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GDP: 557.8 billion (US$67.47 billion) in 2001.
GDP growth rate: 8.7 percent.
Average GDP per capita: 7,663 yuan (US$927) in 2000.
GDP ratio (1st, 2nd and tertiary industries): 16.1: 50:33.9
Poverty alleviation plan:
At the end of 2000, there were 2.43 million people in rural areas who still need to be further supported by the local government.
The poverty alleviation and development program is to be worked out and executed under the unified guidance of the provincial government based on the programs submitted by township and county governments. The general goal in the coming 10 years is to relieve those people in poverty-stricken areas, helping them to lead a well-fed and warmly clothed life, and to further consolidate the achievements made in those areas where clothing and food problems have been basically solved, so as to attain the final goal of achieving a stable and comfortable life.
Revenues: 44.87 billion yuan (US$5.43 billion) in 2001.
Industrial added value: 224.67 billion yuan (US$27.18 billion).
Foreign trade:
The province has established economic and trade relations with 170 countries and regions. The number of the countries and regions to which the products were exported from the province worth more than 10 million yuan (US$1.2 million) has reached 35. Various cities have established friendly relations with 47 cities of 17 foreign countries. Nearly 60 non-trading enterprises have made investment or set up factories in almost 30 countries and regions respectively.
Foreign investment:
By 2000, the province had utilized progressively a total of US$10 billion of foreign funding; 2,579 foreign funded enterprises have been set up. The foreign invested projects involve energy resource development, communications, telecommunications, raw materials, light and textile industries, machinery, electronics, garments, and farming and sideline product processing as well as service, tourism, city utilities, and real estate and property development. Foreign investors came from about 80 countries and regions, including 26 of the world?ˉs top 500 trans-national firms.
Pillar industries: Chemicals (pharmaceuticals), metallurgy, building materials, machinery and foodstuff.



The key projects for foreign investment:
1. Introduction of foreign capital and advanced practical technologies to develop crop-planting and forestry and fruit-growing industries; to accelerate agricultural comprehensive development and renovation of the average yield and low yield farmland; to introduce improved varieties of grains, and to develop water-saving and dry land crops and to promote the agricultural industrialization.
2. Actively use foreign funds to speed up construction of highways, electric power generation stations, environmental protection projects, economical housing projects and urban public infrastructure.
3. The structural regulation of the chemical (pharmaceutical), building materials, metallurgy and foodstuffs industries will be well done and they will be optimized and upgraded.
4. Foreign investors are encouraged to invest in such projects in the form of capital, advanced technology and equipment as electronic information, new materials, and biological engineering.
5. Actively make use of foreign funds to open more sectors to the outside world of internal and foreign trade, finance, tourism and service and other tertiary industries.
Foreign investors are encouraged to invest in the following projects:
1. New agricultural technology, agricultural comprehensive development, energy sources, communications and important raw materials.
For instance: Reclamation and development of wasteland, waste mountains, and shoals (exclusive of those areas where there are military installations); renovation of farmland with average and low yield; development and introduction of fine varieties and breeds of farming crops, forestry, animal husbandry, and fisheries. Comprehensive development and utilization of coal minerals; and development projects of new energy sources, construction of highways, ports, civil airports and water conservancy facilities; new type building materials and non-ferrous metallic composite materials, industrial plastics and plastic alloys, semi-conductors and specialized photo-electric materials.
2. Projects of high technologies, advanced technologies and new equipment and new materials capable of promoting the performance of products, saving energy and raw materials, promoting economic results and meeting the requirements of the market, that are currently under-produced in the country.
For instance: Manufacturing of high performance welding robots and welding production lines; project of ultrahigh power 50-ton electric furnace; the making of large and medium-sized computers; the manufacture of satellite communications system equipment.
3. Projects that can meet the demands of the international market and promote product upgrading, develop new markets, expand overseas sales and increase the volume of exports.
For instance: Development project of new varieties and new technologies of quality and high yield farming products, such as sugar crops, fruit trees, vegetables, flowers and forage grass; project of printing, dying and after-treatment of industry-use special textile products, high quality artificial chemical fabrics, and superb texture surface materials; and project of new type drugs produced with biological engineering technology.
4. Project of new technology and new equipment by which resources can be used for multiple purposes, or reproduced, and where environmental pollution can be prevented.
For instance: Project of wastewater treatment equipment with a capacity of 142,500 tons a day; project of ecological environment control and construction; project of producing purging agents, catalyzers and other product for purifying the vehicle exhaust gases; project of reproducing resources and comprehensive utilization of resources; project of environmental pollution control and monitoring and testing technologies.
5. Other projects encouraged by state laws and regulations and such projects as are included in the category to be all exported with the permission of the government.
