What are the Province-Level Divisions in China and what is each Province's economic productivity?
Beijing Municipality 北京市
In 2013, the municipality's nominal gross domestic product (GDP) was CN￥1.95 trillion (US$314 billion). It was about 3.43% of the country's total output, and ranked 13th among province-level administrative units.
The city has a post-industrial economy that is dominated by the tertiary sector (services), which generated 76.9% of output, followed by the secondary sector (manufacturing, construction) at 22.2% and the primary sector (agriculture, mining) at 0.8%. The economy, which tripled in size from 2004 to 2012,[3] grew at an annual rate of 7.7% in 2013.[4] Owing to the concentration of state owned enterprises in the national capital, Beijing in 2013 had more Fortune Global 500 Company headquarters than any other city in the world.
Tianjin Municipality 天津市
Tianjin is the primary industrial, commercial and economic center of North China, rivaling Shanghai in the south. Tianjin is also the most populated coastal city in North China.
Tianjin borders Beijing to the northwest, and faces the Bohai Sea in the southeast. It is the largest water transport hub in north China; the Tianjin Port is the main passage for cargo, which is transported from Beijing, northern China and northwest China, to enter the Bohai Sea and further be transported to other regions and countries by sea.
Tianjin is one of the birthplaces for China’s modern industries. The nation’s first watch (Wuxing Watch), first bicycle (Tiemao Bicycle), and first television (Beijing Television) were all produced in Tianjin. Tianjin is currently the most important industrial city in northern China. In 2013, the city’s value added output in the secondary industry reached RMB 727.67 billion, ranking first in northern China.
Hebei Province 河北省
Hebei's economy is largely dominated by iron and steel manufacturing, as consolidation in the steel industry continues, this is likely to increase.
Despite this strong manufacturing base, over 40% of the population works in the agriculture, forestry and animal husbandry sectors, with a large amount of these crops feeding Beijing and Tianjin.
The province plays strategically important role for its giant neighbors, providing an industrial base and transportation hub as well.
Shanxi Province 山西省
Seated in the north of China, Shanxi is an important energy source base in China with abundant reserves of coal, magnesium, bauxite, and fireclay. As a result, the province's economy depends heavily on the mining industry, in particular coal extraction, and is home to the largest group of coal companies in China. Huge reserves of coal have drawn investment into railways, power plants, and coal and chemical related research and products.
Arguably the most polluted province in China, Shanxi is extremely energy inefficient with a very high rate of mining accidents. While the local government wants to strengthen traditional industries, it also wants to reduce dependence on coal. In 2009, it began forcefully shutting down mines half its mines.
Inner Mongolia Autonomous Region 內蒙古自治区
Inner Mongolia, with almost one-third of China’s grassland and about one-fourth of its pasture area, has been traditionally renowned for its livestock. The condition of the livestock industry improved markedly after 1950 through the use of such measures as large-scale wolf hunting to reduce herd predation, the immunization of cattle, and improved pasturage and animal husbandry.
Weather stations were established to forewarn herders of major storms. Sheep are the main livestock raised, and cattle, horses, pigs, and camels are also important.
Liaoning Province 辽宁省
Located in northeast China, Liaoning is an important transportation hub, home to the port city of Dalian. The province's pillar industries include machinery and equipment, smelting and pressing of metals, food processing, and petrochemicals, and the province is an important production base of equipment and machinery manufacturing. Liaoning has almost a quarter of China's iron ore reserves and large deposits of crude oil, particularly in the abundant Liaohe Oilfield.
Jilin Province 吉林省
Located in north eastern China, Jilin province is abundant in natural resources, with one of the top five mineral reserves in China, the country's largest reserves of oil shale, and China's largest base of commercial grain. Additionally, Jilin is famed for a pharmaceutical industry derived from the province’s vast resources of rare Chinese medicines.
While agriculture still counts as one of Jilin's largest industries, since the reforms of the 1980s, an ever-expanding secondary and tertiary sector has driven economic growth. A significant automobile industry as well as important petroleum and chemical industries continue to underpin the economy, and future sights are set on nurturing a high-tech industry centered about photoelectron products. Ongoing reforms to modernize traditional heavy industries, increase the efficiency of state owned enterprises, and develop foreign trade aim to widen the province’s economic achievements.
