Economy of Dalian

Last updated

The economy of Dalian plays an important part in Northeast China and Northeast Asia.

Contents

The city has had a continuous double-digit increase in GDP since 1992. [1] In 2009, the city's GDP registered a 15 percent increase, reaching RMB441.77 billion, while per capita GDP hit RMB71,833. According to a nationwide appraisal by the National Bureau of Statistics, Dalian ranks eighth among Chinese cities in terms of overall strength. [1] The city's main industries include machine manufacturing, petrochemicals and oil refining, and electronics. [2]

The city is also striving to build up an IT and software center. Finance and other service industries are growing as well. As of 2006, 21 foreign-funded banks and financial institutions have set up branches or agencies in the city. Dalian's Xinghai Convention and Exhibition Center has hosted over 300 events, including the Dalian Import and Export Commodities Fair and Dalian International Garment Fair. [1]

Agriculture and aquaculture

Dalian was originally an agriculture and aquaculture-based area, which, after the opening of the ferry between Yantai and Lüshun during the early 20th century, began to be populated by the farmers and fishermen of Shandong, across the Yellow Sea. Corn, vegetables, fruit such as apples, cherries and pears are Dalian's typical agricultural products. Aquaculture is well developed in Dalian, exporting seaweed, scallops, sea urchins and others to Japan, Korea and other countries. [ citation needed ]

Heavy, light and distribution industries

Even before and during the Sino-Japanese War, the shipbuilding and locomotives industries were a thriving industry, such as the companies which later became Dalian Shipbuilding Co. and Dalian Locomotive & Rolling Stock Works (DLoco). After the War, Dalian became an important center of the heavy and light industries, including companies such as Dalian Heavy Industry Co., Dalian Chemical Group, and Wafangdian Bearing Co.; and of the distribution industry, including such as Dashang Group. Overseas retailing giants, such as Wal-Mart from the US., Carrefour from France and Metro from Germany have recently opened stores in Dalian.

Dalian Port is emerging as a very important port for international trade. A new harbor for oil tankers, at the terminus of an oil pipeline from the Daqing oilfields, was completed in 1976. Dalian is the 6th largest port in China. [3]

Accordingly, Dalian is a major center for oil refineries, diesel engineering, and chemical production. Also completed recently is a newer port on Dagushan Peninsula on the northern suburbs, specializing in import/export of mining and oil products. Together with its Dalian Railroad Station, Dalian International Airport and two major express roads to Shenyang (Shenda Expressway)-Changchun (Changda Expressway)-Harbin (Hada Expressway) in the north and to Dandong to the east, Dalian has become an important distribution center. [4]

Industrial zones

Dalian has been given many benefits by the PRC government, including the title of "open-city" (1984), which allows it to receive considerable foreign investment (see Special Economic Zone). The Development Zone was established in Jinzhou District, to which many Japanese manufacturing companies, such as Canon, Mitsubishi Electric, Nidec, Sanyo Electric and Toshiba, followed by Korean, American and European companies (such as Pfizer). In March 2007, Intel announced plans to build a semiconductor fabrication facility (commonly known as a fab) in the Development Zone, Dalian. It is Intel's first fab to be built at an entirely new site in over 15 years. The fab at Dalian will make the chip sets that support Intel's microprocessors and is expected to begin operation in the first half of 2010. (Source: The Wall Street Journal; 26 March 2007; Page B6)

Other zones in the city include the Dalian Economic and Technological Development Zone, Dalian Export Processing Zone, Dalian Free Trade Zone, and Dalian Hi-Tech Industrial Development Zone.

