Access China

Gansu

September 2012

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Symbols for tables “0 or 0.0” means nil or negligible; “n/a” means not available; “–” means not applicable Gansu 1

Gansu

2 Province summary

3 Highlights

5 Consumer profile

6 National and provincial initiatives

7 Industry

10 Infrastructure

10 Politics

12 Provincial cities

13 Forecast summary

14 Annual Data

Editors: Victoria Lai (editor); Elizabeth Cheng (consulting editor) Editorial closing date: September 11th 2012 All queries: Tel: (44.20) 7576 8000 E-mail: [email protected] Next report: To request the latest schedule, e-mail [email protected]

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Province summary

Main economic indicators 2010 Rank GDP Nominal GDP (Rmb bn) 412 27 out of 31 GDP per head (Rmb) 15,626 30 out of 31 Consumption Disposable income per head (Rmb; urban) 13,189 31 out of 31 Total expenditure per head (Rmb; urban) 9,895 28 out of 31 Population (m) 26.4 22 out of 31 External trade (US$ bn) Exports (by location of producer) 1.3 29 out of 31 Imports (by location of consumer) 6.1 24 out of 31 Exchange rate Rmb:US$ (av) 6.77 – Foreign investment (US$ bn) FDI utilised 0.1 29 out of 31

Sources: Economist Intelligence Unit; National Bureau of Statistics.

Gansu’s economy is largely shaped by its geographic position on the upper reaches of the Yellow River. For the most part the province is sandwiched between the Tibet-Qinghai Plateau and the grasslands of Inner Mongolia, giving it both relatively mountainous and semi-arid conditions. Han Chinese currently account for around 91% of the population. Hui Muslims make up only 5%, with the remaining 4% comprising Tibetans and other ethnic minorities. The province is one of China’s poorest, most sluggish and least accessible. Although it is making progress in infrastructure linkages, the province will continue to struggle to attract foreign investment. Private consumption is likely to remain weak. Incomes are low even in the provincial capital, Lanzhou, and the increase in average incomes can only be described as unspectacular. Despite an official increase in minimum wage rates of up to 36.5% from April 2012, wages remain much lower than those of the eastern seaboard, as do property prices. The province is relatively exposed to natural disasters, including drought and earthquakes. However, with the national “Go West” policy diverting considerable investment into infrastructure building, the economy has improved significantly in recent years. However, Gansu is a logical place for certain types of investment. For example, the province has a strong mining base, with more than 90% of China’s nickel reserves. The area’s climate also lends itself to investment in renewable energy; its windswept and sparsely populated plains are viewed as one of the best locations in China for wind-farm development. The Jiuquan New Energy Equipment Manufacturing Industrial Park is the largest of its kind in China. By 2015 total wind-power installation capacity in Jiuquan will expand to around 13 gw. Gansu’s installed wind-power capacity is now the second-largest in the country.

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Highlights

Economy • Gansu’s GDP continues to grow at the double-digit rates seen over the past eight years, reaching Rmb500bn (US$79.4bn) in 2011—the first time it reached the Rmb500bn milestone. GDP growth accelerated to 12.5% in 2011, from 11.8% in 2010, in contrast with the slowdown in the national trend. • The secondary sector grew especially quickly in 2011, by 15.2%, to reach just over Rmb250bn. Growth was driven mainly by the activity of large industrial enterprises. Fixed-asset investment reached Rmb418bn (US$66.3bn), an increase of 40.2%—the fourth-fastest rate of growth in China in 2011. • In 2012, growth in Gansu has accelerated from end-2011, a departure from national trends. The province is relatively less vulnerable to the external environment, as it relies heavily on domestic investment and government support. In the first two quarters of 2012, GDP growth surpassed 12%. As government spending continues at high levels, the Economist Intelligence Unit forecasts a slight acceleration in GDP growth to 13.7% in 2012.

