Focus on Wuhan, China

Table of Contents


Overview

Wuhan, the capital of Hubei province,is the most populous city in central China. In 2015 it has a population of 10.60 million residing in three distinct districts (Hankou, Hanyang, and Wuchang), commonly known as “The Three Towns of Wuhan”. The city is recognized as the political, economic, financial, cultural, educational, and transportation centre of central China.

While Wuhan has for decades been a traditional base for manufacturing, it has also become one of the areas promoting modern industrial change. Wuhan consists of three national development zones, four scientific and technologic development parks, over 350 research institutes, 1,656 hi-tech enterprises, numerous enterprise incubators and investments from 230 Fortune Global 500 firms – enabling the city to offer globally competitive strengths in most business fields. By combining traditional industries such as automobile manufacturing, the starting point of China's economic liberalization, with new hi-tech industries in places like the Optics Valley, Wuhan is positioning itself as one of the most progressive business cities in all of Asia.

Business Environment

Wuhan possesses strong economic and regional advantages. It connects the east with the west, channels the north to the south, and links rivers with seas by means of its developed infrastructure in water, land and air traffic.

Important metropolises in China, including Beijing, Shanghai, Guangzhou, Chengdu, and Xi’an, are all within 1,200 km of Wuhan, home to the largest inland port in the country and the gateway to the Three Gorges Project – the development of a hydroelectric dam in the Yangtze River. Benefitting from its strategic position in central China, Wuhan naturally became a hub for the efficient distribution of products for many industries.

Major industries in Wuhan include modern manufacturing (automotive, steel and iron manufacturing) and high-tech industries (including opto-electronic technology, pharmaceutical, biology engineering, new material industry, and environmental protection). Wuhan’s Dongfeng Motor Corporation is the third largest automaker in China. It has joint ventures with firms such as Honda, Nissan and French carmaker PSA Peugeot-Citroen. In 2014, Dongfeng sold more than 3.53 million vehicles. In addition to a strong industrial base, Wuhan is also ranked third in China for its comprehensive scientific and educational strength.

Overall, Wuhan is enjoying substantial growth:

Wuhan’s GDP reached RMB1,090.56 billion in 2015, with a YoY increase of 8.8%. GDP per capita reached approximately RMB 104,132 (USD $16,528).

Wuhan’s GDP in 2015 ranked 1st in major cities in Central China and 8th among 100 major cities in China. It is a city with great potential.

Special industrial zones

1.      Wuhan Optics Valley Area

With National Development Zone: Wuhan East Lake High-tech Development Zone

Key sectors: Electronic information, biotechnology, environment protection, and equipment manufacturing

2.      The Automotive Industry Cluster

 With National Development Zone: Wuhan Economic and Technological Development Zone

 Key sectors: Automobile, innovative industry, and aviation

3.      Wuhan Airport-neighboring Industry Cluster

With National Development Zone: Wuhan Airport-neighboring Economic and Development Zone, formerly known as Wuhan Wujiashan Economic and Development Zone.

Key sectors: Food processing industry, high tech mechanical and electric manufacturing, new energy vehicle, and service industry with high added value.

4.      Wuhan New Port-neighboring Industry Cluster

Key sectors: Yangtze river transportation, bonded warehousing, processing and logistics service, petrochemical, and steel processing

Market Access

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
  • Future Foreign Investment Promotion and Protection Agreement (FIPA)

Major Stakeholders

Notable domestic enterprises

  • Dongfeng Motor Corporation
  • Wuhan Department Store, Zhongshang Company, Hanyang Department Store, and Central Department Store are Wuhan’s four major commercial enterprises.
  • Wuhan Iron and Steel Group, WISCO (State-owned Asset Supervision and Administration Commission of the State Council of China approved in 2016 the merger between WISCO and Baosteel in Shanghai)
  • China Construction Third Engineering Bureau Co.,ltd
  • China Gezhouba Group Corporation
  • FiberHome Technologies Group
  • Jointown Pharmaceutical Group
  • ZALL Group

Foreign enterprises/investors

  • Wuhan has attracted more than 50 French companies – including large companies such as PSA, Faurecia, Hutchinson, Valeo, Alcatel, Alstom, Total, Carrefour, Air France, SDV, and Groupe Accor – representing over one third of total French investment in China, the highest among Chinese cities.
  • Famous commercial giants such as Walmart, METRO, and Carrefour have all set up branches in Wuhan.
  • Honeywell invested in Wuhan to establish the 2nd production base of turbocharger in China.

