Hangzhou, an important central city of Yangtze River Delta and a transportation hub in Southeast China, is the capital city of Zhejiang Province and also the political, economic, scientific, educational and cultural center of the whole province.
Located in the Yangtze River Delta region, Hangzhou is one of the most developed, most dynamic and most potential areas in China and is rapidly rising as the world’s sixth largest city agglomeration.
“Qiantang is prosperous since the ancient times”, so the economy of Hangzhou has experienced a long history and has owned a unique economic model and industrial features. In 2015, the city’s GDP amounted to RMB 1005.358 billion yuan, an increase of 10.2% over the previous year in comparable price. GDP per capita was RMB 112,268 yuan, an increase of 9.1%, which reached USD 18,025 upon the 2015 average exchange rate published by the state. At the same time, the fiscal revenue continued to grow rapidly, and the total fiscal revenue of the city reached RMB 223.875 billion yuan in 2015, an increase of 11.0% over the previous year, including RMB 123.388 billion yuan of local fiscal revenue, an increase of 9.8%.
During “the 12th Five-Year Plan”, Hangzhou has become the destination for various industries and capital investment. Hangzhou had 2,308 newly-approved foreign-funded enterprises, while the foreign investment in actual use was USD 28.406 billion, which already exceeded the target of “accumulates to break USD 25 billion in five years”, representing an increase of 69.7% compared with “the 11th Five-Year Plan”.
In 2015, Hangzhou approved 475 foreign direct investment projects with USD 7.113 of actual foreign investment, exceeding USD 7 billion for the first time, and ranked the first in the province for 9 consecutive years, accounting for around 40% in the provincial proportion, and also has been the forefront in the national deputy provincial cities. Service industry attracted USD 5.202 billion of foreign investment, concentrated in the fields of information software, financial industry and business services.
In 2015, the city’s import and export trade was USD 59.339 billion, including USD 14.875 billion of import and USD 44.465 billion of export.
In 2015, the city’s service outsourcing contract amount was USD 7.502 billion with USD 6.970 billion of execution amount, of which the offshore service outsourcing contract amount was USD 5.524 billion with USD 5.194 billion of execution amount.
In 2015, the volume of investing abroad achieved USD 4.049 billion, including USD 2.649 billion of Chinese investment. By the end of 2015, the city has approved 1,341 projects of investing abroad in 96 countries and regions.
Vibrant economy and good investment environment of Hangzhou has drawn investors around the world and attracted the world’s elites to come to the city for living, doing business and investing, to realize their own “Chinese Dream”. By the end of 2015, 112 Fortune 500 enterprises have invested 188 projects in Hangzhou. GE, Shell, Ford, Panasonic, Pfizer, Sanofi and Toshiba have invested and started business in Hangzhou. Investment projects of the Fortune 500 enterprises mainly focused on advanced manufacturing industry, the biomedicine industry and financial services.
During “the 13th Five-Year Plan”, Hangzhou will focus on creating one trillion-level information economy cluster to vigorously develop the information industry， and 6 one-hundred-billion-level industry clusters, including cultural creativity, financial services, travel and leisure, health, fashion and advanced manufacturing industries.
Hangzhou vigorously develops the tertiary industry, adjusts and optimizes the secondary industry, stably improves the primary industry, and actively promotes the coordinated development of these three industries. In 2015, the city’s added value of the primary industry was RMB 28.769 billion yuan, an increase of 1.8%; RMB 391.060 billion yuan for the secondary industry, an increase of 5.6%; RMB 585.529 billion yuan for the tertiary industry, an increase of 14.6%. The industrial structure ratio was 2.9: 38.9: 58.2.
Fields of Cooperation
Under the guidance of the new policy, Hangzhou biomedical industry speeded up industrial restructuring, and achieved rapid growth in major economic indicators. Hangzhou has more than 20 biomedical-related universities and colleges, 22 national and ministerial key laboratories engaged in biomedical research and technology development. Biomedical industry clusters are gradually formed, such as HEDA "new medicine port" Industrial Park, Yuhang biomedical high-tech industrial parks.
New chemical pharmacy is the leading field of Hangzhou medical industry, creating many industry leaders like Hangzhou Sanofi Pharmaceuticals, Hangzhou MSD Pharmaceuticals, Hangzhou Sino-America East China Pharmaceutical Co., Ltd.. Biotech medicine is the key area of development of Hangzhou medical industry, with ABON (Hangzhou) Co., Ltd., Hangzhou Jiuyuan Gene Engineering Co., Ltd. as pioneer companies.
Hangzhou fully implemented the “No.1 Project” of which the main content is to develop information economy and promote the intelligent application, so the information industry sustained a rapid development. In April 2014, Hangzhou was awarded the title of “China Renowned Software City” by the Ministry of Industry and Information Technology.
In 2015, there were 2,008 enterprises in Top 12 core industries of Hangzhou information economy, realizing RMB 524.7 billion yuan of main business income, an increase of 25.2%; value added of information economy was RMB 231.385 billion yuan, an increase of 25%, and the proportion accounting for the city’s GDP rose to 23% from 18% in 2014, while the contribution rate to the city’s GDP reached more than 45%. Information economy has become an important force to support the economic growth, and a new power to guide the industrial transformation and development.
Financial Service Industry
At present, Hangzhou has formed a diversified industries pattern of traditional finance-oriented and emerging finance-supplemented. By the end of 2015, there were 409 Bank, Security and Insurance financial institutions, including 49 branch-level banks, 79 provincial insurance agencies, 5 security companies, 10 futures companies, 4 trust companies, 1 fund company and 1 consumer finance company. In addition to many traditional large banks and insurance companies, such as Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank the People’s Insurance Company (Group) of China, and China Life, many leading enterprises also have been created to lead the industrial development, such as China Zheshang Bank, Bank of Hangzhou, Wangshang Bank, Zheshang Securities, Yong’an Futures and Hangzhou Industrial & Commercial Trust Co., Ltd.