin 424,000 149,100
Tieling 785,000 167,200
Chaoyang 864,000 177,800
Huludao 777,000 184,100
Unspecified 6,823,900
Liaoning 16,043,000 11,380,000

 

Mobile telephones have become ubiquitous all over China. Liaoning lists more than 24 million mobile phone subscribers, 57 percent per capita. In 2008, they made 5.5 billion minutes of long-distance mobile phone calls, which is a total of over 10,000 years. They also sent 22 billion SMS messages, more than 900 per subscriber. Combining mobile, landline, and IP calls, the average Liaon spent 344 minutes in 2008 making long-distance phone calls, not including their time spent to receive calls.

Liaoning connects to the internet via IXPs in Beijing. According to national statistics, the province has more than 11 million internet users, about 27 percent of the population, but less than half of them are attributable to individual prefectures within the province. The Chinese internet registration authority CNNIC listed Liaoning as occupying 2.9 percent of all national unique IPv4 internet addresses, which is rank 8 among the provinces. In 2009, Liaoning was home to 46,881 web servers, but the CNNIC statistics exclude the extensive education network “edu.cn”. CNNIC had 263,459 domain names registered for Liaoning, 1.6 percent of the China total, and rank 14. These websites contained 433,321,189 pages, but less than two percent of them in English.

More than 300 regional websites are listed for Liaoning in the Chinese language section of the largest human edited directory of websites, but less than 40 in the English section. See

http://www.dmoz.org/Regional/Asia/China/Liaoning/

http://directory.google.com/Top/Regional/Asia/China/Liaoning/

In the number of entries for English websites, Liaoning ranks 9th among the provinces of China.

2. Profile of Liaoning

Location and Climate

Liaoning is situated in the south of northeast China, at about the same northern latitude as Spain in Europe or Illinois, USA. It embraces a land area of 145,900 square kilometers, which is more than Greece, and accounts for 1.5 percent of China’s total land area, a water area of 10,000 square kilometers or 6.8 percent, and a sea area of 150,200 square kilometers with a coastline of 2,178 kilometers, covering 12 percent of China’s total length of coastline.

The province is part of the North China Craton, an old and stable platform in the interior of the Eurasian tectonic plate. The lithospheric roots of the craton extend a few hundred kilometers into the Earth’s mantle. The region is fairly safe from earthquakes, but also rich in coal and minerals.

Liaoning neighbors with Jilin Province in the northeast, Inner Mongolia in the northwest, and Hebei Province in the southwest. Liaoning is adjacent to North Korea with the Yalu River as the boundary, and to the Bohai Sea and Yellow Sea in the south.

Liaoning has a humid continental climate similar to the Baltic States or the Northeastern United States. Winters are long and cold, winds strong, the east is wet and the west dry, but there is much sunshine and distinct four seasons. The annual average temperature is between 7°C in the north and 11°C in the south, precipitation from 500 to 1,000 mm, and the frost-free period is 130 – 200 days.

Population and Administrative Division

Liaoning is composed of 14 prefecture-level cities, with 100 county-level cities and regions under them. The counties govern 1,501 townships, villages, and sub-districts.

The population grew from 42.5 million in 2008 to 43.2 million in 2009, more than Spain or Canada. Urban population was 25.9 million (60 percent). Counting only the city proper, four cities in Liaoning have over one million inhabitants: Shenyang, Dalian, Anshan, and Fushun. All 14 prefectures exceed a population of one million. Liaoning is a multi-ethnic province with 44 nationalities. Next to the Han majority, main minorities are Manchu, Mongolian, Hui, and Korean.

