Figure5-62 Costs and expenses of daily chemicals manufacturing industry 2004-2008
Item
|
Jan.-Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Sales costs (100million RMB)
|
1228
|
1156
|
956
|
856
|
727
|
Year-on-year growth (%)
|
19.9
|
20.9
|
11.7
|
17.7
|
19.6
|
Management expenses (100million RMB)
|
110.9
|
115.3
|
96.4
|
88.2
|
79.6
|
Year-on-year growth (%)
|
18.7
|
19.6
|
9.3
|
10.8
|
22.8
|
Financial expenses (100million RMB)
|
6.4
|
7.7
|
7.2
|
5.8
|
8.5
|
Year-on-year growth (%)
|
-9.5
|
6.0
|
25.6
|
-31.8
|
14.0
|
Source: China National Light Industry Council
The asset growth rate of daily chemicals manufacturing industry peaked at 18.8% in 2004. It dropped to 8.4% in 2005. It was 15.5% in 2007 and 12.4% in the first 11 months of 2008. The asset-liability rate was 53.9% in 2004, 50.4% in 2005, and 47.8% in the first 11 months of 2008. The profit growth rate saw great changes from 2004 to 2008. It reached 29.3% in 2004 and dropped to 12.8% in 2005 and 1.6% in 2006. It grew rapidly to 32.2% in 2007 and stood at 25.3% in the first 11 months of 2008.
Figure 5-63 Profit growth of daily chemicals manufacturing industry 2004-2008 Unit: %
Item
|
Jan.-Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Asset growth rate
|
12.4
|
15.5
|
10.4
|
8.4
|
18.8
|
Asset-liability
|
47.8
|
49.0
|
49.1
|
50.4
|
53.9
|
Profit growth rate
|
25.3
|
32.2
|
1.6
|
12.8
|
29.3
|
Growth rate of total industrial output value
|
17.9
|
21.0
|
10.2
|
9.8
|
24.1
|
Annual employee growth rate
|
8.5
|
7.3
|
1.6
|
4.4
|
6.5
|
Source: China National Light Industry Council
The soap output was 655,000 tons in 2004, down by 2.9% on a year-on-year basis and 716,000 tons in 2005, up by 2.6% on a year-on-year basis. The output growth in 2006 went up to 4.0% on a year-on-year basis. It encountered a drop for 2 consecutive years from 2007 to 2008. It stood at 748,000 tons in 2008, down by 1.2% on a year-on-year basis. The synthetic detergent output growth saw a rise from 2004 to 2007. Its output was 334,000 tons in 2006, up by 12.4% on a year-on-year basis, at the fastest speed in recent 5 years. It was 5.98 million tons in 2008, down by 3.2% on a year-on-year basis. The synthetic washing-powder output was 273,000 tons in 2004, up by 9.2% on a year-on-year basis, 294,000 tons in 2005, up by 10.1% on a year-on-year basis and 387,000 tons in 2007, up by 9.8% on a year-on-year basis. It dropped by 6.7% on a year-on-year basis in 2008. The essence output growth rate peaked at 31.9% in 2006, the highest in recent 5 years. It suddenly dropped to 5.4% in 2007. It stood at 240,000 tons in 2008, up by 1.0% on a year-on-year basis. On the whole, the output growth of a majority of daily chemicals declined at different levels. The synthetic washing-powder output encountered an especially remarkable drop.
Figure5-64 Output of major products of daily chemicals manufacturing industry 2004-2008
Item
|
Soap
|
Year-on
-year
increase or decrease
|
Synthetic detergent
|
Year-on
-year
increase or decrease
|
Synthetic washing
-powder
|
Year-on
-year
increase
or decrease
|
Essence
|
Year-on
-year
increase
or decrease
|
(10,000 tons)
|
(%)
|
(10,000 tons)
|
(%)
|
(10,000 tons)
|
(%)
|
(10,000 tons)
|
(%)
|
2008
|
74.8
|
-1.2
|
597.9
|
-3.2
|
33.5
|
-6.7
|
2.4
|
1.0
|
2007
|
75.3
|
-0.8
|
631.6
|
11.7
|
38.7
|
9.8
|
2.0
|
-5.4
|
2006
|
72.0
|
4.0
|
546.1
|
12.4
|
33.4
|
8.1
|
2.0
|
31.9
|
2005
|
71.6
|
2.6
|
494.4
|
14.1
|
29.4
|
10.1
|
1.1
|
14.8
|
2004
|
65.5
|
-2.9
|
436.4
|
11.5
|
27.3
|
9.2
|
0.8
|
8.3
|
5.14 Output of other light industry products
Figure 5-63 shows the total industrial output value and year-on-year growth of other light industry sectors such as salt mining, battery manufacturing, lighting fixture manufacturing, daily chemicals manufacturing, printing ink and animal glue manufacturing, sewing machine manufacturing, weighing apparatus manufacturing, light industry facilities manufacturing and glasses manufacturing.
