Gross Domestic Product (GDP): 600.25 billion yuan in 2003.
Annual GDP growth rate: 11.5%.
GDP per capita: 14,258 yuan.
GDP ratio (1st, 2nd and tertiary industries): 10.4:47.5:42.1
Fiscal revenue: 89.92 billion yuan in 2003, up 19.8 percent over the previous year.
Industrial revenue and growth rate
In 2003, the industrial added value of Liaoning
Province reached 251.04 billion yuan, up 11.6 percent.
Agricultural output value: 120 billion yuan in 2003, up 7.1 percent. The sown area of grain was 2.56 million hectares, down by 3.6 percent from the previous year.
In 2003, the total retail sales of consumer goods reached 233.08 billion yuan, up by 12.3 percent over the previous year. At the end of the year, there were 3,243 commodity trading markets in the province. The annual sales volume reached 173.6 billion yuan, down by 3 percent from the previous year.
According to customs statistics, the total export and import volume of the area in 2003 was US$26.56 billion, up by 22.2 percent over the previous year. Exporting destinations of the province expanded to 177 countries and regions. The volume of exports to the United States was US$2.15 billion, up by 18.6 percent over the previous year; that to Hong Kong
, US$610 million, up 40.6 percent; that to Japan, US$5.17 billion, up 10.4 percent; that to Korea, US$1.56 billion, up 23.3 percent; and that to Russia, US$170 million, up 27.9 percent.
Foreign capital utilization
In 2002, Liaoning
approved a total of 2,328 foreign investment contracts involving a value of US$9.83 billion. The two figures were up by 9.2 percent and 32.2 percent respectively over the previous year. The actually utilized foreign capital amounted to US$5.71 billion, up by 34.2 percent.
Petrochemicals, metallurgy, electronics and machinery are the four pillar industries of Liaoning
The processing capacity of the petrochemical industry is 28 million tons. The main products include gasoline, kerosene, diesel oil, dissolvent oil, paraffin wax and a series of downstream products.
There are over 1,100 metallurgy enterprises, with various kinds of products such as bars, panels, strips, pipes and special steel and metal products.
The province has a highly developed electronics industry. The competitive advantage of six key products, that includes color TV kinescope, color TV, video tape recorder, telecommunication equipment, computer hardware and software, electronic equipment and integrated circuits (IC), took shape and brought up the development of other industries.
Over 1,000 machinery enterprises in Liaoning
can produce nearly 20,000 products of 138 kinds. The province can produce heavy-duty mine machinery, petrochemical equipment, power transmission equipment and transformers, metalworking machine tools, ocean vessels and diesel locomotives.
People in poverty and aid programs
The annual per capita disposable income of urban households was 7,241 yuan in 2003, up by 11 percent over the previous year. The per capita net income of rural households was 2,934 yuan, a real increase of 6.7 percent. The Engel coefficients (which refers to the proportion of expenditures on food to the total consumption expenditures of households) were 39.4 percent for urban households and 43.2 percent for rural households.
There were 1.5 million poor in rural areas. A total of 1.596 million urban residents received the minimum income relief from the governments.
There are 60 key investment projects, including 11 machinery projects (machinery processing, machine tool, diesel oil, etc.), 14 projects in light industry (home appliances, bicycles, refrigerating equipment, etc.), and 8 projects in agriculture and fishing (deep-sea fishing, seafood processing and agri-business, etc.).
Preferential Policy for Foreign Investment
(*Statement: English language version of these rules is translated by china.org.cn for reference purposes only)
Tax which foreign-funded enterprises might meet in China includes enterprise income tax, value-added tax, sales tax, consumption tax, resource tax, real estate tax, license plate tax (car and ship), land value-added tax, stamp duty, butcher tax and personal income tax.
(a) enterprise income tax
The enterprise income tax of Sino-foreign joint ventures, cooperative enterprises and foreign-owned enterprises is 30 percent of annual profit. In addition, another 3 percent local income tax will be levied. The enterprise income tax of foreign-funded manufacturing enterprises in the opened area of East Liaoning
is 24 percent, while 15 percent tax is levied for those in economic development zones of Dalian, Yingkou and Shenyang.