Industry • The fast pace of development in the wind-power sector in Gansu has led to inefficiencies and fears that the sector is overheating, according to the China Electricity Council. Data from the National Energy Administration show that 10 tw hours of wind power went unused in China in 2011, owing to bottle- necks in the power grid, and Gansu was among those with the biggest surplus of power. • The Hexi Wind Power Corridor, covering the prefectures of Jiuquan, Zhangye, Wuwei and Lanzhou, is being developed as a demonstration zone for renewable energy. The plan is part of China’s push to reduce its depen- dence on foreign oil and gas. Gansu is estimated to have the potential to provide 80 gw of capacity, mostly from the Hexi Corridor. In early 2011 a state-owned power enterprise, Huadian, signed an agreement with the provincial government to invest Rmb60bn (US$9.5bn) in the development of regional energy projects over the current five-year plan (FYP, 2011-15) period. • The southern city of Tianshui may see an increase in economic activity, notably in machinery manufacturing, as a result of the establishment of the Guanzhong-Tianshui Economic Zone. The zone was approved by the State Council (China’s cabinet) in 2009 and is one of three western development zones listed in the 11th FYP (2006-10). Although the greater part of the zone lies in Shaanxi province, improving links with a much richer neighbour will bring new opportunities to Gansu. • Several companies backed by the provincial government have run up enormous debts with banks. After regulators announced in October 2011 that some local-government-backed companies would be allowed to defer loan payments, media reports revealed that the Gansu Provincial Highway Aviation Tourism Investment Group was one of four transport infrastructure companies that owed banks a combined Rmb200bn (US$31.7bn). The other three were from Guangdong, Hunan and Sichuan. The four asked

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to defer Rmb34.4bn in interest payments. These liquidity problems are thought to have impeded the progress of some projects. • Gansu is a major recipient of infrastructure stimulus spending. The current FYP calls for the outlay of around Rmb200bn on infrastructure to improve rail and road links between Gansu and neighbouring regions. The railway network will be extended by 5,000 km and 1,600 km of expressways will be constructed. Work has already begun on upgrading the railways between Lanzhou (the provincial capital) and Chongqing municipality and between Lanzhou and Urumqi (the capital of Xinjiang). Construction of the first metro line in Lanzhou is due to start in October 2012; a comprehensive system will be in place by 2020. A number of airports are also being built. However, financial difficulties among some of the rail companies involved are slowing progress, especially on the line linking Lanzhou to Chongqing. • Adverse weather conditions continue to affect economic development. A massive landslide hit Zhouqu County (Gannan prefecture) in 2010, and the Rmb5bn (US$794m) reconstruction effort is scheduled for completion by the end of 2012. A prolonged drought also contributed to the first major sand- storm of 2012, in April; Jiayuguan and Jiuquan were severely affected. Flash floods in August 2012 also affected hundreds of thousands of people, killing several and damaging tourism sites.

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Consumer profile

• Gansu is one of the country’s smaller provinces. The Economist Intelligence Unit estimates that its population in 2011 was just 26.5m, of whom 34% lived in urban areas. • Gansu’s urban disposable income per head in 2011, at Rmb14,989 (US$2,379), was among the lowest in China. Incomes grew by 13.6%, much faster than the 10.5% growth recorded in 2010. This probably reflected higher transfer payments. • Rural net income per head grew by 14.2% in 2011 to Rmb3,909, slightly slower than the 14.9% recorded in 2010. The government’s anti-inflation efforts resulted in more stable prices for agricultural products, which could have had some impact on income growth. • Urban consumption levels are relatively low. In 2011 urban expenditure per head was Rmb11,189, an increase of 14.2% on the previous year. Just over one-third of this was spent on food. Rural consumption expenditure per head was Rmb3,665, up by 24.6%. • In April 2012 Gansu’s official minimum wage was raised by up to 36.5%. The new monthly rates range from Rmb980 to Rmb860. However, the province still has some of the lowest minimum wage levels in China. • Since 2009 the province has invested Rmb17.8bn (US$2.8bn) in medical reform. Infant mortality dropped from 14.8% in 2008 to 8.3% in 2011, and residents’ health spending as a proportion of total health expenditure decreased from 44% in 2008 to 35% in 2011. In the same period, funding for the province’s basic health services increased from Rmb15 per head to Rmb25. In the province's general budget for 2011, health expenditure reached Rmb14.3bn, up by 42.6% year on year.

