THE ECONOMY OF THE CHENGDU CONSULAR DISTRICT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T01058R000101240001-8
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: October 14, 2009
• Sequence Number: 1
• Publication Date: April 4, 1985
• Content Type: REPORT

UNCLASSIFIED
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'Zr
DIRECTORATE OF INTELLIGENCE
4 April 1985
The Economy of the Chengdu Consular District
The three provinces and one autonomous region (hereafter all referred to
as provinces) in the Chengdu Consular District constitute the geographic
region known as Southwest China. Sichuan, Yunnan, Guizhou, and Tibet make up
16.1 percent of China's population, but produce only 9.7 percent of the
country's total industrial and agricultural output value (See Table 1 for a
summary of the provincial economies of Southwest China).* With two major
cities, Sichuan--China's most populous province--is far and away the economic
center of the Consular District. In fact, Sichuan's largest city, Chongqing
(total population 13.9 million), is now China's biggest, having surpassed
Shanghai. Even if the non-urban population of Chongqing is excluded, the
city, at 2.7 million, is still Sichuan's largest. Chengdu, the provincial
capital and site of the Consulate General, has a total population of 8.5
million, with 2.5 residents located in the city proper. The only other large
city in the Consular District is the Yunnan provincial capital Kunming, which
has a total population of slightly over 2 million and an urban population of
more than 1.3 million. (See Table 2 for a summary of the economies of the
largest cities in the Chengdu Consular District). (U)
More important agriculturally than as an industrial area, the Southwest
accounts for 14.7 percent of China's total grain production, including 16.4
percent of the nation's rice output and 22.3 percent of total tuber
production. The region also produces 15.7 percent of the nation's corn and
10.5 percent of its wheat. In addition to being a major grain producer, the
Southwest is also a major producer of economic crops, accounting for 18
percent of China's sugar cane, 111.8 percent of all oil-bearing crops, more
than 19 percent of China's anr.ua tea output and an impressive 28.8 percent of
its tobacco. (U)
*All economic statistics refer to year-end 1983, the most recent year for
which data covering all four provinces in the Chengdu Consular District are
available.
This memorandum was prepared by the Domestic Policy Branch, China
Division, Office of East Asian Analysis. Questions and comments are welcome
d
an
should be directed to the Chief, Domestic Policy Branch
EA M 85-10066
STAT
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Agricultural reform policies have been proceeding since the late 1970s and
early 1980s. Sichuan was one of the first provinces to experiment with the
"responsibility system" and achieved notable results while Premier Zhao Ziyang
was in charge of that province. The pace of rural reform has been slower in
Yunnan and Guizhou. In remote Tibet, the reforms required prodding by
high-ranking officials who personally inspected the province and urged the
speedy implementation of the responsibility system there. Now Tibet's
herdsmen and farmers probably have more autonomy than that found in any other
province. Despite Beijing's backing and increased autonomy, however,
agricultural reforms in Tibet to date have not produced the impressive results
observed in other Chinese provinces. One principal reason for Tibet's rather
lackluster poor agricultural performance last year was outside the control of
the responsibility system: poor weather and a prolonged drought. (U)
Despite the almost universal implementation of rural reform measures and
several straight years of good harvests, however, there is much room for
improvement in Southwest China's agriculture. Most farming is still done by
centuries-old techniques. Productivity is still fairly low in the four
provinces, with average crop yields--even in Sichuan--generally lower than the
national standards. As is the case in the rest of China, future agriculture
performance depends on three hard-to-predict variables: the weather, private
investment in farming inputs, and the effects of Beijing's recent agricultural
procurement price policy changes. (U)
Southwest China is not one of the country's most important industrial
regions. The share of total industrial output value produced in the four
provinces represents only eight percent of the nation's total. Moreover,
Sichuan produces more than twice as much industrial output as do the other
three provinces combined. Sichuan produces 8.8 percent of the nation's rolled
steel, 6.8 percent of its cement, and 6.2 percent of total coal output.
Nevertheless, for a province of over one hundred million residents, there is a
remarkable lack of basic industrial development. For example, Sichuan
produces 5.4 percent of China's total electricity output, less than five
percent of the nation's total cloth output, 3.4 percent of its walking
tractors, and only 1.8 percent of its bicycles. In all of Sichuan, there are
less than 3,000 kilometers of railways. (U)
One recent policy measure designed to encourage the Southwest's industrial
development is the granting of special status to Chongqing Municipality.
