Ningxia Hui Autonomous Region

Ningxia is the province with the third smallest GDP in China, but its neighbours, Inner Mongolia and Shaanxi, are two of the fastest growing provinces in China during last five years, creating more opportunities. Yet Ningxia's fundamentals are still very weak, lacking the rich natural resources of Inner Mongolia or the talent that drives high value-added industries and services in Shaanxi. Ningxia also has to invest heavily to maintain its agricultural in the face of natural adversities such as a dry climate, shortage of water, and sand storms. Nominal GDP in 2008 was just RMB133.46 billion ($19.5 billion), with a per capita GDP of RMB21,470 ($3,143). It contributes 0.3% of the total Chinese economy.

Unlike some poor regions with low labour costs, the average wage in Ningxia is higher than two-thirds of other provinces, making it less attractive as a base for manufacturers. At the same time, Ningxia does not have the population size to be a consumption hub. Ningxia's main industries, chemical manufacturing and metal smelting, all consume large amounts of energy. This problem is exacerbated by outdated equipment and technology that make it the least energy efficient region in China.