Yubei District

Yubei District lies in the north of the main urban area of Chongqing. It’s where Chongqing Liangjiang New Area is located, which introduces China (Chongqing) Pilot Free Trade Zone, China-Singapore (Chongqing) Demonstration Initiatives on Strategic Connectivity, the bonded port area, Chongqing–Xinjiang–Europe international railway, etc. It is the base for the largest automobile manufacturing in Chongqing, the key intelligent terminal production as well as import and export. It is a district that has the biggest economic volume in Chongqing, the most developed platform and the strongest location advantage.
Area: 1452km²
Population: 1,600,000

Youyang Tujia and Miao Autonomous County

Youyang Tujia and Miao Autonomous County is located in the meeting point of Chongqing, Hubei Province, Hunan Province and Guizhou Province. There are 17 ethnic minority groups in the county. It is rich in tourism resources such as Wujiang Hundred-miles Gallery, the National 5A class tourism spot Youyang Taohuayuan Scenic Area, and Chongqing Jinyin Mountain National Forest Park. The County is the hometown of Tujia hand dance in China.
Area: 5173km²
Population: 860,400

Fengjie County

Fengjie County is located in the east of Chongqing. Fengjie produces a variety of local specialties such as citrus, and thus is called “The Orange Capital of China”. Located in the Three Gorges Tourism “Golden Triangle” with beautiful natural and cultural landscape, it is a famous tourist destination both at home and abroad. Qutang Gorge is 8 km long and runs from Baidi Town of Fengjie county to Daxi Town of Wushan County. Near the county is Kuimen, which is the shortest, the narrowest and the most magnificent part in the three Gorges of the Yangtze River.
Area: 4087km²
Population: 1,066,300

Wuxi County

Wuxi County is located in the northeast of Chongqing. It stands at the meeting point of Chongqing, Shanxi Province and Hubei Province and is influenced by Qin, Ba and Chu cultures of ancient times. Sitting at the southern slopes of the central Daba Mountains, it exemplifies mountain region agriculture. Hongchiba National Forest Park is within the county, which is the largest mountain meadow in southern China.
Area: 4030km²
Population: 520,000

Pengshui Miao and Tujia Autonomous County

Pengshui Miao and Tujia Autonomous County is located in the southeast of Chongqing, on the lower reaches of the Wujiang River. The county has 11 ethnic minority groups including Miao and Tujia. It is the only county with Miao majority in Chongqing and is the hometown of Chinese folk culture and silver ornaments made by ethnic minority groups. The county is rich in minerals and fishery resources.
Area: 3903km²
Population: 703,000

Yunyang County

Yunyang County is located in the northeast of Chongqing, alongside the Yangtze River - it’s an important pivot point in the Yangtze River Economic Belt. The national 5A class tourist attraction Yunyang Dragon Jar National Geopark and the Zhangfei Temple are in the county. It is rich in agricultural products such as Chinese wood oil, sericulture, tea, citrus, and an abundant Chinese Herbs.
Area: 3649km²
Population: 1,370,000

Wanzhou District

Wanzhou District is a district on the middle and upper reaches of the Yangtze River, bordering Sichuan Province to the northwest and Hubei Province to the southeast. It has a strong economy and is the biggest district in Chongqing. It has one of the top 10 ports on the Yangtze River. A variety of cultures including Ba and Chu Culture, commercial port culture and poetry culture co-exist here.
Area: 3,457 km²
Population: 1,760,000

Wushan County

Wushan County is located in the east of Chongqing, known as the “Gateway to Northeast Chongqing”. The Daxi Cultural Relics with 5000 years history in the county dates back to Neolithic times. It has abundant tourist resources with the Three Gorges traversing the county, and boasts rich industrial mineral deposits and high-quality agricultural sideline products.
Area: 2,958 km²
Population: 630,000

Fuling District

Fuling District is a district in the geographical center of Chongqing, being at the confluence of the Yangtze and Wu Rivers. It belongs to the Yangtze River Economic Zone. Fuling’s zhacai, a spicy pickled mustard tuber, is its signature dish. Fuling was once the capital city of the State of Ba in the Spring and Autumn Period (approximately 771–476 BC).
Area: 2,942.34 km²
Population: 1,140,000

