Chongqing - A recycled aluminum project led by the Trade and Economic Multifunctional Platform for SCO Countries (SCO TEMP) aluminum working committee recently commenced a trial operation in Southwest China's Chongqing and Pakistan. 

Member of the committee established an entity in the Chongqing Lianglu-Guoyuan Port Comprehensive Bonded Zone (CBZ) and set up an overseas industrial park in Pakistan. 

The industrial park processes global market-purchased raw materials, selling the processed materials internationally or importing them back to the CBZ. Leveraging local manufacturing expertise, the Chongqing entity refines imported materials into high-value-added products for global sales.

The SCO TEMP, co-founded by the SCO Business Council and Chongqing Liangjiang New Area, is a non-profit trading platform for international exchange. It offers supply chain integration services for SCO countries and fosters project-driven collaboration in trading, education, agriculture, and sci-tech innovation.

The committee invested in Pakistan on the solid foundation laid by the China-Pakistan Economic Corridor (CPEC), coupled with the local industrial base, preferential policies, port and logistics services, and relatively low costs, according to Hu Kaiqiang, Director General of SCO TEMP.

Hu said the project, with an estimated investment value of 5.5 billion yuan (USD 767.8 million), will bring an advanced manufacturing system, create job opportunities, collect tax revenue, and boost international trading for Pakistan.

The aluminum working committee is seeking to apply the cooperation model to other recycled metals and build the CBZ into a global trading center for recycled metal.

The geographic convenience and industrial foundation are the primary advantages of Chongqing to participate in cooperation among the SCO countries, according to Hu.

Chongqing sits at the juncture of the Belt and Road and the Yangtze River Economic Belt, with an international logistics network comprising railway, airway, waterway, and highway. The China Railway Express to Europe (Chongqing-Xinjiang-Europe) connects SCO countries and sees a cargo delivery value approaching 60 billion yuan.

Guoyuan Port, located in Liangjiang New Area, is the largest port on the upper reaches of the Yangtze River with a multi-mode transportation network. (Photo/Lan Tian)

Industry-wise, Chongqing has long served as one of China's key manufacturing hubs and is a major smart manufacturing base in western China. Its manufacturing prowess is enhanced under the national strategy of the Chengdu-Chongqing Economic Circle and the municipal-level blueprint for a modern industrial system.

"If we combine the competitive manufacturing capability of Chongqing and the enriched resources of SCO countries, we stand a chance of building an international innovation ecosystem for the industrial chain," said Hu. To gain the upper hand in forming a hub of global industrial chains, Hu reckoned Chongqing should further optimize opening platforms and upgrade relevant services, including customs, logistics, and finance.

SCO TEMP has facilitated an outbound investment of nearly 30 billion yuan since 2022. Russia, Kazakhstan, Uzbekistan, Tajikistan, Pakistan, and Iran witness active cooperation in the mining, processing, manufacturing, and commodities sectors.

Based on the unique strengths of SCO countries, for instance, China's manufacturing capability and digital economy and the ecological resources of other SCO countries, the working committees coordinate an optimized labor division to maximize the comparative advantages and deepen the cooperation on industrial chain and supply chain. Eventually, we seek to establish an open industrial ecosystem for coordinated international innovation, where Chongqing serves as a global hub, added Hu.

(The original author is Guo Shuyu from Liangjiang New Area Media Center)