INFOCUS | CHINA | PROVINCE PROFILE
Z
hejiang was the old name of the Qiantang River, which passes through Hangzhou, the provincial capital. This province has the largest number of islands in China. Zhejiang features 70.4% of mountainous regions and hills, 23.2% of plains and basins and 6.4% of rivers and lakes. Picturesque Zhejiang is covered with beautiful mountains and lakes. The province is one of the smallest and most densely populated provinces of China. Hangzhou and Ningbo are the two sub-provincial cities of the Zhejiang province.
Booming business in the ODQG RI ÀVK ULFH Zhejiang
Natural Resources Zhejiang has been traditionally known as “Land of Fish and Rice”. The northern partof the province excels in fish farming. Zhoushan fishery is the largest fishery in the country. Zhejiang is also a major contributor in the development of China’s marine economy. Rice is the main crop. Main cash crops include jute and cotton, and the province also leads in tea production. Tea, mulberries, oranges and tangerines are famous local products of the province. The region is ranked fourth in China for its water resources. Large parts of the land are covered with Capital: Hangzhou Climate: Subtropical monsoon climate Provincial Tree: Camphor tree Provincial Flower: Orchid GDP: US$ 558.16 billion GDP growth rate year on year: 11.8 %(2010) Total foreign trade: US $ 312.2 billion (up 0.9% over 2011); Exports: US$ 224.57 billion (up by 3.8%) and Imports: US$ 87.7 billion (down by 5.8%) FDI: Actual US$ 15.18 billion (Contracted US$22.33 billion) Per capita GDP: US$ 10,200 Population (2011): 54 million with 11.8 million migrant population. Prominent sectors: Rice, tea, silk and orange. Zhejiang, home of famous Longjing tea, accounts for 10% of China's total tea planting area, contributes 20% of national output, 30% of tea production value and accounts for about 60 % of the nation's tea export.
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Zhejiang
forests. The province is also rich in non-metallic minerals. Its reserves of stone coal, alunite, pyrophyllite, and tuff rank as the first in China and the reserves of fluorite rank the second. Tourism is also a flourishing industry due to its history and attractive scenery.
Energy Resources Zhejiang is one of the provinces in China that use various energy resources such as water power, thermal, wind and tidal power. A number of large scale thermal power plants and medium sized hydropower stations have beenbuilt in Zhejiang and theyhelp it to produce enough amount of energy. Zhejiang has entered the stage of modernized electric power industry characterized mostly by “big units, large power plants, great grids, super high voltage and high automation”, it is stated.
Infrastructure Being a developed province Zhejiang boasts of good infrastructure. It has seven airports operating over September 2013 India-China Chronicle |53|
INFOCUS | CHINA | PROVINCE PROFILE
160 domestic and international air routes. Hangzhou Xiaoshan International Airport in Zhejiang ranks No. 8 in China. The roadways have been constantly improved with new highways. The province boasts of six highways and 66 provincial arterial highways. Hangzhou-Jiangxi and Hangzhou-Ningbo are the main railway lines in the Zhejiang province. A good water transport facility is the highlight of the province that boasts of five major airports. Ningbo can handle freighters of up to 300,000 dwt in size. Aoshan Harbour in Zhoushan can handle up to 250,000 dwt of oil transfer berths, giving it the ability to accommodate oil transshipment from supertankers.
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Economy The total GDP of the province grew by 8.3% to RMB 726.15 billion in the first quarter of 2013, according to the Zhejiang Statistics Bureau. The value-added output in the primary industry rose by 2.6% to RMB 25.83 billion. Y-o-Y and the secondary sector grew by 8.6% to RMB 355.66 billion. RMB 344.67 billion was generated by the tertiary sector in 2013, and the province’s foreign trade climbed by 5.8% Y-o-Y to US$73.87 billion.
