The Australia-China Chamber of Commerce and Industry of New South Wales

HEBEI PROVINCE（河北省）

Hebei Province is shown in black.

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General Profile:

Population: 66,100,000

Provincial Capital: Shijiazhuang, which became the provincial capital when Tianjin became a municipality that is equal to a province in 1952.

Average temperatures: -14 deg C to -2 deg C in January; 20 deg C to 27 deg C in July.

Physical features: High elevations are in the north, northwest and west; low elevations are in the southeast. The province surrounds the municipalies of Beijing and Tianjin, except for the portion of the latter along the coast, and extends to the Bohai Gulf. The total land area of the province is 190,000 square kilometres.

Rivers: The Hai River and its main tributary, which is the Luan River, is in the northeast.

Administrative divisions: 18 cities, 127 counties and 4 autonomous counties.

Historical significance: Hebei has a number of historical sites such as the Chengde Summer Resort（承德避暑山莊）, the Shanhaiguan Pass of the Great Wall（山海關）, the Beidaihe（北戴河）Summer Resort, the Eastern Tombs and Western Tombs of the Qing Dynasty.

Natural Resources:

Hebei is also a major producer of iron and steel. In 1999, Hebei's output of iron and steel ranked the first and third in the country. Besides, the province has rich reserves of marble, potassium sand shale, natural oilstone, titanium, dolomite and vermiculite.

Economic Profile:

	1999		2000
Economic Indicators	Value	Growth	Value	Growth
		(% p.a.)		(% p.a.)
Gross domestic product (RMB bn)	456.9	7.5 *	507.6	9.5 *
Per capita GDP	6,913	6.8	N/A	N/A
Disposable income per capita
- urban (RMB)	5,365	5.4	5,661	5.5
- rural (RMB)	2441.5	1.5	2478.9	1.5
Fixed asset investment (RMB bn)	101.8	10.9	104.8	2.9
Value added by sector
- primary (RMB bn)	80.6	2.0	82.5	2.3
- secondary (RMB bn)	223.3	7.6	255.1	14.2
- tertiary (RMB bn)	151.9	10.6	170.0	11.9
Retail sales (RMB bn)	145.9	9.5	161.4	10.6
Inflation (CPI, %)	-2.2		-0.3
Exports (US$ bn)	2.7	1.9	3.3	22.2
- by FIEs (US$ bn)	0.8	11.1	1.0	25
Imports (US$ bn)	1.9	14.7	2.2	15.8
- by FIEs (US$ bn)	0.7	8.2	0.6	-14.3
Foreign direct investment
- number of projects	520	-25.3	492	-5.4
- contracted amount (US$ bn)	0.9	-29.8	1.2	33.3
- utilised amount (US$ bn)	1.0	-27.1	0.7	-42.6

Notes: *In real terms
Sources: Heibei Economic Yearbook and State Statistical Bureau

Infrastructure:

Water Transport － Qinhuangdao is the fifth largest port in terms of cargo handling tonnage in China and the port's throughput was 82.6 million tons in 1999. Qinhuangdao is also a hub for the transportation of coal from northern to southern China. The port provides shipping services to many countries and regions including Japan, the Philippines, Singapore, Hong Kong and Korea. The Jingtang port（京唐港）, with a handling capacity of around 6.6 million tons, is planned to expand into a deep-water port with a view to provide convenient access to sea for the nearby regions.

Railways － Major railways in Hebei include the Jingjin railway（京津鐵路）line, Beijing-Guangzhou, Beijing-Shenyang, Beijing-Shanghai and Beijing-Baotao lines. Beijing-Kowloon railway（京九鐵路）connects the province closely with Hong Kong and Macau.

The major section of the Shuozhou-Huanghua Railway is in operation. The Shuozhou-Huanghua Railway, linking Shenchi county in Shanxi with Huanghua port in Hebei, will be the second largest railway for coal transportation from west to east in China. Besides, construction of an electrified railway from Qinhuangdao to Shenyang of Liaoning is in progress and the new Qinhuangdao-Shenyang railway is scheduled for completion in 2003.

