Chongqing- "In the first half of this year, the city's economy is progressing under pressure, with the stable and high-quality development of movement," said a person in charge of the Chongqing Municipal Development and Reform Commission, after the recent release of the city's half-year report about its economic performance.
According to the Chongqing Municipal Bureau of Statistics, the city's regional GDP reached 1.43 trillion yuan (about 200.1 billion U.S. dollars) in the first half of 2023, marking an impressive year-on-year growth of 4.6%.
Chongqing's GDP in the first half of 2023. (Photo/ Zheng Ran)
A wave-like economic recovery under pressure
A relevant official analyzed that, in the first half of the year, Chongqing's GDP growth was slower than the country's 5.5%, and the economic recovery showed a wave-like development, reflecting that the foundation of economic recovery is not yet stable and economic structural adjustment is still under pressure.
Overlaid by the complex and volatile international situation, including the rising risk of world recession and slowing-downed developed economies, which dragged down the external demand for Chongqing.
Across the country, supply recovery is faster than demand and inevitably affects per capita disposable income. Consumers are inclined to behave prudently. Like the country, some business areas, scenic spots, and other consumption scenes in Chongqing face the dilemma of a "high flow of people and low consumption."
From the industry front, the automobile industry dived into an accelerated change period, the ceiling effect of traditional electronic products gradually appeared, and the pulling function of infrastructure and real estate need further released.
Infrastructure, manufacturing, and R&D bucking the trend
Chongqing continues to demonstrate remarkable resilience amidst various economic trends, primarily characterized by its robust economic growth.
Data from the first half of the year indicates that infrastructure investment in the city has grown by 9.7%, outpacing the national average by 2.5 percentage points. This significant increase has effectively stimulated the city's overall investment growth, contributing to a rise of 3.1 percentage points.
In the realm of manufacturing, the industry saw an impressive year-on-year growth of 7.6%, exceeding the national average by 1.6 percentage points. Two sectors, in particular, the automobile and equipment industries, have showcased encouraging prospects. Their investment growth rates have surged, reaching 33.2% and 11.2%, respectively, reflecting a strong, positive economic momentum for Chongqing.
The city view of Chongqing. (Photo/ Zheng Ran)
Chongqing's primary industries continue to evolve, fostering the growth of a sustainable, green, and low-carbon society. Two notable sectors, AI and robotics, as well as the fiber and composite materials industry, have made significant strides with their added value growth at 15% and 45%, respectively.
In tandem with this, Chongqing's economy and societal structures are increasingly integrating technology, creating robust momentum for sustainable development. This is reflected in the R&D expenditure of industrial enterprises, which saw a substantial increase of 18.7%, amounting to 15.1 billion yuan.
Chongqing's vibrant market is evidenced by the 327,500 new business entities that have joined the fray, resulting in a record 13.4% growth. Consequently, Chongqing now houses 3,577,500 business entities, outpacing other major Chinese cities, including Beijing with 2,454,000, Shanghai with 3,305,000, and Tianjin with 1,718,000.
More foreign investment projects to be explored
As per the Chongqing Municipal Development and Reform Commission, in the second half of this year, Chongqing plans to pilot the Shanghai-Chongqing waterborne transit departure confirmation mode within the Chengdu-Chongqing customs area. This initiative is part of the city's focus on developing the Chengdu-Chongqing economic circle.
Moreover, the construction of the Chengdu-Chongqing Middle Line High-speed Railway is set to accelerate, which is expected to reduce travel times between the two cities to less than an hour. Concurrently, efforts will be made to develop the upstream region of the Yangtze River into a thriving shipping center.
Chongqing also plans to capitalize on the New International Land-Sea Trade Corridor to expand its partnerships with countries along this route. Opportunities will be explored in sectors such as intelligent networked new energy vehicles, intelligent terminals, agricultural machinery, and green food.
In anticipation of a full-scale expansion of used car exports, Chongqing is planning to extend its pilot scheme. To further boost foreign investment projects, Chongqing delegations are expected to visit Germany, France, Italy, the Netherlands, and Singapore. This proactive approach could bring exciting prospects for Chongqing's future economic development.