Zhejiang

Zhejiang

Zhejiang Province

Zhejiang at a glance in 2016

  • GDP : US$ 700 billion
  • GDP growth rate : 7.5 %
  • Total foreign trade (2015): US $ 355.1 billion (up 5.8%); Exports: US$ 273.4 billion (up by 2.3%) and Imports: US$ 81.7 billion (down by 6%)
  • FDI (2015) – Actual US$ 14.16 billion (Contracted US$22.33 billion)
  • Per capita GDP: US$ 12,523
  • Capital: Hangzhou
  • Share of Industrial sector in total economy (2015) – 37.1 % (5.8% investment in factory)
  • Share of Service sector in total economy – 62.9%
  • Per capita disposable income: RMB 38529 (growth of 8.4%)
  • Population: 54.89 mn

Zhejiang Province has traditionally been the bastion of entrepreneurship and a major textile base in China. Zhejiang with an area of 101,800 square kilometers, borders Fujian on the south, Jiangxi and Anhui on the west, Shanghai and Jiangsu on the north and East China Sea on the east. Zhejiang is located in the southern part of the Yangtze River Delta. With an extensive 6,486 kilometers long coastline and numerous bays, Zhejiang has 60 natural ports. Hills and mountains account for 70.4 percent of the total area of the province. The number of islands in Zhejiang amounts to 3,061, which is the largest number in China. Zhejiang is derived from the old name of Qiantang River called “Zhe” river.

Traditionally known as the "Land of Fish and Rice", this province is nowadays famous for its ‘Zhejiang Model of Development’, where small businesses have grown to mass produce low cost goods that meet the needs of large international and domestic markets. Its capital Hangzhou, has been continuously ranked by Forbes for the last five years as the best city in China to do business. The province is also famous for its booming one industry towns (Wenzhou-shoes, Datang-socks, Qiaotou-buttons, Diankou- hand tools/hardware, Yiwu- world’s largest sales hub for small consumables). It has 2 cities of vice-provincial government level namely Hangzhou and Ningbo, 9 cities of regional level namely Wenzhou, Huzhou, Jiaxing, Shaoxing, Jinhua, Quzhou, Zhoushan, Taizhou and Lishui, 36 counties, 22 cities of county level, 32 urban districts subordinated to different cities, 837 towns, 562 villages and 212 residential districts.

Zhejiang’s economic growth is both due to FDI and due to a large and vibrant domestic industry – small/medium businesses producing goods for domestic consumption and export. Large private sector conglomerates are also based in Zhejiang like Alibaba and Wahaha group. The Ningbo port is the 4th largest in China. Manufacturing forms a pillar industry – textiles, electro-mechanical industries; chemicals, food and construction materials. The focus now also on developing higher end-manufacturing, IT and bio-technology and medical industry;

In recent years, the following were the salient features of Zhejiang economy: (i) overall the economy growth remained stable (ii) the growth of industries in primary, secondary & tertiary sectors as well as agricultural production remained basically stable (iii) consumption continued to rise (iv) there was steady growth in Service sector (v) there was rapid growth of investment in fixed assets (vi) consumer demand grew steadily. (vii) Exports witnessed rapid growth, higher than the national export growth. Zhejiang’s 7.5% growth in 2016 is higher than the National average of China. In 2016 Zhejiang’s industrial sector profit was 3.8 trillion Yuan with a growth of 16.3%. The province showed increased growth in new products: New energy vehicles by 19.9 times the growth last year and smart TV by 29.1% and fiber by 28.5%. More than 3000 industrial robots were produced in 2016.

The service sector growth of Zhejiang is 62.9% and Hangzhou alone accounted for 676.8 Billion Yuan around 61.2% of GDP. Fixed Asst investment in Zhejiang increased 10.9%. The province has made significant progress in environmental protection, health, information sector, tourism, fashion, finance, high-end equipment manufacturing. The information economy core industry grew by 12% and tourism industry by 10.6%.