Foreign economic and technological cooperation projects:
1. Construction of Chengde city local railway from Changbaiwan to Shuangfengsi;
2. Construction of an expressway from Shijiazhuang to Cangzhou by the provincial Bureau of Communications;
3. Construction of the section in Hebei of an expressway from Xuanhua to Dadong by the Bureau of Communications;
4. Construction of the second port of Jingtang Harbor Administration;
5. Construction of a berth for 200,000-ton class ships for handling the import of mineral ores at Caohuidian port area, Jingtang Harbor Administration;
6. Expansion of a fishery wharf berth for 5,000-ton class ships by the Qinhuangdao Marine Fishery General Company;
7. Expansion of the production line for 400,000 semi-finished nodular cast iron crank axles of the Cixian Automobile Auxiliary Product Factory;
8. Construction of a molybdenum mine with a daily output of 5000 tons of the Xuanhua County Chang Quan Zhuang gold mine;
9. Development of an iron-zinc mine at Sanyizhuang by Hebei Yangyuan Zhengyang Mining Co. Ltd;
10. Expansion of a factory to produce new type 2 million KVA transformers by the Tangshan City Transformer Factory;
11. Construction of a factory to produce 18 mm zinc-plating copper films with a yearly output of 1500 tons by the Zaoqiang County Jinxing Electronic Material Factory;
12. Construction of a workshop producing gearbox with yearly output of 100,000, and conical helical gears with yearly output of 100,000, for lightweight cars by Hebei Tianye Automobile Group;
13. Expansion of the factory for producing farm-use trucks, yearly output of 200,000, by Tiandong Group Co. Ltd;
14. Construction of large-type plant equipment for city wastewater treatment by Tangshan Qingyuan Environmental Protection Machinery Co;
15. Construction of a factory to produce exterior-fixed wide back view reflectors without blind areas, yearly output of 2 million, by Yongqing County Commercial General Co;
16. Production of semi-conductor refrigerator machines, yearly output one million, by North China Refrigerator Equipment Co. Ltd;
17. Production of infrared gas detector and measurement devices (CO2 gas) in the Qinhuangdao Economic and Technological Development Area;
18. Development of special equipment for producing biological organic fertilizer in the Qinhuangdao Economic and Technological Development Area;
19. Construction of a factory to produce thin walled copper tube, capacity 5000-7000 tons a year, in the Bazhou Economic and Technological Development Area;
20. Production of DSP industrial controllers, capacity of 2000 sets a year, by Yanshan University Industrial Group;
21. Construction of production lines for optical fibers (500,000 km a year) and optical cables (200,000 km a year) in the form of a joint venture with Qinhuangdao Beifang (North) Glass Production Group;
22. Expansion of production of motorcycle batteries, 50,000 a year, by the Fengfan Group;
23. Production of 30 million Ah Ni-H dynamic batteries a year by the Shijiazhuang Baoshi Electronic Group;
24. Production of 1,500 sets a year of optical fibers with Er amplifiers by the Shijiazhuang No.3 Radio Element Factory;
25. Construction of a production line for transparent conductive glass used by color liquid crystal display devices by Qinhuangdao Laicheng Electronics Co. Ltd;
26. Equity rights transfer of the STN type liquid crystal display screen production line of Hebei Liquid Crystal Display Development Co;
27. Construction of a factory to produce 500,000 meters a year of woolen fabric by Hebei Donggao Group;
28. Production of 25000 tons a year of PVC tubes by Hebei Baosuo Group;
29. Construction of a production line for colorful fine packaging by Baoding Jinyan Paper Co. Ltd;
30. Expansion of the production line of high-grade sanitary fittings, one million a year, by Handan Ceramic Group General Co;
31. Production of refined rubber powder in the Cangzhou Economic and Technological Development Area;
32. Construction of a beverages production line, 10,000 tons a year, of Shijiazhuang Datianli Medical Care Foodstuff Co. Ltd;
33. Construction of a factory to annually produce 2 million rare earth ceramic bearings in the form of a joint venture with the Development and Construction General Company in the Shanhaiquan Economic and Technological Development Area;
34. Production of 3,000 tons a year of rare earth permanent magnetic material cohered with Nd-Fe-B permanent magnetic material by Yanjiao Development Area;
35. Production of 15,000 tons a year of acetate fiber of Shijiazhuang Xinyu Sanyang Co. Ltd;
36. Production annually of 30 million non-contact IC cards and 20 million modules in the Beidaihe Economic and Technological Development Area;
37. Construction of animal medicine-producing factory of the Animal Husbandry Administration of Hebei Province;
38. Construction of a biochemical pharmaceutical factory of the Shijiazhuang Hankang Pharmaceutical Development Co. Ltd;
39. Expansion of production to 10,000 tons a year of AKD neutral/ alkali bonding for paper making by Hebei Provincial Forest Products General Co;
40. Production of 3,000 cubic meters a year of crude stones and 10,000 square meters a year of stone planks by Chengde City Yanshan Stone Material Development General Co;
41. Construction of a production line for groove glass, 100,000 square meters a year, by Zhangjiakou Flat Glass Factory;
42. Construction of a flower cultivation base covering 50000 mu of the Agricultural Bureau of Hebei Province;
43. Construction of a flower and tree cultivating center in the Beijing-Tianjin area of the Langfang City Plantation;
44. Construction of a North China propagating nursery center of the Langfang City Ecological Farm;
45. Construction of a 200,000-head meat-type hog-breeding farm of the Gaobeidian live Hog Raising Group;
46. Reconstruction of a 40,000 square meter rare and precious fish-rearing farm of the Tanghai County Balitan Fish Farm;
47. Expansion of the lean-meat-type stock boar farm producing 100,000 heads a year of the Xingtai Weixian Jingwei Fine Strain of Hogs Farming Center;