Foreign-funded manufacturing enterprises which run over a period of 10 years are exempt from enterprise income tax in two years since the enterprises begin to earn profits, and only half the amount is levied from the third to fifth years.
If export value of a foreign-funded export enterprise exceeds 70 percent of their total output value, they are due 50 percent enterprise income tax after the expiration of the tax exemption and reduction period. If they are an advanced technology enterprise, they are due 50 percent less their enterprise income tax for three more years.
If foreign-funded enterprises use their profits for reinvestment and intend to operate for 5 years, 40 percent of the tax levied in reinvestment will be refunded. If they set up, or extend, export enterprises and advanced technological enterprises with at least a 5 year operation, all the enterprise?ˉs income tax in the reinvestment process will be refunded. No remittance tax will be due while remitting their profit overseas.
Preferential Policy of Liaoning
Province to Enlarge Foreign Investment Utilization
(Dec. 27 1990, Liaoning
Provincial Government Office (1990) No.84)
Article 1: The regulation is formulated to attract more foreign investment, speed-up industry technology renovation, strengthen export and forex-earning capacity and quicken infrastructure construction.
Article 2: The special foreign investment items in the regulation refer to those with investments of over US$400 million and approved by the central government.
Article 3: The regulation applies to all special foreign investment items in Liaoning
Article 4: Liaoning
Planning Committee manages all the special foreign investment items, and the office of Special Foreign Investment Items is responsible for daily work.
Trade, fiscal, taxation, forex and customs departments in the provincial government should jointly manage these items within their power scope.
Article 5: The fixed-asset investment volume of special foreign investment items should be placed in the plans. Provincial planning committees will make the annual plan.
Article 6: The special foreign investment items, no matter they earn their foreign exchange, or not, suffer profit or loss, should be classified for audit and loan repayment.
For these items, within 15 years of their making profit: all the profits, income tax, depreciation costs should be used for loan repayment. After the principal and interest have been paid off, the remaining revenue can be retained according to state regulations.
Article 7: Special foreign investment items can enjoy tax exemptions:
1. fixed-asset investment is exempt from building tax.
2. imported equipment and materials (excluding raw material) are exempt from customs, product tax and value-added tax.
3. according to national regulations, they are not asked to hand in funds and buy bonds.
Article 8: The special foreign investment items are all entrusted to the Liaoning
Building Investment Company to run operations, and be responsible for the fund re-loan, loan distribution, loan reclaiming and loan repayment. After the principal and interest are paid off, the rest of the profit can be left in the company, and the local city government can share 30 percent of the profit (excluding those items directed by central and provincial government). The contracting company can charge 0.5 percent management fees from the investment (including fees charged by the foreign investment department).
Article 8: For special foreign investment items, all the equipment, parts and raw materials in the import and export process should be operated by the contracting company. The company can entrust it to other foreign-trade companies.
Article 10: For special foreign investment items, all foreign exchange earned by export should be used to pay off loans.
Article 11: If the products of special foreign investment items can replace imported products, after the consent of trade and forex administrations, these items can be placed in the official plans, and contracting companies can get forex.
Article 12: All the preferential policies of both central and provincial governments, on foreign investment, apply to special foreign investment items.
Article 13: Special foreign investment items in foreign-funded enterprises apply to the regulation in principle, but the legal rights and interests of foreign investors should be guaranteed.
Article 14: Special foreign investment items in Shenyang and Dalian should be wholly administrated by the appointed authorities by the municipal government. The debts should be paid off as a whole.
Article 15: The management regulation of special foreign investment items concerning fiscal, taxation, trade, customs issues should be made by the competent authorities respectively.
Article 16: Liaoning
Planning Committee is responsible to interpret these regulations.
Article 17: The regulation shall take effect from the date of promulgation.