Shenyang

Our office's mission is to assist American businesses enter and succeed in the Northeast China market (the provinces Liaoning, Jilin, and Heilongjiang).

• Our jurisdiction covers an area of 802,400 square kilometers
• 107 million people live in this region

Northeast China, historically known as Manchuria, is comprised of three provinces: Liaoning, Jilin and Heilongjiang. With a population of over 107 million people, the region is rich in natural resources and is known as China’s center of state-owned heavy industrial manufacturing. While reform of public sector enterprises continues to lag behind schedule throughout the region, provincial governments are encouraging development of private sector businesses in several sectors including information technology, telecommunications, environmental technologies, automobile parts, and tourism.

Regional leaders would like to see the Northeast become the fourth great coastal area to increase trade and draw in foreign investment. While it is well known that the Chinese government strongly encourages the economic development of the Southwest through its Great Western Development Initiative, it is little known that the Northeast is also a top priority.

In October 2003, the 16th Communist Party Congress endorsed the Rejuvenate the Northeast Initiative. In November, the National Development and Reform Commission announced its approval of 100 projects that are expected to require an investment of USD 7.3 billion (61 billion RMB). The Chinese central government plans to cover only 20% of planned investment by allocation of funds from the State treasury. The financing tools are expecting to primarily include interest subsidies on commercial loans from State policy banks and market liberalization to attract foreign and domestic investment. The projects will be unevenly distributed throughout the Northeast, with Liaoning having secured approval for 52 project proposals, Jilin with 11 projects, and Heilongjiang with 37 projects. Liaoning is home to about 10 percent of China’s large and medium size state-owned enterprises.

Shenyang, the capital of Liaoning Province, is considered the industrial center and transportation hub for Northeast China. Shenyang’s comprehensive manufacturing base is divided into forty sectors, including nonferrous metals, chemicals, automobiles, aircraft, machine tools, building materials, electronics, textiles, pharmaceuticals and light industrial products. The city’s GDP reached $16.9 billion (140 billion RMB) in 2002. Industrial production accounted for 43.9% of city GDP, while agriculture accounted for 6% and services for 50.1%. Liaoning’s GDP reached $66 billion (545 billion RMB), among which industrial production accounted for 47.8% of provincial GDP, agriculture for 10.8% and services 41.4%.

In November 2003, the central government released statistics that clearly demonstrate the comparative strength of the Northeast over the Southwest in terms of international trade activity. In 2002, total trade value for the Northeast reached $ 29.79 billion, which represented 4.7 percent of China’s total trade. The Southwest accounted for $ 9.17 billion, which was 1.5 percent of China’s total trade in 2002. With regard to foreign direct investment, the Southwest utilized $1.08 billion, while the Northeast utilized $5.18 billion. Liaoning typically attracts about 75% the Northeast region’s foreign direct investment.

Liaoning Province is the region’s leader in international trade. In 2002, its total trade value reached $21.7 billion, with imports accounting for $ 9.37 billion and exports accounting for $12.36 billion. This total trade activity represents a 9.8 % increase over 2001. Meanwhile, in Jilin, total trade value reached $ 3.7 billion, up 15.4% over 2001. Total trade value in Heilongjiang reached $ 4.3 billion, up 28.6% compared to 2001. Comparing Liaoning’s import volume between its partners in 2002, the United States ranked third, with imports valued at $ 576 million. Liaoning’s imports from Japan hit $ 3.2 billion; and imports from South Korea reached $ 1.58 billion in 2002.

U.S. Commercial Service - Shenyang
52 Shi Si Wei Road, Heping District
Shenyang, Liaoning 110003, China
Tel:  (86-24) 2322-1198
Fax: (86-24) 2322-2206
Email: Shenyang.Office.Box@N0SPAM.mail.doc.gov

Key Contacts

China Commission for Promotion of International Trade (CCPIT), Liaoning Branch
Tel:  (86-024) 8690-4820
Fax: (86-024) 8691-4877

Liaoning Provincial Bureau of Foreign Trade and Economic Cooperation (BOFTEC)
Tel:  (86-024) 8689-2455
Fax: (86-024) 8689-3858
http://www.china-liaoning.org

Shenyang Bureau for Foreign Trade and Economic Cooperation (BOFTEC)
Tel:  (86-024) 2272-9089
Fax: (86-024) 2272-4746

Dalian Bureau for Foreign Trade and Economic Cooperation (BOFTEC)
Tel:  (86-411) 369-8000
Fax: (86-411) 368-6865
http://www.dalian-gov.net/