By Xinyi Li, EDITOR  On November 25, Chongqing Productivity Promotion Center, cooperating with Chongqing Institute of Comprehensive Economic Research, issued the Chongqing Economic Prosperity Report 2018. From the report, Chongqing, since 2018, kept a generally stable economy with complex and volatile international and domestic environment. Meanwhile, Chongqing increased downward pressure of the domestic economy. The main economic indicators are basically steady but are still under pressure. Chongqing is accelerating the construction of China (Chongqing) Pilot Free Trade Zone and the China-Singapore (Chongqing) Demonstrative Initiative on Strategic Connectivity (CCI). Moreover, it focuses on keeping improvement of the business environment and increasing its ability to attract foreign investment.

With the complex and volatile environment, the economy of Chongqing keeps stable, keeping attracting foreign investment

The Continuous Progress of New Growth Drivers Replacing Old Ones

Chongqing has been focusing on “high-quality development, supply-side reform, and intellectualization-led technologies” since 2018. It is developing new economic growth points. Centering on the stabilization in employment, finance, foreign trade, foreign investment, investment, and expectations, Chongqing focuses on economic growth. The overall economic operation is stable but stressful, with a low position in the moderate range. From last 3 quarters, the year-on-year growth of Chongqing’s GDP is6.3%, with the regional GDP of RMB 1.47733 trillion.

From last 3 quarters, the year-on-year growth of Chongqing’s GDP is6.3%, with the regional GDP of RMB 1.47733 trillion

To achieve high-quality economic development, it will continue to transform and upgrade the economy. Meanwhile, it replaces old growth drivers with new ones. Due to the increasingly optimized industrial structure, the strategic emerging industries and new products realized rapid growth. However, the performance of key pillar industries is various. From the previous 3 quarters, the new-generation information technology, biology, high-end equipment manufacturing, and the advanced material industry improved. There was a substantial increase in the operating revenue of enterprises above state designated scale in Internet information services, Internet data services and the Internet of Thing. Furthermore, the digital economy has also remained robust.

A Stable Dynamical Structure of Demands

The investment in Chongqing grew again during the first three quarters. The growth of consumption is slow while the operation of import and export is stable. In addition, the dynamical structure of demands kept stable. Besides, the regional economies all boast the characteristics, with a growing number of highlights in improving quality and efficiency. Chongqing’s main urban area has achieved collaborative promotion between open innovation and the development of emerging industries. West Chongqing focuses on speeding up the transformation, upgrading and intelligent development of traditional industries. The northeast and southeast of Chongqing ushered in the flourishing period of the ecological economy, rural revitalization, folk tourism, and characteristic green industries.

At the same time, Chongqing is further enhancing foreign cooperation, with increasingly active innovation and entrepreneurship. The China (Chongqing) Pilot Free Trade Zone and the China-Singapore (Chongqing) Demonstrative Initiative on Strategic Connectivity (CCI) since 2018 developed rapidly. Under this background, Chongqing continued to constantly improve the business environment and the ability to attract foreign investment. In the first 3 quarters, the direct investment of Chongqing reached USD 2.21 billion, a year-on-year growth of 8.1%. The new contract amount of foreign investment reached USD 2.87 billion, covering regions like automobile manufacturing and information industry.

The Quality of Economic Development Remains to Be Improved

Chongqing’s condition is stable in general, and the main economic indicators kept basically steady with pressure. Several reasons for the pressure appears. First of all, steady growth is not optimistic. The pressure of stable industrial operation is relatively much while the continued momentum for investment-increment is scanty. Additionally, constraints on the growth of consumption are multiple. Then, there is less competition of creating an innovative environment and providing innovation policy guarantee. It felt short of creative talents, innovation platforms for social welfare, and intermediary service platforms.

Moreover, Sino-American economic and trade relations may affect the stable growth of foreign trade and investment. It poses challenges to the stabilization of the supply chain and industrial chain in Chongqing. Furthermore, as enterprises are facing the double pressure of intensifying market competition and increasing factor cost. Their expectations will be influenced by numerous uncertainties.

Source: Chongqing Municipal Commission of Commerce