Since the late 70's, Nanjing has benefited along with the rest of China from the Central Government's drive towards a more modernized, economically vibrant and open China. Today, a quarter of a century after Deng Xiaoping started instituting reforms in the Chinese economic system, Nanjing stands with many other Chinese cities as a testament to the success of his vision. During the eighties, the central government placed the lion's share of investment and reform policies on the cities of Guangdong province (particularly those close to Hong Kong); today, however, the government has designated the regions around the lower reaches of the Yangtze river (calling it the Yangtze triangle) as the next area of high spread economic growth pushing China forward on the path to becoming a fully developed nation. This region includes Nanjing and other cities such as Shanghai, Hang Zhou, Su Zhou, Wu Xi, Shao Xing and others; and over the past five years these cities have seen some of the fastest regional economic growth in China. In this region of China, Nanjing ranks second only to Shanghai in terms of economic output and production capabilities. The electronics and Chemical production capability rank 2nd in all of China, with automobile manufacturing ranking 3rd in the nation. In Nanjing, financial revenue has more then quadrupled since 1995, from some 6.5 billion RMB in 1995 to 26.5 billion RMB in 2002. Per capita income has bounded to over six times its 1990 levels to 22,908 RMB per person.

        Nanjing's industrial output accounts for approx. 1% of China's total industrial output, and accounts for 40% of the city's GDP, and 70% of the city's revenue. The three largest industrial sectors, designated as Nanjing's "Pillar Industries" are electronics/IT, petrochemical/chemical, and automobile manufacturing. Closely following these sectors are the industries of: machinery, iron/steel, biological engineering, modern building materials, and textile/garment-making. Much of the manufacturing base of the city is located north of the Yangtze river, or on the outer suburbs; a safe distance from the city center but still easily accessible.

        A breakdown of the larger industries in Nanjing and their current situation is as follows:

        Electronic/IT industry: Nanjing's IT and electronics industries ranks second in China with some 400 + electronics enterprises and 29 research institutes. Including specialists in the 101 department programs of local colleges and universities, Nanjing has well over 20,000 engineers and technicians working in the electronic/IT sector. Product scope includes things like IC design and manufacture, microelectronics, computer and network products, communication products, and digital audio-visual products.

        Notable electronics/IT companies in Nanjing: Nanjing-Sharp Electronic Corp., Ltd., is a joint venture company between Japan's Sharp Corp. and Nanjing's Panda Electronic Corp., Ltd., with a total investment of nearly 60 million USD. Its mainstay products are state of the art AV equipment.
Nanjing Phoenix Electric Corp., Ltd., is a joint venture betweens Germany's Phoenix Electric Corp., and the Nanjing Electric Automation Research Institute of the Ministry of Power Industry of China.

        Petrochemical Industry: Nanjing ranks second in China for overall production capacity of petrochemicals; and Nanjing is home to the largest plants producing ethylene, aromatics, and alkybenzene. Production of finished oil, chemical fertilizer, polyester, and refined PTA also rank among China largest. International chemical corporations such as BASF, Disiman, Bayer, and Shell, have all selected Nanjing as an ideal place for investment.

         Automobile Manufacturing Industry: Nanjing's automobile and motorcycle industry is another vibrant growing industry vying for greater recognition at home and abroad. Nanjing is know for its line of light automobiles and motorcycles produced through joint ventures with companies such as Suzuki and Fiat. Besides light vehicles, Nanjing's automobile industry produces everything from trucks and utility vehicles, to agricultural and passenger vehicles.

         Notable Companies in the Automobile Industry in Nanjing: Jinling double-deck bus plant produces and sells double-deck buses. Production emphasis variety, first class technology, smooth running, and larger passenger capacities. Jinling leads its field in mainland China
Nanjing Puzheng Rolling Stock Plant of China Nanjing Automobile Group is an important company in the regional and national economy. The plant produces railway cars as well as a line of metro-rail cars for subway and light-rail systems. Puzheng's policy of adopting technical innovations has allowed the company to take the lead in railway car production.

        Nanjing Hong Kong Changjiang Co. Ltd. was one of the earliest foreign funded enterprises in Nanjing, founded in 1985. Today it¡¯s know for its quality of service and level of technology. Nanjing Changjiang Toyota Motor Sales and Service Co., Ltd. is a joint venture between Nanjing Hong Kong Changjiang Co. Ltd. and Jiangsu Province Xinja Sales Company Limited. It's the only 3-S center for servicing Toyotas in the entire Nanjing area.