Heilongjiang Province 黑龙江省
Following the opening of the Daqing oilfield in 1959, Heilongjiang has been a significant source of petroleum for China. Its agricultural sector is heavily defined by the cold climate and the province's famous fertile black earth, allowing it to produce wheat, rice and corn harvests. The province is also an important source of milk, gold, and lumber.
As the Daqing oil fields are depleting and oil production has been dropping every year since 2000, there is a pressing need for a new economic growth engine. At present, many investments are being made in large construction projects, water conservation, and airport expansion within Heilongjiang. Additionally, emerging industries such as equipment manufacturing, energy, petrochemicals, textiles and food processing are being planned.
Shanghai Municipality 上海市
Shanghai has a total area of 6,340.5 sq kilometres, consisting of 18 districts and one county. Total resident population stood at 24.15 million by the end of 2015. Shanghai is one of the 4 autonomous municipalities and historically a commercial and financial center of China.
Located at the heart of the Yangtze River Delta, Shanghai is not only the leading container port in China, but also the busiest container port in the world in 2015 which handled 36.54 million TEUs in 2015, up 3.5% from 2014.
In 2015, 67.8% of Shanghai’s GDP was attributed to services industries. The top 3 largest industries were financial services, retail and wholesale and real estates. Shanghai will focus on the development of financial services, logistics and cultural industries.
Shanghai plays a key role in China’s heavy industries. Baosteel Group, China’s largest steelmaker, and Fosun Group, one of China’s largest private steelmakers, are both located in Shanghai. Auto manufacture is another important industry. Shanghai’s output of motor vehicles reached 2.43 million in 2015, accounting for 10% of the national total. Shanghai is also a leading producer of ethylene, plastics, microcomputers, ICs and mobile phones.
Jiangsu Province 江苏省
Since the late 1970s, Jiangsu province has been an economic hotspot and one of the wealthiest areas in China. Pillar industries include machinery, electronics, chemicals, and automobile. The agricultural sector is based on crops of rice, wheat, peanuts, and cotton. Although the province has some petro-carbon deposits, more significant deposits include rock salt, sulfur, phosphorus, and marble.
The development and wealth of cities like Nanjing, Suzhou, Xuzhou, and Wuxi have defined the province’s success story; however, the province must now address a large wealth gap that divides the province into a poorer north and a richer south.
Looking to surge ahead on its path of growth, the province plans to triple R&D expenditure and double railway coverage by 2015. Additionally, the province will devote more focus to high tech, emerging industries and service industries. The province hopes to have a prosperous solar industry by 2012, with an estimated value of RMB100 billion.
Zhejiang Province 浙江省
The fourth largest economy and the third largest exporter in China, Zhejiang Province leads all provinces in rankings of GDP per capita in both urban and rural areas. As a result of the provincial government's business-friendly policies, this region witnessed the success of thousands of small businesses. Compared to the rest of China, people in Zhejiang are the most entrepreneurial, which has also aided the province in achieving a small urban to rural income gap.
An important maker of electronics and other equipment, Zhejiang's manufacturers had a significant competitive advantage: cheap prices, low labor costs and resource costs and high volumes. However, as other provinces become cheaper, Zhejiang's growth is shrinking and structural reform is needed. Additionally, high incomes and limited investment choices have resulted in high property costs.
Anhui Province 安徽省
Anhui's primary industry accounts for 12.7% of GDP, more than two percentage points higher than the national average, with major crops including rice, wheat and sweet potato. Anhui has a variety of natural resources including large iron deposits in Maanshan, coal from Huainan, and copper mines in Tongling. Compared to neighboring provinces on China's east coast Anhui has not experienced the same rapid economic growth, as a result Anhui's GDP per capita is around one-third of its neighbors Zhejiang and Jiangsu. Hefei, Wuhu, and Maanshan have benefited from there close location to Yangtze river and as results are significantly wealthier than the rest of the province due to their industrial and manufacturing industries.