Prominent sectors - traditional products such as rice, tea, silk and orange. Zhejiang, home of famous Longjing tea, accounts for 10% of China's total tea planting area, contributes 20% of national output, 30% of tea production value and takes up to 60 % of the nation's tea export.

Apart from textiles, Zhejiang’s pillar industries include air-separation equipment, steam turbines, boilers, auto, motorcycle and auto components, electric tools and cables, petrochemical industry, fine chemical industry, traditional Chinese and modern pharmaceuticals, medical instrument and pharmaceutical machinery.

Leadership of the Zhejiang Provincial People’s Government

1. Party Secretary – Mr. Che Jun

2. Governor –Mr. Yuan Jiajun

3. Chairman of People’s Political Consultative Conference – Mdm. Qiao Chuanxiu

India- Zhejiang Political Relations:

In September 2016, Prime Minister Shri Narendra Modi visited Hangzhou, capital of Zhejiang to attend the G20 summit. On the sidelines of the summit, Prime Minister held bilateral talks with President Xi, Australian PM, British PM and Argentinean President. Xia Baolong, Party Secretary visited India in November 2014 with a 100 member Business delegation from Zhejiang from agriculture, automobile & auto components, banking & finance, construction & building materials, environment, food & beverages, healthcare/cosmetics, industrial products, IT, infrastructure & real estate, leather, logistics, machinery, manufacturing, pharmaceutical. He visited Ahmadabad and agreements estimated at $2.5 billion were concluded between Indian and Chinese companies during the visit. The delegation also met Finance Minister Arun Jaitley. He participated in the closing ceremony of Zhejiang Intangible Cultural heritage exhibition in New Delhi. He met chairman of CII on 26th November 2014. He also met Minister of State for Foreign Affairs and Minister of Commerce and Industry.

India - Zhejiang Economic and Trade Relations:

Bilateral trade with Zhejiang province in 2015 was US $10.51 billion, up by 9.7% over the corresponding figures of 2014. Of this Indian exports accounted for US $0.86 billion, a decrease of about 13.6% as compared to 2014 figures. Exports from Zhejiang stood at US$ 9.65 billion an increase of 12.3%. The main items of export from Zhejiang to India were textile yarns and products, steel and plastic products; the main items of import from India to Zhejiang were textile yarns and products, Xylene and the primary shape plastic and etc.

Many prominent companies from Zhejiang are present in India and doing business with a large cross section of Indian companies in various sectors such as power generation, systems, air separation plants, pharmaceuticals, chemicals, textiles and cellular technology. This includes Hangzhou Steam Turbine Co.(HTC), Hangzhou Qianjiang River Electric Group Co. Ltd. (QRE), Hangzhou Boiler Group Ltd., Zhuji Hengnuo Electromechanic Manufacturing Co. Ltd., Zhejiang Topsun Group Co. Ltd., Hangzhou Hangyang Co. Ltd., Sinochem Ningbo Ltd., Sinopec Zhenhai Refining and Chemical Company , Ningbo Bird, Zhejiang New Jack Sewing Machine Co. Ltd., Zhejiang Yankon Group Co Ltd., Jushi Group Co. Ltd., Supcon, Longsheng Group Co. Ltd, Hangzhou Chunfeng Industry Co., Hangzhou Hangyang Co. Ltd, Zhejiang Hang Xiao Steel Structure Co. Ltd etc.

Chinese e-commerce giant Alibaba Group Holding Ltd. and its financial affiliate have jointly invested about $575 million in India’s One 97 communications Ltd’s online-payment and marketplace businesses in 2015. It has invested once again at the end of 2015 to buy 20% stake in Paytm, a company that grew out of One97. Alibaba plans to invest a total of 1 trillion by 2020. The company is looking to enter the Indian market in the logistics company specializing in deliveries. Apart from this in 2015, there are 74 companies from Zhejiang that have invested in India with an investment of 189 million USD, of which the Chinese investment was 115 million USD. The investment mainly focuses on the wholesale, general equipment manufacturing and specialized equipment manufacturing.

The major projects include: Ningbo Jide Electric Co., Ltd set up Indian Nobe Model Co., Ltd with the total investment of 55 million USD, providing metal products. Zhejiang Wanfeng Motor Co., Ltd set up Indian Wanfeng Aluminum Wheel Co., Ltd with the total investment of 52.677 million USD with a focus on wholesale industry. Zhejiang LONSENSTEEL Corporation set up Lonsensteel KIRI Chemical Co., Ltd with 30.87 million USD, with a focus on the chemical fiber industry.

By the end of December 2015, there are 214 companies set up and invested by India and the contracted foreign investment was 252 million USD and the FDI was 130 million USD. The investment mainly focus on the whole sales of textile and fashion manufacture, textile products, knitwear and raw materials, metal instrument processing manufacture and daily necessities.

The major projects include (1) Sundram Fasteners (Zhejiang) with the total investment 29.98 million USD, providing fasteners, spring coil manufacturing. (2) Jiaxing Xingyinjie Stainless Product Co.,Ltd with the investment of 29.8 million USD, providing metal manufacturing. (3) Jinzhou Newled Electronic Co., Ltd invested by GEORGE BIJOY, with investment 29.8 million USD, providing electric and electronic manufacturing.

Zhejiang and India’s participation in Shanghai World Expo 2010

Zhejiang was uniquely associated with India’s participation in Shanghai World Expo 2010.The bamboo for construction of the central dome of Indian pavilion was procured and processed at Xin Li Yuan Bamboo Products Company in Anji County in Huzhou city of Zhejiang. With a diameter of 37 meters, the central dome of India Pavilion which depicted the Sanchi Stupa, was the largest free standing dome made of bamboo in the world.

India week was celebrated at two cities in Zhejiang (Wenzhou and Huzhou). Province of Zhejiang has been a key business partner for India in the Eastern China region, and also because of the considerable interest shown by the business community, Business symposium was held in these two cities. Along with the Business symposium, Indian cultural performance, screening of Indian movies and Indian food festival was also organised. Apart from these, Zhejiang has been very actively participating in International Day of Yoga. Over 1000 participants took part in International Day of Yoga organised in Wenzhou.  IDY was also successfully organised in Shaoxing, Ningbo, Yiwu, Taizhou and Zhenjiang in Zhejiang province.

Indian community in Zhejiang

The province has a sizeable Indian community of around 4000. The number of Indians in Hangzhou has grown now to about 200 including 100 students at Zhejiang University. In nearby Shaoxing, there are 1800 Indians, mainly in the textile business. They have organized themselves into the Shaoxing Indian Business Association (SIBA) which organizes regular business meetings and cultural activities for the Indian community. Yiwu also has approximately 2000 Indian nationals.

Places to see in Zhejiang

The beautiful mountains, rivers and historic sites of Zhejiang have attracted tourists from all over the world. With the beautiful West Lake of Hangzhou as a central attraction, tourists can visit places of rich Buddhist heritage in Zhejiang such as The Lingyin Temple and Leifeng Pagoda in Hangzhou; the Ayuwang Temple (The temple of Ashoka) and holy Putuo Mountain in Ningbo etc. The historic sites including the old Great Wall of Taizhou and Beijing-Hangzhou Grand Canal built in 6th Century AD are worth seeing. The landscape of Zhejiang is dotted with many picturesque places such as West Lake region, Thousand Island Lake in Chunan, the Small Three Gorges of Jiande, The tidal waves of Qianjiang River in Haining, the bamboo park of Anji etc.

Lingyin temple
Shenxianju Resort, Xianju
Putuo Mountain, Zhoushan

Updated on February 2017

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