Prefecture Code Area
sq km
Population
in Million
Average Temp. °C Counties Townships Chinese
Shenyang 辽A 12,942 7.1 8.6 13 212 沈阳
Dalian 辽B 13,238 5.8 11.4 10 161 大连
Anshan 辽C 9,249 3.5 10.9 7 104 鞍山
Fushun 辽D 11,271 2.2 7.4 7 83 抚顺
Benxi 辽E 8,435 1.6 8.9 6 58 本溪
Dandong 辽F 15,030 2.4 9.5 6 89 丹东
Jinzhou 辽G 10,111 3.1 10.9 7 115 锦州
Yingkou 辽H 4,970 2.3 10.2 6 72 营口
Fuxin 辽J 10,445 1.9 8.6 7 94 阜新
Liaoyang 辽K 4,741 1.8 9.9 7 60 辽阳
Panjin 辽L 4,084 1.3 9.8 4 56 盘锦
Tieling 辽M 12,966 3.1 8.8 7 103 铁岭
Chaoyang 辽N 19,731 3.4 9.9 7 167 朝阳
Huludao 辽P 10,375 2.8 11.0 6 127 葫芦岛
Liaoning 147,588 42.5 9.9 100 1,501 辽宁省

Living Comfortably in Liaoning

Fine Hotels

Star-rated hotels can be found throughout Liaoning. Big cities, such as Shenyang, Dalian and Anshan have numerous five-star luxury hotels. Their facilities, decoration and equipment match international standards.

In Shenyang, capital city of Liaoning, five-star hotels include the Kempinski, Marriott, Inter Continental, Sheraton Lido, Liming International, Lexington, and as latest addition the Holiday Inn Crown Plaza. Dalian, a famous tourist city, is home to a full range of star-rated hotels in northeast China. Furama, Shangri-La, Kempinski and other five-star luxury hotels provide a world-class environment for state guests and business meetings.

Housing

Each city in Liaoning Province can provide an extensive range of housing rental services; the rental price depends on locations and facilities. As there are divergences in terms of economic development in different cities, bigger cities such as Shenyang, Dalian, and Anshan will see higher rentals than the smaller cities. However, rentals and housing prices in Dalian and Shenyang are significantly lower than those of metropolitan cities like Beijing, Shanghai and Guangzhou.

Garden villas and serviced apartments can also be found, which feature well-rounded individual and business services including butler services such as laundry, food delivery and cleaning, and any other catering to the needs of investors in Liaoning.

Medical Service

The Shengjing Hospital in Shenyang established the Liaoning Foreign-related Medical Services Center which is recognized by the EU Chamber of Commerce in China. Designated provincial hospitals with foreign language service include:

Emergency Telephone Directory Telephone Number
Fire 119
Police 110
Medical Emergency 120
Traffic Accident 122
Red Cross First Aid Station 999
Directory Assistance 114
Telephone Repair 112
Forest Fire 95119
Water Search and Rescue 12395

 

First Hospital of China Medical University

Shengjing Hospital of China Medical University

People’s Hospital of Liaoning Province

Liaoning Cancer Hospital & Institute

First Affil. Hospital of Dalian Medical University

Second Affil. Hospital of Dalian Medical Univ.

First Affil. Hospital of Liaoning Medical College

First Affil. Hospital of Liaoning University of Traditional Chinese Medicine.

Schools for Children of Expatriates

In Shenyang, the International School of North East Yucai School (NEYCS) offers basic education for the children of expatriates. The school was founded in 1949, is certified by the Liaoning Education Commission, and has today about 7000 students and 600 teachers in five campuses and ten sections. It provides continuous education in English and Chinese from pre-school to high school, and it has formed an all-round education system integrating school, family and society. Based on pedagogical and management advantages, the school strives to cultivate the creative international talents and provide the students with good educational service.

Many children of employees in international enterprises are studying at the International School, and some of these enterprises have set up long-term cooperative relationship with the school. Michelin has set up exclusive French classes. BMW established German classes at the school, which started in September, 2010. These classes are also open to children whose parents work in other enterprises.

http://www.neyc.cn

Shenyang is also planning to establish schools for expats’ children from South Korea and Japan.

In Dalian, four institutions have been set up that accept children of expatriates: the Dalian Japanese School, the Dalian Korean International School, the Dalian American International School, and the Dalian Maple Leaf Schools for Expats’ Children.

