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China - Peoples Republic Of GAIN Report – CH9621 Page 1 of 25 THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary - Public Date: 11/24/2009 GAIN Report Number: CH9621 China - Peoples Republic of Post: Guangzhou Zhuhai, South China’s city of romance . and more Report Categories: Market Development Reports Approved By: Joani Dong, Director Prepared By: May Liu Report Highlights: Zhuhai is touted as a romantic city because of its seaside beauty. But the place is more than just looks and proximity to Macau and Hong Kong. It’s one of China’s five Special Economic Zones and transportation and logistic hubs. It’s where the Aviation and Aerospace Exhibition is held and last year exhibited the Shenzhou 7 orbital module, famous for the first Chinese space walk. What’s more, Zhuhai is a market for U.S. agric ultural products in the retail sector and has links in the American swine sector. Its growth in the retail, restaurant and tourism sectors point to niche opportunities for U.S. agricultural products. This tiny, yet mighty city of 1.4 million is open for business. UNCLASSIFIED USDA Foreign Agricultural Service GAIN Report – CH9621 Page 2 of 25 Includes PSD Changes: No Includes Trade Matrix: No Annual Report Guangzhou ATO [CH3] [CH] Table of Content UNCLASSIFIED USDA Foreign Agricultural Service GAIN Report – CH9621 Page 3 of 25 I. Zhuhai Overview Zhuhai is known as a romantic city, clean and attractive, young and energetic. It is a relaxing place with rich natural resources; a population mixed with Macau, Hong Kong and expat transplants; and free trade zone open policy favorable for the younger generation and trade businessmen. At least this is the city image that the local government tries to promote. Known as a “City of Islands,” Zhuhai has 146 islands. It occupies 2,955 miles (7,653 square kilometers), and the coastline is 429 miles (691 kilometers) long. The permanent population is over 1.4 million. In 2008, GDP was US$14.5 billion (RMB99.2 billion), up 12.4 percent from 2007. Total retail sales reached US$5.2 billion (RMB35.9 billion) in 2008, up 19.3 percent from 2007. Wholesale and retail revenues were US$4.4 billion (RMB30.5 billion), up 18.9 percent from 2007. HRI sector revenue was US$0.8 billion (RMB5.4 billion). Per capita food consumption was 38.6 percent consumption expenditure. Zhuhai is one of the first special economic zones of China. There is a Free-Trade-Zone and a Zhuhai-Macau Cross Border Industrial Zone. In recent years, the government has focused on key sectors such as education, retail, tourism, and clean, high-technology as well as logistic sectors. Electronics is one of the major industries. Zhuhai is a hub for printer accessories. There are three administrative districts in Zhuhai: Xiangzhou, Jinwan and Doumen. Xiangzhou District is Zhuhai’s central urban area. The other two are new districts. Zhuhai airport is located in Doumen. Jinwan was set up in 2001. It has plans to develop electronics, agriculture, golfing tourism and Gaolan Port construction. Doumen, once belonged to Zhongshan and became part of Zhuhai in 2001. It is known for its sugarcane production and plenty of seafood products. Zhuhai airport is now located in Doumen district. There are over 50,000 high-level university graduates studying in branch universities in Zhuhai. These students have better education and are open to western culture and lifestyle. Though Zhuhai is located in the south of Guangdong province by the western and southern banks of the Pearl River Delta, Zhuhai acts as one of the central cities in the Pearl River Delta, according to the general urban plan approved by the State Council. It has a pivotal geographic location and has become a regional hub for transportation and logistics. UNCLASSIFIED USDA Foreign Agricultural Service GAIN Report – CH9621 Page 4 of 25 It is bordered with Macao to the south, 87 miles from Guangzhou to the North, and 36 miles away from Hong Kong. Neighboring cities include Jiangmen, Xinhui, Taishan, Enping, Kaiping to the west; and Zhongshan to the east. Zhuhai is one of the China’s cleanest and prettiest cities. The city received numerous awards for its excellent ecological development: National Model City for Environment Protection; National Ecological New buildings along Lovers' Avenue Model City; one of the Top 40 Resorts; Best under Practices in improving the living threat of typhoon (Source: ATO Guangzhou) environment by UN Habitat; Happy city and Harmonious city. The climate in Zhuhai is mild subtropical maritime climate. Annual average temperature is 72.3° F (22.4°C). However, in summer, typhoons may come calling. Zhuhai is also famous for its golf clubs and hot springs. Ocean Spring Resort and The Imperial Hot Spring Resort provide spring leisure and health-care services to visitors throughout the country. Other tourism