Fengdu County

Fengdu County is located in the geographic center of Chongqing. The Fengdu Ghost Town is a tourist attraction built in the concept of Chinese mythology and Buddhism, which was built over 1800 years ago. The Snow Jade Cave here is a wondrous labyrinth of stalactites and underground streams which attracts a large number of tourists all year round.
Area: 2900.86km²
Population: 842,900

Shizhu Tujia Autonomous County

Shizhu Tujia Autonomous County is located in the east of Chongqing, on the south bank of the Yangtze River. The county, known as “Home to Huanglian”, exports the precious Chinese herb Huanglian to Southeast Asia. It has famous scenic spots such as the millennial ancient temple “Ginkgo Hall” and the summer resort Huangshui National Forest Park.
Area: 3012.51km²
Population: 546,588

Xiushan Tujia and Miao Autonomous County

Xiushan Tujia and Miao Autonomous County is the southeast gateway of Chongqing and is an important tourist and material distribution center in Wuling Mountain area. It bridges the east and south of Chongqing and is the pivot point of the New Silk Road; an important section connecting Zhu River Delta, Yangtze River Delta and Chongqing-Chengdu Economic Circle. Xiushan Lantern Performance is in a form of folk songs and dances which is very popular in the county.
Area: 2462km²
Population: 660,000

Qianjiang District

Qianjiang District is located at the border of Chongqing, Hubei Province, Hunan Province and Guizhou Province. It’s nicknamed “the throat of Chongqing and Hubei Province”. The 74.5% of the population are Miao and Tujia people (ethnic minority groups). It has a very advanced transportation infrastructure including railway, highway, water and air transportation. It boasts rich natural resources such as ore and a variety of unique agricultural products. All of these make it a wonderful place to visit.
Area: 2,402 km²
Population: 554,000

Zhong County

Zhong County is located in the middle of Chongqing. It is one of the main areas where the Ba culture 0f 3000 years originated. Relying on the Three Gorges International Golden Tourism Belt, it has become an international tourist resort. It is called "Chinese Citrus city" because of the rich production of citrus.
Area: 2187 km²
Population: 1,000,000

Liangping District

Liangping District is located in the northeast of Chongqing - it has accelerated the construction of characteristic industrial clusters of ecological plastics, integrated circuits, intelligent manufacturing and green food processing. Its food brands such as Liangping Pomelo and Zhang Duck are very popular.
Area: 1892 km²
Population: 930,000

Dianjiang County

Dianjiang County is located in the northeast of Chongqing. It is titled to "Millennium Ancient County", which is recognized by the United Nations Group of Experts on Geographical Names (UNGEGN). It is the hometown of calligraphy, painting and bronze tube music. There are the world’s largest ancient castle Heyouping, Eastern Han Dynasty (206 BC–220 AD) rock tombs, rock carvings and other cultural relics. It is a county with modern agriculture, high-quality fruit and grains on the middle and upper reaches of the Yangtze River.
Area: 1518km²
Population: 950,000

Tongnan District

Tongnan District is located in the northwest of Chongqing. It is an important pivot point of the Chengdu-Chongqing economic belt and is the hometown of Chinese folk culture and art (Tai’an fish, lion dance). It boasts rich tourist resources such as the Shuangjiang Ancient Town, the longest man-made canal in the southwest, and the well-preserved ancient houses of Qing Dynasty (1644–1912).
Area: 1583km²
Population: 1030,000

Yongchuan District

Yongchuan District is located in the west of Chongqing. Both the Chengdu-Chongqing freeway and railway have stops in the district, making it easy to go to other cities. It’s the center of transportation, commerce, culture, finance and energy for the west of Chongqing and the southeast of Sichuan. There are many pleasant tourist attractions such as the Tea Mountain and Bamboo Forest, the largest theme park “Le He Le Du” in the central and western part of Chongqing and Chongqing Safari Park.
Area: 1576km²
Population: 1,120,000

Dazu District

Dazu District is located in the west of Chongqing. It is in the heart of Chengdu-Chongqing Economic Zone, which is an important pivot point for the development of Chengdu-Chongqing Economic Zone. It is where the famous Dazu Rock Carvings, a UNESCO World Heritage Site, is located.
Area: 1436km²
Population: 1,060,000

