Location and climate
Jiangsu province, situated in the east of China, is home to the Yangtze River delta and faces the Yellow Sea. The province is mountainous in the north and throughout is criss-crossed by rivers and densely covered by water systems to the extent that 17 per cent of the province is water. The Yangtze and Huaihe Rivers cut across Jiangsu from west to east and the Grand Canal runs from north to south and its lakes include the Taihu and Hongze. The temperature averages 13.5 degrees C and rainfall is between 0-1200mm.
Nanjing (pop. 5,064,392), one of the ancient capitals of China is the provincial capital. It is an important industrial port (handling over 3.6m tonnes of goods in 1990, an increase of 23 per cent over 1989) and a centre of communications. Nanjing produces machinery, chemicals, fertilizers, plastics, electronics, textiles and pharmaceuticals. There are plans for a metro system. Nanjing is authorised to approve joint ventures up to US$5m for manufacturing ventures and US$10m for non-manufacturing ventures.
Danyang, part of the Shanghai Economic Zone is well known for its wine (Danyang and Chenxiang brands) and textiles.
Suzhou (pop. 5,642,658) on the banks of the Grand Canal, is known as the "Venice of the East". It has long been famous for its silk weaving and finishing and remains a major silk base. Suzhou is also famed for its style of embroidery and its carved furniture made of padouk wood. One of China's main tourist cities, Suzhou plans to build holiday villas in the style of the Ming and Qing dynasties.
It is the major industrial centre in Jiangsu province and the fourth largest in China, after Shanghai, Beijing and Tianjin. It owes its position to its location; water supplies serving industry are abundant and communications links via road, rail and the vital, cheap, but heavily congested Grand Canal are good. The main industrial sectors are textiles, chemicals (total production 1991: 5.6bn RMB) metals, agricultural machinery, and a range of industries processing raw materials. Pollution is a major problem in Suzhou caused mainly by its small state owned enterprises.
Foreign trade has increased by an average of 20 per cent per annum since 1978. In 1991 exports rose by almost 20 per cent over the 1990 total to US$1.2bn. Total imports in 1991 were US$100m ? up fractionally on 1990. In 1991 foreign investments reached US$600m. There are over 400 joint ventures in Suzhou ? one third of the total in the province ? mostly with Hong Kong partners. Suzhou accounts for 30 per cent of Jiangsu's total foreign investment.
Wuxi (pop. 4,212,206) has the fifth largest industrial output in China. Its main industries are: light machinery and electronics, textiles (mainly silk), metallurgical goods, chemicals, electrical appliances and building materials.
It is China's leading producer of large-scale integrated circuits, cassette recorders and functional ceramic materials. Exports are mainly in raw materials, chemicals, agricultural insecticides and industrial spare parts.
Lianyungang (pop. 3,462,126) is one of the 14 cities opened to foreign trade in 1984. It stands at the eastern end of the Pan-Asian Land Bridge, a railway stretching to Rotterdam. The port, first opened in 1933, has 23 berths 21 for industrial products with a through capacity of 17.5m tonnes annually (12m tonnes were handled in 1991) and can deal with ships up to 63,000 tonnes. There are plans to improve and expand the port Further. An international airport is under construction. Approval has been given to 84 joint ventures projects.
Zhenjiang (pop. 2,590,480) which lies close to the Yangtze River, exports textiles, silk, garments, light industrial products, light industrial machinery, cereals and oils, arts and crafts, auto spares, televisions, electronic components, paper, cement and chemicals and has a small but growing shipbuilding industry. In 1991, the value of Zhenjiang's foreign trade was 1.7RMB, a rise of 24.8 per cent, and the industrial growth rate was 11.6 per cent. The new port of Da Gang which is playing an increasing role in the city's booming trade, has 4 berths capable of handling vessels up to 25,000 tonnes. An additional 9 berths are under construction (4 x 25,000, 4 x 5,000 and 1 x 2,000) which, when completed will give it a total capacity of 7m tonnes.
Changzhou (pop. 3,268,727). The principal industries are textiles (30 per cent), light engineering, pharmaceuticals, electronics and cameras. In 1991 Changzhou's GNP was 34.3bn RMB. Cooperatives and Township Enterprises accounted for 54 per cent of industrial output (31.7bn RZMIB) and State Enterprises 46 per cent. A new investment zone, The Riverside Economic and Technological Development Zone is to be set up by the Yangtze River. Several Hong Kong companies have expressed interest in the zone.
