The slow down of Chinese economy has been making headlines around the world, however there are a number of Chinese emerging cities where the economy is not only growing, but by double digits and accelerating.
Guiyang is the capital of Guizhou province in Southwest China. Guizhou has traditionally been a poor province with an economy heavily relying on state owned enterprises. With the population of 2.8 million, it is now fast becoming a hub of operations for Chinese telecom companies and “Big Data”. Private companies are also following the lead with Alibaba setting up cloud-computing facilities in the city.
Guiyang also serves as an important transportation hub for South Western China: the Guiyang–Guangzhou High-Speed Railway began operations in December 2014. Three more high-speed rail lines to Chongqing, Kunming, and Changsha will commence operations within the next few years. Whilst disposable income per person is currently around USD 5,100/year, almost half of China’s average of USD 9,800/year, this is quickly rising..
Major Industries:
Phosphorus-coal-based chemicals
The city of Guiyang is one of China's three largest phosphate ore bases, with phosphate ore reserves of 428 million tons and more than 70 percent of the country's phosphate ore. The ore reserves in Kaiyang county alone amount to 390 million tons, or a third of the nation’s high-grade ore. The high-grade phosphorus pentoxide ore accounts for 78 percent of China's total. It also has three chemical industry bases -- the Kaiyang Phosphorus and Coal Chemical Ecological Industrial Demonstration Base, Xifeng Phosphorus and Coal Chemical Ecological Industrial Demonstration Base, and Qingzhen Coal Chemical Base. Total output value of the phosphorus-coal-based chemical sectors in Guiyang, in 2011, was 26.3 billion yuan ($4.29 billion).
The phosphorus-coal-based chemical industry is focused on improving output and efficiency, combining its phosphorus, coal, water, and electricity resources.
Aluminum and aluminum processing
With proven reserves of 424 million tons of bauxite resources the province is a major Aluminum producer. Leading enterprises and producers are: Aluminum Corp of China (Chalco), Guizhou Aluminum Industrial Base, Galuminium Group and R&D institutes such as the Guiyang Aluminum Magnesium Design and Research Institute and the Chalco Guizhou Branch. The industry can produce 3 million tons of bauxite annually, as well as 1.2 million tons of alumina, 450,000 tons of electrolytic aluminum, 300,000 tons of carbon for aluminum use, 50 million tons of refined aluminum, and 200,000 tons of high purity aluminum.
Developing the downstream aluminum industry is a current focus in the province. The start of the Chalco aluminium strips project in 2010, with total amount of 150,000 tons and a total investment of 700 million yuan, marked a significant breakthrough in the aluminum deep processing industry in Guiyang.
Automotive
In 2015 Geely Holding Group Co began construction of its new-energy car manufacturing base in Guiyang. The 0.6-square-kilometer factory consists of a modernized production line of punching press, welding, painting and assembly, and will make methanol-powered automobiles. Geely has made a total investment of around 10.2 billion yuan ($1.6 billion) and expects the first car off the production line in 2017.
Tobacco and food industry
Guiyang's Cigarette Factory, a subsidiary of the China Tobacco Guizhou Industrial Co, is a leading provincial enterprise. In the food sector, Guiyang has 47 food companies, covering poultry, chili peppers, corn, soybeans, rapeseed, peanuts, ginger, onions, and garlic, and 10 other product categories, with hundreds of types of food.
The Nanming Food Industry Park and Wudang Food Industry Park are leaders in the food sector in Guiyang. Work on the Longdongbao Food and Light Industry Park, on a 903 hectare space, began in September 2010 and will be completed in 2017. It is expected to pull in 13.6 billion yuan in investment. Work continues on the Wudang Food Industry Park and is expected to bring in nine enterprises during Phase I, and have 1 billion yuan in output value.
Equipment manufacturing
Guiyang's equipment manufacturing sector is rapidly and becoming a pillar of industry. Guiyang has a comprehensive array of mid-sized to large equipment manufacturers. The Guizhou Jonyang Kinetics Co is a domestic leader in hydraulic excavators, Guizhou Xianfeng Industrial Co is one of the Top 10 producers of large slide grinders and forging equipment and the Guiyang Xintian Oetech Co. focuses on the production of high-tech optical instruments. With its abundance of skilled workforce R&D capacity and production strengths, Guiyang has been able to build an industrial capacity that covers seven equipment manufacturing industries. It has industrial clusters in construction machinery, automobiles and automobile parts and electronic components.
Logistics
With the support of the municipal government, Guiyang's logistics sector has grown and is playing an important role in the local economy. Guiyang is headed to become a regional logistics center with it`s two logistics hubs -- the Guizhou Mengguan International Logistics Center and Longdongbao International Aviation Logistics Park (and three regional logistics parks: Zhazuo Logistics, Qingzhen Logistics, and Jinhua Logistics). It further expects to build: cargo logistics, more distribution centers, dry ports and a bonded zone.
Pharmaceuticals
Guizhou province is known for its herbal medicines and has turned its pharmaceutical sector into a pillar of industry over the past decade It now has 74 pharmaceutical companies and an industrial structure that covers a diverse range of biological products, Chinese patent medicines, pharmaceutical chemicals, medical consumables, and Chinese medicinal decoctions.
New Tech & Telecoms.
China Telecom will invest 4-billion yuan ($469 million) in optical network construction, cloud computing, and big data development over the next three years. The aim being to turn Guiyang into a major data center for China: the municipal government sees the big data industry as key to its future economic development and has already established preferential policies for big data entrepreneurs.
The China Telecom Cloud Computing Guizhou Information Park covers an area of (33.3 hectares) in the Gui'an near the city. The first phase of the park , already completed, comprises eight datacentres, one power centre and two support centres. It is expected to accommodate one million servers.
By the end of 2017, cities and towns in the province are expected to have 100-megabyte broadband coverage and a fourth generation network in rural and urban areas and, at the same time, the two will cooperate in a Guiyang cloud computing platform, a municipal data sharing platform, and a Guizhou Internet exchange center.
Preferential policies
1. Encouraged industries located in West China are levied corporate income taxes at a discount of 15 percent. Resource taxes for those enterprises are levied via ad valorem instead of specific duties.
2. Qualified high-tech enterprises located in the high-tech industrial development zone approved by the State Council are levied corporate income taxes at a discount of 15 percent.
3. Enterprises established in the different districts and industrial development zones within Guiyang can enjoy local preferential policies.