Beijing

Economy

Since the Communist revolution of 1949, Beijing has become one of the nation's industrial centers. In the 1950s and 1960s, the Chinese government funded major development of heavy industry in the city, led by the modernization of the Shih-ching-shan Iron and Steel Works, which is now one of the country's major steel-producing facilities. Today Beijing ranks second only to Shanghai in industrialization, with highly developed machinery, textile, and petrochemical sectors. Agriculture also plays a significant role in Beijing's economy, with a large farming belt on the city's periphery serving to reduce its dependence on food supplies shipped in from the Yangtze Valley.

Beijing has a rapidly growing service sector, consisting mostly of government agencies. The People's Bank of China, the major institution in China's centralized banking system, has its head office in central Beijing, which is also home to a variety of specialized banks, including the Industrial and Commercial Bank of China and the Agricultural Bank of China. Other financial institutions in the city include major insurance companies, credit cooperatives, securities firms, and investment companies. Wholesale and retail commerce and tourism also play a major role in the city's economy.

The free-market economic reforms of the 1990s created an economic boom for Beijing with the influx of foreign capital and technology.