Gansu: GDP and population by city, 2010 (% of total)

GDP by city Population by city

Lanzhou, 26.7 Lanzhou, 17.5 Other, 40.0 Other, 41.2

Tianshui, 12.0

Jiuquan, 9.8 Dingxi, 10.2 Tianshui, 7.3 Qingyang, 8.7 Baiyin, 7.6 Qingyang, 9.2 Longnan, 9.9

Source: Economist Intelligence Unit.

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National and provincial initiatives Plan Includes Purpose National "Go West" or "Great Western Expenditure on physical and social To prevent further widening of the wealth gap Development Strategy" infrastructure in order to attract investment. between the wealthy coastal provinces and the (Xibu dakaifa) interior western region.

Guanzhong-Tianshui Establishment of an energy chemical base, To increase innovative capacity and Economic Zone cultural tourism base, non-ferrous metals infrastructure; to develop western China. industrial base and agricultural products processing base. Much of the zone, and thus the development funding, is in neighbouring Shaanxi province. Provincial Agricultural industrialisation Creation of specialised regions for particular Development of agricultural sector and general leading enterprise incubation agricultural products, development of branded reduction of poverty. programme agricultural products and increased use of agricultural technology.

Centrally driven take-off Efforts to drive development from the centres To cultivate new industries. (Zhongxin daidong, liangyi qifei) of Lanzhou and Baiyin; the development of coal, oil and natural gas capacity in the east and wind and solar energy in the west.

Four realisations and three Strengthening the “three supports” of To strengthen the economic and social supports industrial training, human resources development of Gansu province. (Sizhua sanzhicheng) development and infrastructure to realise the four goals of project development, innovation, harmonious society and party strength.

Industrial province strategy Encouragement and protection for industrial To support industrial development in line with (Gongye qiangsheng) development through support for the Go West policy. entrepreneurial innovation, business expansion, technological innovation, energy conservation and multi-channel financing, while implementing preferential tax policies.

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Industry

Recent projects Company Activities Investment value Emerging sectors Renewable energy China Datang (China) and Building China’s first 10-mw photovoltaic (PV) power generation plant; Rmb300m Baoding Tianwei (China) first phase of the project completed in late 2011. (Jiayuguan) (US$48m) Renewable energy China Huadian (China) Signed a strategic co-operation framework agreement in Mar 2011 with Initial investment the Gansu provincial government to build a PV base and increase of Rmb60bn investment in the energy sector over the period to 2015. (Jiayuguan) (US$9.5bn) Renewable energy Sinovel Wind Group Facility will produce 5-mw wind turbines. (Jiuquan) Rmb280m (China) (US$44.4m) Renewable energy CECEP, CNOOC, CGNP Yumen County City government signed a co-operation agreement with — and Asia New Energy CECEP, CNOOC, CGNPC and Asia New Energy Investment in Aug 2011 to Investment (all China) develop wind-power resources of 3,200 mw. (Jiuquan) Renewable energy China Guangdong Nuclear 18-mw solar project was connected to Gansu’s electricity grid in early — Power Company and 2012. (Dunhuang County City, Jiuquan) Jinko Solar (China) Renewable energy LDK Solar (China) Signed agreements in Jun 2012 with three prefectures to build a — 200-mw solar energy plant in each city. (Jiuquan, Jiayuquan and Zhangye) Major sectors Agriculture CNSGC-DEKALB Seed Construction of a seed-processing centre started in Sep 2011. Rmb450m (China) (Linze County, Zhangye) (US$71m) Building materials Sinoma (China) Dry-process cement facility to produce 2m tonnes/year of high-quality Rmb600m cement. (Baiyin) (US$95m) Building materials Gansu WangJian (China) Concrete production facility with annual output of Rmb80m. (Tianshui) Rmb50m (US$8m) Chemicals China National Chemical Building a series of petrochemical, speciality plastic and polycrystalline Rmb50bn Corporation (China) industrial facilities according to a five-year investment agreement. (US$7.9bn) (Lanzhou) Chemicals Tangshan Guotai Real The company signed an agreement with the Yumen government in 2011 Rmb650m Property Development over a calcium carbide processing project. (Jiuquan) (US$103m) (China) Food & beverage Lanzhou Huanghe Building an industrial park principally for beer production, to Rmb3bn Enterprises (China) contribute a total of Rmb2.8bn in sales revenue within three years. (US$476m) (Lanzhou) Food & beverage Uni-President (Taiwan) Setting up a subsidiary in the city, focusing on tea drinks and juice Rmb237m beverages; construction started in Apr 2011. (Baiyin) (US$38m) Logistics Gansu Ruixin Real Estate Establishment of Gansu Ruixin International Commercial City, Rmb2.9bn Development (China) a warehousing logistics park. (Yuzhong County, Lanzhou) (US$460m) Equipment SELI (Italy) Signed an agreement in Jul 2010 to set up base for making tunnel Rmb1.5bn drilling machinery. (Lanzhou Hi-Tech Industrial Development Zone) (US$238m) Plastics Goody Plastic (China) Commenced first-phase operations of its plastic pipe production base Rmb500m in Oct 2011, with annual capacity eventually to reach 50,000 tonnes. (US$79m) (Dingxi) Steel Gansu Phoenix Hill Real Construction of a steel industry centre began in Apr 2011. (Lanzhou) Rmb4.3bn Estate Development (US$682m) and China Minmetals (both China)

