Sichuan - Economy

Economy

Sichuan has been historically known as the "Province of Abundance". It is one of the major agricultural production bases of China. Grain, including rice and wheat, is the major product with output that ranked first in China in 1999. Commercial crops include citrus fruits, sugar canes, sweet potatoes, peaches and grapeseeds. Sichuan also had the largest output of pork among all the provinces and the second largest output of silkworm cocoons in China in 1999. Sichuan is rich in mineral resources. It has more than 132 kinds of proven underground mineral resources of which reserves of 11 kinds including vanadium, titanium, and lithium are the largest in China. The Panxi region alone possesses 13.3% of the reserves of iron, 93% of titanium, 69% of vanadium, and 83% of the cobalt of the whole country. Sichuan also possesses China's largest proven natural gas reserves, although the majority of which is transported to more developed eastern regions.

Sichuan is one of the major industrial centers of China. In addition to heavy industries such as coal, energy, iron and steel, the province has also established a light industrial sector comprising building materials, wood processing, food and silk processing. Chengdu and Mianyang are the production centers for textiles and electronics products. Deyang, Panzhihua, and Yibin are the production centers for machinery, metallurgical industries, and wine, respectively. Sichuan's wine production accounted for 21.9% of the country’s total production in 2000.

Great strides have been made in developing Sichuan into a modern hi-tech industrial base, by encouraging both domestic and foreign investments in electronics and information technology (such as software), machinery and metallurgy (including automobiles), hydropower, pharmaceutical, food and beverage industries.

The auto industry is an important and key sector of the machinery industry in Sichuan. Most of the auto manufacturing companies are located in Chengdu, Mianyang, Nanchong, and Luzhou.

Other important industries in Sichuan include aerospace and defense (military) industries. A number of China's rockets (Long March rockets) and satellites were launched from the Xichang Satellite Launch Center, located in the city of Xichang.

Sichuan's beautiful landscapes and rich historical relics have also made the province a major center for tourism.

The Three Gorges Dam, the largest dam ever constructed, is being built on the Yangtze River in nearby Hubei province to control flooding in the Sichuan Basin, neighboring Yunnan province, and downstream. The plan is hailed by some as China's efforts to shift towards alternative energy sources and to further develop its industrial and commercial bases, but others have criticised it for its potentially harmful effects, such as massive resettlement of residents in the reservoir areas, loss of archeological sites, and ecological damages.

Sichuan's nominal GDP for 2011 was 2.15 trillion yuan (US$340 billion), equivalent to 17,380 RMB (US$2,545) per capita. In 2008, the per capita net income of rural residents was 4,121 yuan (US$593), up 16.2% from 2007. The per capita disposable income of the urbanites averaged 12,633 yuan (US$1,819), up 13.8% from 2007.