Industry is the backbone of Hangzhou’s economy and the city has constructed a complete manufacturing system. The industrial foundation of the five pillar industries of Hangzhou － electronics and information, medical and chemical engineering, mechanical manufacturing, textile and garment, food and beverage － is quite solid with excellent market competitive ability.The construction of Hangzhou into an advanced manufacturing base of China, focusing on the construction of “an information port” and “a new medicine port”, has been accelerated. In addition, Hangzhou has endeavored to develop the Service Outsourcing Industry In 2008, the total industrial production value of Hangzhou reached RMB 1,096.886 billion Yuan, 12.5% over the previous year. In the same year, the total production volume of the industrial enterprises of certain scale reached RMB 933.217 billion Yuan, 12.3% over the previous year and sales volume, RMB 916.597billion Yuan, 12.3% over the previous year. Electronic Information Industry

Hangzhou is a national experimental city for informationization, E-commerce implementation, E-government construction, and hi-resolution TV network construction. The city is also a key national base for software and IC design. Its information industry is developing in a healthy way. Communication, software, IC, digital TV, animation, and online game, all these six new industries are forming an industrial chain. Domestic flagship enterprises on this chain include Eastcom, Soyea, Futong and UT Starcom, etc. International communication industry tycoons like Motorola, Toshiba, Mitsubishi and Nokia, etc, have also set up production and R&D centers in Hangzhou. Hangzhou’s electronic and information industry is focused on the innovation and production of products like mobile communication devices, communication equipment, digital audio and video equipment, semiconductor material and IC, computer and application software, etc. It is also making great efforts to innovate network technology and to facilitate e-commerce. Hangzhou has become a key research and production base of communication products and an important city of electronic information industry in China.

Medicine and Chemical Engineering

There are approximately 600 enterprises of varying scales in this industry in Hangzhou. In 2007, the total production volume of enterprises in this sector reached RMB 46.63 billion Yuan and sales volume, RMB 46.129 billion Yuan. Mingsheng Pharmaceutical, Qingchunbao Pharmaceutical, Hangzhou Rubber Group, Tranfar Group, etc. are the representatives of this industry in Hangzhou. In the medicine sector, a development pattern of biomedicine, chemical medicine and traditional Chinese medicine has been formed. Focused on the construction of “new medicine port”, it is developing modern traditional Chinese medicine, biomedicine, new medicine and optical-mechanical-electric medical equipment.

In the chemical engineering sector, there have been more than 1000 types of products in four categories: refined chemical engineering, agricultural chemical engineering, basic chemical engineering and rubber process. It will employ hi-tech to reconstruct the current facilities, develop refined chemical engineering, and eliminate small chemical engineering with low efficiency, high pollution or high energy consumption.

Food and Beverage Industry

There are about 2600 enterprises of varying scale in this industry in Hangzhou. Now it has formed four sectors: foodstuff processing, foodstuff production, beverage production, and tobacco processing. Many national level enterprises such as Wahaha, Dingyi, Zhongcui, etc are stationed in the city. As a tourism city, it will speed up its development of convenient, natural, green, nutrition and healthy foodstuff with high technical contents to increase the brand popularity.

Mechanical industry

There are approximately 1800 enterprises in this industry, represented by Wanxiang Group, Hangyang Group, Hangzhou Steam Turbine and Power Group, Holley Group, GM, Siemens (Hangzhou), etc. Hangzhou products like automobile parts, electric meter, industrial turbine, hydropower equipment, etc. have taken considerable market share in China. The municipal government is trying its best to revive and equip the manufacturing industry, improve design and manufacture level and promote optical-mechanical and electronic integration and focus on the development of automobile parts, electric engineering and equipment, instrument and meter, engineering machine, environment equipment, etc.

Textile and Textile Industry

There are about 1800 enterprises in this industry. Wanshili Group, Huading Group, Hengyi Group, Rongsheng Chemical Fiber, etc. are representatives in this industry. There is a complete industrial system for cotton textile, wool textile, chemical textile, knitting textile, printing and dyeing, decoration, garment, textile machine, etc. Focused on establishment of Hangzhou female fashion brands and development of decoration and industrial textile product, Hangzhou is increasing the ratio of high-grade fabric and constructing production bases for chemical fabric, color woven cloth, garment supplementary materials, etc.

Service Outsourcing Industry

Hangzhou has endeavored to develop the Service Outsourcing Industry ever since its recognition as a national-level Software & Service Outsourcing Base, especially BPO (Business Process Outsourcing) and ITO (Information Technology Outsourcing). The municipal government has issued many favorable policies for the industry. With Financial Service Outsourcing as the focused one, such industries as Software Development Service Outsourcing, Network and Digital increment Service Outsourcing, Telecommunication Operation Service Outsourcing, and Human Resources Service Outsourcing have been developed rapidly. The city is now speeding up its enhancement of new economies and new business models, trying to combine human intelligence with computer technology, and to combine human resources with capital.

Editor: Guo Changdong