Anhui's RMB1.72 trillion GDP in 2012 was largely driven by fixed asset investment. The investment-to-GDP ratio of 0.87 was one of the highest in China in 2012. This heavy FAI coupled with Anhui's pool of cheap labor and the establishment of an export processing zone in Hefei which will offer numerous incentives like tax rebates and exemptions for manufacturers to setup shop will likely further drive the growth of Anhui's more industrialized regions.
Fujian Province 福建省
Fujian is located on China's southeastern coast and is the closet point in mainland China to Taiwan. Its area is equivalent to the size of Greece and Fujian has the highest forestry cover in China. In terms of spending power total retail sales for province were roughly equivalent to Shanghai or Beijing.
Fujian has been a major beneficiary of foreign direct investment especially from overseas Fujianese and Taiwanese but now that it is no longer the only point of access to Taiwan it is losing out on investment to Jiangsu and Guangdong. Major industries include petrochemicals, machinery and electronics. Its tourism sector has seen very strong growth and continues to be one of the brighter spots in the Fujian economy.
Jiangxi Province 江西省
Jiangxi is a major producer of rice, freshwater products, timber and bamboo. Rich in minerals, the province's reserves of copper, gold, silver and rare earths top the nation. As such, metal-related mining, smelting and pressing dominate its secondary industry. Jiangxi has the lowest average wage and third lowest property prices in China, allowing the province to lure manufacturing from its neighbors, Guangdong and Zhejiang.
However, as a result of wage and labor, the economy sits at the low-end of the value chain. As Guangdong and Zhejiang draw away skilled labor with higher wages, Jiangxi has been victim to a brain drain and finds itself trapped in a combination of low skill, low value-added, low innovation and low energy efficiency. Thus, without meaningful structural changes, its rich mineral resources may be at risk. The province plans to expand railways and develop new energy projects, including nuclear.
Shandong Province 山东省
Shandong boasts a strong food manufacturing and processes industry, focusing on supplying vegetables and seafood; additionally, the province has a strong excavating and energy industry related to coal and oil. Its high tech industry has been growing quickly and the local government will continue to champion this sector, particularly the development of computers and software related to network communications. The province also benefits from both a large consumer market and notable South Korean investment and tourism directed at Shandong’s peninsula.
Despite Shandong's size and population, th province lacks the economic vitality of its same-size neighbors such as Jiangsu and Guangdong. As well, the province remains very energy inefficient, with the highest fossil fuel consumption in China.
Henan Province 河南省
A leading province in grain, wheat, and oil seed output, Henan is also an important producer of beef, cotton, pork, animal oil, and corn. Reportedly, 90% of Chinese McDonald's and KFC ingredients come from Henan. Built off its strong agricultural base, Henan's food processing industry accounts for more than 14% of secondary industry, making it another one of Henan's leading industries. Although its service sector remains underdeveloped, the province has diversified into additional industries including metallurgy, petrol, cement, chemicals, machinery and electronics.
Henan aims to maintain economic growth by encouraging urbanization in the next 5 years with a focus around the provincial capital, Zhengzhou. With the advantages of cheap labor and low land prices, Henan's prospects appear to be found in its development as a major transportation hub, which may benefit other industries and pave the way for Henan to become a manufacturing hub as well.
Hubei Province 湖北省
Often called the "Land of Fish and Rice", Hubei is an important agricultural province, particularly for rice, rapeseed and freshwater products, while important industries include iron and steel production and automobile production. The province’s economy is built around Wuhan's strong automobile and metallurgy industries and its role as a commerce, transportation and distribution centre; new industries and transportation networks will be centered about the capital. Hubei aims to maintain 10% GDP growth and double its per capita GDP by 2020. As well as maintaining the strength of its pillar industries, the province's 5 year plan looks toward expanding a hi-tech industry.
Some potential problems include the long-term effects of the Three Gorges Dam; while the project provides power and significantly reduces the risk of potential losses from Yangtze River floods, environmental impacts from the project have begun to appear. Additionally, Hubei has yet to show that its large economy can maintain growth without depending on influxes of fixed asset investment.
