Geographical Advantages
Dalian is a window to northeast China and a gateway to Beijing and Tianjin. It is backed by the vast inland areas of the country's northeast provinces and Inner Mongolia. Dalian harbor is located near the tip of the Liaodong/Liaotung Peninsula with the Bohai Gulf to the west and the Yellow Sea to the east, a position that gives it excellent sea links to South Korea and Japan. With a coastline of 1,906 km, the city governs the entire Liaodong Peninsula and about 260 surrounding islands and reefs. It is south-south-west of the Yalu River and its harbor entrance forms an inlet known as Dalian Bay.
Environmental Protection
In 2005, the city's urban green-space coverage reached 42% in the built-up areas and per capita public green-space reached 10 square meters. Dalian received the United Nation's Human Habitat Award in 1999 and the United Nation's Environmental Program's "Global 500 Award" in 2001.
In 2006, the Environmental Impact Appraisal and Urban Development Planning departments completed. 5,938 examinations, with 3,435 completed projects approved and/or accepted after inspection. 520 million RMB was invested in environmental protection in the city during 2006. 11 enterprises in Dalian have passed the certification process for ISO 14000 environment management systems and standards. As well, Dalian implements a "drive clean" program, where more than 100,000 motor-vehicles underwent annual exhaust fume testing, with more than 60,000 motor-vehicles tested at roadside monitoring stations.
Dalian's financial sector is highly-developed and enjoys the participation of many foreign-funded banks, including HSBC, the Bank of Tokyo-Mitsubishi, Mizuho Holdings, the Bank of East Asia, the Exchange Bank, Standard Chartered Bank, and Paribas Bank.
These banks provide comprehensive financial services for approved enterprises including construction, equipment and capital assets financing. Seven of the foreign-invested banks are allowed to conduct RMB-based business and three of them also operate comprehensive foreign exchange business.
Insurance industry premium revenues reached 6.49 billion RMB (up 13.3%) in 2006. Of this total, property insurance premium earnings amounted to 1.98 billion RMB (up 21.2%) and life insurance premium earnings were 4.52 billion RMB (up 10.1%). The city's insurance penetration (measured by premiums to GDP) was 2.5% and the total assets of the insurance industry of Dalian were 19.87 billion RMB. Major insurance companies include Ping'an Insurance Company, the PICC, the CPIC, Sompo Japan Insurance Inc. and ABCC Insurance.
Commerce
Dalian's consumer goods transaction volume hit 73.2 billion RMB in 2005, an increase of 13.5% over the previous year. Trade volume at the Dalian Commodities Exchange Center has surpassed 17.9 billion RMB, ranking number one in Asia and second in the world, only next to the Chicago Mercantile Exchange in the U.S.
Dalian municipal government efficiency is rated higher than other cities of the same level in China. According to the World Bank's Report on the Investment Environment among 120 Chinese Cities, Dalian government efficiency is ranked 17th in the country. According to the China Cities Competitiveness Report issued by the China Social Science Academy in 2007, the management competitiveness of the Dalian Municipal Government ranks 36th while government innovation ranks 51st, while the city's infrastructure competitiveness ranked 14th in the country.
Dalian is the center of foreign trade in Liaoning Province as well as the second largest international commercial harbor in China. It is one of those rare cities that blend the look of a major metropolitan hub and the mindset of an island resort. The Dalian Municipal Government strives to provide the best business and living environments for foreign businesspeople and foreign enterprises. At the beginning of the new century, Dalian was recognized by economists as one of the five internationalized Chinese cities, together with Hong Kong, Beijing, Shanghai and Guangzhou.
Dalian is one of the top five cities in China in terms of concentration of overseas representation. More than 1900 representative offices and agencies have been set up in Dalian by overseas companies and there are eight overseas banks, as well as six foreign financial institutions. The city hosts a number of important international events each year including the Dalian International Fashion Festival, the Dalian Export Commodities Fair and the Dalian International Marathon. Business organizations and governmental conferences and conventions are also held frequently in Dalian; for example, the "WTO Informal Ministerial Meeting" and the "Korean Key Industrial Parks Investment Conference". In 2005, the city hosted more than 400 important economic and trade delegations and over 100 thousand businesspeople from over 70 countries and regions around the world.
Dalian's average GDP growth has been consistently over 10%. In 2006, the gross domestic product (GDP) of Dalian reached 256.97 billion RMB, up 16.5% from the previous year. Per capita GDP reached 42,579 RMB, ranking No.1 among all cities in Northeast China. 80% of all export cargo from northeast China is handled through the Dalian Port, while the total investment in fixed assets reached 146.95 billion RMB, up 32.3% from the year 2005.
Economic Contribution Ratios by Sector
In 2006, the economic contribution ratios of the primary, secondary and tertiary sectors in Dalian were as follows: agriculture, forestry, animal husbandry and the fisheries contributed 5.6%, the secondary, value added and construction industries ratio was 57% while the tertiary sector contributed 37.4% to the city's economy.
Dalian has been an international sea port supporting commerce and tourism from Japan, Korea, and other Asian regions for over a century. In 1985, the city was authorized by the State Council to become a preferred economic zone and now enjoys direct provincial-level decision-making authority. Products from Dalian are exported to 170 nations and regions worldwide and the city's total import and export volume reached US$23.52 billion in 2005, an increase of 21% over the previous year. The value of imports was US$11.09 billion, an increase of 19.5% and exports reached US$12.44 billion, an increase of 22.5%.
Foreign Trade and Cultural Ties
Dalian has entered sister-city relations with 18 cities in fourteen countries including Japan, the Republic of Korea, the United States, Canada, Germany, France, the United Kingdom, Italy, Australia, Russia, the Ukraine, Macedonia, Cuba and the Congo. Dalian's major foreign investors are mostly from Asian countries, which account for 70% of the foreign investment in Dalian with the greatest number coming from Japan.