Yunnan Economy

Yunnan is one of China's relatively undeveloped provinces with more poverty-stricken counties than the other provinces. In 1994, about 7 million people lived below the poverty line of less than an annual average income of 300 yuan per capita. They were distributed in the province's 73 counties mainly and financially supported by the central government. With an input of 3.15 billion yuan in 2002, the absolutely poor rural population in the province has been reduced from 4.05 million in 2000 to 2.86 million. The poverty alleviation plan includes five large projects aimed at improving infrastructure facilities. They involve planned attempts at soil improvement, water conservation, electric power, roads, and 'green belt' building. Upon the completion of the projects, the province hopes this will alleviate the shortages of grain, water, electric power and roads.

Yunnan's four pillar industries include tobacco, biology, mining, and tourism. Yunnan has trade contacts with more than seventy countries and regions in the world. Yunnan will also establish the Muse border trade zone (located in Ruili) along its border with Myanmar.[5] Yunnan mainly exports tobacco, machinery and electrical equipment, chemical and agricultural products, and non-ferrous metals. In 2002, its total two-way trade (imports and exports) reached US$2.23 billion. In 2002, the province signed foreign direct investment contracts involving US$333 million, of which US$112 million were actually utilized during the year. Yunnan's unemployment rate in 2002 was 4%.

Yunnan's nominal GDP in 2006 was 400.2 billion yuan (US$51.7 billion), an annual growth rate of 11.9%. Its per capita GDP was 8,961 yuan (US$1,160). The share of GDP of Yunnan's primary, secondary, and tertiary industries were 21.1%, 42.8%, and 36.1% respectively.

Yunnan is one of the major production bases of copper, lead, zinc, tin and aluminum in China. Gejiu city is well known as 'the Kingdom of Zinc' with the reserves ranked first in the country. The Yunxi brand refined tin is one of the main products in Gejiu, which is registered on the London Nonferrous Metal Exchange. Besides, reserves of germanium, indium, zirconium, platinum, rock salt, sylvite, nickel, phosphate, mirabilite, arsenic and blue asbestos are also high.

The electricity industry is another important economic pillar of Yunnan, which plays a key role in the 'West-East Electricity Transmission Project'. The electricity produced in Yunnan is hereby mainly transported to Guangdong Province.