Hunan Province 湖南省
Found in the south of China, Hunan is traditionally a rice and cotton grower in China but machinery, steel, tobacco and food processing, and electronics are now also major contributors to its economy. The province can also boast of its national influence due to its entertainment programs, specifically Hunan TV.
As manufacturing industries begin moving from coastal provinces like Guangdong and Zhejiang to Hunan, the province will want to take advantage. Hunan is a desirable destination due to its low wages, low real estate costs, and one of the largest populations of migrant workers. For the future, the province is looking to nurturing emerging and hi-tech industries and building infrastructure in China. Machinery, steel making, tea, tobacco and food processing, electronics and new materials are major contributors to its industrial output.
Guangdong Province 广东省
Guangdong is located in mainland China's southeast corner. It has the largest population for any province in China with a population equivalent to the size of Mexico. Guangdong is not only China's largest exporter of goods but also the largest importer as well. Its annual Canton Fair is the largest trade fair in China. Its large private manufacturing base is one of the main engines which have made Guangdong's GDP so dynamic helping the economy become China's least dependent on fixed asset investment which accounted for only 33.8% in 2012 in comparison to a nationwide average of over 70%. Guangdong's GDP grew 8.2% to RMB5.71 trillion in 2012.
Guangdong has also led the way in moving up the manufacturing value chain from light industry production of textiles, toys and shoes to high end manufacturing of things like IT products and power equipment. Even as strong as Guangdong's manufacturing economy is Guangdong's local government expects the service industry to account for over 50% of GDP by 2015 and high tech manufacturing another 20%. It should be noted that there is an over concentration of wealth in the Pearl River delta cities of Guangzhou, Huizhou, Jiangmen, and Shenzhen and there are large swaths of rural Guangdong which remain relatively poor in comparison.
Guangdong is also home to the Shenzhen stock exchange as well as the recently launched Chinext board which is focused on high tech and growth companies. Companies like Suning, Wuliangye and Vanke are all listed in Shenzhen. Along with these exchanges companies like Ping An Insurance, China's 3rd largest insurer and China Merchants Bank are also headquartered in Guangdong and further add to Guangdong's growing presence as a financial hub.
Guangxi Zhuang Autonomous Region 广西壮族自治区
Guangxi Zhuang Autonomous Region is located in southern China next to Guangdong in the east and Vietnam in the south. It is a largely mountainous region with a favorable climate for agriculture. Given its large population of ethnic minorities and beautiful scenery tourism is major industry for Guangxi's economy. Due to its strong agriculture production of sugarcane, fruits and vegetables, Guangxi has also developed a robust food processing industry. To date it has not developed a significant manufacturing base despite its proximity to Guangdong and low wages. One side benefit to its lack of major manufacturing industry is that it is the fourth most energy efficient provincial economy in China.
Guangxi is one of China's key non ferrous metals production centers with large deposits of manganese and tin. Its deposits of manganese and tin both account for roughly 1/3 of China's overall reserves respectively.
The local government has embarked on a major infrastructure upgrades in hopes of bringing more business and industry into the province. In particular the Beibu Gulf Economic Zone has been a major priority for development because of its land and water access to Southeast Asia. China's current five year plan calls for an investment of RMB2.6 trillion in the Beibu Gulf Economic Zone over the next five years as way of boosting the local economy as well as improving trade and ties with Southeast Asia. Growth in exports from this region has helped boost confidence in the economy as a result help boost real estate investment.
Hainan Province 海南省
Hainan's tropical climate makes the province an important source of paddy rice, coconuts, palm oil, tropical fruit, and fisheries. Tourist related services and agriculture are the main economic drivers; secondary industries such as automobile equipment constitute a small portion.
Hainan was home to China's biggest property bust in the 1990s. In 2009, the government announced its plan to develop Hainan into an international tourist destination by 2020. As a result, property sales exploded by 73% to RMB35 billion in 2009, creating the possibility of another property bubble.
