ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Economy

GDP plunges 27% in Chinese oil powerhouse Daqing

The Heilongjiang delegation convenes a session on the sidelines of the National People's Congress on March 6.

BEIJING -- The economy in China's northeastern city of Daqing shrank in 2015 for the first time in almost 30 years, hit hard by the worldwide drop in oil prices, it was learned Sunday.

     At the meeting of the National People's Congress in the capital, a Daqing official told the committee for Heilongjiang Province on Sunday that the city's gross domestic product dropped 27% last year. Daqing is home to one of China's largest oil fields and accounts for about 20% of the nation's petroleum production.

     The city was hit by a combination of the slowing domestic economy and the plummeting global oil prices, the official said, as Daqing's oil production fell 30%.

     Heilongjiang Province's overall economy grew 5.7% last year, trailing the national figure of 6.9%. China's oil, coal, steel and other materials industries dominate the three provinces that make up northeastern China as well as nearby Shanxi Province, and state-owned companies are major players.

     Xu Shaoshi, chairman of the National Development and Reform Commission, told reporters Sunday that Heilongjiang Province officials had indicated massive funding would be used to support displaced workers. Efforts will focus on securing employment for workers who lose their jobs as the capacity glut among state-owned companies is corrected. This is premised on jobs migrating to the service sector, but it is unclear whether this will go according to plan.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media