Hebei Province

Hebei province, which surrounds the capital city of Beijing and adjoins Tianjian Municipality in the east, is an important part of the Beijing-Tianjin-Hebei Collaborative Development strategy and the Bohai Rim Economic Circle.

Hebei covers an area of 188,800 square kilometers, with its topography sloping from the northwestern Taihang Mountains and Inner Mongolian Plateau to the southeastern North China Plain and coastal region. It's home to a large variety of landscapes and the sole province having sea coast, plains, lakes, hills, mountains and plateaus.

It has a temperate continental monsoon climate with four distinct seasons. The average temperature in July, the hottest month, is between 18 °C and 27 °C; and that in January, the coldest season, is below 3 °C.

The total permanent population in Hebei in 2017 was 79.29 million.

It also enjoys a large variety of natural resources, including fresh water, biological diversity, wetlands, minerals and geothermal resources.

Economic Overview

Hebei province is an important industrial base in China, and is a front-runner in economic growth in the country. In recent years, under the impetus of three major national strategies—the  Beijing-Tianjin-Hebei Collaborative Development Strategy, the Beijing-Tianjin-Hebei Urban Agglomeration Strategy and the Hebei Coastal Economic Belt Strategy, Hebei is enjoying continuously improving opportunities for economic growth.

In the year 2017, Hebei's GDP reached 3596.40 billion yuan ($523.49 billion), an increase of 6.7 percent over the previous year. The added value in the primary industry was 350.79 billion yuan, increased by 3.9 percent; that in the secondary industry was 1741.65 billion yuan, increased by 3.4 percent; that in the tertiary industry was 1,503.96 billion yuan, increased by 11.3 percent.

The total value of imports and exports reached 337.58 billion yuan, with 9.7 percent annual growth. The total value of exports was 212.62 billion yuan, an increase of 5.5 percent; the total value of imports was 124.96 billion yuan, an increase of 17.5 percent.

The actual use of foreign capital exceeded $8.94 billion, an increase of 9.7 percent over the previous year. The foreign direct investment was $8.49 billion, increased by 15.4 percent. There were 194 newly established foreign-invested enterprises (projects), up by 19.8 percent.

The fixed assets investment reached 3340.68 billion yuan, an increase of 5.2 percent over the previous year.

Pillar Industries

Hebei has cultivated 10 pillar industries, including equipment manufacturing, steel and iron, pharmaceutical, information technology, modern logistics, petrochemical, building materials, food processing, textile and tourism industry.

Equipment manufacturing

Hebei's equipment manufacturing industry covers more than 8,000 kinds of products in seven categories, including the manufacturing of transportation equipment, specialty equipment, metal products, electrical machinery, general equipment, instrumentation and office machinery.

In 2017, the equipment manufacturing industry contributed nearly 90 percent to Hebei's industrial production growth, consolidating its leading role in the industrial economy and becoming the primary force supporting industrial growth.

Iron and steel industry

Hebei has a full industrial chain in operation, including mining, sintering, iron making, steel making, steel rolling, coking and other sectors.

Hebei’s iron and steel industry continues to grow by improving its organizational structure, advanced technology, well-equipped and efficient environmental protection and excellent quality.

Pharmaceutical industry

Hebei is well known for producing both traditional and western medicines, and has a good reputation in raw materials and herbal processing. Its production of 7-ACA, oxytetracycline, penicillin and other chemicals ranks first in the world.

The output of streptomycin, vitamin B12 and anhydrous glucose ranks first in the country while production of more than 10 kinds of preparations such as penicillin powder for injection, amoxicillin, lincomycin, cefazolin, cephradine and cephalexin ranks highest in the nation.

Information technology industry

The information technology industry in Hebei has increased at a rapid pace in recent years. It has become a competitive industry covering big data, solar photovoltaic, communication and navigation equipment, semiconductor lighting, flat panel displays and application electronics.

A relatively centralized industrial layout has been formed integrating Shijiazhuang, Baoding, Langfang, Tangshan, and Qinhuangdao, attracting a group of companies from the top 500 enterprises to open branches.

Petrochemical industry

A relatively complete industrial system has been established that includes petrochemicals, marine chemicals, coal chemicals, basic chemical raw materials, agriculture, fine chemicals, biochemical engineering, polymer materials, rubber and plastic products and chemical machinery. A large number of products enjoy high reputation at home and abroad.

Modern logistics industry

Logistics is an emerging industry in Hebei that benefits from its convenient location and major logistics hubs of Shijiazhuang, Tangshan, Langfang, Handan and Zhangjiakou and other major logistics and distribution facilities. The province’s ports, railways and roads are contributing to the development of a modern logistics system that relies on domestic demand, interacts with Beijing and Tianjin, serves the whole country and connects to the outside world.

Advantages

Because of its location in the North China Plain, Hebei province has been designated by the Chinese government as the heartland of Bohai Rim Economic Circle. Surrounded by Tianjin and the capital Beijing, Hebei enjoys strong economic connections and has formed the Beijing-Tianjin-Hebei metropolitan area. This advantageous geographical location makes Hebei uniquely attractive to foreign investment.

Under the guidance of the Beijing-Tianjin-Hebei Collaborative Development Strategy and the Xiongan New Area plan, Hebei now stands at a new starting point. The development of Hebei has become a part of the country's strategic development, which is a golden opportunity for Hebei, as well as a great chance for foreign investors.

Hebei has issued a number of supporting policies to attract foreign investment. In the year 2017, Hebei provincial government issued the "Opinions on Implementing the State Council's Measures to Expand Foreign Opening and Active Use of Foreign Capital", which focuses on five aspects, including encouraging foreign investment in key areas, reducing the costs of foreign invested enterprises, creating a fair market environment for competition, building a platform for foreign cooperation and ensuring the implementation of foreign investment policies.

Hebei encourages foreign investors and enterprises to set up regional headquarters and functional institutions. For multinational corporations that set up regional headquarters, financial centers, procurement centers and other functional institutions in Hebei, it will provide subsidies for their office, business facilities and start-up cost. Meanwhile, special funds will be awarded to major foreign-funded projects.

Rich natural resources add to Hebei's appeal to foreign investment. It has a large amount of mineral resources. There are three major oil fields including Huabei, Dagang and Jidong. It also has abundant coal resources. Hebei has made full use of its resources and actively introduced foreign investment in large enterprises and large projects to form key industrial chains and industrial circles in the province.