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A Primer on the Region

Discover Liaoning Province in Northeast China, home to major cities like Shenyang, Dalian, and Anshan. Learn about its geography, economy, and weather, with insights into key industries like manufacturing, agriculture, and automotive. Explore investment opportunities and economic development prospects in this dynamic region.

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A Primer on the Region

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  1. A Primer on the Region Jay D. Gatrell John Conant

  2. Geographical Context & Weather • Local Economy • Finally….

  3. Geography • Liaoning province is located in Northeast China and is home to over 42,000,000 residents • Major Cities • Shenyang (over 7 million residents) • Dalian (over 5.6 million residents) • The port at Dalian has increasingly been recognized as the primary gateway to Northeast China • Anshan (over 3.5 million residents)

  4. Geography • Locational advantages relative to Dalian’s Port… • Koreas & Japan • Access to NE and Central China Dalian Port Train toBeijing

  5. Weather • Dalian • Highs Mid to Upper 40s • Lows Upper 20s-Lower 30s • Beijing—Slightly Colder than Dalian • Highs Upper 30s-Upper 40s • Lows Mid to upper 20s-Lower 30s

  6. Economy • The province is China’s 8th largest economy in GDP and ranked 8th per capita (2003) • Over 32,000 firms • 1587 large to medium firms • 85% privately held • 5.3% of firms include FDI • Shenyang ranked 11th nationwide on a city survey of overall economic competitiveness (2005) • Liaoning Province is China’s largest and most significant heavy manufacturing base. The region’s industry is dominated by machine tools, metals, chemicals/petrochemicals, electricity, and refining. Additionally, the province has a growing electronics industry • Specialized metals produced for engines and advanced machine tools

  7. Economy • Agriculture • Provincial agriculture is known for specialty fruits including apples and peaches—as well as soybeans, cotton, silk and maize • $550 million USD earmarked by provincial government to expand agricultural infrastructure • Anticipates importing 1000 variety of crops to supplement the local market in 2005 • Potential for Indiana exports Traditional Farming in Liaoning

  8. Economy • Liaoning home to over 120 automotive firms associated light trucks and large/medium passenger vehicles • Strategic investments and collaboration with GM, BMW, Mitsubishi, & Toyota • Shenyang’s JinBei Motor Company is a affiliated firm of China’s largest automotive firm, Chengchun BMW Brillance-JinBei Operations in Shenyang

  9. Economy • Industrial Clusters by Major City • Shengyeng: Machinery, Chemicals, Pharmaceuticals, Automotive, & Metals • Dalian: IT, Automotive, Electronics, & Biotechnology • Anshan: Steel, Petrochemicals, and Advanced Materials Dalian’s Zhongshen Square

  10. Economy • Robust Economic Indicators • Large market with higher levels of GDP and GDP per capita compared to special economic zones in the south--Guangxi, Fujian, Hainan • Economy continues to expand • Eagerness to work with foreign firms and unmet demand for FDI relative to more developed regions • A key issue as FDI growth across China reached a plateau in early 2005 • Potential for more aggressive economic development packaging • Fewer potential suitors

  11. Economy • Extractive Industries • Coal • Iron ore • Salt Integrated Mining & Processing facility near Anshan

  12. Finally… • Liaoning is relevant • Dalian is “China’s Flat City” (Friedman 2005) • Region a major outsourcing venue for Japan • Capacity for growth in Beijing & Shanghai inherently limited and infrastructure in province can meet demand • Major foreign firms (including GE, Dell, Sony, SAP, & HP) have already began to redirect investment to cities such as Dalian & Shenyang

  13. Sources • CIA. 2005. World Factbook. http://www.cia.gov • Friedman, T. 2005. The World is Flat. A Breif History of the 21st Century. New York:Farrar, Straus and Giroux. • Indiana Economic Development Corporation. Industry specific initiatives. http://www.in.gov/iedc/initiatives/ • Indiana State University, Office of Public Affairs. Various dates. LNNU Partneship Press Releases. • Ministry of Science and Technology, People’s Republic of China. 2005. • National Bureau of Statistics, People’s Republic of China. 2003. Liaoning Economic Data. • Northeast Network, http://english.nen.com.cn • US-China Business Council. 2004. 2004 China Briefing. http://www.uschina.org • U.S. Department of Commerce, China Business Information Center. 2005. • Wang, C. 2006. Beijing is coming apart at the seams. Dalian News. January, 6. http://Daliannews.com • Wu, C. 2003. 2003. China, Peoples Republic of Market Development Reports China Logistics Profile. A report prepared for the U.S. Department of Agriculture.

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