Dalian Economic & Technological Development Zone was established in September 1984, as one of the first of the China National Economic and Technological Development Zones. The zone had a GDP of 70.31 billion yuan in 2007 and the total volume of import and export trade is 14.92 billion dollars, which accounts for a quarter of the whole Liaoning Province's. Most of the enterprises in Dalian ETDZ are factories foreign enterprises, especially from Japan, South Korea and USA, such as Canon, Pfizer, Toshiba and Intel. [5]

Dalian Export Processing Zone

Dalian Export Processing Zone was approved to be set up by State Council in April 2000, with a planned area of 2.95 km2. It is divided into two parts, A zone and B zone. A zone has a construction area of 1.5 km2, and started operation in May 2001. All the basic infrastructure are available, which include road, water, gas, and power supply, telecommunication and so on. In A zone, it encourages several leading industries, such as home appliances, light industry, machinery, construction materials, medicine instruments. [6]

Dalian Free Trade Zone was approved to be set up by government in May 1992. Investors can enjoy preferential policies, including duty-free. Inside the zone, all the infrastructures are available. The trade zone enjoys strategic location and convenient traffic. It has formed some leading industries, such as electronics, machinery and plastics. [7]

Dalian Hi-Tech Industrial Development Zone was approved to be a national-level development zone in 1991. It has a total area of 35.6 square kilometers. Inside the zone, all the infrastructure are available. It focuses and encourages the following industries: electronic information, bio-pharmacy, and new materials. [8]

Financial industry

Dalian is the financial center of Northeast China. There are the Dalian branches of China's five major banks: Bank of China, Industrial & Commercial Bank of China, China Construction Bank, Bank of Communications, and Agricultural Bank of China. Dalian Commercial Bank is now called Dalian Bank, which among other things handles processing of the Dalian Mingzhu IC Card for public transportation.

Dalian Commodity Exchange is the only one of its kind in China, expanding the futures market beyond soybeans.

IT industry

Since the 1990s, Dalian City has emphasized the development of the IT industry, especially in Dalian Hi-Tech Zone and Dalian Software Park in the western suburbs near Dalian University of Technology. Not only Chinese IT companies, such as DHC, Hisoft and Neusoft Group, but also American, European, Indian and Japanese IT companies are located there. [ citation needed ] Currently, the "Lushun South Road Software Industry Belt" Plan is proceeding, including Dalian Software Park Phase 2.

Dalian has recently become an important center for information technology offshoring and business process outsourcing, similar to Bangalore in India [ citation needed ]; the city was described in "The World Is Flat" by Thomas Friedman (2007). In another way, Dalian is the forerunner of China's "Re-Development of the Old Industry Bases in Northeast" National Project, which began in 2002.

Intel's Fab 68 is located in Dalian. The plan was announced on 26 March 2007, and operations started on 26 October 2010. It is Intel's first chip-manufacturing fabrication in East Asia. [9]

Effects of economic growth

Whilst economic growth has brought increased wealth to the city, there have been some notable environmental impacts. Most notably Chinese's worst oil spill in recorded history that occurred in 2010.

Related Research Articles

<span class="mw-page-title-main">Shandong</span> Province of China

Shandong is a coastal province of the People's Republic of China and is part of the East China region.

<span class="mw-page-title-main">Liaoning</span> Province of China

Liaoning is a coastal province in Northeast China that is the smallest, southernmost, and most populous province in the region. With its capital at Shenyang, it is located on the northern shore of the Yellow Sea, and is the northernmost coastal province of the People's Republic of China.

<span class="mw-page-title-main">Shaanxi</span> Province in China

Shaanxi is a landlocked province of China. Officially part of Northwest China, it borders the province-level divisions of Shanxi, Henan (E), Hubei (SE), Chongqing (S), Sichuan (SW), Gansu (W), Ningxia (NW) and Inner Mongolia (N).

<span class="mw-page-title-main">Jilin</span> Province in Northeast China

Jilin is one of the three provinces of Northeast China. Its capital and largest city is Changchun. Jilin borders North Korea and Russia to the east, Heilongjiang to the north, Liaoning to the south, and Inner Mongolia to the west. Along with the rest of Northeast China, Jilin underwent an early period of industrialization. However, Jilin's economy, characterized by heavy industry, has been facing economic difficulties with privatization. This prompted the central government to undertake a campaign called "Revitalize the Northeast". The region contains large deposits of oil shale.