Name of School Website Telephone
Intern. School of North East Yucai School http://www.neyc.cn +86 24 62341354
Shenyang International School http://www.syischina.com +86 24 89121177
Dalian Maple Leaf Foreign Nations School http://www.mapleleafschools.com +86 411 82387757
Dalian American International School http://www.daischina.org +86 411 87572000
The Japanese School of Dalian http://www.japanda.org +86 411 82400691
Dalian Korean International School http://www.dkischool.org +86 411 87536032

Immigration and Visa

Process Chart for Permanent Residence Application

Related Laws and Regulations

Notice for Foreigners Applying for Visa and Residence Permit

Notice for Foreigners Applying for Permanent Residence

Law of the People’s Republic of China on Control of Entry and Exit of Aliens

Rules for Implementation of Law of the People’s Republic of China on Control of Entry and Exit of Aliens

Locations and Contacts of Municipal Public Security Immigration Authorities of Various Cities in Liaoning Province

Billing Standard and Basis for Immigration Travel Documents

International Exchanges

Twinning

Liaoning has formalized friendship relations with 15 foreign provinces and states. Many cities and counties in the province also maintain twinning relations with sister cities and counties all over the world.

Country Foreign Province
or State
Brazil Rio de Janeiro State窗体底端
Chile Valparaiso Region
Egypt Ismailia Governorate
Germany Baden-Wuerttemberg
Italy Emilia Romagna
Japan Kanagawa Prefecture
Japan Toyama Prefecture
New Zealand Far North District
Poland Katowice Province
Romania Brasov County
Russia Irkutsk Province
Russia Novosibirsk Province
South Korea Gyeonggi-do
Syria Aleppo
U.S.A. Illinois
U.S.A. North Carolina

 

Notable International Exhibitions

China International Equipment Manufacturing Exposition

China Dalian International Fashion Festival

China (Dalian) International Software Fair

China Dalian Import and Export Fair

China International Equipment Manufacturing Expo, Shenyang.

Services at Your Fingertips

Institution
* with English Webpages
Website
* Liaoning-German Business Cooperation http://www.liaoning-de.gov.cn
* Liaoning Bureau of Foreign Trade and Economic Cooperation http://www.china-liaoning.gov.cn
* Liaoning International Investment Promotion Service Center http://www.china-liaoning.gov.cn
* Liaoning Foreign Investors Complaint Center http://www.china-liaoning.gov.cn
* CCPIT Liaoning Sub-Council http://www.ccpitln.org
* Dalian Customs http://dalian.customs.gov.cn
Liaoning Development and Reform Commission http://www.lndp.gov.cn
Liaoning Department of Human Resources and Social Security http://www.ln.lss.gov.cn
Economic Commission of Liaoning Province http://www.lnjw.gov.cn
Liaoning Public Security Entry-Exit Administration Network http://crj.lnga.gov.cn
Shenyang Customs http://shenyang.customs.gov.cn
Liaoning Public Security Department http://www.ln110.com.cn
Liaoning Foreign Affairs and Overseas Chinese Info Network http://www.lnfao.gov.cn
Liaoning Foreign Economic Cooperation Association http://www.lnfeca.org
State-owned Assets Supervision & Administration Commission http://www.lngzw.gov.cn
Liaoning Department of Land and Resources http://www.lgy.cn
Liaoning Department of Construction http://www.cc.ln.gov.cn
Liaoning Department of Communications http://www.lncom.gov.cn
Liaoning Price Bureau http://www.lnprice.gov.cn
Department of Environmental Protection of Liaoning Province http://www.lnepb.gov.cn
Liaoning Taxation Bureau http://ln-n-tax.gov.cn
Liaoning Bureau of Local Taxation http://lnsw.nen.com.cn
Liaoning Statistics Bureau http://www.ln.stats.gov.cn

1. Executive Introduction

Global Number One Growth Province

China has been the global leader in economic growth for a number of years, and steered through the global financial crisis with aplomb. In 2010, China already surpassed Japan in total gross domestic product, and now ranks second only behind the United States. Within China, Liaoning was listed seventh in provincial GDP, with a higher growth than any of the provinces ahead.