48. Breeding 100,000 meat cattle by Guyuan County Animal Husbandry Administration;
49. Industrialization of winter dates on 100,000 mu of farmland of Huanghua city;
50. Construction of a grape orchard covering 44,000 mu of the Huailai County Grape Industrial Development General Co;
51. Construction of city water supply facility, 80,000 tons a day, in Langfang Yongqing.
52. Construction of wastewater treatment facility, 100,000 tons daily, in Gaocheng City;
53. Construction of water supply facility for Bada Industrial Park of the Baoding State New and High Technological Industrial Development Area;
54. Construction of five-star ?°Yandu Grand Hotel?±, covering an area of 87356 square meters, by Hebei Guesthouse Group Co;
55. Tourism development at Zushan by Qinhuangdao Tourism Development Co;
56. Development of holiday resort at Nandaihe by Funing County Tourism Administration;
57. Construction of Tangshan City international Seismological Fair Park;
58. Construction of a comprehensive vegetable farm abroad by the Bureau of Agriculture of Hebei Province;
59. Development of serial maize products containing high protein to be constructed abroad by the Bureau of Agriculture of Hebei Province;
60. Cooperative production and cultivation of strawberry seedlings abroad by the Bureau of Agriculture of Hebei Province;
61. Construction of a meat duck farm to be invested in abroad by Renqiu Bureau of Animal Husbandry and Aquatic Products of Hebei Province;
62. Construction of a production line for making 4Q series straw cutting and smashing machine to produce compost, which will be invested in abroad by the Shijiazhuang City Farming Machinery Factory;
63. Construction of a Jihe white hogs breeding farm to be invested in abroad by the Animal Husbandry and Veterinary Research Institute of Hebei Province;
64. Joint construction of a marsh prawn-breeding farm to be invested in abroad with the Aquatic Products Technological Popularization Station of Hebei Province;
65. Joint construction of a Chinese prawn-breeding farm abroad with the Aquatic Products technological Popularization Station of Hebei Province;
66. Joint construction of a fish powder processing factory abroad with the Qinhuangdao Marine and Fishery General Co. of Hebei Province;
67. Joint construction of a fishing corporation together with the Qinhuangdao Marine and Fishery General Co.;
68. Construction of a production line for making suspended fertilizer application and sowing machines abroad with the Shijiazhuang City Farming Machinery Factory;
69. Construction of a jean cloth and garment making factory by Qinhuangdao City Color Weaving and Textile General Co.;
70. Construction of a production line for producing woolen fabrics abroad by the Baoding Tianxiang Group Co.;
71. Construction project abroad to be contracted by the Hebei Construction Group Co. Ltd.;
72. Construction of a trailer-manufacturing factory abroad by the Zhangjiakou Trailer General Factory of Hebei Province.



Any foreign invested enterprises set up in Hebei Province enjoy the following favorable policies:
Favorable taxation:
1) Any foreign invested productive enterprise whose operational period in the province is to be more than 10 years is exempt from local income tax starting from the first year to the fifth year of operation; local income tax is levied at a rate of 50 percent from the sixth year to the 10th year of operation with the approval of the local taxation office. Starting from the first year of production and operation, the enterprise is exempt from property tax and vehicle and ship license tax for five years.
2) Any non-productive foreign invested enterprises whose duration of operation in the province is to be more than 10 years will be exempted from local income tax from the first year of profit to the second year, after which tax will be levied from the third year to the fifth year at a rate of 50 percent upon approval of the local taxation office. Starting from the year when they begin operating, they shall be exempt from property tax and ship and vehicle license tax for a successive period of two years.
3) Any foreign invested enterprises whose export output value reaches a rate of 70 percent or above of total output is exempt from local income tax, property tax and ship and vehicle license tax upon the approval of the local taxation office and confirmation of the department of foreign trade. Any advanced technological enterprises will be exempt from local income tax, property tax and the ship and vehicle license tax with approval of the local taxation office.
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