<span class="mw-page-title-main">Heilongjiang</span> Province of China

Heilongjiang is a province in northeast China. It is the northernmost and easternmost province of the country and contains China's northernmost point and easternmost point.

<span class="mw-page-title-main">Dalian</span> City in Liaoning, China

Dalian is a major sub-provincial port city in Liaoning province, People's Republic of China, and is Liaoning's second largest city and the third-most populous city of Northeast China. Located on the southern tip of the Liaodong peninsula, it is the southernmost city in both Liaoning and the entire Northeast. Dalian borders the prefectural cities of Yingkou and Anshan to the north and Dandong to the northeast, and also shares maritime boundaries with Qinhuangdao and Huludao across the Liaodong Bay to west and northwest, Yantai and Weihai on the Shandong peninsula across the Bohai Strait to the south, and North Korea across the Korea Bay to the east.

<span class="mw-page-title-main">Nanchang</span> Prefecture-level city in and capital of Jiangxi, Peoples Republic of China

Nanchang is the capital of Jiangxi Province, People's Republic of China. Located in the north-central part of the province and in the hinterland of Poyang Lake Plain, it is bounded on the west by the Jiuling Mountains, and on the east by Poyang Lake. Because of its strategic location connecting the prosperous East and South China, it has become a major railway hub in Southern China in recent decades.

<span class="mw-page-title-main">Nantong</span> Prefecture-level city in Jiangsu, Peoples Republic of China

Nantong is a prefecture-level city in southeastern Jiangsu province, China. Located on the northern bank of the Yangtze River, near the river mouth. Nantong is a vital river port bordering Yancheng to the north; Taizhou to the west; Suzhou, Wuxi and Shanghai to the south across the river; and the East China Sea to the east. Its population was 7,726,635 as of the 2020 census, 3,766,534 of whom lived in the built-up area made up of three urban districts.

In justifying opening up and the series of economic reforms that ensued in China, Deng Xiaoping referred to Karl Marx and his theories, which predicted that nations need to undergo urbanization and a stage of capitalism for a natural socialist transition. One of the most renowned reforms under Deng was establishing four "special economic zones" along the Southeastern coast of China, with Shenzhen, Shantou, and Zhuhai located in Guangdong province and Xiamen located in Fujian province. Special economic zones (SEZs) in mainland China are granted more free market-oriented economic policies and flexible governmental measures by the government of China, compared to the planned economy elsewhere.

<span class="mw-page-title-main">Changzhou</span> Prefecture-level city in Jiangsu, Peoples Republic of China

Changzhou is a prefecture-level city in southern Jiangsu, China. It was previously known as Yanling, Lanling, and Jinling. Located on the southern bank of the Yangtze River, Changzhou borders the provincial capital of Nanjing to the west, Zhenjiang to the northwest, Wuxi to the east, and the province of Zhejiang to the south. Changzhou is located in the highly developed Yangtze Delta region of China extending from Shanghai going northwest. The population of the Changzhou Municipality was 5,278,121 at the 2020 census. The city is the birthplace of Zhou Youguang who created the pinyin romanization system.

<span class="mw-page-title-main">Economy of Chennai</span>

Chennai, the capital city of the state of Tamil Nadu, India, is the largest industrial and commercial center of South India. Recent estimates of the economy of the Chennai is around US$78.6-86 billion PPP GDP. The GCC area doesn't include the nearby industrial zones of Oragadam, Siruseri, Sriperumbudur, etc. After the expansion of Chennai's metropolitan Area by Government of Tamil Nadu in 2022, the economy of Chennai Metropolitan is estimated to be around $200 billion.

