1. THE CHANGING STRUCTURE OF XIAMEN ECONOMY:CHALLENGES & OPPORTUNITIES
By Shun-long CHEN

2. Tourists: over 40 million each year
Bohai Sea Economic Zone
Yangtz River Delta
Pear River Delta
Would this be the 4th pole?
Map of Xiamen
New campus of
Xiamen Uni.
Land area: 1699 k㎡
Population: 3.81 million
Tourists: over 40 million each year
Marine area: 390 k㎡, usable coastline: 114 km
Climate: subtropical maritime monsoon climate
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3. a. Economic growth over three decades
Year
GDP
(RMB 100 million)
1980 6
1985 18
1990 57
1995
251
2000
502
2005
1007
2010
2053
2014
3273
:GDP tripled every five years
:GDP doubled every five years
Average annual growth rate :16.9%, higher than the national average (10%) and Fujian average (13%)

4. Industrial structure
Constantly Changing Industrial Structure
Year
Primary
Industry
(%)
Secondary Industry
Tertiary industry
1980
21.6
57.8
20.6
1985
14.7
50.2
35.0
1990
10.6
45.3
44.0
1995
6.3
51.1
42.6
2000
4.2
50.6
45.2
2005
2.1
54.9
43.0
2010
1.1
49.7
49.2
2014
0.7
45.8
53.5

5. Quality of Economic Growth
The rise in average income: GDP per capita – 14135USD; fiscal revenue grew by 21% annually; average disposal income per capita grew by 10-12% per annum.
Energy consumption: 0.5 tons of standard coal per 10,000 Yuan of GDP, half of the national average.
Land usage: 170 million Yuan of GDP generated per km2.
Regional status enhanced: with 1.3% of land area and 10% of Fujian’s population, Xiamen produces 14.5% of the province’s GDP, 24% of fiscal revenue and almost half of the international trade volume.
The various social indicators are among the best in China.

6. Quality of Living Environment
每年向九龙江流域上游提供2000万元的污染治理专项资金。
Various honorable titles achieved:
UN Habitat Award
National Model City for Environmental Protection
National Prime Tourist Destination
National Pilot City for Low Carbon
Ranked 1st in Scientific Development among China’s Cities
One of the Top 10 Low Carbon Cities in China
Ranked 1st in Social Ethics Index among China’s Cities
Rate of Good Air Quality: 95.3%
Ratio of Green Coverage: 41.9%
Per Capita Green Area: 20.35㎡

7. Preferential policies and reform packages introduced
Year
Preferential Policies
given by the central government
1980
Establishment of special economic zone
1988
Independent Economic Planning
1989
-1993
3 Taiwanese Investment Zones
1990
Torch Hi-Tech Park
1992
Xiangyu Bonded Zone
1994
Independent Legislation
1996
Pilot of Cross-Strait Direct Transportation
2002
Export Processing Zone
2005
Port Linkage Pilot
2008
Bonded Port Area
Pilot city for various state
reform packages since 2000
Balancing development of the compulsory education
Sealed-off operation bonded zones
Reform in public hospitals
National Innovative City Reform
Service Industry Reform
National Low carbon policy
Outsourcing service reform
Triple Play
TV/Radio + Telecom + Internet
National Small Town Comprehensive Supporting Facility Reform
2012
2014
Comprehensive Reform Package
Pilot City for Free Trade Zone

8. b. Restructuring of Industries
Present contribution of six pillar industries
Electronics (22%)
Machinery (10%)
Shipping & logistics (10%)
Tourist & exhibitions (8%)
Finance & business (8%)
Software & information services (10%)

9. b. Restructuring of Industries
When the average GDP reaches a certain level, there is a pressing need to develop industries compatible with the level of development: modern services sectors and high-tech sectors.
Due to rising cost of factor input, technological improvement and economies of scale will be necessary.
Due to changes in the macro-environment, we must adapt by structural re-organization of our industries and enhance our industrial competitiveness.

10. Goals Set in the “Strategic Plan for Beautiful Xiamen”
Status aims of Xiamen
Internationally renowned botanic city
Model city for ‘Beautiful China’ programme
A window for collaboration with Taiwan
A central city of south Fujian province
A habitable city with pleasant environment
A vision for the 100th anniversary of CCP
GDP per capita and other economic and social indicators reach the level of Taiwan by 2021
A vision for the 100th anniversary of PRC
GDP per capita and other economic and social indicators reach the level of major developed economies by 2049

11. Advanced service industries
Headquarter economy
Special Commercial retail
Tourist & exhibition
Shipping & logistics
Special finance
High-end medical treatment

12. Advanced manufacturing industries
Plasma display
Power control device
Aircraft maintenance
Computers & telecom equipment
LED lighting

13. Traditional industries
Automobile & engineering equipment
Agricultural byproducts & food processing
Water Tap components & home utilities

14. Strategic emerging industries
Software & information service
Cultural creative industry
New materials
Biological medicine

15. Transforming Urban Spatial Structure
New international airport
Central rail station
Metro systems
Harbor integration
Re-allocations of main public services e.g. hospitals, schools, universities etc.

16. c. Challenges and Opportunities
How to provide decent jobs for the people coming to Xiamen
How to provide a good standard of living for the people coming to Xiamen
How to bring our industries to the international level
How to regenerate the old and low-efficient industrial zones
How to manage a rapidly expanding city through improving our public administration
How to incorporate Xiamen into wider regional development, through the integration of adjacent cities

17. Green Development Ideas
Raise the public awareness of green consumption
Establish and protect the ecological zones
Reorganize the industrial structure and urban spatial structure
Promote low carbon development
Reduce the use of various resources
Proceed on the treatment of water, air and land

18. Thank you