Chongqing Municipality 重庆市
Real GDP growth in Chongqing accelerated to 14.9% in 2009 from 14.3% in 2008, as the dip in the municipality's performance in early 2009 gave way to a strong recovery later in the year. The municipality is China's third largest motor vehicle producer and the largest for motorcycles, with an annual output capacity of 1 million automobiles and 8.6 million motorcycles in 2007. This was 30% of the national motorcycle production and made Chongqing the largest automobile maker in the region. Chongqing's nominal GDP in 2009 reached RMB652.8 billion ($95.5 billion), while per capita GDP was RMB22,909 ($3,301) - below the national average. However, massive government support is transforming Chongqing into the region's economic, trade, and financial centre, which will then open up the country's western interior to further development.
Chongqing aims to become a financial centre; a manufacturing base with a focus on notebooks and IT products; a free trade zone ($100 billion by 2015), leveraging its railway access to Europe; and a transport hub leveraging the Yangtze River's waterway capacity and air, rail and road connections. The incorporation of Chongqing as a province-level municipality shows the seriousness the government places on its development.
Sichuan Province 四川省
One of China's major agricultural production bases, Sichuan's major products include rice, wheat, and rapeseed and boasts Western China's largest base for pork production. The province is also a major industrial centre, with industries like coal, energy, iron and steel; its light industries include building materials, wood processing, food and silk processing. Despite having the largest proven reserves of natural gas, a large amount of Sichuan's natural gas production is transported to more developed, eastern provinces, and the province's own power use is in short supply.
As the economy grows, the province must now focus on growth outside of the capital, where cities face inadequate transport infrastructure and an expressway system that does not link many cities to each other. The local government plans on improving transportation linkages in cities in the northeast and south.
Guizhou Province 贵州省
Guizhou, one of China's poorest provinces, relies heavily on agriculture and tourism to prop its economy. Guizhou is China's third largest grower of tobacco and home to Guizhou Tobacco, a well-known consumer brand. A magnet of investments, the province's significant coal reserves and power generation industry allow the export a large amount of produced energy to Guangdong and other provinces.
Poor infrastructure has limited the development of a manufacturing industry and hinders the tourism industry. As the province attempts to alleviate these shortcomings, a high speed rail line from Guiyang to Guangzhou and other projects meant to expand the province's transportation links with neighboring provinces are in the works, with hopes to spur economic growth.
Yunnan Province 云南省
Yunnan province, China's largest cigarette maker located in southwestern China, has depended on tobacco to drive economy growth. Iron and steel production, copper-smelting, and commercial vehicle production are some of Yunnan's main manufacturing industries. Yunnan also has significant zinc, lead, and copper reserves. With the imposition of tougher smoking regulations, Yunnan's tobacco growth in stalling, as is its GDP growth; as a result, there is impetus for the province to find a new economic driver.
Like in many other provinces, there are plans to expand railway and expressway coverage across the province. Additionally, the government has plans to expand transportation linkages along the Mekong River, further developing tourism and opening up the province to its southern neighbours as well as making Yunnan a strategically important point.
Tibet Autonomous Region 西藏自治区
At the westernmost end of China, the Tibet Autonomous Region is the least urbanized area in China, with an economy that depends upon agriculture, financing from the central government, and a lush tourism industry. Economic development in the area is stunted by low population density, high transportation costs, and high exploration costs. While Tibet could potentially be a large producer of natural resources and raw materials, there have been few advances. Focus is on expanding the secondary industry, in particular energy, mining and new building materials.
Shaanxi Province 陕西省
Shaanxi is a major producer of fossil fuels. In 2009, it produced 296 million tons of coal, 27 million ton of crude oil, and 18,950 million cubic meters of natural gas, all ranking third in China. The reserves of these resources are large and yet to be fully explored. The capital, Xian, has a high-tech industrial zone that is supported by several of the best universities and research institutions in western China; the focus is on software development, aerospace technology, new materials and aircraft technology, all of which are among China's new priority industries in the 5-year plan through 2015. Shaanxi also provides nearly 50% of the R&D and equipment manufacturing for China's ambitious commercial aircraft project. Shaanxi's GDP grew 12.3% to RMB1.45 trillion in 2012.
Transforming Shaanxi's high tech advantages into actual production will be the main challenge for the future. Some areas, such as space technology where Shaanxi leads the country, may take longer to commercialize. The Western Triangle is a new economic zone built around three cities, Chongqing, Chengdu and Xian; the recent addition of Xian to the Western Triangle will be a key driver of growth. But, overall, the province needs to find a way to maximize its advantages in high-tech industries.