<span class="mw-page-title-main">Dalian Software Park</span> Industrial zone in China

Dalian Software Park, also called DLSP, is an industrial zone, created in 1998 in the western suburbs of Dalian City, Liaoning Province, China, where many of the world's large and medium-sized IT-related companies have set up shop to do software development and information services. It is part of Dalian Hi-tech Zone in the broader sense. While American and European companies typically have gone to Bangalore and other cities in India because of the English language capability, Japanese companies have gone to Dalian and other cities in China due to the Japanese language capability.

<span class="mw-page-title-main">Dalian Development Area</span>

Dalian Development Area is located in Jinzhou District, Dalian, Liaoning province, China as the first Economic and Technological Development Zones nationwide in 1984.

The National Economic and Technological Development Zones are the special areas of the People's Republic of China where foreign direct investment is encouraged. They are usually called the "Economic and Technological Development Zones" or simply the "Development Zones".

<span class="mw-page-title-main">Economy of Guangdong</span>

The economy of Guangdong is one of the most prosperous in China. Guangdong is located in southern China, bordering on Fujian Province to the east, Hunan Province to the north, Guangxi Autonomous Region to the west and the special administrative regions of Hong Kong and Macau to the south. It is also the largest economy of a sub-national entity in terms of GDP in all of Asia and 3rd largest sub-national entity in the world.

<span class="mw-page-title-main">Liangjiang New Area</span> State-level new area in Chongqing, Peoples Republic of China

Liangjiang New Area is a state-level new area established in 2010 located within the City of Chongqing, China. The area covers 1,205 square kilometres combining part of Jiangbei District, Yubei District, and Beibei District.

The Liaoning Coastal Economic Belt is a group of prefectures in Liaoning province in Northeast China. The region was defined for the purpose of a national economic development strategy of China, aiming to strengthen the region as access point of Northeast China to the sea and a vital economic gateway to Northeast Asia and other regions in the world. Specifically, the six port cities with Dalian as the center are to be built as an international shipping center for northeast Asia. Infrastructure conditions including navigation capacity and logistics systems will be particularly improved for better service.

<span class="mw-page-title-main">Dalian Hi-tech Zone</span> Industrial district in Dalian, China

Dalian Hi-tech Zone or DHZ is an industrial district in the western suburbs of Dalian, Liaoning, China. It extends about 30 kilometres along Lüshun South Road and Guoshui Highway in Shahekou District and Lüshunkou District, where many of the world's multinational technology companies have operations.

<span class="mw-page-title-main">Economy of Chongqing</span>

The economy of Chongqing, China, has developed rapidly since it was separated from the Sichuan and became a centrally-administered municipality in 1997. In 2019, it was the sixth-largest Chinese city economy and ranked as China's third-largest municipal economy. In China's overall layout, Chongqing is also important for connecting China's underdeveloped western region with its more advanced eastern region, as well as promoting the economy of the mid-lower reaches of Yangtze river and the central western region.

References

  1. 1 2 3 China Briefing Media (2006). "Dalian". Business Guide to Beijing and North-East China. China Briefing Media. pp. 199–200.
  2. Haft, Jeremy (2007). All the Tea in China: How to Buy, Sell, and Make Money on the Mainland . Penguin. p.  76. [Dalian's] Key industries include food processing, machinery, IT, electronics, garments, petrochemicals, household goods, textiles, locomotives, shipbuilding, pharmaceuticals, chemicals, and petroleum refining.
  3. - Saturday (25 May 2010). "Dalian port ideally placed on the cusp of prosperity - The National". Thenational.ae. Retrieved 8 October 2011.
  4. Eltschinger, Cyrill (2007). Source Code China: The New Global Hub of IT Outsourcing . John Wiley and Sons. p.  118.
  5. RightSite.asia | Dalian Economic & Technological Development Zone
  6. RightSite.asia | Dalian Export Processing Zone
  7. RightSite.asia | Dalian Free Trade Zone
  8. RightSite.asia | Dalian Hi-Tech Industrial Development Zone
  9. Nystedt, Dan (25 October 2010). "Intel opens first chip manufacturing plant in China". IDG . Retrieved 2 September 2011.