Industrial structure Like other parts of the western interior, Gansu has benefited from the state’s long-running drive to develop the west. Building on a low economic base, Gansu, like the rest of the western regions, outperformed the more mature economies of the eastern seaboard in 2011. The secondary sector is the major driver of economic growth in the province. It accounted for 50.3% of GDP in 2011, against 13.5% for the primary sector and 36.2% for the services sector. Heavy industry dominates the economy. The mining and metallurgy sectors make up the bulk of the local economy and are dominated by state-owned enterprises. Furthermore, these enterprises are mostly considered high in energy consumption and pollution emissions. Gansu’s Jinchuan Group is the largest nickel producer in Asia and a global player in the metals industry. The state-owned company has announced its intention to build up its capacity as a transnational mining group, and to this end it has obtained a credit facility of Rmb5bn (US$794m) to finance its expansion both within the country and abroad. The company is investing in mines and technological upgrading. Gansu’s Baiyin Nonferrous Group is enhancing its production capacity with the aim of doubling its metals production to 650,000 tonnes in the run-up to a possible listing on the Shanghai Stock Exchange in 2013. Its output amounted to 325,000 tonnes in 2011.

Industrial trends The renewable-energy sector has been expanding rapidly, with Gansu now home to China’s largest wind-energy development zone. The Hexi Wind Power Corridor was initially established to harness the abundant wind resources of Jiuquan (specifically the counties of Yumen and Subei). The country’s first 10-gw wind-power base (Gansu Jiuquan Wind Power Base) is situated in the Hexi Corridor. By 2010 the wind and solar energy industry and the wind and solar equipment manufacturing industry accounted for nearly 7% of the province’s industrial value-added output. Six nationally approved wind-power mega-projects are under way, and will make a significant contribution to China’s goal of having 100 gw of installed wind capacity (accounting for 3% of national electricity consumption) by 2020. The second phase of the Jiuquan project will increase installed capacity by 7.55 gw upon completion in 2015. The first phase was concluded in 2010, with installed capacity of 5.16 gw, and total capacity is to be raised to 20 gw by 2020. Investment in the first two phases of the project is estimated to total Rmb120bn (US$19bn). Local officials hope to expand capacity at Jiuquan to 40 gw by 2020, and for the project to become the world’s largest wind-power base. However, such lofty ambitions are leading to fears that the industry is overheating and not addressing inefficiencies.

