This photo, taken on June 27, 2022, shows a vehicle being assembled at a smart factory of Chinese vehicle manufacturer Seres Group in Liangjiang New Area, southwest China's Chongqing Municipality. (Photo/Xinhua)

Chongqing - From January to October, Chongqing’s industrial enterprises above the designated size reported an output value of 2.3 trillion yuan ($316.92 billion), marking a 6.3% year-on-year increase. The added value of these enterprises grew by 7.9%, surpassing the national average by 2.1 percentage points.

This robust performance among industrial enterprises is a snapshot of Chongqing's broader economic stability and growth.

"From January to October, the city's economy maintained a steady and positive trend, with GDP rising 6% in the first three quarters, 1.2 percentage points higher than the national average," said Ding Yao, Head of Chongqing Comprehensive Economic Research Institute.

With a series of incremental policies gradually being implemented, market expectations have shifted positively. Ding projects that the economic recovery, which began in October, will continue into November and December.

According to Ding, key economic indicators showed further improvement from January to October, with positive factors continuing to build.

On the supply side, industrial production has remained stable and strong, driven by new models from companies like Seres and Changan Automobile, alongside growth in electronics and materials. Emerging industries, including integrated circuits, AI, robotics, and new materials, have shown strong expansion, as have production-oriented services like software information and leasing.

In the first three quarters, the value added by Chongqing's automotive industry grew by 25%. Seres sold 369,000 new energy vehicles, with the Aito M9 topping the 500,000 yuan-plus category for six consecutive months.

On the demand side, retail consumption has steadily grown, fueled by the trade-in policy for consumer goods and the week-long National Day holiday. As of November 18, Chongqing had issued 2.42 billion yuan in subsidies for trade-ins, with 68.48% of the allocated budget already used. Subsidies for car and home appliance trade-ins alone totaled 1.69 billion yuan and 699 million yuan, respectively, directly driving sales in these sectors to 20.03 billion yuan.

Stable export growth has also contributed to economic momentum. The value of goods transported via the New International Land-Sea Trade Corridor has surged by 80%, and the value of goods moved by the China-Europe Railway Express (Chengdu-Chongqing) has increased by about 12%.

Furthermore, the revenue growth of industrial enterprises above the designated size and service industries has outpaced the national average. Notably, the per-mu (0.0667 hectare) tax revenue of manufacturing enterprises grew by 16.4%, while the software industry saw more than 3,600 new software companies established and a business revenue increase of 11.3%.

However, Ding cautioned that Chongqing’s economic growth is still facing significant challenges. Achieving the year’s targets will not be easy.

Key concerns include insufficient demand for industrial products and internal competition across industries. Consumer demand remains weak, with October’s consumption index for life services — including catering, tourism, and leisure — declining from the previous month. Consumer expectations continue to be subdued.

There are also challenges in attracting major industrial projects. Despite efforts, Chongqing still lags behind eastern regions in industrial ecosystems, funding, talent resources, transport infrastructure, and government services. As a result, companies from regions like Beijing-Tianjin-Hebei, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area are more inclined to relocate within their own provinces or nearby regions, leading to fewer companies exploring investment opportunities in Chongqing.

Additionally, foreign trade and investment recovery remain difficult. The European Union’s decision to impose a five-year anti-subsidy tax on Chinese electric vehicles, effective from October 31, and Russia’s increase in scrappage fees for imported cars have added costs, particularly affecting Chongqing’s automobile sector. Meanwhile, the U.S. announced investment restrictions targeting China’s advanced technologies, such as semiconductors, quantum computing, and AI, further complicating efforts to attract foreign investment.

"It should be noted that nearly half of the package of incremental policies had been implemented by October, playing a positive role in stabilizing market expectations and boosting market confidence," Ding analyzed. The policies focus on five key areas: enhancing macro policy counter-cyclical adjustments, expanding domestic effective demand, supporting enterprises, stabilizing the real estate market, and boosting the capital market.

These areas remain central to Chongqing’s efforts to meet its annual economic targets. According to Ding, the city must continue strengthening policy coordination and innovation to fully harness the potential of these measures.

(Tang Qin, a reporter from Chongqing Daily, contributed the Chinese version of this report.)