Chongqing - On December 19, a Zhejiang official said more than 10,000 Zhejiang entrepreneurs are now operating in Fuling, with total investment exceeding 50 billion yuan (about 7 billion U.S. dollars), highlighting strong cross-provincial business ties.
Zhejiang–Fuling cooperation began in 1992, following a national decision to assist in the Three Gorges Reservoir area. After the Three Gorges Project was launched, the relocation of more than 1 million residents left the region facing weak industrial foundations, employment pressure, and severe ecological management challenges. Against this backdrop, China initiated a paired assistance mechanism, marking the start of a 33-year cooperation between Zhejiang and Fuling.
Paired assistance to the Three Gorges Reservoir area is a regionally coordinated development mechanism. It mobilizes multiple regions and government departments to provide targeted support in funding, technology, and other areas, helping resettled communities achieve stable livelihoods while promoting economic and social development in the reservoir area.
Over the years, assistance has shifted from single-area support to deeper cooperation centered on industrial integration. Zou Xubo, President of the Zhejiang Chamber of Commerce in Chongqing Fuling, said that 81 Zhejiang industrial enterprises have settled in Fuling, generating over 60 billion yuan in annual output and contributing nearly one-quarter of the district’s total industrial above-scale production, making them a key driver of local growth.
In the Zhejiang–Fuling partnership, effective implementation relies on close coordination between the two governments. In particular, the Fuling government has improved the business environment through targeted services for enterprises, becoming a major factor in attracting Zhejiang private capital. The growth of Chongqing Fuling Lvzhou Food Co., Ltd. offers a clear example.
In 1994, Zhejiang entrepreneur Shen Litian came to Fuling in response to the paired assistance initiative and established a pickled mustard factory, the predecessor of the company. His son, Shen Jian, later took over the business. He said his father chose Fuling largely because of strong government support for Zhejiang enterprises. In the early years, farmers lined up to deliver mustard greens, with queues stretching up to 500 meters, prompting local authorities to station officials on site around the clock to ensure smooth procurement.
“For more than 30 years, we have never been treated as outsiders. Whenever problems arise, the government helps resolve them promptly,” Shen Jian said. He added that this supportive environment has enabled Zhejiang entrepreneurs to stay and grow, and he has since introduced companies such as Ningbo Yuyun Food to invest in Fuling, attracting more private capital.
Beyond policy support, concrete market opportunities and resource advantages are critical to retaining enterprises. In 2018, Wankai New Materials Co., Ltd. in Zhejiang established its subsidiary, Chongqing Wankai New Materials Technology Co., Ltd., in Fuling to produce PET bottle-grade polyester chips. The subsidiary now has a capacity of 1.8 million tonnes, accounting for more than 60% of the group’s total capacity of 3.05 million tonnes, and has become a core production base.
General Manager Zou Xubo explained that the decision to locate in Fuling initially was first to fill the gap in PET production capacity in central and western China and seize market share; secondly, natural gas and electricity costs in Fuling are lower than in eastern China; and finally, as an unexpected bonus, Fuling can rely on the New International Land-Sea Trade Corridor (ILSTC) to export products via Chongqing to over 100 countries and regions including Southeast Asia and the European Union.
Chongqing Wankai New Materials Technology produces PET products that are further processed into downstream products. (Photo/Huxin Luo)
The abundant shale gas resources in Fuling provide a steady supply of raw materials for companies from Zhejiang. Huafon Group, which entered Fuling in 2010, has built a new materials industrial park based on chemical resources, including shale gas, and has grown into the world’s largest adipic acid producer.
Adipic acid is a key raw material for nylon and other engineering plastics used in automobiles and textiles. Shale gas can be processed into basic chemicals such as acetylene and formaldehyde, providing stable and low-cost raw materials for production.