Focus on Shenyang, China
Table of Contents
- Business Environment
- Major Stakeholders
- The Canadian Advantage
- Fast Facts
- Canadian Trade Commissioner Service Coordinates
Shenyang is among the top ten largest cities in China and an industrial center and transportation hub for Northeast China. It is also the largest political, economic, and cultural center of Northeast China. One of China’s primary industrial centers, Shenyang is home to some of the country’s leading firms in the aerospace, heavy machinery, defense, automotive, electronics, and software sectors. In fall 2013, Shenyang hosted China’s 12th National Games.
With its favorable geographic location - close to Japan, South Korea, Mongolia and Russia - Shenyang plays a key role as a gateway into the Northeast Asia Economic Region and Bohai Sea Rim Economic Region. Moreover, Shenyang has seven neighboring cities within an hour's drive -- Anshan, Fushun, Benxi, Yingkou, Liaoyang, Tieling, and Fuxin – in each of which the focus is on basic industries and processing, resulting in an urban cluster of 75,000-sq–km that is known as the "Shenyang Economic Zone", with 24 million people.
The State Council has designated the area a "pilot for reforming industrialization" so it expects to have the greatest development potential in China this century and to be an economic power in Northeast Asia and to be competitive internationally. The province is also currently focused on moving towards more hi-tech industries and diversifying its formerly state-owned industrial structure.
Shenyang is the largest collecting and distributing center for commodities in the Northeast. In recent years, with the rapid expansion of integral scale of commercial circulation, a brand-new structure for commercial and trade circulation has taken shape in Shenyang. With swift growth of the trade fair and conference industry, hundreds of exhibitions are held in Shenyang every year on the average. It has already established trade relationships with over 190 countries and regions in the world, its products are on sale all over the world.
- Five industries in Shenyang account for over half of industrial value-added. These include auto and auto parts, modern construction, agricultural product processing, chemicals, steel and nonferrous metal.
- Over 120 auto & auto-parts manufacturers including: Magna, BMW, GM, Bridgestone, Hino, Lear, Michelin, Mitsubishi, Toyota, ZF Lamforder have invested or partnered in Shenyang. Total output of 545,000 vehicles in 2014.
Special industrial zones
- Liaoning Xinmin Economic Development Zone
- Shenyang Finance, Commerce ™ Economic Development Zone
- Shengyang Offshore Economic Zone
- Liaoning Faku Economic Development Zone
- Shenyang Daoyi Economic Development Zone
- Shenyang Huishan Economic &Technological Development Zone
Canada has a number of bilateral trade and investment policy instruments in place that are helping to facilitate and support Canadian commercial engagement in the region including:
- 2005 Air Services Agreement
- 2007 Canada-China Agreement for Scientific and Technological Cooperation
- 2008 Memorandum of Understanding on Infrastructure
- 2009 Memorandum of Understanding with the National Development and Reform Commission (NDRC) on Collaboration in Civil Aviation and Cooperation in Trade Logistics
- 2012 China-Canada Bilateral Investment Protection Agreement
Notable domestic enterprises
- Major industrial companies are headquartered in Shenyang including: Shenyang Brilliance Auto Co., Ltd., a major Chinese automobile manufacturer, AVIC Shenyang Aircraft Industry (Group) Co Ltd, a large-scale modern aircraft manufacturer; Neusoft Group, the biggest software company in China, and Shenyang Machine Tool Group, the largest machine tool manufacturer in China.
- Shenyang Yuanda Enterprise Group, TBEA Shenyang Transformer Group Co Ltd, China Huishan Dairy Holding Co, Northeast Parmacy Co.
- Mitsui, Hitachi, CocaCola, BASF, Hyundai, GM, Nissan, Alcatel, Wal-Mart, Sanyo, ABB Group, Bridgestone, Michelin, Toyota, Carrefour, Shenyang Kodenshi Co., Ltd (Korea), Shenyang Tingyi Intl Food (British), Shenyang Weiyong Precision (Singapore), Shenyang Aerospace Mitsubishi (Japan), Shenyang Matsushita Battery (Japan), SY Yamanouchi Pharmaceutical (Japan)
The Canadian Advantage
Under Beijing’s “Diversifying state-owned industrial structure”, Shenyang, as pilot for reforming industrialization, is likely to be the largest beneficiary due to its large industrial base. Export opportunities exist in machinery, specialty steel manufacturing equipment, petrochemical refinery technology, and power generation equipment. Other areas of potential export interest are management of water resources; treatment of wastewater, solid and hazardous waste; and reduction of sulphur dioxide in manufacturing and power generation.
