Chongqing - Chongqing is becoming a key destination in China's new wave of industrial relocation, as manufacturing moves from coastal provinces into the country's central and western regions.

According to the Chongqing Municipal Commission of Economy and Information Technology, the city received 2,917 manufacturing projects from 2023 to the third quarter of 2024, with contracted investment reaching 1.58 trillion yuan (about 222.3 billion U.S. dollars).

Compared with China's coastal economic hubs, Chongqing previously faced structural disadvantages in industrial recruitment, including a weaker investment promotion system and fewer specialized teams. Local districts and counties have since created professional task forces- some stationed long-term in Beijing, Shanghai, Zhejiang, and Guangdong, to conduct targeted outreach.

Data from the Commission show that nearly 70% of newly relocated projects are concentrated in four sectors prioritized in western China: intelligent connected new energy vehicles (NEVs), intelligent equipment and manufacturing, next-generation electronic information, and advanced materials.

To guide this effort, Chongqing mapped out a full industrial-chain panorama for each priority sector. The system identifies leading companies, headquarters operations, potential unicorns, and specialized high-tech firms at each link of the chain.

For example, Bishan District focused on a major weakness in the automotive supply chain- shortages of core components such as chips, batteries, and electric-drive systems. By targeting key links, the district successfully attracted Shandong Golden Empire Precision Machinery Technology, which is investing 1.5 billion yuan to build an electric motor stator-rotor plant. The project fills a gap in Chongqing's NEV drive-system ecosystem.

Fuling District has attracted three major battery leaders- Qingshan Ruipu, Ganfeng Lithium, and Geely Technology- along with upstream and downstream suppliers like Hangzhou Coleitec Composites Technology and NMG Composites. When all projects are completed, Fuling's annual power-battery capacity is expected to reach 72 GWh, positioning it as Chongqing's largest battery production base.

Chongqing Liangjiang New Area is building supply-chain clusters around the Seres Super Factory, attracting component makers such as Zhejiang Quarte Intelligent Technology. These projects are designed to enhance local supply-chain resilience and reduce reliance on long-distance logistics.

Seres Super Factory in Chongqing Liangjiang New Area. (Photo/Wang Jiaxi)

The municipality now hosts a full automotive supply chain anchored by major automakers such as Changan Auto and Seres, supported by SAIC, Dongfeng, and more than 1,000 parts suppliers, including BYD Battery and CATL. The cluster covers three major NEV systems, 12 major assemblies, and 56 component categories, enabling full-process development and manufacturing in western China.

The industrial-transfer strategy has also accelerated growth in Chongqing's semiconductor sector. Western (Chongqing) Science City has attracted more than 20 core integrated-circuit enterprises, including China Resources Microelectronics and the United Microelectronics Center. The region now hosts full-chain capabilities from chip design and wafer fabrication to packaging, testing, and materials supply.

Several new semiconductor projects are underway: an 8-inch MEMS IDM base began operations in June, and a 14.5-billion-yuan specialty-process production line broke ground in September. Officials expect these projects to stimulate tens of billions of yuan in upstream and downstream output.

Chongqing is also integrating industrial relocation with international logistics routes. The China-Europe Railway Express and the New International Land-Sea Trade Corridor connect Chongqing to European and Southeast Asian markets, enabling relocated companies to operate in Chongqing and serve global customers.