Tianjin - Economy

Economy

Tianjin's GDP reached 1.12 trillion yuan in 2011, an increase of 16.4 percent over 2010. The city of Tianjin recorded China's highest per-capita GDP with $13,393, followed by Shanghai with $12,784 and Beijing with $12,447, levels on par with some developed countries.

The municipality recorded an impressive 16.5% increase in GDP in 2009, second only to the 16.9% rate in resource-rich Inner Mongolia, and nearly double the national growth rate. In the short term, infrastructure spending will buoy Tianjin's economy. There are substantial projects under way to extend the metro system and improve road and rail links with the nearby national capital, Beijing.

Although the international financial crisis spreads rapidly and the speed of world economy growth is slowing down, Tianjin economy still maintains at a steady and fast growing speed. In 2008, Tianjin total output value was RMB 635.438 billion, an increase of 16.5%, say RMB 130.398 billion increase over last year, the first time with an increase of exceeding RMB 100 billion. The total output value per capita in Tianjin was USD 7,800, nearing the level of middle developed countries. Tianjin had realized a directly contracted foreign investment of up to USD 13.256 billion, an increase of 15.1%, and actual contributed capital of USD 7.420, increasing 40.6% year on year. So far Tianjin has had 21,048 companies with foreign investment, with accumulated foreign investment of USD 47.2 billion.

At the same time, Tianjin is actively developing financial reform and innovation. The China Bohai Bank, the first national commercial bank limited by shares with headquarter in Tianjin, had setup 6 branches and 14 offices open to the public by the end of 2008. In March 2008, the national non-listed public companies equity exchange market (OTC) was established in Tianjin upon approval of the State Council. Tianjin has become the pilot city with the most industrial investment funds in China. The China National Private Equity Forum was held in Tianjin again, with approx. 500 investment companies and private fund institutions as well as about 2,000 growing enterprises involving in global capital circulation through this Capital Connection in Tianjin. Supported by the strong actual goods exchange, Tianjin takes futures industry development as a key part of its financial reform and innovation. In July 2008, the Yide Futures Broker Co., move its headquarter to Tianjin. Tianjin Finance Town Project, North Jiefang Road as its axle, has been initiated. It will be built into a comprehensive, open and intellectual finance service area within ten years.

Tianjin is transforming into a hub city for international shipping and logistics, modern manufacturing and research and development. Nominal GDP of Tianjin has swelled by 2.8 times from 184 RMB billion in 2001 to 505 RMB billion in 2007. Tianjin pillar industries comprise of electronic information technology, automotive, bio-tech and pharmaceuticals, metallurgy and petrochemicals industries. The new coastal area, consisting of Tianjin Port, Tianjin Economic and Technology Development Area and Tianjin Bonded area, has attracted numerous world-famous businesses like Motorola, Toyota and Samsung. Globalization and opening up of the economy to the rest of the world have brought about remarkable benefits to the economic growth of Tianjin.

Government finance revenue of Tianjin has increased by more than threefold from 16 RMB billion in 2001 to 54 RMB billion in 2007. As revenue rises, expenditure on science and technology, education, culture, health and sports following suit as well, reaching 10 billion RMB in 2004, constituting to 30.7% of the city's financial expenditure. Revenue has also been used in the building of infrastructures such as new roads, new bridges and commercial houses. One of the development objectives in the 11th Five year Plan is to have financial revenue growing at the rate of 16% annually.

Skyscrapers in Tianjin:

Tianjin total investments in fixed assets have soared from 62 RMB billion in 2001 to 239 RMB billion in 2007, representing a 3.9 times surge over a period of six years. Tianjin has build up its competitive advantages in the investment landscape such as: convenient port transportation services, an open market, advanced logistic services, alluring preferential policies and having efficient government services. By the end of 2004, more than 118 countries and regions invested in Tianjin, setting up approximately 16, 000 enterprises. Currently, Tianjin is developing itself into an eco-city, thus, bringing multiple prospects for investments in fixed assets in the subsequent time periods.