Economy
Yunnan is one of China's relatively undeveloped provinces with more poverty-stricken counties than the other provinces. In 1994, about 7 million people lived below the poverty line of less than an annual average income of 300 yuan per capita. They were distributed in the province's 73 counties mainly and financially supported by the central government. With an input of 3.15 billion yuan in 2002, the absolutely poor rural population in the province has been reduced from 4.05 million in 2000 to 2.86 million. The poverty alleviation plan includes five large projects aimed at improving infrastructure facilities. They involve planned attempts at soil improvement, water conservation, electric power, roads, and "green belt" building. Upon the completion of the projects, the province hopes this will alleviate the shortages of grain, water, electric power and roads.
Yunnan lags behind the east coast of China in relation to socio-economic development. However, because of its geographic location the province has comparative advantages in regional and border trade with countries in southeast Asia. The Lancang River (upper reaches of Mekong River) is the waterway to southeast Asia. In recent years land transportation has been improved to strengthen economic and trade co-operation among countries in the Greater Mekong Subregion. Yunnan's abundance in resources determines that the province's pillar industries are: agriculture, tobacco, mining, hydro-electric power, and tourism. In general, the province still depends on the natural resources. Secondary industry is currently the largest industrial tier in Yunnan, contributing more than 45 percent of GDP. Tertiary industry contributes 40 percent and agriculture 15 percent. Investment is the key driver of Yunnan's economic growth, especially in construction.
The main challenge that Yunnan faces is its lack of major development. Its low productivity and competitiveness restrict the rapid development of the province. The province also faces great challenges in social issues such as environmental protection, poverty elimination, illegal migration, drug trafficking and HIV/AIDS.
Yunnan's four pillar industries include tobacco, agriculture/biology, mining, and tourism. The main manufacturing industries are iron and steel production and copper-smelting, commercial vehicles, chemicals, fertilizers, textiles, and optical instruments. Yunnan has trade contacts with more than seventy countries and regions in the world. Yunnan established the Muse border trade zone (located in Ruili) along its border with Burma. Yunnan mainly exports tobacco, machinery and electrical equipment, chemical and agricultural products, and non-ferrous metals. In 2008, its total two-way trade (imports and exports) reached US$9.6 billion. The province signed foreign direct investment contracts involving US$1.69 billion, of which US$777 million were actually utilized during the year. Yunnan's unemployment rate at the end of 2008 was 4.21%.
Yunnan's nominal GDP in 2011 was 875.1 billion yuan (US$138.92 billion), an annual growth rate of 13.7%. Its per capita GDP was 13,494 yuan (US$1,975). The share of GDP of Yunnan's primary, secondary, and tertiary industries were 17.9%, 43%, and 39.1% respectively.
Yunnan is one of the major production bases of copper, lead, zinc, tin and aluminum in China. Gejiu city is well known as "the Kingdom of Zinc" with the reserves ranked first in the country. The Yunxi brand refined tin is one of the main products in Gejiu, which is registered on the London Metal Exchange (LME). Besides, reserves of germanium, indium, zirconium, platinum, rock salt, sylvite, nickel, phosphate, mirabilite, arsenic and blue asbestos are also high. Significant copper deposits are found at Dongchuan, iron ore at Wuding, and coal at Xuanwei and Kaiyuan. Economic policy to locate new industry in interior areas with substantial mineral wealth, led to major industrial development in Yunnan, especially in the Kunming area.
The electricity industry is another important economic pillar of Yunnan, which plays a key role in the "West-East Electricity Transmission Project". The electricity produced in Yunnan is mainly transported to Guangdong Province.
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