Figure5-65 Output and growth of other light industry sectors 2004-2008 Unit: RMB 10,000, %
Sectors
|
2008
|
2007
|
2006
|
2005
|
2004
(at constant prices in 1990)
|
Salt mining
|
Output
|
2497782
|
2177398
|
1867651
|
1477947
|
1244965
|
Growth
|
26.1
|
21.0
|
24.3
|
42.5
|
46.26
|
Battery manufacturing
|
Output
|
24688739
|
17198110
|
12210497
|
9138794
|
6352300
|
Growth
|
40.8
|
45.7
|
29.9
|
24.4
|
43.9
|
Lighting fixture manufacturing
|
Output
|
18997626
|
15803127
|
11770120
|
9693156
|
7159905
|
Growth
|
20.3
|
31.3
|
21.5
|
23.8
|
25.3
|
Daily chemicals manufacturing
|
Output
|
23955415
|
18290526
|
15306839
|
13796369
|
12354802
|
Growth
|
17.9
|
20.0
|
11.7
|
11.0
|
27.5
|
Printing ink and animal glue manufacturing
|
Output
|
2641029
|
2268021
|
1765518
|
1449458
|
1011907
|
Growth
|
20.6
|
27.2
|
25.1
|
26.2
|
13.4
|
Sewing machine manufacturing
|
Output
|
2260625
|
2779894
|
2267773
|
1890770
|
1458923
|
Growth
|
-24.6
|
16.5
|
17.5
|
23.6
|
21.6
|
Weighing apparatus manufacturing
|
Output
|
907540
|
630231
|
635113
|
525805
|
487255
|
Growth
|
38.8
|
29.9
|
17.5
|
14.4
|
22.6
|
Light industry facilities manufacturing
|
Output
|
11468655
|
9419146
|
7324188
|
5794542
|
4470017
|
Growth
|
24.7
|
28.2
|
26.1
|
19.2
|
24.8
|
Glasses manufacturing
|
Output
|
2157941
|
1535961
|
1233007
|
1088959
|
775594
|
Growth
|
16.9
|
18.8
|
16.3
|
16.79
|
14.5
|
Source: China National Light Industry Council
Chapter 6 External Cooperation of China's Light Industry
China has been successfully attracted foreign direct investment. Attributed to its favorable investment environment, low wages and rapid growth of domestic market in recent years, China has attracted 6.5% foreign direct investment of the world and 25% of the developing countries in the past decade.
China's foreign direct investment is not evenly distributed in every province. The coastal provinces received 90% of the total foreign direct investment. Although, the government policies advocate investing in the west, the western provinces only received less than 2%. Most of the foreign direct investment is concentrated in the industry, which attracted 60% in 1990s. In 2004, 75% of foreign direct investment flowed into industry, of which, 71% on manufacturing. Service industry attracted 20%, most of which concentrated in real estate development. Banks and public facilities are major sectors to attract foreign direct investment in other countries, but they have very limited performance in China. Foreign direct investment in agriculture is almost negligible.
In 2008, China approved 27,514 foreign investment projects, down by 27.35% on a year-on-year basis, much lower than the previous year. The actual inflow of foreign investment reached 95.25 billion yuan, up by 21.59% on a year-on-year basis. It shows not only the reduction of foreign investment project caused by financial crisis, but also the transfer from quantity to quality in applying foreign investment and China's more rationality in approving foreign investment projects. In December, China approved 2,562 foreign-funded enterprises, down by 25.78% on a year-on-year basis. The actual inflow of foreign investment stood at US$ 5.98 billion, down by 5.73% on a year-on-year basis. Over the same period, the number of U.S.-funded enterprises dropped by 32.55% on a year-on-year basis, with a 12.54% increase in realized investment. The number of enterprises funded by the original 15 European Union countries dropped by 22.65% on a year-on-year basis, with a 30.12% increase in realized investment. China's utilization of foreign investment involves mainly in foreign direct investment and wholly foreign-owned enterprises and few in Sino-foreign joint ventures and cooperative enterprises.
Figure6-1 China's utilization of foreign fund 2008 Unit: US$ 100 million
Way of utilization of foreign fund
|
Approved projects in 2008
|
Realized foreign fund in 2008
|
Projects
|
2008
|
2007
|
Year-on-year growth
|
2008
|
2007
|
Year-on-year growth
|
Total
|
27514
|
37871
|
-27.35
|
952.53
|
783.39
|
21.59
|
Foreign direct investment
|
27514
|
37871
|
-27.35
|
923.95
|
747.68
|
23.58
|
Sino-foreign joint ventures
|
4612
|
7649
|
-39.70
|
173.18
|
155.96
|
11.04
|
Sino-foreign cooperative enterprises
|
468
|
641
|
-26.99
|
19.03
|
14.16
|
34.40
|
Wholly foreign owned enterprises
|
22396
|
29543
|
-24.19
|
723.15
|
572.64
|
26.28
|
foreign-funded joint stocks
|
38
|
38
|
0
|
8.59
|
4.92
|
74.71
|
Foreign indirect investment
|
0
|
0
|
|
28.58
|
35.72
|
-19.98
|
Foreign shares
|
0
|
0
|
|
0.77
|
4.02
|
-80.85
|
International lease
|
0
|
0
|
|
1.44
|
1.80
|
-20.00
|
Compensatory trade
|
0
|
0
|
|
0.52
|
0.18
|
192.25
|
Processing and assembling
|
0
|
0
|
|
25.85
|
29.72
|
-13.02
|
Source: Ministry of Commerce of the People's Republic of China Department of Foreign Investment Administration
In 2008, China attracted actual foreign direct investment of US$ 92.4 billion, up by 23.58% on a year-on-year basis. Among that, 10 Asian countries investment accounted for 59.97%, up by 4.62 percentage points than 2007. Hong Kong invested US$ 41.036 billion, accounting for 44.41%, up by 48.13% on a year-on-year basis. Japan invested US$ 3.65 billion, accounting for 3.95%, up by 1.76% on a year-on-year basis. EU major countries investment accounted for 5.41%, up by 30.12% on a year-on-year basis. North America invested US$ 3.488 billion, accounting for 3.77%, up by 15.76% on a year-on-year basis. Among that, U.S. invested US$ 2.944 billion, accounting for 3.19%, up by 12.54% on a year-on-year basis.
