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Brief Introduction to Industry in Guangzhou

Updated Beijing Time

Guangzhou's industry plays a significant role in the economy of the whole city. The industrial added value has been ranking 2nd among  the 10 largest cities of China for the last continuous 8 years. In 2003, Guangzhou's industry has made tremendous contribution to the Guangzhou economy and social development, fulfilling the gross industrial output of 470.6 billion yuan (equivalent to 56.9 billion USD) with an increase of 27% compared with that of 2002. Meanwhile, Guangzhou's industry realized the contribution rate of 60% to the GDP of Guangzhou and  contributed  9% to the growth of GDP.

Guangzhou's  industry distinguishes itself in the following aspects:

First, Guangzhou owns the largest number of industrial categories among the cities in south China area with a comprehensive and complete industrial system.

Second, Guangzhou boasts lots of famous brands and China's famous products, such as the unique brand "Pearl River Piano" which achieves the highest sales volume worldwide, the brand "Pearl River Beer"  with high market shares in China, the traditional Chinese patent medicine and the newsprint.

Third, The multifaceted industrial structure gets boosted with the state-owned enterprises, joint ventures and private enterprises thriving altogether.

Fourth, The three pillar industries develop rapidly. The petrochemical industry, automobile industry and electronics and telecommunication equipment industry totally fulfilled the gross industrial output of 160.9 billion yuan (equivalent to 19.5 billion USD), an increase of 48% up to the last year. Fifth, Guangzhou boasts excellent investment environment and great potential in outward economic development. Guangzhou has attracted the attention all over the world with the properties like distinctive geographical advantage, rich human resource, complete infrastructure, rational industrial layout and efficient civil service.

Up to now, there are 115 companies of the Global 500 have established their subsidiaries in Guangzhou.

Fields of Guangzhou's Industry for Intensified Development:

1. Mechanical Equipment Industry -- Spearhead Industry in South China

Since Guangzhou is the largest industrial city in South China, its mechanical equipment industry enjoys irreplaceable edges and a vast space for development in South China, or even Southeast Asia. Currently, the focus is on the development of shipbuilding, heavy machinery, numerically-controlled machines, complete sets of equipment for buildings, power transmission and transformation equipment, packing machinery, etc. The goal of the city is to enable the total output value of the mechanical equipment industry to exceed 150 billion yuan (equal to about 18 billion USD) by 2005 and then become doubled on this basis to reach over 400 billion yuan (equal to about 50 billion USD) by 2010.

2. Automobile and Parts Industry -- One of China's Largest Auto Bases

Auto industry is an industry that is growing the fastest now in Guangzhou. All the four leading auto manufacturers of Japan, like Honda, Nissan, Toyota and Isuzu, have set up auto-manufacturing factories in Guangzhou. A large number of domestic and foreign auto parts manufacturers have settled in the specialized auto parks situated in Nansha, Huadu, Baiyun and Huangpu to go along with the auto-manufacturing enterprises, forming a sound pattern for focal development. While continuing to expand the manufacturing of automobiles, Guangzhou's auto industry will also focus on developing the auxiliary industries, e.g. molds, chemical engineering, electronics, instruments and tyres, to create a development structure that features dovetailed upstream and downstream, rational division of work and complete industrial chains. The auto output of Guangzhou will reach 500 thousands by 2005 and 1 million by 2008, when the output value of combined automobiles and parts will stand around 300 billion (equal to about 36 billion USD), so that the city will become one of China's largest auto producers.

3. Electronics and Communication Manufacturing Industry -- Industrialization Spurred by Informatization

This is one of the pillar industries of Guangzhou. As the only exemplary city of China for the promotion of enterprise informatization and a national exemplary city for the informatization of the manufacturing industry, Guangzhou will also actively introduce powerful domestic and foreign strategic partners to expand its electronic information industry, including the manufacturing of communication equipment and computers. The goal is to enable the industry to achieve a total output value of 80 billion yuan (equal to about 10 billion USD) by 2005.

4. Petrochemical Industry ----- Going All Out in Building a World-Class Petrochemical Center

While the world petrochemical industry is leaning to large scale and adjacency to ports and speeding up its move to China, relative edges have loomed large for Guangzhou to develop its petrochemical industry in South China. The city will boost the cooperation with multinationals to expand the production scale of oil refining and ethylene and bring along the growth of downstream industries. In the years to come, the petrochemical industry will increase its oil refining capacity from 10 million ton/year to 18 million ton/year and increase the output of ethylene from 200,000 tons / year to 800,000 tons / year. Meanwhile, Guangzhou will aim at renowned domestic and foreign chemical enterprises to work with them in promoting the extension of the chain of the petrochemical industry, focusing on the development of fine chemicals of high technological requirements and high added value and creating a complete and efficient chain of petrochemical industry.

5. Modernization of Traditional Chinese Medicines and a Modern Biological Pharmaceutical Industry -- Seamless Integration of Traditional Industry with Modern Technology

Guangzhou is a region where the industry of traditional Chinese medicines is fairly developed. Guangzhou Pharmaceutical Holdings Limited ("GMG") stands in the forefront of China's medicine producing and marketing enterprises and owns name brand products that have a long history and a reputation both at home and abroad. At present, Guangzhou gives key support to the development of new Chinese medicines, the secondary development of famous Chinese medicines and the application of bioengineering researches in the modernization of Chinese medicines to accelerate the formation of industrialized bases. By 2010, the Chinese medicine enterprises will achieve a sales value of more than 10 billion yuan (equal to nearly 1.5 billion USD). In the meantime, the city will step up the cooperation with world famous pharmaceutical enterprises in the field of biological medicine to selectively develop and support products of biological medicine with gene engineering as representative and biochemical pharmaceutical industry that uses modern biological technology.

6. E-business under Energetic Development -- Construction of Procurement and Trade Center of Industrial Raw Materials

Guangzhou will also actively promote e-business and, in the near future, set up six major platforms of electronic transactions for metal materials, grains, coals, medicines, petroleum products and famous local products. It will work hard to develop industrial logistics to give a further play to its regional advantages as a central city and the impact on the Pearl River Delta and the other parts of South China.

Source: Guangzhou Municipal Government

Editor: Jessie Hwang

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