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New drives of Wuhan’s economy

Source: hubei.gov.cn 08/02/2016 04:08:54

In the first year of China’s “13th Five-Year Plan” period, Wuhan, a traditional heavy industry base in central China, is shifting to new economic drives, from steel to automobile, IT, life health and intelligent manufacturing, etc.

According to official data revealed on July 21, Wuhan’s economy was steady in the first half of 2016 with local GDP growing 7.6%, 0.9 percent higher than that of national average. >>more info.

The growth came from the steady development of automobile and auto parts industry and electronic information industry, which accounted for 1/3 of Wuhan’s industry.

From steel to automobile and Optics Valley, Wuhan has obtained phased objective in economic structural adjustment.

Steel: no longer the biggest industry

Before 2009, Wuhan Iron and Steel (Group) Corporation (WISCO) was indeed the backbone of Wuhan’s industry. But such situation is changing.

In 2011, Wuhan implemented the “industry multiplication” plan, opening new industrial main battlefields in East Lake Hi-tech Development Zone, Wuhan Economic & Technological Development Zone and six new urban areas.

Industrial restructuring gradually yields results. In 2010, Wuhan automobile industry exceeded steel for the first time, and became a 100-billion industry for the first time. Thereafter, Wuhan added one 100-billion industry per year on average. At present, there are five 100-billion industry in Wuhan, namely, automobiles and parts, electronic information, equipment manufacturing, food and tobacco, energy and environmental protection.

In 2015, the output value of WISCO was 82.593 billion yuan, only accounting for 6.67% of above scale industrial production value in the whole city, ranking 6th. In the first half of 2016, the output value of WISCO declined by 12.8 percent.

Driven by new industries, Wuhan’s economy is growing for several consecutive years. Eight years ago, Wuhan ranked 8th among China’s 15 sub-provincial cities with a regional GDP of 396 billion yuan. In 2015, Wuhan climbed to 3rd in the list with a regional GDP of 1090 billion yuan.

Wuhan seizes the automobile consumption market

In 2015, consumption contributed 66.4% in China’s economy development, becoming the biggest impetus for economic growth. In recent years, cities that adapt to and guide the trend of consumption have witnessed relatively prosperous economy. “Wuhan seizes the automobile consumption market”, said Wang Zhen, chief engineer in Wuhan Economy and Information Technology Commission.

At present, there are five automobile factories operational in Wuhan, including Dongfeng Honda, Citroen, Shanghai GM, DFM Passenger Vehicle and Dongfeng Renault. According to data, in the first half of 2016, these five plants produced a total of 0.79 million vehicles, growing by more than 30%, which was over 20 percent than that of national average.

As introduced, Dongfeng Honda has produced 248000 cars during the first half of 2016, a year on year increase of 54.3%. The output and sales volume of Shanghai GM’s Wuhan base, which was put into operation in 2015, both exceeded 170000 cars, growing by 131% and 147%, respectively.

Despite the slowdown of China’s automobile industry, Wuhan produces and sells more cars than national average, providing a strong support of the city’s economy.

Related: Wuhan's motor output and sales higher than national averages

China Optics Valley: home to Wuhan’s new economy

Wuhan Biolake

In 2001, Wuhan constructed “China Optics Valley” based on its rich science and education resources. After years’ of cultivation, Optics Valley boasts advantages of three major strategic emerging industries, namely, IT, biological health and intelligent manufacturing.

IT: YOFC increased by 52.74 in the first half of 2016 with optical fiber and perform ranking 1st worldwide and optical cable ranking 2nd worldwide. FiberHome Technologies Group is so far the only company in the world that is capable of carrying out comprehensive research and development in the fields of optical communication system, optical fiber and cable, optoelectronic device.

Biological health: a batch of Wuhan biological enterprises such as Humanwell and SunHY are growing rapidly. The industrial scale of Wuhan Biolake ranked 2nd among China’s 108 bioindustry bases. The general income of enterprises in Biolake is estimated to reach 100 billion yuan.

Intelligent manufacturing: Optics Valley has gathered over 500 key and high-end equipment manufacturers including Siemens, Schneider, etc. It enjoys advantages in fields of numerically-controlled machine, smart power grids, wind power equipment, etc. In the first half of 2016, Guide Infrared increased by nearly 20 percent and HGTECH grew by 23.13%.

Related: 600 domestic and overseas bio-pharmaceutical enterprises gather in Wuhan

(hubei.gov.cn by Mao Huifang)