Figure6-2 Analysis on countries/regions of foreign direct investment 2008 Unit: US$ 10,000
Countries/regions
|
2008
|
2007
|
Growth
rate
|
Proportion in 2008
|
Proportion
in 2007
|
Proportion growth
|
Total
|
9239544
|
7476789
|
23.58
|
|
|
|
10 Asian countries/regions
|
5540994
|
4138335
|
33.89
|
59.97
|
55.35
|
4.62
|
Hang Kong
|
4103640
|
2770342
|
48.13
|
44.41
|
37.05
|
7.36
|
Indonesia
|
16725
|
13441
|
24.43
|
0.18
|
0.18
|
|
Japan
|
365235
|
358922
|
1.76
|
3.95
|
4.8
|
-0.85
|
Macao
|
581616
|
63700
|
-8.7
|
0.63
|
0.85
|
-0.22
|
Malaysia
|
24696
|
39725
|
-37.83
|
0.27
|
0.53
|
-0.26
|
Philippines
|
12687
|
19532
|
-35.05
|
0.14
|
0.26
|
-0.12
|
Singapore
|
443529
|
318457
|
39.27
|
4.8
|
4.26
|
0.54
|
Korea
|
313532
|
367831
|
-14.76
|
3.39
|
4.92
|
-1.53
|
Thailand
|
12921
|
8948
|
44.4
|
0.14
|
0.12
|
0.02
|
Taiwan Province
|
189868
|
177437
|
7.01
|
2.05
|
2.37
|
-0.32
|
EU major countries
|
499451
|
383838
|
30.12
|
5.41
|
5.13
|
0.28
|
Belgium
|
5586
|
9584
|
-41.72
|
0.06
|
0.13
|
-0.07
|
Denmark
|
29376
|
12514
|
134.75
|
0.32
|
0.17
|
0.15
|
Britain
|
91401
|
83094
|
10
|
0.99
|
1.11
|
-0.12
|
Germany
|
90049
|
73397
|
22.69
|
0.97
|
0.98
|
-0.01
|
France
|
58775
|
45601
|
28.89
|
0.64
|
0.61
|
0.03
|
Ireland
|
19829
|
6103
|
224.91
|
0.21
|
0.08
|
0.13
|
Italy
|
49326
|
34792
|
41.77
|
0.53
|
0.47
|
0.06
|
Luxembourg
|
13283
|
8246
|
61.08
|
0.14
|
0.11
|
0.03
|
Holland
|
86216
|
61666
|
39.81
|
0.93
|
0.82
|
0.11
|
Greece
|
1309
|
235
|
457.02
|
0.01
|
|
0.01
|
Portugal
|
829
|
823
|
0.73
|
0.01
|
0.01
|
|
Spain
|
20890
|
21324
|
-2.04
|
0.23
|
0.29
|
-0.06
|
Austria
|
13255
|
8234
|
60.98
|
0.14
|
0.11
|
0.03
|
Finland
|
5410
|
5589
|
-3.2
|
0.06
|
0.07
|
-0.01
|
Sweden
|
13917
|
12636
|
10.14
|
0.15
|
0.17
|
-0.02
|
North America
|
348762
|
301281
|
15.76
|
3.77
|
4.03
|
-0.26
|
Canada
|
54328
|
39658
|
36.99
|
0.59
|
0.53
|
0.06
|
United States
|
294434
|
261623
|
12.54
|
3.19
|
3.5
|
-0.31
|
Some free-trade ports
|
2314227
|
2262560
|
2.28
|
25.05
|
30.26
|
-5.21
|
Mauritius
|
149371
|
133250
|
12.1
|
1.62
|
1.78
|
-0.16
|
Cayman Islands
|
314497
|
257078
|
22.34
|
3.4
|
3.44
|
-0.04
|
Britain Virgin Islands
|
1595384
|
1655244
|
-3.62
|
17.27
|
22.14
|
-4.87
|
Samoa
|
254975
|
216988
|
17.51
|
2.76
|
2.9
|
-0.14
|
Others
|
536110
|
390775
|
37.19
|
5.8
|
5.23
|
0.57
|
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