Nanjing Economy

Early Development

Since the Three Kingdoms period, Nanjing has become an industrial center for textile and mint owing to its strategic geographical location and convenient transportation. During the Ming Dynasty Nanjing's industry was further expanded, and the city became one of the most prosperous cities in China and even the world. It led in textile, mint, printing, shipbuilding and many other industries, and was the busiest business center in the Far East.

Into the first half of the twentieth century, Nanjing gradually shifted from a production hub into a heavy consumption city, mainly because of the rapid expansion of the wealthy population after Nanjing once again regained the political spotlight of China. A number of huge department stores such as Zhongyang Shangchang sprouted up, attracting merchants from all over China to sell their products in Nanjing. In 1933, the revenue generated by the food and entertainment industry in the city exceeded the sum of the output of the manufacturing and agriculture industry. One third of the city population worked in the service industry, while prostitution, drugs and gambling also thrived.

In the 1950s, the CPC invested heavily in Nanjing to build a series of state-owned heavy industries, as part of the national plan of rapid industrialization. Electrical, mechanical, chemical and steel factories were established successively, converting Nanjing into a heavy industry production center of East China. Overenthusiastic in building a “world-class” industrial city, leaders of Nanjing also made many disastrous mistakes during the development, such as spending hundreds of millions of yuan to mine for non-existent coal, resulting in the negative economic growth in the late 1960s.

Today

The current industry of the city basically inherited the characteristics of the 1960s, with electronics, cars, petrochemical, iron and steel, and power as the "Five Pillar Industries". Some representative big state-owned firms are Panda Electronics, Jincheng Motors and Nanjing Steel. The tertiary industry also regained prominence, accounting for 44 percent of the GDP of the city. The city is also vying for foreign investment against neighboring cities in the Yangtze River Delta, and so far a number of famous multinational firms, such as Volkswagen, Iveco, A.O. Smith, and Sharp, have established their lines there. Since China's entry into the WTO, Nanjing has received increasing attention from foreign investors, and on average, two new foreign firms establish offices in the city every day.

The city government is further improving the desirability of the city to investors by building large industrial parks, which now total four: Gaoxin, Xingang, Huagong and Jiangning. Despite the effort, Nanjing's Gross Domestic Production is still falling behind that of other neighboring cities such as Suzhou, Wuxi and Hangzhou, which have an edge in attracting foreign investment and local innovation. In addition, the traditional state-owned enterprises find themselves incapable of competing with efficient multinational firms, and hence are either mired in heavy debt or forced into bankruptcy or privatization. This has resulted in large numbers of layoff workers who are technically not unemployed but effectively jobless.

In recent years, Nanjing has been developing its economy, commerce, industry, as well as city construction. In 2007 the city's GDP was RMB 327.5 billion (3rd in Jiangsu), and GDP per capita was RMB 44,852, a 15 percent increase from 2006. The average urban resident's disposable income was RMB 20,317, while the average rural resident's net income is RMB 8,020. The urban unemployment rate was 3.26 percent, lower than the national average (4.0 percent). Nanjing's Gross Domestic Production ranked 15th in 2007 in China, and its overall competence ranked 9th.

Industrial zones

• Nanjing Economic and Technological Development Zone
• Nanjing New and High Develoment Industry Zone

Nanjing Jiangning Development Zone

 

Special Touring Regions:

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