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Invest in Liaoning

Updated: Mar 22, 2019 govt.chinadaily.com.cn Print

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Overview

Liaoning province, which is called “Liao” for short, is the southernmost of the three provinces among of Northeast China. It is contiguous with Jilin province in the northeast, neighbors the Inner Mongolia Autonomous Region in the northwest, borders Hebei province in the southwest, faces the Democratic People's Republic of Korea (DPRK) across the Yalu River and is close to the Yellow Sea and the Bohai Sea to the south.

Liaoning covers a land area of 145,900 square kilometers, 1.5 percent of the total land area of China. The province has a peninsula extending into the Bohai Sea giving it an extensive coastline of 2,178 kilometers (12 percent of China's total).

It has jurisdiction over 14 prefecture-level cities, with Shenyang as its capital.

The province is deeply influenced by the temperate continental monsoon climate with long cold periods, strong winds on the plains, concentration of rainfall and sufficient sunshine. Annual average temperatures range from -11 °C to 7 °C, with the highest reaching 30°C and the lowest -30°C. As the province with the most rainfall in the northeast region, Liaoning reports year-round precipitation of 600 to 1000 mm.

In 2017, Liaoning’s population stood at 43.69 million. Urban residents amounted to 29.49 million, or 67.49 percent of the permanent population.

Liaoning has the largest provincial economy in Northeast China. It registered a GDP of 2.39 trillion yuan ($348 billion) in 2017, an increase of 4.2 percent over the previous year.

Added value in primary industry reached 218.21 billion yuan, up 3.6 percent. Secondary and tertiary industry generated 939.78 billion yuan and 1,236.21 billion yuan, rising 5 percent and 4.3 percent respectively. Per capita GDP soared to 54,745 yuan, a growth of 4.3 percent.

Retail sales of consumer goods totaled 1.38 trillion yuan, an increase of 2.9 percent, and sales in the urban area was 1.24 trillion yuan, a year-on-year growth of 2.5 percent.

Imports and exports in 2017 valued at 673.74 billion yuan, an increase of 17.9 percent. Export volume reached 404.14 billion yuan, up 7.1 percent; imports generated 369.57 billion yuan, a growth of 28.6 percent.

The province also saw foreign direct investment of $5.34 billion, with $30 million in primary industry, $3.09 billion in secondary industry and $2.22 billion in tertiary industry.

Pillar industries

Facing great opportunities in vitalization, Liaoning has prioritized an open economy and is playing an active role in the construction of the Belt and Road Initiative. Pillar industries like equipment manufacturing, agricultural product processing and metallurgy have added impetus to the province.

Equipment manufacturing industry

As an important equipment manufacturing base in China, Liaoning occupies a prominent position in high-end equipment manufacturing sectors like robots and intelligent equipment, numerical control machines, aviation and aerospace equipment and major complete equipment. It also leads the country in the technologies of many sub-sectors including marine equipment and rail transit.

In the first nine months of 2017, added value in the equipment manufacturing industry was responsible for 31.8 percent of the total of the province, up 2.6 percent over the same period of the previous year. The high-end equipment manufacturing sector contributed 18 percent to the total, up 0.8 percent. Targeting a base for major and advanced equipment with international competitiveness, the provincial authority will make great efforts to promote a more intelligent high-end equipment manufacturing industry.

Agricultural product processing industry

Liaoning has long been a major grain producer and a base for featured agricultural products. Recent years have seen the rapid growth of its agricultural products industry. By the end of 2016, the province had registered 2379 agricultural product processing enterprises above designated size, realizing an industrial output of 310.6 billion yuan. Revenue in the industry reached 330.8 billion yuan, with a profit volume of 14.5 billion yuan. A total of 390,000 people were engaged in the industry, bringing much vigor and vitality to its growth.

The provincial government has attached great importance to this industry and rolled out a series of policies to accelerate major programs, industrial clusters and leading enterprises. Revenue in Liaoning’s agricultural product processing industrial clusters is projected to reach 118.5 billion yuan by 2020 with a growth rate of 8.8 percent.

Metallurgical industry

Liaoning is blessed with abundant mineral reserves and its metallurgical industry is one of its major driving forces supporting economic growth. In 2017, added value in metallurgical industry accounted for 14.2 percent of the total value, up 5.9 percent over the previous year. The province has made great strides in the upgrading and transformation of the sector and measures have been taken to cut excess capacity, improve utilization of the facilities, bolster innovation and accelerate energy conservation.

Advantages

Liaoning is one of the pioneers in today’s opening-up policy among the coastal provinces in the country. With advantages in location, resources and business climate, it has enormous market potential and is seeking a brighter prospect in overseas investment.

First, Liaoning enjoys an advantageous geographical location. As the only province boasting both land and sea borderlines in Northeast China, it offers great chances to accelerate the open economy. Liaoning is a traffic hub on the way from the northeast region to the south of the Shanhaiguan Pass. It is also an important gateway connecting the northeast region and Inner Mongolia with the world and a junction of the Economic Corridor through China, Mongolia and Russia under the Belt and Road Initiative. Making good use of its strategic geographical situation, Liaoning has broad space for attracting overseas investment.

Second, extensive natural resources are a further foundation for Liaoning’s growth. By the end of 2016, the province reported a total of 4.09 million hectares of arable land, 27.65 percent of its total land area. Forest land area reached 6.34 million hectares. It also abounds with mineral resources. More than one hundred types of minerals have been discovered in the province, including 36 crucial to the national economy. Its deposits of boron, iron and diamonds rank first in the country, and its petroleum deposits rank fourth.

Third, an ideal business climate makes Liaoning a popular destination for oversea investment. Benefiting from reform and innovation initiatives, major cities in the province have emerged as favored business hubs. According to the World Bank’s Doing Business Report 2017, the business index of Shenyang ranked 78th in 2017 with 73.86 points. To build a better business environment, the provincial government has stipulated specific rules and regulations to press ahead with a fairer market, more efficient application procedures and a more reasonable supervision system.

Responsible Departments

1. Department of Commerce of Liaoning Province

Contact:

Tel: 024-86893858

Fax: 024-86892814

2. Shenyang Municipal Bureau of Foreign Trade & Economic Cooperation/Invest Shenyang

Contact:

Tel: 86-24-22722005 86-24-22722006

Fax: 86-24-22724745 86-24-22724746

Address: No 35 Qingnian Avenue, Shenhe District, Shenyang, Liaoning

3. Dalian Municipal Bureau of Commerce

Contact: