Nanjing is the provincial capital of Jiangsu Province and one of the largest cities in the Yangtze River Delta region. Nanjing is one of the four ancient capitals in Chinese dynastical history; notably, it was the national capital during the Republic of China period under Dr. Sun Yat Sen. With an intense history and cultural heritage as its backdrop, modern-day Nanjing is an economically competitive city with developed manufacturing and services industries. Its key industries include household electronics, automobiles, petrochemicals, information technologies etc.
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Primary industry (percentage of GDP): RMB 18,510 million (2.6 percent)
Secondary industry (percentage of GDP): RMB 317,080 million (44.0 percent)
Tertiary industry (percentage of GDP): RMB 384,570 million (53.4 percent)
Total: RMB 720,160 million
Total retail sales of consumer goods: RMB 310,381,990 million
Total value of imports and exports: USD 55,234,720 million
Fixed investment: RMB 468,345,000 million
Source: China 2013 Statistical Yearbook (uses 2012 statistics)
Minimum monthly wage: RMB 1,480
Minimum hourly wage: RMB 13
Avg. annual wage of staff and workers: RMB 60,404
Sources: Local Labor Bureau and Social Insurance Bureau (2013)
Nanjing is regarded as the transportation hub of eastern China. Its position at the intersection between two major development belts – the north/south coastal megalopolis and the east/west Yangtze River basin – has enabled it to build an extensive infrastructure based upon public transport.
Nanjing is regionally connected by over 60 state and provincial highways. Express highways link Nanjing with key cities such as Shanghai, Hefei, and Hangzhou. With four long-distance bus stations, the bus network provides more than 170 routes covering all parts of the city and suburban areas.
The city is an important hub for railways linking north, east, and central China. With 3 major trunk lines meeting in the city, Nanjing is one of the busiest and most vital railway hubs in China. Nanjing is currently developing its metro to accommodate its growing population. Construction began in 2000 and the first lines - Maiqiao-Xiaohang and Xiaohang-Olympic Stadium – were completed in 2005. The second line from Youfangqiao Station to Jingtianlu Station was completed in 2010. Lines 3 and 4 are currently under construction. Line 1 is 21.72 kilometers long with 13 stations while line 2 stretches 40.8 kilometers and has 26 stations. Line 3 will be 40.19 kilometers long and will have 28 stations while Line 4 will be 33.75 kilometers long when completed in 2015.
Nanjing Lukou International Airport serves both national and international flights along 120 routes to more than 60 cities and regions. The airport handled 13,074,097 passengers in 2012, and ranked as the 13th busiest airport in China. It is directly connected to the city center by a 29-kilometer highway. The airport also links to numerous inter-city highways. This makes it very accessible to passengers from the surrounding cities.
Ports & Waterways
The Port of Nanjing is one of the largest inland ports in China with a container throughput of 1,492,600 TEUs in 2011, an increase of 41 percent over 2010. The Port of Nanjing is the largest center for trade in petrochemicals, coal, and container shipping along the Yangtze River. It remains one of the biggest container ports along the Yangtze.
Once a primary hub for culture and politics in the early 20th century, Nanjing came into the new millennium with a larger focus on economic development.
Nanjing has enjoyed tremendous growth in the last few years as labor rates and the general costs of manufacturing have become competitive advantages. In 2012, the city’s GDP reached RMB 720.157 billion. Primary industry accounts for only 2.8 percent of the total, while secondary industry accounted for 44.9 percent, and tertiary for 52.4 percent.
The rapid increase in Shanghai’s manufacturing costs has been a catalyst for Nanjing’s growth. This has led to the government improving the infrastructure, housing, and services within the city, making it far more attractive than other second-tier cities.
The city’s major industries are electronics, automotives, pharmaceuticals, petrochemicals, iron and steel, and power. Nanjing has grown at a pace of over 15 percent for the last five years. The city is known for being an OEM manufacturing base that is able to source products regionally. Service industries like banking and finance are also becoming increasingly important.
Nanjing is China’s largest inland oil transshipment center with a handling capacity of 42 million tons and storage capacity of 2.22 million cubic meters.
Due in large part to its proximity to Shanghai, Nanjing enjoys the attention of many foreign companies looking to set up manufacturing businesses. Foreign investment zones have been improved and expanded; a logistic park has been built, establishing Nanjing as one of the top provincial capitals on the east coast.
Despite big efforts to expand, Nanjing is still falling behind other neighboring cities such as Wuxi, Suzhou, and Hangzhou. In addition, the traditional state-owned enterprises are unable to compete with the more efficient multinational firms. As a result Nanjing-based state owned enterprises often incur heavy debts, become bankrupt, or are forced into privatization. These issues have negatively affected the employment rate.
Nanjing is still a developing city in terms of infrastructure, but the city has several long-established development zones.
Nanjing Port is 348 kilometers away from Shanghai and is one of China’s top 25 major seaports. The Category One port is 98 kilometers in length and has 64 berths. It can accommodate ships of up to 50.000 dwt and has water depths of up to 13 meters. Freight is shipped to 188 ports in 78 countries and regions through more than 10 international routes.
Nanjing Economic and Technical Development Zone
The NETDZ, established in 1988, is located in the northeast suburbs of Nanjing, five kilometers from the city center. It is close to the Xinshengyu Foreign Trade Harbor, one of China’s largest inland-river harbors, and the second Yangtze River Bridge in Nanjing. It accommodates six pillar industries including electronic information, bio-pharmacy, light-industrial machinery, refined chemical industry, new materials, and modern logistics and storage. These industries make up more than 90 percent of the total economic output of the zone, and constitute the first category of encouraged industries. The second and third categories are export processing and IT. The zone houses more than 400 foreign invested enterprises with a total investment exceeding USD 8 billion. Within the first 9 months of 2011, NETDZ realized a GDP growth of 25.49 percent year-on-year reaching RMB 34.08 billion. The zone is making concerted efforts to build a production base with a sound reputation both domestically and internationally.
Nanjing New and Hi-Tech Industrial Development Zone
The NHDZ is situated on the north bank of the Yangtze River and covers an area of 16.5 square kilometers. At present more than 1000 enterprises have invested in the zone, among which there are more than 100 foreign-invested enterprises. The NHDZ adheres to the new and high-tech industries in four major sectors, namely electronics and information, bioengineering and pharmaceuticals, new materials, and aeronautics and astronautics.
Nanjing Jiangning Economic Technological Development Zone
The Nanjing Jiangning ETDZ was established in 1992 and has maintained state-level status since 1997. In the early days the zone slowly expanded the boundaries of Nanjing, as new establishments were positioned close to the center. It houses more than 1800 enterprises including large players like South Korea’s LG Electronics and Netherland’s Philips. So far the zone has introduced more than 2000 projects from more than 40 countries.