Chongqing - Acknowledging the indispensable role of the private sector in steering the country towards modernization, Chongqing, a municipality in Southwest China, has initiated comprehensive measures to encourage its sophisticated development. On June 19, Chongqing unveiled a strategic plan to augment the private sector’s growth.
The new strategies outline ambitious objectives, such as nurturing over 1.35 million private enterprises by 2027 and ensuring that the private sector’s value-added contribution reaches 62% of the regional GDP.
The assembly workshop of Seres is located in Chongqing Liangjiang New Area. (Photo/Seres)
Contributing 80% of Chongqing's total investment in BRI
Chongqing's private enterprises have impressively contributed 80% of its total investment in the Belt and Road Initiative (BRI), making them the primary driving force behind the municipality’s foreign trade and investment. In 2022, the city’s private enterprises were responsible for 45.9% of its total import and export value, reaching 374.11 billion yuan (approximately 52.24 billion U.S. dollars). Additionally, 19 private enterprises invested 66.68 million U.S. dollars in countries involved in the BRI.
Formovie, a private enterprise specializing in Laser TV and smart projectors, achieved commendable results in 2022. Its overseas sales volume touched nearly 200 million yuan (approximately 27 million U.S. dollars), accounting for over 15% of its total sales.
Formovie also partnered with the popular streaming platform Netflix, incorporating authorized content directly into their projectors to maintain content authorization and curb infringement issues.
In an effort to stay competitive in overseas markets, especially in emerging economies, Formovie adopted single LCD technology in place of imported chips, significantly reducing costs and elevating their international competitiveness.
Shuai Ling, the Public Affairs Director of Formovie, shared the company’s strategy, “We target countries in the Regional Comprehensive Economic Partnership (RCEP) as our key market. We’ve launched region-specific versions of our Laser TV and smart projectors to cater to local consumption habits.”
In Chongqing’s Liangjiang New Area, private automaker Seres, which has its New Energy Vehicle (NEV) manufacturing base, successfully exported its products to several countries, including Peru, Chile, Ecuador, Norway, Germany, Morocco, and Indonesia.
In 2022, Seres saw a 36% year-on-year increase in export volume, with export revenue escalating by 62% to 4.25 billion yuan (approximately 592 million U.S. dollars). In the first five months of this year, this private enterprise saw an export revenue of 1.8 billion yuan (approximately 250 million U.S. dollars), marking a 42% year-on-year growth.
Notably, Seres’ intelligent connected new energy models, such as the M5 and M7, have lured over 10 supporting private enterprises to establish a robust ecosystem nearby.
Constituting 99.6% of high-tech companies in Chongqing
Chongqing is a hub for numerous high-tech private enterprises underlining the private sector’s commitment to innovation.
For instance, Mashang Consumer Finance Co., Ltd. has made significant investments exceeding 3 billion yuan (around 418 million U.S. dollars) in research and development. The company boasts more than 1,200 cutting-edge patent applications.
By 2022, over 40% of the company’s revenue was generated from scientific and technological innovations, projected to exceed 50% in 2023.
Huashu Robot, another high-tech firm, has made impressive strides in the realm of industrial robotics. The company has successfully navigated over 300 key technological challenges and core system issues, leading to the acquisition of more than 200 independent intellectual property rights.
As a result, Huashu Robot has evolved into the most extensive robot production base in Southwest China, significantly augmenting Chongqing’s technological advancements.
According to the Chongqing Association of Industry and Commerce, the tally of Chongqing’s scientific and technological private enterprises reached 42,820 by 2022, a 16.3% increase from the previous year. These private enterprises constitute a staggering 99.6% of Chongqing’s total, emphasizing the sector’s commanding role in driving innovation and progress.