Regional Contributions

The table below shows that the Municipalities, Special Administrative Regions and the Yangzi Delta are the most productive economically. The table also shows the significance of ethnic minority areas to China’s economy. Whilst the east coast is the heart of China’s economic growth, to fuel that economic growth China desperately needs minerals and other raw materials from its minority regions, neighbouring nations, and Africa – hence its attractive student sponsorship schemes and offers of infrastructure in exchange for resources.

Beijing
As the capital of the PRC, all ministries, commissions and regulators are based in Beijing, along with the headquarters of State-Owned Enterprises and 80% of China’s scientific/high tech companies. Beijing-based companies contribute 40% of the country’s GDP from financial services, and they account for 50% of asset value and 60% of share-holder value on the Shanghai and Shenzhen Stock Exchanges.

Shanghai
is the national hub for securities and home to the largest Stock Exchange in China. 10% of Foreign Direct Investment in China is contracted with Shanghai, and half of all corporate funding goes through the city. Shanghai employs 20,000 people in the financial services industry. 25% of China’s exports and 13% of imports pass through this city, which is host to the World Expo of 2010.

Hong Kong
the ‘free-est economy in the world’ returned to Chinese sovereignty in 1997 but it still has its own currency, pegged to the US$ (US$1 = HK$ 7.75-7.85), and companies law, based on the UK’s 1948 Act. 91% of Hong Kong’s GDP is from services (highest in the world), of which 15.9% is from Financial Services, employing 200,000 people. 25% of services trade is with PRC, 22% with US and 8% with UK. Economic growth has dropped below 5%; inflation is just over 2%.