Gansu Province 甘肃省
Gansu is located on the western edge of central China. It is one of the poorest provinces in China and has one of the harshest climates as well. While its climate is not favorable for attracting companies or individuals to work there; it is an optimal place for solar power stations as well as wind farms and it is rich with mineral resources including antimony, chromium, coal, cobalt, copper, fluorite, gypsum, iridium, iron and lead. As a result Gansu's economy is dominated by mining and energy.
Along with its vast deposits of coal and rare earths Gansu is also home to China's largest nickel deposits located around Jinchang city. Proven reserves of Nickel in Jinchang are in the neighborhood of 5.5 million tones which is 90% of China's nickel reserves and the third largest in the world. Nickel production in Jinchang is exclusively controlled by Jinchuan Group one of Gansu's largest companies.
Qinghai Province 青海省
Ranking second lowest in population, GDP, and property prices and expressway lengths, Qinghai province is largely undeveloped outside of its capital. Nevertheless, the province is rich in natural resources, with an economy based on minerals, hydropower, and agro-husbandry.
The province also plays in important ecological role as the source of major rivers, including the Yangtze River. Oil and natural gas from the Chaidamu Basin have also been an important contributor to the economy. However, only with significant infrastructure with the province will able to fully capitalize on its natural resource. Looking forward, Qinghai plans to focus on solar, wind, and low-carbon energy projects.
Ningxia Hui Autonomous Region 宁夏回族自治区
The Yellow River flows through Ningxia for 397 kilometers. With the irrigation advantages, the agriculture develops well. Therefore there is a famous saying “the Yellow River brings affluence to Ningxia”. The soil on the Yellow River banks is fertile and the overall agricultural production ranks among the highest in the northwest region. Thus it belongs to national level demonstration zone for high output, high efficiency and good quality.
There are now 13 characterized industries with regional competitiveness, especially wolfberry, wine grape, licorice root, melon, fruit, potato, cows and sheep, which have made their influence marked in China.
Ningxia is rich in coal, with considerable quantity, diversified types, good quality and excellent exploitation conditions. The proven coal deposit is 31 billion tons and the prospective reserve is 202.7 billion tons, respectively ranking the sixth and fifth in China, in which the Ning Dong Coal Field has a proven deposit of 27 billion tons and is one of the 13 hundred million ton level ore fields particularly developed.
Ningxia has the characteristics of the southern land of rivers and lakes and also the wonders on the frontiers to the north of the Great Wall. The ancient Yellow River civilization, the mysterious Xixia culture, rich ethnic customs of the Hui group, and majestic desert scenery constitute the diversified tourism resources of Ningxia. Hundreds of kilometers of Qin Great Wall and Ming Great Wall are praised by experts as “the Great Wall Museum” of China.
Xinjiang Uyghur Autonomous Region 新疆维吾尔自治区
Because of the dry climate, most of the cultivated land in Xinjiang depends entirely on irrigation. The various ethnic groups in the region have had rich experience in water conservancy techniques, of which the wells of the qanāt system in the Turfan and Hami depressions are a fine example. Since the 1950s these have been greatly supplemented with canals and reservoirs, and the amount of arable land has almost tripled.
Xinjiang is self-sufficient in food grains. About half of the total crop area produces winter and spring wheat. Corn (maize), another important crop, is grown more in the south than in the north. Rice, kaoliang (a variety of grain sorghum), and millet are also produced in large quantities. Significant crops of long-staple cotton are produced in the Turfan Depression and the greater Tarim Basin, and cotton has become an important cash crop.
Xinjiang is one of China’s main fruit-producing regions; its sweet Hami melons, seedless Turpan grapes, fragrant Korla pears, and crisp Ili apples are well known. Sugar beets support an important sugar-refining industry in northwestern China. Hops and silkworm cocoons are increasingly produced on a large scale for national markets and for export. Livestock raising has been given renewed attention, particularly north of the Tien Shan.