Gansu’s terrain is also suitable for solar energy development. With annual average sunshine time of 3,362 hours, the county city of Dunhuang, in Jiuquan prefecture, is considered a world-class solar-rich region. At the same time, convenient power transmission in the region facilitates the development of photovoltaic (PV) grid connection systems. With plans for 5,000 mw of solar capacity to be installed by 2015, the province has China’s most ambitious solar targets. In 2012 the country’s four major energy companies signed agreements to construct PV power generation projects (all in Jiayuguan), with the combined capacity to generate 2,200 mw of solar power. Solar power projects currently completed or under construction in Gansu exceed 100 mw, or 13% of China's total solar capacity of 768 mw. The tourism sector holds some promise. Its contribution to Gansu’s GDP in 2011 was 6.65%, up by nearly 1%, as more than 58m domestic tourists visited the province. The figure for foreign arrivals was much smaller, at just 91,100. An airport is under construction in Xiahe County in Gannan, the location of a famous Tibetan temple, Labrang Monastery. Gansu is also developing its Silk Road (or Silk Route) tourist sites, with the help of a US$38.4m soft loan from the World Bank. The provincial government has stated that it will actively support the construction of tourism infrastructure and the promotion and development of key tourism products with an investment of Rmb500m. Domestic tourism revenue reached Rmb33.3bn (US$5.3bn) in 2011, up by 40.1% on the previous year. A new direct weekly flight between Taiwan and Lanzhou, which started in January 2012, should also facilitate tourism in the region.

Infrastructure

Recent projects Type Link Completion Recently completed Air Jiayuguan Airport expansion 2010 Air Jinchang Jinchuan Airport opened for traffic Aug 2011 Air Zhangye Ganzhou Airport opened for traffic Nov 2011 Road Jingyuan Yellow River Bridge (Baiyin prefecture) 2011 Road Xifeng-Changqingqiao-Fengxiang Expressway 2011 Due for completion Air Xiahe Airport Oct 2012 Rail Lanzhou-Urumqi (Xinjiang) railway 2014 Rail Lanzhou-Chengdu railway 2014 Road Yingpanshui-Shuangta Expressway (links Baiyin with Wuwei) 2014 Rail Lanzhou-Chongqing railway 2015 Metro Six lines, connecting Lanzhou’s city centre with Lanzhou Zhongchuan Airport, 2020 Yuzhong County and Gaolan County Politics Position Name Age Native province Previous position Party secretary Wang Sanyun 60 Shandong Governor of Anhui Governor Liu Weiping 59 Heilongjiang Deputy governor of Gansu The Gansu government continues to face sporadic unrest. In November 2008 the then governor, Xu Shousheng (now governor of Hunan province), was forced to sit down with protesters—a rare move for a provincial leader— following a massive riot in the Wudu District of Longnan prefecture. The riot, one of the largest seen in the province in years, was spurred by local discontent with the provincial authorities. Hundreds of students protested in Xiahe County (Gannan prefecture) in April 2009 and more flare-ups took place in 2010. Mr Xu’s successor, Liu Weiping, has been more fortunate: no major incidents have been reported since he took over the governorship in January 2011. Mr Liu was head of the Gansu party school between January 2007 and July 2010. Earlier he was a deputy governor of Qinghai, where Tibetans form a sizeable minority. Ethnic tensions in the province have been suppressed following the protests in ethnic-Tibetan areas in 2008, and Labrang Monastery has reportedly come under government surveillance. A 19-year-old female student in Gannan was reported to have self-immolated in protest against a local move in early 2012 to ban general education in the Tibetan language, although the province’s education policy supports bilingual education for ethnic minority areas. Further cases of self-immolation among Gansu’s ethnic Tibetans have continued in 2012. The government is known to have blocked foreign travellers from visiting parts of the countryside from time to time. Although the Jiuquan wind-power base was approved by the National Development and Reform Commission (NDRC), China's top economic planning body, tensions between the national and local governments surfaced during implementation. In March 2011 the Jiuquan energy bureau announced that potential bidders for the second phase of the wind project would be subject to performance indicators and that preferential treatment would be