Commercial Opportunities

  • Automotive Sector, esp. advanced technology for electric vehicles and hydrogen fuel cell
  • Transportation:
  1. Construction of Wuhan Metro: Wuhan plans to build 15 lines of subway by 2020.
  2. General Aviation Service and Training: General Aviation and Satellite Industrial Park is established in Wuhan Economic and Technological Development Zone (Hannan), with a subject of developing into a domestic advanced and influential base for the R&D, manufacturing, maintenance support and services of general aviation industry in China.
  3. Intelligent transportation system.
  • Agriculture and Agri-food:
  1. Agricultural commodities and technologies: Canola, dairy breeds, swine genetics, etc.
  2. Agri-food products: Wuhan Yangluo bonded area and Wuhan East Lake bonded area are interested in establishing Canadian Pavilion within the bonded areas, which offers substantial opportunities for Canadian exporters.
  • Education:

Wuhan is the 3rd largest education and scientific base in China and has the largest number of undergraduate students in China.

12 high schools in Wuhan have international department that aims at helping students study abroad, among which Hongshan High School and Wuhan No.1 High School have joint education program with Canadian school board.   

Wuhan has over 120 higher education institutions, including two of the top 10 Universities in China (Wuhan University and Huazhong University of Science and Technology), and many of them have joint education program with Canadian institutions.

  • Environmental protection and energy conservation:
  1. The Wuhan Development Reform Commission (DRC) has established a number of initiatives to stimulate low carbon emissions in Wuhan in the 13th Five-Year Plan (2015-2020)
  2. Local companies are interested in advanced technologies, products and services of soil remediation, waste water treatment, air pollution control and pollution monitoring.

Canadian companies active in region

  • The Woodbridge Group
  • Wescast Industries Inc.
  • Magna Steyr R&D Centre
  • Epic-Hust Technology Wuhan Co.,ltd
  • BTI Systems
  • Premier Tech Co.,ltd
  • Manulife-Sinochem Hubei Branch
  • Industrie Orkan Inc.
  • GETRAG, acquired by Magna International in Jan 2016, established a joint venture with Dongfeng Motor Corporation. The JV is called Dongfeng GETRAG Transmission Co.,Ltd

For More Information

Wuhan is one of Canada’s 10 trade offices[1] in China, opened in 2010. The office is an indication of the increasing attention Canada is paying to China and will further support Canadian interests in the region.

Fast Facts

Area: 8,494.41 km²
Population: 10.60million in 2015
Population Density 1247 Person/sq.km (Land Area:8494.41 sq.km)
Language(s): Mandarin, Wuhan dialect.

Major Industries: Automotive industry, Iron and steel, Advanced manufacturing, Electronic Information, Food processing and tobacco, Energy and Environmental protection.
Main Export Destination: U.S., South Korea, Netherlands, India, Germany, Japan, U.K., Singapore, Brazil.
Main Import Sources: Japan, South Korea, Taiwan, U.S., Germany, Australia, Malaysia, Saudi Arabia, Brazil.
Major Exports: Machinery, electrical machinery, iron and steel, organic chemicals, woven apparel, preserved foods, automotive vehicles.
Major Imports: Ores/Slag/Ash, machinery, electrical machinery, automotives, optic and medical instruments, iron and steel, glass and glassware, plastic, aircrafts/space crafts.
Outbound Direct Investment: USD 3.03 billion (2015)

Government:
Mayor:
Mr. Wan Yong
CPC Secretariat: Mr. Ruan Chengfa

Divisions:
County-levels:
13 divisions
Township-levels: 153

Canadian Trade Commissioner Service Coordinates

Canadian Trade Office in Wuhan
New World International Trade Tower Room 1609A, Building 1, No. 568, Jianshe Avenue, Jianghan District
Wuhan, 430022, China
Tel.: (011-86-10) 5139-4000
Fax: (011-86-10) 5139-4450
Email: infocentrechina@international.gc.ca

Beijing
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
Email: infocentrechina@international.gc.ca

Chongqing
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
Email: infocentrechina@international.gc.ca

Guangzhou
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
Email: infocentrechina@international.gc.ca

Hong Kong
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
Email: infocentrechina@international.gc.ca

Shanghai
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
Email: infocentrechina@international.gc.ca


Footnotes

[1] The Canadian trade office in Wuhan enhances the coverage provided by the Consulate General of Canada in Shanghai, which continues to include Wuhan 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.