        Machine Building Industry: Nanjing's machine building industry runs the gamut of products from power transmission equipment and machine tools, to general purpose and light industry machines. In particular, Nanjing is renowned throughout China for the following products: gas turbine generator sets, HV porcelain, spark plugs, NC machine tools, air compressors, and high-speed heavy duty gearboxes.

         Biological Engineering and Pharmaceuticals: Nanjing is home to some 45 institutions, companies, or research facilities engaged in Western or Eastern medical research, development, and production; and the industry boasts over 20,000 specialists working in or around the City. Products include over 300 medicines encapsulated in injections, tablets and capsules, and over 200 varieties of herbs and concocted traditional Chinese medicine. This industry also produces some 200 plus types of medical apparatuses.

        Notable Companies in Nanjing's biological engineering and pharmaceuticals sector: Nanjing Pharmacy Industry Co. (Group) is one of Nanjing's five most influential industrial groups, with some 13 son companies (3 fully funded and 10 holding son companies) and total assets of over 3 billion RMB.

        Other industrial sectors: Nanjing also boasts well developed industries including: iron/steel, modern building materials, food/drink, light industry, and textiles. Nanjing is currently placing importance on furthering the development of the following products: NC machine tools, compressors, food processing, refrigeration equipment, analyzing instruments, microscopes, high-grade cement, garments, cosmetics, gold wires, foils/ornaments, and ceramic ware.

        Agriculture:

        Nanjing is blessed with ideal conditions for growing a wide variety of crops, as well as raising aquatic and domestic livestock. Efforts to increase the variety of crops growing in the countryside around Nanjing coupled with bumper harvest over the last few years allowed the peasantry to gain a significant increase in earnings. The implementation of agricultural technology and adjustments in agricultural structure have drastically increased per acre output. Agri-industry is also taking shape on large scales, with enterprises such as Yurun Food Co. and Weigang Milk Products Co. leading the way in restructuring China's farmland. Development of rural transportation systems has aided to the development of a smooth, timely distribution system of agricultural products. Rural governments have worked tirelessly at educating local farmers, aiming at tapping the latent advantages of the agricultural sector. The average income of peasants has growing to five times its 1989 rate of 870 RMB a year, and prospects for continued growth are very good. Two export-oriented agricultural regions (the Jiangning export-oriented agricultural development zone, and the Gaocun export-oriented agricultural development zone) have been designated, and thus far have attracted over 100 joint venture projects in areas such as crop growing, livestock raising, and product processing.

         Commerce:

         Situated on the banks of the Yangtze river, Nanjing has historically been a hub for commerce with surrounding provinces and cities. There are over 70,000 retailers, restaurants, and service businesses of every kind in Nanjing, as well as 500 plus markets. Overseas firms such as Germany's Metro, OBI, and France's Carrefour have all set up shop in Nanjing, competing with local Chinese giants such as Suguo and Suning. With continuing reforms in China's open-market system, Nanjing's commercial sector is becoming more and more efficient. There are already several commercial centers in and around Nanjing, with Xinjie Kou being the obvious leader. Xinjie kou lights up downtown Nanjing with its host of department stores, restaurants, skyscrapers, and other service businesses. Besides Xinjie kou, Hunan Rd. is an important commercial district in Nanjing, and in recent years has vied with the more established Xinjie kou for dominance. Zhujiang Rd. is know throughout the region as the place to go if you're looking for electronics of any kind, while Nanjing's old Confucian temple now marks a expanded maze of traditional Chinese architecture home to all kinds of merchants catering towards tourist crowds.

        Notable commercial enterprises in Nanjing: Golden Eagle International Group was the first foreign funded enterprise approved by the Nanjing municipal government and currently holds assets of over 2 billion RMB, its core business being real estate development. Nanjing is home to its base offices, from where Golden Eagle expands to Shanghai, Yang Zhou, Su Zhou, and many other cities.

