Henan-China Permanent Virtual Exhibition and Business Directory

The economy of Henan Province has seen rapid development over the past two decades, and its economy continues to expand at an even faster rate than the national average of 10%. This rapid growth has transformed Henan from one of China’s poorest provinces into one of its most competitive. In 2009 Henan's nominal GDP was 2.29 trillion RMB (US$339 billion), making it the fifth largest economy in China. Its key cities are Zhengzhou, the capital, and Luoyang – the economy in these urban areas is fuelled by a large and relatively affluent population of consumers.

Henan’s is a semi-industrialized economy with an underdeveloped service sector. In 2009 its primary, secondary, and tertiary industries were worth 277 billion RMB (US$40 billion), 1.097 trillion RMB (US$160 billion), and 563 billion RMB (US$82 billion), respectively.

Agriculture has traditionally been a pillar of the provincial economy. Henan produces more wheat and sesame seeds than any other province in China, harvests the second-largest amount of rice in China, and also produces beef, cotton, maize, pork and animal oils. The breadbasket of China, 90% of the ingredients used in McDonald’s and KFC restaurants in China comes from Henan. It is the breadbasket of the People’s Republic of China.

Henan has the second largest molybdenum reserve in the world – coal, aluminium, alkaline metals and tungsten are also found in large amounts in western Henan. The processing and export of these materials is one of the main contributors to the province’s GDP. Traditional industries in Henan include light textiles and food processing, but the manufacturing sector continues to expand, and metallurgy, petroleum, cement, chemicals, machinery and electronics have all established a foothold in the province.

Henan is actively trying to build an open economy. In 2008 the province’s total trade volume was US$17.5 billion, including US$10.7 billion in exports. Since 2002, more than 7,000 have commenced operations in Henan. Foreign direct investment (FDI) of US$10.64 billion has been attracted to the province, with realized FDI of US$5.3 billion.

In order to develop a more knowledge and technology-based economy, the government of Henan has established a number of development zones in all of the province’s major cities, in an effort to provide additional support to industries such as software, information technology, new materials, bio-pharmaceuticals and electronics. Henan is also a major destination for tourists, and millions of tourists visit Shaolin Temple and the Longmen Grottoes each year.

The government of Henan continues to support foreign exchanges and has established trade partnerships with 16 states in the United States, and with Japan, Russia, France and Germany, among other countries, while the province’s cities have established ‘sister-city’ relationships with thirty-two foreign cities.