given to locally manufactured equipment. Shortly after, the National Energy Administration (NEA, an arm of the NDRC) issued a statement noting that the construction had yet to receive state approval, and that local governments should not interfere with the wind-energy market. After the notice was ignored at the local level, the NEA issued a second notice severely criticising the actions of the city energy bureau. This exposes a common occurrence in rapidly developing industries, whereby local authorities seek to bypass state approval and bidding is restricted to protect local interests. In July 2011 the NEA finally gave the green light for the second phase development of the Jiuquan wind-power base, with approval for the building of a 3,000-mw wind-power project. When completed, possibly by the end of 2012, the project will increase Jiuquan’s wind-power generation capacity by 55%. Damage to the province’s infrastructure as a result of bad weather has raised questions over the quality of construction. In May 2011 torrential rains caused severe subsidence at the newly opened Tianshui-Dingxi Expressway, which cost Rmb8.7bn (US$1.4bn) to build. The incident raised public ire and led to an investigation. As a result, several officials with the provincial transport bureau were punished and construction contractors were fined However, the expressway suffered further damage after a spell of bad weather in August 2012, according to a local media report.

Provincial cities

Key city data, 2010 Populationa Metropolitan GDP per heada Annual wages Income per Exports Utilised FDI (m) populationa (m) (Rmb) (Rmb) head (Rmb) (US$ m) (US$ m) Jinchang 0.6 0.3 37,428 42,104 17,679 220 1 Jiayuguan 0.3 0.3 63,384 46,948 16,742 48 n/a Jiuquan 1.0 0.2 41,878 33,304 15,104 55 105 Baiyin 1.8 0.4 17,111 34,374 14,213 80 n/a Lanzhou 4.6 3.5 23,845 33,966 14,062 913 20 Qingyang 2.4 0.1 14,734 28,590 12,453 56 n/a Pingliang 2.0 0.2 11,581 31,546 11,766 15 n/a Wuwei 1.8 0.3 12,632 21,969 11,551 13 2 Tianshui 3.2 0.4 9,466 23,936 11,507 162 8 Zhangye 1.2 0.3 17,327 23,009 10,855 27 n/a Dingxi 2.7 0.1 5,779 27,324 10,790 7 n/a Longnan 2.6 0.1 6,506 26,433 10,623 4 n/a Gannan n/a n/a n/a 29,234 10,149 22 n/a Linxia n/a n/a n/a 28,725 8,260 16 n/a a Economist Intelligence Unit estimates. Source: Gansu Statistical Yearbook 2011.

Forecast summary 2011 2012 2013 2014 2015 2016 GDP Nominal GDP (Rmb bn) 500.0 567.1 666.0 773.8 887.6 1,007.3 Real GDP growth (%) 12.5 13.7 13.4 12.1 11.2 9.9 Expenditure on GDP (Rmb bn) Private consumption 176.6 195.9 220.0 245.7 273.8 304.0 Government consumption 106.4 126.2 148.0 172.2 196.3 221.2 Gross fixed investment 266.8 306.4 351.2 406.4 465.2 529.9 Stockbuilding 15.0 5.0 13.4 17.1 20.2 22.6 Foreign balance -64.8 -66.3 -66.6 -67.6 -67.9 -70.4 Population and income Population (m) 26.5 26.7 26.9 27.1 27.2 27.4 GDP per head (Rmb) 18,844 21,235 24,774 28,600 32,602 36,774 Real wages (% change, year on year) 7.0 7.2 9.1 7.8 8.1 8.1 Prices Consumer prices (av; % change) 6.0 3.4 3.6 3.7 3.2 3.2 Producer prices (av; % change) 11.0 -1.6 8.4 4.9 4.2 4.1 Foreign investment (US$ bn) FDI utilised 0.2 0.2 0.2 0.2 0.2 0.2 External trade (US$ bn) Exports (by location of producer) 1.6 2.0 2.4 2.7 3.1 3.4 Imports (by location of consumer) 6.3 6.0 6.7 7.8 8.9 10.3

Source: Economist Intelligence Unit.