         Suning Electric Group was established in 1990, and to date has already become the largest electrics circulation enterprise in China. It has over 10 regional chain management centers overseeing over 200 chain enterprises. Its core business activities include integrating circulation, industrial manufacturing, real estate development, and electronic business and investment

         Finance:

         Nanjing already has a firmly established modern financial system, with continuing government reforms bringing this system more in line with international standards. There are well over 2000 financial institutions in Nanjing, including banks, credit cooperatives, trust companies, finance companies, lease companies, securities and insurance companies, etc. Recent years has seen more and more importance placed on electronic and digital innovations in the finance industry; ATMs can be found all around the city, and self service banking, internet banking, and telephone banking are becoming more and more commonplace. The large state owned banks (all of which have branches in Nanjing) are currently undergoing deep rooted reforms aimed at bringing their level of service up to international standards; four financial assets management companies have been set up to undertake the reduction of bad assets stripped away from China's state owned banks.. Foreign banking firms such as Charter and Associated Bank have also set up branches in Nanjing, and promise to be to offer invaluable services as China's WTO concessions on foreign banking firms come into full affect over the next few years.

        Tourism:

        As one of the 10 ancient capitals of China, Nanjing is a major tourist destination for domestic and foreign tourists alike. Its many gardens, and historic vistas attract masses of tourist every year, and tourism is increasingly showing itself as an important source of revenue for the city. There are some 135 hotels designated to receive foreign tourists in Nanjing, 101 of which have star status; and some 258 travel agencies throughout the city serve foreign and domestic guests with tour guides and Nanjing itineraries. Tourism has spurred the growth of related industries, such as the many cultural related shops in the streets surrounding the Confucian temple in Nanjing. The municipal government has also shown increasing interest in developing this industry, and has encouraged the preservation and renovation of derelict streets and temples that have any cultural or historical value. Also, the Nanjing government holds several cultural activities each year, among the most important is Nanjing's International Plum Blossom Festival which celebrates the beautiful plum-blossoms that can be seen during late February and early March. The plum-blossom has been made Nanjing's city flower and Nanjing holds its plum blossom festival at time of the plum blossom's full bloom. There are many activities set up by the municipal government, including not only tourist and cultural activities, but business and trade fairs as well.

        Greater Nanjing:

        The Government of Jiangsu province has approved a long term plan to expand Nanjing's metropolitan sphere of influence to cities in the immediate outlying area of Nanjing. This will allow Nanjing to develop into the dominate metropolitan center in the western potion of the Yangtze Triangle region, while allowing the many cities within close proximity to Nanjing to come into their own, fully developed status. This is a crucial step in helping project the economic might of the cities of the Yangtze triangle beyond their immediate regions and further back along the path of the Yangtze river, and will be important for developing more primary and secondary transportation and communication links. With China's massive Three Gorges project nearing completion, Nanjing and cities in her outlaying areas stand to reap considerable gains from the new commerce that the project will attract, however it will not come without a cost. The Three Georges will redirect many of the ships that docked in Nanjing to the even further inland port of Chong Qing, as the huge reservoir created by the Three Gorges Dam allows heavy tonnage ocean liners to navigate over a 1000 kilometers into the Chinese mainland. Redefining the role of Nanjing in the context of a greater Nanjing metropolitan area will help this part of China reap the greatest amount of benefits from ongoing reforms.

        Urban Construction:

        Nanjing's municipal government is pursuing a policy of "developing one 'new city' and three districts." That is, they are developing a entirely new stretch of land west of the Qinhuai River as the model of the modernized future Nanjing, while at the same time investing heavily in expanding the limits of Nanjing with incorporating the new districts of Xianxi, Dongshang, and Jiangbei into the urban landscape. The redevelopment of the old city is also an ongoing project, but with the many successes already accomplished here, the municipal government has decreed it prudent to begin to look to outlying areas for the answers to continuing urban growth and population density. The standard of living has been continuously rising over the last two decades, with infrastructure projects not only ushering in more foreign investment, but also making the day to day lives of Nanjing's citizens more enjoyable. Gas supply coverage reaches 99.59% of the cities residents, and tap water supplies reach 100% - with a overall capacity of supplying 2.02 million tons of water a day. A double loop power grid system ensures more reliable and safer power supplies, reducing blackouts and brownouts. All these systems ensure that businesses and industries have the power and basic resources they need to run smoothly. Infrastructure construction and high-rise/skyscraper construction is one of China's hottest industries, and Chinese construction firms or relying more and more on high-quality western construction materials and methodologies.

