Chongqing - The Ministry of Commerce recently held a national conference on advancing the pilot program for domestic and foreign trade integration, marking 2025 as the concluding year for these trials. This signals that successful practices from nine pilot regions, including Chongqing, will soon be promoted across the country.
On January 3rd, workers are working at full capacity to fulfill export orders at the production workshop of Chongqing Charming Motorcycle Co., Ltd. in Luohuang Industrial Park, Jiangjin District, Chongqing. (Photo/Qi Lansen)
Domestic and foreign trade integration seeks to remove long-standing barriers between the two markets. Different target markets have led companies to vary product designs, production lines, and standards, causing operational divides. In 2023, the Ministry of Commerce launched pilot reforms in nine regions to bridge these gaps and enable seamless market transitions.
Chongqing stands out in this reform, but what makes its approach suitable for nationwide adoption?
Chongqing RATO Holding Group Co., Ltd., a major exporter of generators, outdoor power equipment, motorcycles, and automotive parts, sells over 90% of its products overseas. Noticing rising domestic demand driven by drones, agricultural machinery, and the camping boom, RATO began entering the Chinese market in 2021.
However, shifting from exports to domestic sales proved difficult. Zhang Nan, RATO’s general manager, cited market entry and standard adaptation as key challenges. Competing with established domestic brands required new strategies, and products built to international standards didn’t meet local regulations.
This challenge is widespread among Chongqing businesses. In Yuzhong District, many small appliance makers focused on foreign markets, designing products and production lines to meet international standards. Entering the domestic market requires overcoming differences in standards, certifications, and regulations.
To help, Chongqing launched programs to align international and domestic standards. Zhao Lei, an official from the Chongqing Municipal Commission of Commerce, said the city organized benchmarking activities, with 295 companies reporting 492 benchmarking results and publishing 31 alignment plans.
Chongqing also offers financial aid for production upgrades and hosts trade fairs to help firms reach domestic buyers. “With the commission’s support, we joined a national agricultural expo last year and secured million-yuan orders,” Zhang Nan said. By 2024, domestic sales made up about 20% of RATO’s revenue.
While foreign trade companies aim to enter domestic markets, domestic firms face similar challenges abroad, particularly with varying international standards. Chongqing Farming to Feed E-commerce Co., Ltd., a local agricultural exporter, struggled to understand complex foreign regulations. “We knew European standards were strict, but we lacked detailed information,” said general manager Wang Chenyu.
To help, Chongqing created detailed trade guides covering export procedures, customs rules, and market access for RCEP and the Belt and Road Initiative participating countries. The city also offers personalized export support through its “One Enterprise, One Strategy” program. For example, Chongqing Chengbiao Agricultural Development Co., Ltd. received direct guidance to build export-compliant facilities and is launching a 2-billion-yuan (about 273 million U.S. dollars) citrus processing project for global markets.
Chongqing also connects businesses with international buyers. With municipal support, Wushan crisp plums were exported to Singapore for the first time. The city uses various platforms to help small firms expand overseas.
In 2024, Chongqing organized nearly 300 trade delegations, linking over 60,000 buyers and boosting traditional and emerging markets by 134% and 155%. Major exhibitions in Singapore, Germany, Russia, and Italy secured nearly 2 billion yuan in deals.
Chongqing’s innovative models are accelerating trade integration. Last December, the city hosted the first Myanmar Pearl Promotion and International Sourcing Fair in Yuzhong District, showcasing 70,000 Myanmar pearls and attracting over 100 jewelry traders. The event introduced bonded exhibition and trade practices, streamlined customs, and launched cross-provincial bonded logistics services. Yuzhong District has pioneered initiatives like foreign exchange risk management and bonded temporary import/export services as a pilot zone for trade integration.
Another standout example is Bishan District’s smart new energy vehicle industry, anchored by companies like FinDreams Battery. In 2023, the district’s automotive imports and exports hit 4.457 billion yuan, making up 62.8% of its total trade—a success recognized among China’s top ten integration cases.
Zhao Lei highlighted Chongqing’s progress, including a collaborative framework involving 15 departments and the growth of industrial clusters in used cars (Banan), beef (Fengdu), and lemons (Tongnan).
Chongqing will deepen reforms to support smooth transitions between domestic and international markets. It will focus on promoting high-quality exports through e-commerce, malls, pedestrian streets, factory outlets, and wholesale markets.
(Yang Jun, a reporter from Chongqing Daily, contributed to this report's Chinese version.)
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