attractions include fishing, promotional events activities and expositions. As a result, its natural charm, recreational events and convenient transportation system attract tourists from Japan, Korea, Hong Kong, Macau, South Asian countries as well as tourists from other cities of Guangdong throughout the year. In 2008, Zhuhai received 8 million overnight visitors, up 6.6 percent from 2007. This reflects over two million visitors from Hong Kong and Macao as well as overseas guests. Tourism revenues reached US$2.2 billion (RMB15.5 billion), which accounts for 15 percent of total GDP in Zhuhai. Foreign currency revenue was about US$948 million, up five percent from 2007. UNCLASSIFIED USDA Foreign Agricultural Service GAIN Report – CH9621 Page 5 of 25 Fisher Girl greets tourists (Source: ATO Guangzhou) In brief, Zhuhai has made progress in economic development due to several driving factors: natural resources, advantageous geographic location; open policy; prosperous retail and tourism development; fast infrastructure building as well as expanded port facility projects. Table 1: Zhuhai at a glance (2008) Index Zhuhai at a glance 1. City area 2,954 sq. miles (7,653 square kilometers) 2. Coastline 429 miles long (691 kilometers) and 146 islands 3. Population 1.45 million 4. GDP In 2008, US$14.5 billion (RMB99.2 billion); per capita GDP reached US$9,733 5. Tourists over night 8 million in 2008, up 6.6 percent from 2007, of which 2 million were from outside China according to official statistics 7. Total Foreign Trade US$39.9 billion, up 21.5 percent. Total imports reached US$21.4 billion; total exports were US$18.5 billion. 8. Major Agricultural Total grain output was 57,000 tons. Sugarcane output was 250,100 Products Outputs tons; fishery production was 183,000 tons, up 4.6 percent; meat production was 28,841 tons, up 1.8 percent 9. Climate Annual average temperature was 72.3°F (22.4°C) ; location : N Latitude 21 48’ to 22 27’ E longitude 113 3’ to 114 18’ 10. Per capita annual Urban residents US$3,080 (RMB20,949) in 2008 disposable income 11. Administrative Xiangzhou, Jinwan, Doumen. districts (Source: ATO Guangzhou) UNCLASSIFIED USDA Foreign Agricultural Service GAIN Report – CH9621 Page 6 of 25 II. Transport to Zhuhai, accessible by air, road, rail and river Zhuhai is well connected by air, road, rail and river. Tourists and business travelers can easily access Zhuhai quickly, safely and comfortably. 1) Airport connection to downtown and neighboring cities will facilitate tourism Around Zhuhai, there are five airports within two hours drive: Zhuhai Airport (one hour), Hong Kong Airport (one-and-a-half hours), Macau Airport (40 minutes), Guangzhou Airport (two hours), Shenzhen Airport (two hours) Zhuhai airport is located in Doumen district. It is an hour’s ride from downtown. As one of the best-designed airports in China, it has opened 32 domestic airlines including servicing by China Southern and Hainan Air. However, it is not open to international flights and does not have a good highway connection to downtown. For years, travelers and visitors have complained that the highway connection from the airport to Zhuhai and other neighboring cities were poor. Recently, a construction plan was made to build the airport expressway. It is estimated that a total of US$ 573 million (RMB3.9 billion) investment would be necessary. The highway will carry four lanes, and the total length will be 16.1 miles (26 kilometers). Once completed, it will only take a half hour’s drive from downtown to the airport. What’s more, it will only take one hour to reach neighboring cities such as Zhongshan, Jiangmen, Xinhui and less than two hours from Taishan and Kaiping. As a result, Zhuhai airport will radiate to more areas in the western bank of the Pearl River. 2) Expressways link to other cities, reduce transport time and facilitate trade There are several expressways that connect Zhuhai to other places. These linkages help facilitate trade and transportation between Zhuhai and other cities in China. Jing-Zhu Express: Connects the east region of Zhuhai to major cities in China through Beijing Jiang-Zhu Express: Jiangmen to Zhuhai express, connects the west bank of the Pearl River Delta and Zhuhai Tai- Ao Express: Connects Macau, Zhuhai with inland cities through Taiyuan, Shanxi Province. Yuexi Coastal Express: Connects the north of Zhuhai with other cities in Guangdong province UNCLASSIFIED USDA Foreign Agricultural Service GAIN Report – CH9621 Page 7 of 25 3) Railways under construction to strengthen logistics and transportation An intercity light rail is under construction. The total length is 71 miles (114.3 kilometers), connecting Guangzhou, Foshan, Zhongshan, Jiangmen and Zhuhai and should facilitate passenger traffic transportation in the Pearl River Delta within an hour’s ride.
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