Nantong (pop. 7,788,392), another of the 14 coastal cities opened to foreign trade in 1984. The main industries are textiles, chemicals, electronics, machinery and light industry. It has good telecommunication facilities and, since 1989 when a new 350,000kW power station was opened, it has not suffered from power shortages.
There are 132 joint ventures in Nantong (68 of which are in operation) mostly with Japanese (24), Hong Kong and US companies; mainly in the ready-made garments, light industry and chemical sectors. A new airport is under construction and there are plans to improve the port facilities.
Xuzhou (pop. 8,201,664) in the north-west of the province is Jiangsu's second largest city. Xuzhou produces a wide range of agricultural and industrial products although it is principally a mining city. Beef is exported to Hong Kong and other agricultural exports include: skins and furs, canned asparagus, and garlic.
Xuzhou is in the centre of China's coal mining belt and has 14 collieries producing 13m tonnes of coal annually and employs 110,000 people. Iron ore is also mined. As well as mining machinery and equipment, Xuzhou also has China's largest bulldozer producer and the second largest producer of hoists (many of which are sold overseas). With five state highways, two main railway lines and the Grand Canal passing through it, Xuzhou has excellent transport links. It is China's second largest inland port.
Huaiyang (pop. 10,042,109).
Yangzhou (pop. 9,292,639).
Jiangsu has long been an important agricultural producer. The principal crops are rice, cotton, and oilseeds. Silk cocoons, tea, fruit, animal husbandry and fisheries are also important. Jiangsu cotton accounts for 25 per cent of China's total output. Other cash crops include rapeseed and peanuts. Fishing is also important and coastal areas have been developed into major producers of seafood(eels, crabs and clams). In 1989 Jiangsu produced 1.1m tonnes of fish and fish products, an increase of 7.5 per cent.
Coal is found in the far north of the province, with two large coalfields under operation at Xuzhou and Feng-Pei. Oil and gas are also found in northern Jiangsu. Other metals and minerals are to be found in the province; rich reserves of rock salt near Huaiyin City in northern Jiangsu. Plans include a 150,000 tonne vacuum salt refinery, a crude salt centre capable of handling more than 1m tonnes and a 100,000 tonnes soda factory.
The province has a developed transport system focusing on the bridge across the Yangtze River at Nanjing. Inland waterways are also important, particularly the Grand Canal which connects the Yangtze with the Yellow River. Nanjing and Zhenjiang are the principal ports on the Yangtze River. Lianyungang in the north east of Jiangsu is the main ocean port. The province also operates a fairly good air service.
Jiangsu is one of the traditional textile producing areas of China. The manufacture of machinery is the largest industrial sector in the province with more than 14,000 enterprises employing 3.3m people. Jiangsu also produces electrical goods (it is one of China's major producers of electronic equipment including consumer products such as televisions and radios), machine tools, traditional handicrafts and chemicals and has a strong building industry. Traditional industries include Nantong menthol and peppermint oils, embroidery, sandalwood fans and Yangzhou lacquer. Jiangsu, Zhejiang, Shandong, Anhui and Shanghai form the newly created East China economic zone which will concentrate on the manufacture of machinery, textiles, electronics, chemicals and light industry.
Foreign trade is relatively well developed with a full complement of advertising, inspection, shipping, banking, insurance and other support services. Exports in 1990 amounted to US$2.8bn, an increase over 1989 of 15 per cent. 24 per cent of exports are to Japan, 21.5 per cent Hong Kong, 15 per cent to the EC and about 13 per cent to North America.
The major infrastructural projects under the current 8th Five Year plan are: the Nanjing to Shanghai highway (under construction), renovation of the Grand Canal in southern Jiangsu (also under construction), a new suspension bridge across the Yangtze River at Jiangying which will link up with Wuxi, further port developments and new roads (from Nanjing to Zianyungang in the north of the province and Nanjing to Nan tong by way of the new bridge). A 415km canal will be dug linking Nantong county with Ganyu county ? work is expected to begin soon.
The high industrial growth rate over the last few years has strained Jiangsu's economy, and lead to acute energy shortages and sharply rising prices. National policies to cool down the economy have led to the cut-back of capital construction investment by 3.5bn RMB. However, Jiangsu has the biggest gross provincial product (10 per cent of China's total) and the largest industrial output (12 per cent of the national total).
The total number of joint ventures stands at 5,148 (September 1992) ? between 1979 and 1990 the number of JVs grew to 2,300. Most are small scale, in the textile, electronics or light industrial sectors and with foreign investors from Hong Kong, Macau and Taiwan. The Netherlands is Europe's leading investor in the province.
Sources of information include the Department of Trade and Industry, UK.
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