        Environmental Protection:

        Nanjing places a great deal of importance on its environment, and recent years have proven Nanjing's dedication to improving her environment as true and steadfast. There are several ongoing environmental protection projects underway in Nanjing, and already Nanjing boasts some 700 pollution treatment facilities of various kinds. Emissions and discharge of industrial pollutants have already met with standards to be implemented during the first time period, and continuing efforts are being made to bring emissions up to standard when the second time period starts. Many of the lakes and Rivers in and around Nanjing have been dredged, and wastewater is no longer directly discharging into them. Full environment protection will reach at least 8% of Nanjing's city territory, and even today, Nanjingese enjoy some 9.5 square meters of greenery per capita. However, while Nanjing may remain a bright spot among Chinese cities, compared to cities of comparable size and population in the west and Japan, Nanjing has a long way to go. There is hope, however, in the pride that Nanjing takes in being China's "Garden City" and efforts have already begun to bring Nanjing closer to meeting international standards for environmental protection and pollution control.

        Transportation:

        Nanjing is an important transportation hub for both China's major rail lines, and China's inter-provincial highways. With two bridges spanning the Yangtze river (and a third currently under construction), Nanjing is a nexus point for four major rail lines: the Tianjin-Pukou line, the Shanghai- Nanjing line, the Nanjing Tongjing line, and the Anhui -Jiangxi line. Nanjing's rail infrastructure includes one of the largest mechanized marshaling yards in the country as well as a large number of electric powered rail lines. Nanjing's highway system leads the Province with asphalt highway connections to all townships, and general highway connections to all villages. Nanjing's comprehensive public transportation system takes full advantages of Nanjing's superior highways, employing nearly 4000 buses to ensure a timely commute for Nanjing's mammoth population. A extensive subway system currently under construction and slated to open in 2004 will be another great leap forward in urban transportation in Nanjing. Historically, the Yangtze river has been the most important transportation link to Nanjing, and today it remains just as important as in years past. Nanjing is China's largest inland river harbor, and one of the largest harbors in China. The Harbor area extends for a total of 98 kilometers, and has 180 docks with 240 berths in total, the largest of which can dock 10,000t class vessels. Currently a container loading and unloading dock is under construction at Longtan, it will have 3 berths for 10,000t class vessels and 2 berths for 1,000t class vessels. Nanjing Changjiang Oil Transportation Corporation is a notable industry operating out of the docks of Nanjing; taking advantage of the Shandong -Nanjing oil pipeline and Nanjing's extensive docks, it undertakes maritime transportation of oil products from Nanjing to places abroad. Nanjing is also home to an international airport hub to over 70 air routes to major cities around China and some neighboring countries. In 2002, Nanjing Lukou airport saw over a million passengers board their flights, and handled over 67,000 tons of cargo.

        Post, telephone, and telecommunications:

        Nanjing is one of China's 8 central long distance telecommunications centers, and has a multi-layered communication network incorporating wire, cable, optical cable, microwave, short wave, and satellite. Domestic and international telecommunication services include local wireless circuits, network-based communication of spoken languages, data and images, and multi-media communication and information services. Important sports games or other events can be broadcast worldwide via earth satellite. Nanjing was the first city in China to open wideband LAN services, and currently continuing efforts are being made to spread high-speed internet access to all corners of the city. Total phone capacity is roughly 2.5 million phone lines, with some 1.82 million in actual use. There are an estimated 400,000 plus internet users as well. Nanjing has business relationships with express mail services companies from over 200 countries and regions, and an airmail transit station has been set up at the Nanjing Lukou International Airport.

        Foreign investment:

        By 2002, Nanjing had approved over 6,000 foreign-invested enterprises, with 3,142 actually coming into full operation, and with an actual used amount of nearly 6 billion U.S. dollars of foreign investment. The year 2002 saw some 410 new approved enterprises, with over 110 of them coming into operation. Foreign enterprises operating in Nanjing include such names as Siemens, Shell and Philips, Eastman, BASF, Itochu, Mitsui Bushan, Sharp and Toshiba, Ericsson, Kumho Tire, and Fiat among others. In 2002, Contracted foreign investment increased by 261% over the same period from the previous year, and expectations are high for the next few years. Nanjing, with its relative proximity to Shanghai coupled with its strategic location as a logistic and cultural point in the transition from China east cost to her interior, has seen the beginning of heavy foreign investment and investment driven growth.