Xiamen, on the southeastern coast of China, to the west of Taiwan Strait, covers a total area of 1,569.3 square kilometers and has a registered household population of 1.42 million at the end of 2004 and a permanent population of about 2.19 million. Under the jurisdiction of the municipality are six districts Siming, Huli, Jimei, Haicang, Tong'an and Xiang'an.
Xiamen has a diverse and well-developed economy. Primary economic activities include fishing, shipbuilding, food processing, tanning, textiles, machine tool manufacturing, chemical industries, telecommunications and financial services.
Electronics & IT industry, machinery industry and chemical industry are the three backbone industries in Xiamen.
Electronics & IT Industry
Electronic companies are expanding with two of them being ranked among the 100 biggest electronic companies and six ranked among the top 100 electronic component producers in China.
Profile of Main Industrial Clusters
Computer---- An industrial cluster has been formed around desktops, laptops and peripheral equipment such as printers, digital cameras, mouse, keyboards, and other related components and equipment. Brands include Dell, Amoi, Panasonic, etc.
Mobile Phone----Xiamen has 3 state appointed whole set mobile phone manufacturers (Amoi, Lenovo and VK) and lots of associated enterprises. The total production capacity is 12 million sets per year.
Audio and Video Equipment----There are two main clusters including color TV manufacturers (the flagship is XOCECO) and audio equipment manufacturers including Amoi, Panasonic AVC Network, Panasonic Manufacturing, and Clarion. Main products include TVs, laser disc players, audio equipment, car Hi-Fi, etc. Some brands are famous across the country.
Components----Key manufacturers include enterprises reputed in domestic and international markets such as FDK, TDK, NEC, ITT, Doowell, Audix, and those
flagships of Xiamen's local enterprises such as Hualian and Faratronic.
Xiamen's basic strategy to develop the Electronics & IT Industry is to facilitate the growth of whole set product manufacturers and make the best of the business opportunities generated thereon to boost the strength of the entire industrial stream. The ability of self-initiated product development is emphasized. Priorities will be given to products related to the four categories including computers, mobile telecommunications, audio and video equipment, components and accessories.
Main businesses in this sector include engineering machinery, aircraft maintenance, tungsten products, bus making, power transmission and distribution equipment, ship making, aluminum foil, new technology machinery, etc. Xiamen outstrips its competitors in the country in these businesses with some of its products reaching highest international standards. Now there are two areas where machinery producers are concentrated, namely the Electromechanic Industrial Park and the Aviation Industrial Park.
Engineering Machinery----Xiamen is one of the biggest manufacturing
bases for engineering machines in China. Through business connections with those giant machinery manufacturers in Xiamen, related businesses in the neighboring area also boomed. The machinery sector in and around Xiamen has been co-developing and achieved common prosperity.
Aircraft Maintenance----With the introduction of Taikoo Aircraft Engineering Co. Ltd., and its associated enterprises, Xiamen has become the largest maintenance and transformation base for Boeing series jumbo civil aircrafts in the Asia Pacific Region.
Bus making----There are two whole set bus makers in Xiamen, namely King Long and Golden Dragon. Associated enterprises boomed in their wake.
Shipbuilding----Xiamen is an important base in Fujian Province for making medium and large-sized modern container vessels and moderately expensive and luxury yachts.
Tungsten products----Xiamen is the world's largest supply base for raw tungsten materials.
T&D equipment----Xiamen outranks most regions in China for its strong capability in the production of power transmission and distribution equipment ranging from low voltage to high voltage.
The basic strategy is to continuously expand whole set production while improving basic technologies and enlarging the production of key components. Priorities will be given to five categories of business, including automobiles and engineering machinery, aircraft maintenance, shipbuilding, T&D equipment and metal processing.
Main product categories include aromatic hydrocarbon and chemical fibers, light sensitive materials and fine chemicals, rubber and tires. Enterprises involved in the aromatic hydrocarbon business are mostly located in the Southern Industrial Area in Haicang District. Those with the other two products are mostly located in Xinyang Industrial Area of the same district.
Profile of Main Industrial Clusters:
Aromatic hydrocarbon and chemical fibers----Xiamen has formed a fairly complete industrial stream of these products. The world's largest single product production lines for PTA and PET with an annual production capacity of respectively 900 thousand tons and 320 thousand tons are operating in Xiamen. The project of Dragon Special Resin with an annual production capacity of 360 thousand tons of PET Bottle Grade Clips and PET Industrial Grade Clips will be commissioned in the first half of 2005. A PX project, the supply source for PTA, has been approved by the state government and preliminary work has started.
Light Sensitive Materials and Fine Chemicals----With the world's largest single production line for color paper and films, Xiamen leads the world in the production of color light sensitive materials and one-time-use cameras.
Rubber----With a wide range of products Xiamen plays an important role in China's rubber and tire markets.
Efforts will be paid to continuously bolster the above three businesses, namely aromatic hydrocarbon chemicals, light sensitive materials and fine chemicals and tire rubber
Central Urban Area (Xiamen Island Proper) gives priority to tertiary industries including logistics, tourism, commerce, convention & exhibition, finance & insurance, real estate, culture & entertainment activities and agent services. Encouraged sectors also include software, R&D of technology-based enterprises, incubators for SMEs and aviation industries pertinent to the Airport.
Industrial Area Circling West Sea (Haicang District and part of Jimei District west to Xinglin Bay) encourages chemical industry and machinery, logistics services relying on the port, rail and highways, educational industry centering on Jimei-Xinglin Bay Campus, service industry supporting the development of new urban area, tourism based on Horticulture Expo Garden, Tianzhu Mountain, Maluan Bay and sea islands, and eco-agriculture centering on Dongfu Flowers and Seedlings Base.
Industrial Area Circling East Sea (part of Jimei District east to Xinglin bay, Tong’an District and Xiang’an District) is to priority on hi-tech or light industries including electronics, opto-mechanical-electronics integration, bio industry and new medicine, new materials, food and textiles. It also encourages logistics services depending on its highway, the Urban Trunk Road, and the port. Dadeng Islet (Taiwan-related tourist attractions), National Forest Park of Lianhua Mountain and Damao Mountain Forest Park will be developed for tourism. Other encouraged areas are non-pollution agricultural products, modern agriculture, the selection and cultivation of plant seedlings and fisheries and ecological & recreational agriculture.