Mineral resources include deposits of coal, iron, zinc, chrome, nickel, and copper, as well as molybdenum and tungsten (used in strengthening steel). Gold is produced from placer and lode deposits on the southern slopes of the Altai Mountains. Xinjiang’s products of national significance include petroleum and natural gas. Since the first oil well was developed at Karamay in 1955, that region has been extensively developed; subsequently, a second region has been exploited, at Dushanzi to the south. The exploitation of both petroleum and natural gas in the Tarim and Hami basins (the Tu-Ha Oil Field) also has expanded significantly since the late 1980s, with major fields being developed in both basins. West-east pipelines were built to transport natural gas from Xinjiang to cities on China’s east coast.
Xinjiang’s heavy industry includes iron and steel works and a cement factory at Ürümqi and a farm-tool plant at Kashgar. Petrochemical plants have been established at Karamay, Dushanzi, Ürümqi, Korla (in the northeastern Tarim Basin), and Zepu (at the western edge of the basin). Thermal power generation is also important for the region. Industries processing agricultural and animal products have been established near the sources of raw materials and include several textile mills and beet sugar mills.
Hong Kong Special Administrative Region 香港特别行政区
With a central location in east Asia and with a rapidly growing Mainland China as its hinterland, the Hong Kong Special Administrative Region is an international business, trade and financial hub. Building on its traditional free market economic policy, Hong Kong has developed into a modern, vibrant and cosmopolitan services economy, underpinning the role of the city as a global business platform.
As one of the world's leading international financial centres, Hong Kong's service-oriented economy is characterized by its low taxation, almost free port trade and well established international financial market. Its currency, called the Hong Kong dollar, is legally issued by three major international commercial banks, and pegged to the US Dollar. Interest rates are determined by the individual banks in Hong Kong to ensure it is fully market-driven. There is no officially recognised central banking system, although Hong Kong Monetary Authority functions as a financial regulatory authority. When destabilising factors are hitting the financial market of Hong Kong, they will be monitored and inspected by the Hong Kong Monetary Authority, the financial regulatory agency in Hong Kong.
According to Index of Economic Freedom, Hong Kong has had the highest degree of economic freedom in the world since the inception of the Index in 1995. Its economy is governed under positive non-interventionism, and is highly dependent on international trade and finance. In 2009, Hong Kong's real economic growth fell by 2.8% as a result of the global financial turmoil.
Hong Kong's economic strengths include a sound banking system, virtually no public debt, a strong legal system, ample foreign exchange reserves, rigorous anti-corruption measures and close ties with the mainland China. Despite the downturn, these strengths enable it to quickly respond to changing circumstances.[24] It has the most efficient and a corruption-free application procedure, the lowest income tax, the lowest corporate tax as well as an abundant and sustainable government finance.
Macau Special Administrative Region 澳门特别行政区
The economy of Macau has remained one of the most open in the world since its handover to China in 1999. Apparel exports and gambling-related tourism are mainstays of the economy. Since Macau has little arable land and few natural resources, it depends on mainland China for most of its food, fresh water, and energy imports. Japan and Hong Kong are the main suppliers of raw materials and capital goods.
Although Macau was hit hard by the 1997–98 Asian financial crisis and the global downturn in 2001, its economy grew approximately 13.1% annually on average between 2001 and 2006.[4] Macau is a full Member of the World Trade Organization. Public Security has greatly improved after handover to People's Republic of China.
With the tax revenue from the profitable gambling industry, the Macau government is able to introduce the social welfare program of 15 years of free education to all Macau citizens. In 2015, Macau's economy saw a sharp decrease (-26.4% year-on-year in Q2 2015) due to the reduced spending by visitors from Mainland China.
Taiwan Province 台湾省
Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges.
Free trade agreements have proliferated in East Asia over the past several years, and following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand, Taipei's first-ever with a country with which it does not maintain diplomatic relations, and in November inked a trade pact with Singapore.
Negotiations continue on follow-on components of ECFA regarding trade in goods and a dispute resolution mechanism; a trade in services agreement is under review in the legislature. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012.
The island runs a large overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's sixth largest, behind China, Japan, Saudi Arabia, Russia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island, and has also secured greater market access for its investors in the mainland. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.
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