China Western Economic Development Report (2006) - Western Blue Book (with CD-ROM)

Author: Wei Wei
Publisher:
Publish Date: 2006-08-01
Features:
(II) Industrial economy maintains rapid growth
In 2005, the industrial added value of large-scale industrial enterprises in western China reached 3,343.05 billion yuan. Industrial economies in all provinces, regions, and cities in western China maintained rapid growth, although the growth rate declined compared to 2004, it still remained at a high level above 14%. Among them, in November alone, the added value reached 94.5 billion yuan, a year-on-year increase of 33.2%. The industrial added value of Inner Mongolia increased by 30.3% year-on-year, ranking first in both China and western China.
(III) Fixed asset investment shows a sustained rapid growth trend
The growth of fixed asset investment is a key driver of economic growth in western China. In response to the relatively weak infrastructure and other aspects in western China, the state has increased its support for key construction funds in western China, driving the growth of fixed asset investment across the entire western region. In 2005, the total fixed asset investment across the region reached 1,789.944 billion yuan, with an estimated growth rate higher than the 26.6% level of the previous year. Among them, in November, 177.6 billion yuan was completed, a year-on-year increase of as high as 39.5%. Throughout the year, fixed asset investment in Inner Mongolia increased by 48.4%, with the growth rate ranking first in China. From the perspective of the three industrial sectors, in 2005, the total investment in the primary industry in the region grew slightly year-on-year; the investment in the secondary industry grew rapidly, with industrial investment being particularly significant. The strong growth in industrial investment not only drove the rapid growth of the industrial economy but also enhanced the future momentum of industrial development. The investment in the tertiary industry also grew rapidly, with increased emphasis on the construction of social development projects such as education, culture, health, and sanitation.
(IV) Rapid growth in fiscal revenue
The cumulative local fiscal revenue reached 250.292 billion yuan. The annual growth rate of fiscal revenue in most provinces, regions, and cities exceeded 20%, with the growth rate of the entire western region expected to surpass the 21% level of 2004. Inner Mongolia, with the fastest growth, saw its local fiscal revenue increase by 39.4% year-on-year, ranking first in China (see Table 1).
(V) Slowing growth in foreign economic cooperation
In 2005, the level of foreign economic cooperation in western China declined significantly. The total import and export trade volume reached 45.42 billion U.S. dollars, with exports of 25.727 billion U.S. dollars and imports of 19.653 billion U.S. dollars. The growth rate was generally lower than that of 2004 and also lower than the national growth rate. The region achieved a trade surplus of 6.074 billion U.S. dollars, an increase compared to the same period of the previous year. Although some provinces and regions saw rapid growth in import and export volume, such as Gansu and Xinjiang, which grew by 49.36% and 40.9% year-on-year, respectively, ranking first and second in China (see Table 2). However, from the overall perspective of foreign investment utilization in western China, the level in 2005 did not meet the level of 2004 (see Table 2). P4