Highways － Major highways in the province include the Jing-Shi (Beijing-Shijiazhuang), Jing-Jin-Tang (Beijing-Tianjin-Tanggu), Shi-Tai (Shijiazhuang-Taiyuan) and Tang-Jin (Tangshan-Tianjin) expressways. Besides, a section of an expressway from Baoding to Shanhaiguan, linking Beijing and Shenyang has been opened.

Air Transport － There are 3 airports in Hebei including Shijiazhuang Airport, Qinhuangdao Airport and Xingtai Airport（刑台機場）, providing domestic and international flight services.

Telecommunications － Mobile phone services are available in major cities such as Shijiazhuang, Baoding, Handan, Xingtai, Hengyong, etc. and there were 720,000 mobile phone users in the province in 1999.

Agriculture:

Hebei is a major agricultural base in China. In 1999, its agricultural output and livestock production were the fourth and second highest respectively in the country. The province's output of fruit and milk also ranked the second in China, reaching 6.4 million and 0.8 million tons respectively in the year.

Agricultural products include: corn, sorghum, millet, wheat, potatoes, rice, soybeans, peanuts, rape seed, sesame, mushrooms, cotton, ambary hemp, silk, tobacco, chestnuts, apricots, grapes, walnuts, dates, persimmons and pears.

Industry:

In 1999, Hebei's industrial output totalled Rmb298.6 billion (+7.9%). Pillar industries in Hebei included chemical, machinery, electronics, metallurgy and building materials. Industries such as sanitary porcelain and plane glass were significant in the country and major industrial products included cotton, yarn, cement, steel and iron. The North China Pharmaceutical Plant, located in Shijiazhuang, is the major antibiotic producer in China with its output of penicillin ranking highest in the world.

In coming years, Hebei will actively attract foreign funds and introduce advanced technology in all production sectors. The province aims to upgrade the overall productivity and product quality of its industrial enterprises and raise market competitiveness. Meanwhile, Hebei also targets to boost the tertiary sector such as finance, banking, information services and tourism.

Consumers’ Market:

Retail sales of consumer goods in the province rose by 9.5% to Rmb145.9 billion in 1999. The Jing-Jin-Ji Economic Ring, with a consumer group of more than 100 million people, is one of the largest consumer markets in China. Major retail centres are located in Shijiazhuang, Tangshan and Baoding.

Major department stores and shopping centres in Hebei include Shijiazhuang Beiguo Commercial City（石家莊北國商城）, Shijiazhuang Renmin Department Store（石家莊人民商場）, Shijiazhuang Dongfeng City Plaza（石家莊東方城市廣場）, Tangshan Department Store（唐山百貨大樓）, Qinhuangdao Hualian Commercial City（秦皇島華聯商城）and Baoding Department Store（保定百貨大樓）.

Key Cities in Hebei:

After expansion of the designated coastal open economic zones to include counties since 1985, the following cities in Hebei were opened to foreign investors and enjoy preferential economic policies:

Qinhuangdao（秦皇島）, Tangshan（唐山）, Cangzhou city（滄州市）, Changli（昌黎）, Funing（撫寧）, Lulong（盧龍）, Fengnan（豐南）, Luannan（南灤）, Leting（樂亭）, Tanghai（唐海）, Luanxian（灤縣）, Haixing（海興）, Huanghua（黃驊）, Changxian（滄縣）, Qingxian（青縣）.

The cities with which the Chamber is establishing regular contact include:

Western cities:

Ø Shijiazhuang

Ø Baoding

Ø Handan

Eastern (coastal) cities:

Ø Tangshan

Ø Canzhou

Ø Qinhuangdao

Ø Jingmen

Shijiazhuang 石家莊:

1999 data:

Population	GDP	Industrial Output	Retail Sales
('000)	(Rmb bn)	(Rmb bn)	(Rmb bn)
8,754 (+0.9%)	90.8 (+7.3%)	68.9 (12.2%)	29.7 (+10.8%)

Shijiazhuang, the capital of Hebei, is a commercial, transport, and industrial centre situated about 300 km southwest of Beijing. Its industries produce textiles, chemicals, processed food, fertilizer, machinery, and agricultural equipment. Coal is mined nearby.

