Heilongjiang - Economy

Economy

The agriculture of Heilongjiang, heavily defined by its cold climate, is based upon crops such as soybeans, maize, and wheat. Commercial crops grown include beets, flax, and sunflowers.

Heilongjiang is also an important source of lumber for China. Pine, especially the Korean pine and larch are the most important forms of lumber produced in Heilongjiang. Forests are mostly to be found in the Daxingan Mountains and Xiaoxingan Mountains, which are also home to protected animal species such as the Siberian Tiger, the red-crowned crane, and the lynx.

Herding in Heilongjiang is centered upon horse and cattle. Heilongjiang has the greatest number of milk cows and the highest production of milk among all the province-level divisions of China.

Petroleum is of great importance in Heilongjiang, and the Daqing oilfields are an important source of petroleum for China. Coal, gold, and graphite are other important minerals to be found in Heilongjiang. Heilongjiang also has great potential for wind power, with an average wind energy density of 200 watts per square metre.

Heilongjiang is part of northeast China, the traditional base of industry for the People's Republic of China. Industry is focused upon coal, petroleum, lumber, machinery, and food. Due to its location, Heilongjiang is also an important gateway for trade with Russia. In recent years, Manchuria has suffered from stagnation. As a result, the government has started the Revitalize Northeast China campaign to deal with this problem, using privatization as the preferred method of economic reform.

At least five miners were killed after a coal mine fire in Heilongjiang it was reported on September 21, 2008.

Its GDP has been rising steadily since 2003, growing 37% from 2003-2007. Furthermore, the incremental value of the private economy grew by 20.1 percent in 2006 reaching RMB234 billion, and accounting for 37.6 percent of the GDP. The tax revenue from private enterprises hit RMB20.5 billion, a rise of 17.8 percent.

Private enterprises in Heilongjiang witnessed the fastest development in 2007, fueling the overall economic growth of the province. Many leading private enterprises have begun to emerge. Over 200 of them have an annual income exceeding RMB100 million. The province's three major private enterprises, namely the Heilongjiang Sunflower Medicine Ltd, Qitaihe Yidaxin Coal Co., and Heilongjiang Yiyang Group, each contributed more than RMB100 million in tax revenue in 2007.

At present, many private investors are involved in large construction projects in Heilongjiang. In 2006, 928 large projects absorbed private capital of RMB5 million each, and 101 projects attracted RMB100 million each within the province. In line with the central government’s policy to revitalize the Northeast, Heilongjiang is now restructuring its six pillar industries, namely equipment manufacturing, petrochemicals, food processing, energy, pharmaceuticals, and forest and timber processing.

In 2011, Heilongjiang's nominal GDP was 1,250 billion yuan (US$198.5 billion), an annual growth rate of 12.2%. Its per capita GDP was 21,640 yuan (US$3,168). Its primary, secondary, and tertiary industries were worth 108.9 billion yuan, 436.6 billion yuan, and 285.5 billion yuan respectively. The per capita disposable income of urban residents in Heilongjiang reached 11,581 yuan (US$1,667), a rise of 13% from the previous year. The per capita net income of rural residents in the province reached 4,856 yuan (US$700), a rise of 17.5 from 2007.