Beijing appears to have recognized that isolated, inland Southwest China, in
contrast to the coastal cities that are now developing special economic zones
open to foreign trade and investment, must be given greater flexibility if it
is to have a fighting chance at modernization. Since 1983 China's largest
city has held an economic rank nearly equivalent to a province and has been
given increased autonomy in its dealings with foreign businessmen. The
reforms to date have not resulted in much new foreign investment in Chongqing,
but the process is still in its early stages. (U)
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The standard of living in Southwest China for both urban and rural
residents lags behind the national average. Two of China's three poorest
provinces (Guizhou, Tibet, and Gansu) are located in the Southwest. Even in
relatively well-off Sichuan and Yunnan, however, incomes are still some 15
percent below the national average. Official data on per capita consumption
suggest still further that living conditions for residents of the four
provinces continue to be difficult. One glaring example serves to illustrate:
total retail sales--in state markets and free markets combined--in Southwest
China account for only 10.6 percent of China's total. (U)
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Table 1
Economic Profile of The Chengdu Consular District (1983)
Sichuan Guizhou Yunnan Tibet
Agriculture
Gross Value of
Agri. Output
(Billion Yuan)
25.4
5.2
6.9
0.6
% Share of Nat'l
Output of:
Grain
10.4
1.8
2.5
0.1
Rice
11.5
2.2
2.7
---
Wheat
8.9
0.4
1.1
0.1
Corn
8.6
3.1
3.9
---
Oilseeds
10.7
2.7
1.3
0.1
Sugarcane
6.2
0.4
11.3
---
Industry
Gross Value of
Industrial Output
(Billion Yuan)
34.0
6.2
8.9
0.1
% of GVIO in:
Light Industry
48.1
37.2
50.4
41.5
Heavy Industry
51.9
62.8
49.6
58.5
% Share of Nat'l
Output of:
Rolled Steel
8.8
0.3
1.2
---
Coal
6.2
2.6
2.0
---
Cement
6.8
1.7
2.1
0.1
Motor Vehicles
1.3
---
0.4
---
Cloth
4.9
0.4
1.0
Bicycles
1.8
---
0.6
Sugar
4.0
0.2
7.6
---
Electricity
5.4
2.0
1.8
0.1
Walking Tractors
3.4
0.1
1.5
---
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Transportation
Railways (km)
2,875.6
1,395.8
1,620.5
---
Highways (km)
84,624
27,675
46,230
21,551
Waterways (km)
8,192
1,661
1,010
---
Living Standards
Average Annual
Wages in State-
owned Enterprises
(yuan)
827
830
857
1,397
Average Annual
Rural Per Capita
Income (yuan)
258
225
267
216
% Share of Nat'l
Retail Sales
6.8
1.5
2.2
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Table 2
Economic Profile: Chongqing, Chengdu, and Kunming Municipalities (1983)*
Chongqing Chengdu Kunming
Population (year end):
Total Municipality
13,890,000
8,490,000
2
020
000
City Proper
2,690,000
2,510,000
,
,
1,320,000
Ind. Output (GVIO,
Billion 1980 yuan):
Total Municipality
9.9
7.4
3.8
City Proper
6.9
6.0
3.3
Of which:
Light Industry (%)
48.1
41.0
53.4
Heavy Industry (K)
51.9
59.0
46.6
Length of Paved Roads,
City Proper (km)
1,937
335
245
Public Buses and Trolleys
862
559
383
Bicycles
50,200
879,000
552,500
Retail Sales Outlets
11,968
17,497
7,376
Retail Sales (Billion yuan)
1
7
.
1.1
Workers and Staff
(year end)
1,226,700
971,500
579,300
Private Sector Workers
12,980
11,479
9,915
Public Libraries
6
7
6
Public Library Books
4,535,000
1,243,000
2,262,000
Hospitals and Clinics
843
853
1,053
Hospital Beds
13,872
12,508
7,988
Doctors
10,245
12,776
7,536
*All data are for city proper unless otherwise specified.
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UNCLASSIFIED
Subject: The Economy of the Chengdu Consular District
Distribution:
Department of State
1 - Donald M. Anderson, Director, Office of Chinese Affairs, Room 4318
1 - William Thomas, Consul General, Designate, American Consulate General,
Chengdu
1 - Howard H. Lange, Deputy Director for Economic Affairs, Office of
Chinese Affairs, Room 4318
1 - John Danylyck, INR/EC Communist Asia, Room 8662
1 - Chris Clarke, INR/EA, Room 8840
Department of Commerce
1 - Christine Lucyk, Office of PRC and Hong Kong, Room 2317
1 - Nai-Ruenn Chen, International Economist, Room 2317
Central Intelligence Agency
1 - DDI (7E12)
1 - Executive Director (7E12)
1 - NIO/EA (7E62)
1 - NIO/Econ (7E48)
1 - D/NIC (7E44)
1 - D/OEA (4F18)
2 - C/OEA/CH (4G32)
1 - OEA Research Director (4G32)
1 - C/OEA/SDS (4G32)
1 - C/OEA/CH/DEF (4G32)
1 - C/OEA/CH/DEV (4G32)
1 - C/OEA/CH/DOM (4G32)
1 - C/OEA/CH/FOR (4G32)
1 - C/OEA/NA (4G43)
1 - C/OEA/SA (4F38)
1 - PDB Staff (7F30)
5 - CPAS/IMC/CB (7G07)
1 - CPAS/ILS (7G50)
1 - CH/EA/RR (5D10)
1 - C/PES (7F24)
2 - OCR/ISG (1H19)
1 - OCR/EA (1H18)
1 - C/DO/PPS (3D01)
1-
UNCLASSIFIED
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