Majorr Sectorss Other, 5.07%
Se ervice Se ector, 43 3.13%
Industriaal Sector,, 51.80% %
Advantages of Investing in Zhejiang Zhejiang being one of the developed provinces in Eastern China provides advantageous resources, making it an attractive destination for investors. The province has a great open market system with orderly competition, great market distribution system and a multilevel security system. It has helped the province to gain first mover advantage among the other provinces. Located at the East coast of China, the province is well connected through rivers and seas. Yangtze River Delta, which is most vigorous and promising area in China’s economy, proves to be a major reason for growth and
Source: Indian Consulate Shanghai
development of Zhejiang. It is wellconnected to other parts of China, especially southern China, and has direct connectivity with the economic capital of China, Shanghai. Zhejiang industry clusters have attracted people from all over China. One of the unique aspects of it is that it has diversified industrial clusters with mostly small and medium scale enterprises. It has strong manufacturing industry, with advantage on labor intensive industries such as textile, leather, garment, chemical fiber and
Zhejiang University
machinery and has become one of the strongest manufacturing provinces of China. Several times it has been ranked as the firstin terms of total economic value, total sales volume, total retail sales of consumer goods and foreign exchange earned through total exports. Zhejiang environmental support system ranks third in the country and is next to Tibet and Hanan. A good environmental support makes the province an ideal place for farming and one of the best places to live in. Being the origin of eight water systems the water quality of most of the rivers either meets the Grade III of the environmental quality standard for surface water or is even better. Zhejiang Province is one of the provinces which have the largest number of forest parks in the nation.
India-Zhejiang Trade Relations According to the Consulate General of India in Shanghai, the value of bilateral trade with Zhejiang province in 2012 was US $8.318 billion, which was down by 9.76% over the corresponding figures of 2011. Of these Indian exports accounted for US $1.84 billion, a decrease of about 16% as compared to 2011 figures. Exports from Zhejiang stood at US$ 6.477 billion, which was again a decrease of 5.96%. The principal items of import from Zhejiang to India comprise textiles, textile machinery, a variety |54| India-China Chronicle September 2013
THE BEAUTIFUL MOUNTAINS, LAKES AND NATIONAL PARKS OF THE PROVINCE ATTRACT TOURISTS FROM ALL OVER THE WORLD. ATTRACTED BY BEAUTY OR BUSINESS, INDIANS HAVE THRONGED ZHEJIANG. THE NUMBER OF INDIANS IN HANGZHOU HAS GROWN TO ABOUT 200 INCLUDING 100 STUDENTS AT THE ZHEJIANG UNIVERSITY. IN NEARBY SHAOXING, THERE ARE 1500 INDIANS, MAINLY IN THE TEXTILE BUSINESS. YIWU ALSO HAS APPROXIMATELY 500 INDIAN NATIONALS. of fabrics, steel and pharmaceutical products among others. Exports from India to Zhejiang include iron ore, cotton, plastics, cotton yarn, copper materials, refined oil, leather and dyes. According to the Consulate, the total accumulated contracted investments by Indian companies in Zhejiang in 2010 stood at US$ 193 million, while accumulated actual investment was US$ 84.25 million. Infosys has software development centers in Hangzhou and IT training center in Jiaxing. Sundram Fasteners has set up a wholly owned manufacturing
0DQ\ ,QGLDQ FRPSDQLHV KDYH VHW XS PDQXIDFWXULQJ XQLWV LQ =KHMLDQJ 7$7$ &RQVXOWDQF\ 6HUYLFHV 7&6 LV SUHVHQW ZLWK HPSOR\HHV unit in Haiyan County of Jiaxing. Thermax and ElgiEquipments (India) have manufacturing units in Jiaxing. TATA Tea has acquired a manufacturing unit in the Anji county of Huzhou. CRISIL Irevna has a consultancy in Hangzhou whereas Ace Micromatic is coming up with a machine manufacturing unit in Jiaxing. Several companies from Zhejiang are also present in India and doing business with a large cross section of Indian companies in various sectors. The sectors range from power generation, to pharmaceuticals, chemicals, textiles and cellular technology including others. Hangzhou Steam Turbine Co.(HTC),has entered into a 10year agreement with Greenesol Power System, Bangalore, and Zhuji Hengnuo Electromechanic Manufacturing has formed a joint-venture with Krishna Hengnuo Sewing Machine, Surat. Zhejiang Topsun Group has formed a joint venture with Amit International Ltd, Mumbai to manufacture in the iron ore segment.
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