Annual Data 2005 2006 2007 2008 2009 2010 Expenditure per head (Rmb) Urban 6,529.2 6,974.2 7,875.8 8,308.6 8,890.8 9,895.4 Food 2,352.8 2,408.4 2,824.4 3,183.8 3,359.3 3,702.2 Healthcare & medical services 492.2 562.7 564.3 654.8 746.8 828.6 Transport & communications 638.6 703.1 861.5 817.2 894.4 1,076.6 Culture, education & recreation services 942.8 1,034.4 1,058.7 936.3 1,025.5 1,136.7 Rural 1,819.6 1,855.5 2,017.2 2,401.0 2,766.5 2,942.0 Food 347.3 381.1 439.2 555.1 615.9 712.4 Healthcare & medical services 114.0 127.4 149.8 164.7 180.1 203.1 Transport & communications 155.0 174.6 186.2 234.7 237.9 256.7 Culture, education & recreation services 257.9 228.4 208.9 219.9 217.4 238.0 Ownership (Units per 100 households) Urban Cars 0.5 0.7 1.4 2.2 2.5 3.5 Refrigerators 89.1 82.8 87.1 82.5 85.1 85.8 Colour televisions 118.0 115.0 113.7 107.4 108.9 110.0 Personal computers 23.0 28.7 33.1 35.2 38.2 42.9 Mobile Telephones 120.5 143.2 145.5 146.0 152.9 159.6 Rural Cars 0.2 0.9 – – – – Refrigerators 7.1 7.2 10.3 10.9 14.4 18.1 Colour televisions 86.4 89.4 97.2 99.9 103.7 104.0 Personal computers 0.3 0.4 1.1 1.9 2.7 4.4 Mobile Telephones 31.7 42.6 54.6 70.8 95.1 112.4 Domestic investment by sector (Rmb bn) Mining 3.4 4.1 6.1 8.4 10.7 13.6 Production & supply of electricity, gas & water 9.3 12.1 18.9 26.6 42.1 55.5 Construction 4.0 7.3 11.5 13.9 21.2 32.5 Transport, storage & post 13.7 13.6 10.2 11.6 15.5 20.9 Hotels & catering services 0.9 1.1 1.1 1.3 2.1 2.7 Banking & insurance (Financial Intermediation) 0.2 0.4 0.1 0.1 0.3 0.3 Real estate 12.4 11.0 18.8 30.9 35.8 50.5 Education 4.1 2.6 2.1 3.3 5.6 6.8 Health, social security & social welfare 1.2 1.1 1.3 1.4 2.9 4.3 Sectoral trends Building area under construction: Residential (m, sq metre) 32.7 29.2 34.2 64.0 94.9 63.5 Energy consumption: Total (m, tonnes SCE) 43.7 47.4 51.1 53.5 54.8 – Retail trade: Cosmetics (Rmb bn) 0.1 0.2 0.2 0.2 0.3 0.4 Income (Rmb) Urban disposable income per head 8,087 8,921 10,012 10,969 11,930 13,189 Highest 20% 15,337 17,852 19,331 22,692 24,967 27,602 Rural net income per head 1,980 2,134 2,329 2,724 2,980 3,425 Highest 20% 4,198 4,515 4,943 5,841 6,424 7,382

Source: National Bureau of Statistics.

GDP growth in comparable provinces (%) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Gansu 12.3 10.1 10.3 11.8 12.5 13.7 13.4 12.1 11.2 9.9 Qinghai 13.5 13.5 10.1 15.3 13.5 12.4 11.9 11.0 10.2 9.5 Shaanxi 15.8 16.4 13.6 14.6 13.9 13.4 12.8 11.5 10.5 9.6 Av of all provinces 14.6 12.0 11.6 13.1 11.7 10.3 10.7 10.0 9.5 8.8

Note. Provinces are compared with two others either in the same region or with similar development indicators.