With aircraft maintenance costs making up approximately 40% of an airline company's expense, China's ability to provide highly-trained and low-cost labour can help reduce production costs.
With more than 150 registered Canadian firms in Shenyang, Canada’s current presence in the region has paved the way for a number of Canadian firms in sectors such as aerospace, automotive and software development, among others. Canada is currently a world leader in the aerospace sector for the supply of aircraft and aviation systems; maintenance, repair and overhaul; aviation training equipment and services; manufacturing and design technologies.
Niche Canadian capabilities in the automotive industry include Plastics, TDM, advanced and lightweight materials, stampings, and fuel cell/hydrogen technology as well as sophisticated components for assembly including: gearboxes, vehicle body parts, steering wheel related products, mounted brake linings.
Bombardier Aerospace made great progress in Liaoning with its collaboration with Shenyang Aircraft Company (SAC). The collaboration has expanded in a significant way from Q-400 subcontracting to a risk sharing partnership on C-series. Besides, AAFC, by collaborating with local institutions, established Shenyang-AAFC Innovation Center for Frigid-Zone Agriculture in Shenyang, which provides a platform for collaboration among agriculture scientists. The center has successfully introduced Canadian oat varieties to Shenyang's Kang Ping County. In addition, L-3 MAPPS won a contract to supply a nuclear power plant simulator for the Hongyanhe Nuclear Power Plant Project.
Over recent years, the collaboration between Bombardier Aerospace and Shenyang Aircraft Company (SAC) has expanded in a significant way from Q-400 subcontracting to a risk sharing partnership on the C-series, a newly designed commercial aircraft that focuses on operational flexibility, cost effectiveness, passenger comfort and energy efficiency.
For More Information
Area: 12,860 km2
Language(s): North-eastern Mandarin, Shenyang dialect.
Major Industries: Aerospace, heavy machinenery, defence, software, automotive, and electronics.
Main Export Destination: U.S., U.K., Germany, Italy, Poland, Greece, Russia, Republic of Korea, Japan and Hong Kong.
Main Import Sources: Japan, Republic of Korea, Indonesia, Hong Kong and U.S.
Major Exports: Mechanical equipment 56.3%, high-tech products 20.9%.
Major Imports: Machinery, electronic equipment and components, fertilizers, raw materials and chemicals.
Foreign Investment: USD 2.27 billion (2014)
Mayor: Mr. Pan Liguo
CPC Secretariat: Mr. Zeng Wei
County-levels: 9 districts and 3 counties
Canadian Trade Commissioner Service Coordinates
Canadian Trade Office in Shenyang
Room 3002, Unit 2, 30/F, Sunny World Center, No.10 Youhao Street, Shenhe District,
Shenyang, 110013, China
Tel.: (011-86-10) 5139-4000
Fax: (011-86-10) 5139-4450
19 Dongzhimenwai Dajie,
Chao Yang District
Beijing 100600, People’s Republic of China
Tel.: (011-86-10) 5139-4000
Fax: (011-86-10) 5139-4450
Room 1705, Metropolitan Tower
Wu Yi Lu, Yu Zhong District
Chongqing 400010, People’s Republic of China
Tel.: (011-86-23) 6373-8007
Fax: (011-86-23) 6373-8026
China Hotel Office Tower, Suite 801
Liu Hua Lu, Guangzhou
Guangdong 510015, People’s Republic of China
Tel.: (011-86-20) 8666-0569
Fax: (011-86-20) 8668-6093
14th Floor, One Exchange Square
Central, Hong Kong SAR, People’s Republic of China
P.O. Box 11142 Central
Hong Kong SAR, China
Tel.: (011-85-2) 2847-7414
Fax: (011-85-2) 2847-7441
American International Centre
West Tower, Suite 604,
1376 Nanjing Xi Lu
Shanghai 200040, People’s Republic of China
Tel.: (011-86-21) 6279-8400
Fax: (011-86-21) 6279-7456
The Canadian trade office in Shenyang enhances the coverage provided by the Canadian Embassy in Beijing, which continues to include Qingdao in its territory of responsibility.
The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information.
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