Still, the province is widely unknown outside of Asia. In an international comparison of country subdivision by volume of GDP, based on 2005 data, and with a disputable method of comparing GDPs of various currencies, Liaoning was listed just above Berlin, Germany, and Iowa, USA, at rank 73.

According to a more recent global analysis of the economically strongest regions below the national level, Liaoning ranks first in economic growth since 2008. The analysts took the top eight countries in 2008 GDP according to revised 2010 World Bank data, the so-called “G8 of GDP”. Then they took the top eight administrative regions within those countries according to regional GDP data of the national statistics administrations, and compared the real growth rates of those regions. Liaoning is the only region with a growth rate above 13 percent.

GDP Rank 1. Rank 2. Rank 3. Rank 4. Rank 5. Rank 6. Rank 7. Rank 8.

USA
+ 0.4 %

California

+ 1.6 %

New York

+ 2.0 %

Texas

– 1.6 %

Florida

+ 0.3 %

Illinois

+ 1.1 %

Pennsylvania

+ 0.6 %

New Jersey

– 0.7 %

Ohio


Japan
+ 3.1 %

Tokyo-to

+ 1.7 %

Kanagawa-ken

+ 1.8 %

Aichi-ken

+ 0.7 %

Osaka-fu

+ 1.0 %

Saitama-ken

+ 1.3 %

Chiba-ken

+ 1.1 %

Hyogo-ken

– 1.3 %

Hokkaido


China
+ 10.1 %

Guangdong

+ 12.1 %

Shandong

+ 12.3 %

Jiangsu

+ 10.1 %

Zhejiang

+ 12.1 %

Henan

+ 10.1 %

Hebei

+ 9.7 %

Shanghai

+ 13.1 %

Liaoning


Germany
+ 1.6 %

Nordrh.-Westf.

+ 1.2 %

Bayern

+ 0.9 %

Baden-Württ.

+ 1.3 %

Hessen

+ 1.0 %

Niedersachsen

+ 0.6 %

Rheinland-Pfalz

+ 0.3 %

Sachsen

+ 1.4 %

Berlin


France
+ 0.5 %

Île-de-France

+ 0.4 %

Rhône-Alpes

+ 1.4 %

Provence

+ 0.3 %

Pas-de-Calais

+ 0.9 %

Pays de la Loire

+ 0.9 %

Aquitaine

+ 0.4 %

Bretagne

+ 1.3 %

Midi-Pyrénées


U. K.
+ 4.0 %

London

+ 2.8 %

South East

+ 3.5 %

North West

+ 3.2 %

East of England

+ 4.6 %

Scotland

+ 3.5 %

South West

+ 2.9 %

West Midlands

+ 3.1 %

Yorkshire & H


Italy
– 1.0 %

Lombardia

– 0.4 %

Lazio

– 0.7 %

Veneto

– 0.4 %

Emilia Romagna

– 1.1 %

Piemonte

– 0.6 %

Toscana

– 2.4 %

Campania

– 0.9 %

Sicilia


Russia
+ 7.7 %

Moscow

+ 3.8 %

Tyumen Region

+ 2.9 %

Khanty-Mansysk

+ 8.2 %

Moscow Region

+ 9.3 %

St. Petersburg

+ 2.5 %

Sverdlovsk

+ 7.7 %

Tatarstan

+ 8.8 %

Krasnodar

In 2009 and 2010, Liaoning further strengthened its leadership in the global “G8 x 8” matrix. With a continued growth of 13.1 percent, the province even surpassed Shanghai in terms of total GDP to rank seventh in China. Despite the global financial crisis, Liaoning maintained its high real GDP growth rate. Preliminary data for 2010 shows a continued growth above 13 percent.