Founded before the 3rd century BC, Shijiazhuang was a small settlement dominated by nearby Zhengding until it was developed as a railway centre in 1905. Modern industrialisation, begun in the 1930s, accelerated with the construction of modern textile and chemical plants in the 1950s and 1960s.

Shijiazhuang New- and Hi-Tech Development Zone（石家莊高新技術產業開發區）

Approved by the State Council as a state-level new hi-tech development zone. Industries in the zone include electronic information, biochemical, new materials such as glass fiber reinforced plastic. The zone also encourages investment in the fields of telecommunications, microelectronics, bio-chemicals and new materials, industrial projects with high added value.

Baoding 保定:

1999 data:

Population	GDP	Industrial Output	Retail Sales
('000)	(Rmb bn)	(Rmb bn)	(Rmb bn)
10,501 (+0.7%)	63.7 (+7.2%)	28.2 (11.9%)	20.7 +9.5%)

Baoding lies on the main road and rail connection between Beijing and Shijiazhuang.

Baoding New- and Hi-Tech Development Zone（保定高新技術產業開發區）

Approved by State Council in 1992. Major investments were engaged in the fields of infrastructure, electric automation equipment, fine chemicals, electronic information products, machinery and electrical integration, biochemical, precision meters and instruments.

Handan 邯鄲:

1999 data:

Population	GDP	Industrial Output	Retail Sales
('000)	(Rmb bn)	(Rmb bn)	(Rmb bn)
8,210 (+0.7%)	49.7 (+6.4%)	28.0 (6.9%)	15.5 +10.7%)

Handan is situated directly south of Shijiazhuang and is a major transport and industrial centre for the southwestern part of the province with links into Henan Province. Iron ore and coal, both mined nearby, support a small iron and steel works. Other goods manufactured here include textiles, chemicals, cement, and machinery.

Tangshan 唐山:

1999 data:

Population	GDP	Industrial Output	Retail Sales
('000)	(Rmb bn)	(Rmb bn)	(Rmb bn)
6,941 (+0.6%)	83.1 (+6.7%)	52.4 (11.0%)	20.7 (7.8%)

Tangshan is a major industrial city situated in the Kailuan coalfield near Beijing. It was a small village until the 1880s when the coal deposits were exploited. The mines were modernised after 1953 and the city grew rapidly.

The coal is used to generate electricity to support a number of heavy industries including steel, machinery, motor vehicles and cement.

Cangzhou 滄州:

1999 data:

Population	GDP	Industrial Output	Retail Sales
('000)	(Rmb bn)	(Rmb bn)	(Rmb bn)
6,591 (+0.8%)	42.3 (+5.0%)	20.2 (6.9%)	11.1 +9.9%)

Cangzhou is about 100 km south of Tianjin, on the main road and rail link with Shandong Province. It is also long the Grand Canal.

Qinhuangdao
秦皇島:

1999 data:

Population	GDP	Industrial Output	Retail Sales
('000)	(Rmb bn)	(Rmb bn)	(Rmb bn)
2,644 (+0.6%)	26.3 (+5.6%)	14.9 (2.1%)	7.0 -20%%)

Qinhuangdao became a major port when the pipeline from the Daqing Olfield was extended to the wharves. It lies to the north of Beidaihe, which is a well-known seaside resort, used mainly during the hot summer months.

Qinhuangdao Economic and Technical Development Zone（秦皇島經濟技術開發區）

A state-level ETDZ has been established since 1984. By end-March 2000, the zone approved 1,732 projects and 389 were foreign-invested with contractual foreign investment of US$1.3 billion. Major foreign investment came from Germany, the US, the UK, Japan, Taiwan, Hong Kong, Thailand and Republic of Korea. The zone aims to boost such industries including chemicals, pharmaceuticals, metallurgical, machinery, electronics, textiles, fine chemicals and building materials.

Information Sources:

Information contained in this page was obtained from:

Hebei Sub-Council of the China Council for the Promotion of International Trade (CCPIT)

Hong Kong Trade Development Council (http://www.hktdc.com).

Additional Information:

We are in the process of maintaining regular contact with organisations in the cities listed. Please contact us if you require additional information about Hebei Province or any of the cities listed.

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