Chongqing- Southwest China's Chongqing Municipality is set to usher in the 3rd Western China International Fair for Investment and Trade Fair (WCIFIT) from May 20-23rd, a grand event that will showcase the importance of Western China as an international logistics hub and where deliberations on the future of foreign investment and trade are to be held.
In recent years, international exhibitions such as the Smart China Expo and WCIFIT have continued to enhance the global influence of Chongqing and strengthened its circle of friends in overseas economics and trade.
By the end of 2020, 296 companies from the World Fortune 500 had settled in Chongqing, demonstrating the significant results that have been achieved in the development of the economy and opening up.
According to data from the Chongqing Municipal Commission of Commerce, the annual total import and export value of Chongqing Municipality has reached 651.34 billion yuan (about USD 101.5 billion), an increase of 12.5% over 2019, setting a new high against global trends during the pandemic.
In light of the negative impacts ravaged by the worldwide pandemic, how has Chongqing achieved these breakthroughs in international trade and foreign investment?
Guoyuan Port has become a major international logistics hub that seamlessly combines rail, sea, air, and river freight (Photograph/iChongqing - James Alexander)
Four-way open channels
At 6:37 am on April 25th, a China-Europe freight train loaded with the 1000th parcel container gently pulled out of Tuanjiecun Station in Chongqing.
Since the first China Post express train departed on April 3rd last year, the Lithuanian route has become an important channel for the emergency delivery of international mail, thus writing a new chapter in the annals of rail delivery services.
During the Thirteenth Five-Year Plan, Chongqing has established a new pattern of integration in the Belt and Road and Yangtze River Economic Belt, which has been achieved thanks to the construction of efficient multimodal transportation links combining rail, sea, air, and river spanning in the following four directions;
- Westwards - The total number of China-Europe trains has exceeded 7,000 to rank first nationwide.
- Eastwards - Navigation capacity in the golden waterway of the Yangtze River has been significantly improved, and Guoyuan Port in Chongqing has been expanded, allowing this channel to play an ever more important role.
- Southwards - The New International Land-Sea Corridor based in Western China has formed a strategic link for the Belt and Road Initiative and Yangtze River Economic Belt, which now radiates influence on 249 ports across 95 countries and regions.
- Northwards - The Chongqing-Manchuria-Russia and other northbound international railway services have realized normal operations, with a total of 2,680 trains having departed to date.
The total number of westbound China Europe Railway Express train services has surpassed the 7000 mark (Photograph/iChongqing - James Alexander)
Open platform systems
In the Liangjiang New Area of Chongqing, which has pioneered opening up in the city and accounts for nearly one-third of total import and export volume, the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity has strengthened cooperation in financial services, aviation, transportation, logistics, information, and communications. A total of 247 cooperative projects with a total value of more than 33.3 billion U.S. dollars have been signed, and the scope of radiation and demonstration value is becoming increasingly apparent.
In the districts and counties of Chongqing, the Jiangjin and Fuling Comprehensive Bonded Areas have also officially commenced operations, while the high tech zones of Bishan, Rongchang, and Yongchuan have been upgraded to state-level development zones. In addition, 36 characteristic industrial parks have achieved development whilst improving quality and efficiency.
In March last year, during the epidemic, the Chongqing plant of Quanta in the Xiyong Microelectronics Park added two new production lines. Management has stated that total investment in the lines was in excess of 100 million yuan, displaying their confidence and determination to invest in Chongqing.
In recent years, Chongqing has continuously improved the quality and efficiency of the open economy through equal emphasis on the introduction and cultivation of industry, while the three key links of foreign investment, trade, and economics have been strengthened.
Data provided by Chongqing Customs shows that foreign trade in Chongqing has maintained double-digit growth for three consecutive years. In 2020, imports and exports in the electronic information industry amounted to 466.8 billion yuan, an increase of 16.3%, and accounting for 71.7% of the total foreign trade value in Chongqing over the same period.
Chongqing CRRC Railway Vehicles Co., Ltd. located in the Yufu Park of Liangjiang New Area, has benefited greatly from the open economy. Following more than 10 years of construction and development, the company has developed into a leading enterprise in-vehicle equipment for the Chongqing rail transit system.
Ma Guohua, General Manager of Chongqing CRRC, stated that the company is actively promoting the strategic goal of reaching thanks to the open highland of Liangjiang New Area outwards. The company has competed in overseas monorail markets such as Thailand, Malaysia, Brazil, and India, receiving orders for 105 stainless steel car bodies from the Argentine metro system.
Chongqing is now an international logistics hub and open inland highland with transportation links spanning north, east, south, and west (iChongqing/ James Alexander)
International consumption city
Channels drive logistics; logistics drive the economy and trade, while economy and trade drive industry. As more international logistics channels open up, the flow of overseas commodities into the national market through Chongqing continues to grow.
On August 11th last year, the first batch of Brazilian JBS frozen beef was imported through the New International Land-Sea Corridor and unloaded inside the Chongqing International Logistics Hub Park. According to a representative of Chongqing Jinshangxu International Trade Co. Ltd, about 30 tons of imported frozen beef will enter Chongqing and surrounding markets through the channel every month.
In terms of expanding globally, Loncin General Dynamics Co., Ltd. has over 20 holding and joint-stock companies around the world, and its products are sold to more than 80 countries, including Germany and Italy. High-end motorcycle brands are among their most widely loved products on the market.
Data from the Chongqing Municipal Commission of Commerce shows that from 2016 to 2020, the total import and export volume of cross-border e-commerce in Chongqing maintained an annual double-digit growth rate. In 2020, the total import and export volume reached 7.81 billion yuan and had amounted to 2.53 billion yuan in the first quarter of 2021, an increase of 49.9%.
At the same time, Chongqing has become a strong center for international consumption. In recent years, a large number of famous branded flagship and chain stores have set up in Chongqing, while Jiefangbei Pedestrian Street was selected among the first batch of national demonstration pedestrian streets last year.
In the Lianglu Cuntan Bonded Port Area of Liangjiang New District, the Midwest International Exchange Center • Bonded Port Cultural Tourism Window project has also been set up. Inside, there are more than 20 national pavilions, where large numbers of citizens and tourists now come to enjoy the customs and specialty products from Belt and Road countries.
Open Chongqing has also concentrated the attention of foreign investors. At the 3rd China International Import Expo last year, Greenland Group signed a contract with Chongqing to invest 12 billion yuan in the consumer goods sector alone and plans to build a global commodity trading port project in the city.
As the circle of friends in foreign trade and economic cooperation grows stronger and international cooperation mechanisms are continually enriched, the road of open economic development in Chongqing is to become ever more solid and broad.