A number of factors make Liaoning a global hotspot of economic opportunities: First, a relatively well-trained industrial labor force with wages below national average, which in turn is significantly below global average. Liaoning has some of the best vocational schools in China, and many families have been working in industrial enterprises for generations, with a tradition of handing master-level technical knowledge from the father to the son. Still, the 2010 minimum wage of Liaoning was between 500 and 700 RMB per month (about 73 to 102 USD), depending on the prefecture or county, and the second lowest of all coastal provinces. 2009 average wages of urban employees per year were 30,523 RMB (4,360 USD), about half of Beijing and Shanghai, and much lower than competitor provinces Zhejiang, Guangdong and Jiangsu. Cost of living is equally below the national average.

Second, a good infrastructure with, for example, the already densest railway network of all provinces in China. New and faster than ever high-speed railways between Dalian and Harbin and from Shenyang to Beijing are slated to start operating in 2011 and 2012. The time to go by train from the city center of Shenyang to the center of Beijing will be reduced to a bit more than two hours from currently more than three hours by airplane (including the taxi time needed from the airports to the city centers). Liaoning has six international and domestic airports and with Dalian one of China’s largest seaports, connected by regular shipping lines with 140 countries.

Third, strong support from the national government for accelerated economic development in Northeast China, which is led by Liaoning province. The State Council has recently reconfirmed this policy in several documents, which will guide the preparation of the next five-year plan until 2015. Preferential policies are already in place, major additional budget allocations are to be expected.

Particularly, two regional economic development schemes, one strengthening the synergy of coastal area of Liaoning along the Bohai Gulf (Liaoning Belt) and the other promoting inland Shenyang Economic Area (Shenyang Metro), were promulgated in Liaoning in November 2009 and April 2010 as part of National Strategies to support robust development in Liaoning. No province has ever before been beneficiary of two national development strategies at the same time.

Fourth, Liaoning is the backbone of China’s industrial strength, which has a large and varied industrial base. Traditional industries like mineral extraction and processing, heavy engineering, steel production, textiles and petrochemicals continue to thrive alongside newer technologies. The key industrial sectors include equipment manufacturing, automotive production, ship building, biotechnology and pharmaceutical as well as electronics and software development. Industry has concentrated around key cities in the province, supported by comprehensive supply chains and research and development institutes. These industrial clusters ensure that investors benefit from and embed quickly into the business infrastructure.

Liaoning Yesterday >> Tomorrow

The Qing Emperors of the last Dynasty of China originated in Liaoning. When the Central Plains were re-united in the mid 17th century, the capital was moved from Mukden (Manchu word for Shenyang, today capital of Liaoning) to Beijing. Liaoning holds the key offshore position from the north into the mainland. Partly due to its strategic importance, it suffered from the Japan-Russia War in the early 20th century and later from the War against Japan during the Second World War.

After 1949, Liaoning Province became the cradle for the development of modern industry in China and has paved the way for many of China’s industrial achievements. It is home to the first Chinese jet aeroplane, the first locomotive, the first bulk cargo ship of 10,000 tons, the first transistor, and the first underwater robot. In more recent years, it produced key components of space rockets, essential for placing China into the exclusive group of countries who have put a man into space.

In 1984, Dalian of Liaoning was opened as one of China’s 14 pioneer coastal cities for foreign investment. Other coastal cities such as Yingkou, Jinzhou and Huludao also followed later in the 1990s. During the same period, Liaoning went through the process of industrial restructuring to develop a market-oriented economy and had to overcome the “rust-belt” effect of steel and coal dependence. To date, this has been basically completed. Liaoning is now thriving, and also home both for traditional industries and some of the most innovative and cutting edge industrial sectors particularly in the fields of biotechnology, pharmaceuticals, electronics, software development and robotics.

Good Company

In history, international economic relations concentrated on nearby Korea, Russia, and Japan. In most cities of Liaoning, you will still rarely see any Caucasians on the street. But the number of foreign visitors grew from 0.5 million in 2000 to 2.5 million in 2009. So far, about 13,000 foreigners obtained a work permit and took permanent residence in the province. This number is likely to increase, as the presence of international companies is growing quickly.

Investment in Liaoning started to become popular among global Fortune 500 enterprises just in recent years. Intel selected the second largest city of Liaoning, Dalian, to invest 2.5 billion USD in Asia’s first 300 millimeter wafer fabrication facility. Construction was completed and production started on October 27, 2010.

Auto maker BMW set up a joint venture and built a first production line in Shenyang in 2004. BMW Brilliance Automotive became so successful that German headquarters decided to invest 750 million USD in a second factory for their 3 and 5 “long” series. Following is a list of top twenty Global Fortune 500 enterprises with recent investment in Liaoning, sorted by the total project volume.

Country Global Liaoning Location
USA Intel Dalian Intel Dalian
South Korea Daewoo Daewoo Co., Ltd. Dalian
Germany BMW BMW Brilliance Automotive Ltd. Shenyang
USA General Motors Shenyang Jinbei Vehicle Manufacturing Co., Ltd. Shenyang
Japan Toshiba Toshiba TV Co., Ltd. Dalian
Finland Nokia Nokia Communication Technology Co., Ltd. Dalian
USA Gillette Shenyang Cutting Tip Co., Ltd. Shenyang
France Carrefour Carrefour Hypermarket Shenyang
USA Coca-Cola Coca-Cola Co., Ltd. Shenyang
Canada Nortel Nortel Networks Dalian
South Korea LG Electronics LG Electronics Co., Ltd. Shenyang
Germany BASF BASF Vitamin Co., Ltd. Shenyang
Japan Toshiba Toshiba Elevator Co., Ltd. Shenyang
Switzerland Sulzer Bingshan Group Dalian
Japan Panasonic Panasonic Storage Battery (Shenyang) Co., Ltd. Shenyang
USA Ingersoll Rand Ingersoll Rand Machine Tool Co., Ltd. Dalian
USA Wal-Mart Wal-Mart Co., Ltd. Shenyang
Germany Linde BOC Gases North Co, Ltd. Fushun
USA Johnson Controls Jinbei Johnson Controls Automot. Interior Co., Ltd. Shenyang
Germany Metro Metro Storage Management Co., Ltd. Dalian

An impressive number of small and medium-sized European, American and Australian enterprises have also discovered Liaoning as a good location for their China operations. In 2009, about 40 percent of the 132 billion USD total foreign investment in 19,900 Liaoning enterprises was from countries outside of Asia. But the average volume of investment in Liaoning is higher than the China average: Liaoning ranked 7th among Chinese provinces in the number of foreign invested enterprises, but 5th in the volume of investment. Also, foreign invested enterprises accounted for nearly half of all exports of Liaoning in 2009.

Meet the Liaons

The people of Liaoning are young. With a median age of 34, they are three years younger than Americans and ten years younger than Germans or Japanese. Like the Scandinavians in Europe, they are taller than average, and good in basketball and fashion modeling. If you take a low birth rate as an indicator for the social and economic development of a population, Liaoning must be the most developed province of China. Its birth rate is even lower than that of Beijing, Shanghai or Tianjin.

Comparing with other people of China, Liaons are said to be more straightforward, open and even adventurous. Their nature can be traced back in history: many people from other provinces immigrated to Liaoning in the 19th Century. They were seeking a new future, just like many Europeans moved to a new world after the discovery of America. When it comes to doing business, Liaons are often considered honest, reliable and down-to-earth. Rather than just maximizing profits, they accept transactions beneficial as a whole without harming either party.

Liaons are quite educated and illiteracy is almost unknown in the province. A growing number of young Liaons speak English, most of them are happy to converse with foreigners. You will also find many members of the older generation who can speak Russian or Japanese. French, German, Spanish and Italian classes have become more popular at universities but are still rare at secondary schools.

The provincial government pays much attention to attracting foreigners to live here, both as business people and experts. More than 13,000 people from all over the world already took residence in Liaoning.

Each year since 2002, the governor personally hands the “Liaoning Friendship Award” to selected foreigners as a symbol of appreciation for their contribution to the development of the province. Thirty experts and business people from the United States, Germany, Japan, France, Russia, the UK and other countries were honored with the Liaoning Friendship Award in 2010, another 22 received the Liaoning Honorary Award from the vice governor.