Changshou District

Changshou District is located in the central part of Chongqing; The beautiful Changshou Lake lies in the district. The breathtaking views all around make it a pleasant tourist resort. It is the land transportation hub and an important port on the upper reaches of the Yangtze River, where the 10.000-ton fleet can reach the district by water all year round. It is the key development area for industries, the modern agricultural base and the regional logistics center.
Area: 1424km²
Population: 900,000

Wulong District

Wulong District, known as “the door of Chongqing and Guizhou Province”, is located on the lower reaches of the Wujiang River in the southeast of Chongqing. It enjoys the tiles of “World Natural Heritage”, “National 5A Class Tourism Scenic spot” and “National Tourist Resort”. Wulong Karst Tourist Area attracts a huge number of tourists all year round
Area: 2901.3km²
Population: 410,000

Rongchang District

Rongchang District is in the west of Chongqing. It is in the strategic hinterland of Chengdu -Chongqing Economic Zone. It is known for charming folk handicrafts such as Rongchang grass cloth, Rongchang pottery and Rongchang fold fan. Rongchang Pig is an internationally recognized precious pig species resource.
Area: 1077km²
Population: 850,000

Kaizhou District

Kaizhou District is located in the northeast of Chongqing. It is home to Liu Bocheng who is one of the 10 Grand Marshals of China and also the birthplace of many poets in Tang Dynasty (618–907). There are rich natural resources such as coal mine gas and natural gas.
Area: 3959 km²
Population: 1,684,300

Chengkou County

Chengkou County,on the northeast edge of Chongqing, is located at the meeting point of Sichuan Province, Shanxi Province and Chongqing. Influenced by Bashu, Sanqin and Chu-Tian cultures of ancient times, it is the cradle for folk songs and stories, flower-drums, lion dance, stick dance, boat dance, etc.
Area: 3289.06km²
Population: 250,000

Nanchuan District

Nanchuan District is located in the south of Chongqing. It is becoming a regional comprehensive transportation hub in the south of Chongqing and the north of Guizhou Province. It is one hour’s drive away from the CBD, Chongqing Jiangbei International Airport, the deep water port of the Yangtze River, the bonded port and the railway hub port in Chongqing. It has lush environment. Jinfo Mountain within the district is a World Heritage Site, which attracts a large number of tourists.
Area: 2602 km²
Population: 700,000

Wansheng District

Wansheng District is located in the south of Chongqing. There are 21 ethnic minority groups in the district including Miao and Tujia. The national 4A class tourist spots, Wansheng Stone Forest and Black Valley, are located here, which attract a large number of tourists all year round. It is also a land that boasts rich minerals resources.
Area: 565 km2
Population: 270,000

Qijiang District

Qijiang District is located in the south of Chongqing. It is the home to Chinese farmers’ printmaking. It is a district with rich tourism resources including Black Mountain Valley and Longlin Stone Forest. It boasts abundant natural resources such as minerals and natural gas.
Area:. 2747.8km²
Population: 1,220,000

Ba`nan District

Ba`nan District is located in the south of the main urban area of Chongqing - it is where the ancient State of Ba and its 3000-year culture originated. Surrounded by mountains and rivers, it has high forest coverage and rich hot spring resources. With the national strategic platform, the industrial parks and the modern specialty agriculture, it has gained strong momentum in development.
Area: 1825km²
Population: 1,051,200

Jiangjin District

Jiangjin District is located in the southwest of Chongqing alongside the Yangtze River. The traffic here is well developed. It’s an important shipping hub and material distribution center on the upper reaches of the Yangtze River and a modern agricultural demonstration area district with strong traditional industries. The national 5A class tourist spot, Simian Mountain, is located within the district.
Area: 3218km²
Population: 1,500,000

Yubei District

Yubei District lies in the north of the main urban area of Chongqing. It’s where Chongqing Liangjiang New Area is located, which introduces China (Chongqing) Pilot Free Trade Zone, China-Singapore (Chongqing) Demonstration Initiatives on Strategic Connectivity, the bonded port area, Chongqing–Xinjiang–Europe international railway, etc. It is the base for the largest automobile manufacturing in Chongqing, the key intelligent terminal production as well as import and export. It is a district that has the biggest economic volume in Chongqing, the most developed platform and the strongest location advantage.
Area: 1452km²
Population: 1,600,000

Hechuan District

Hechuan District is located in the northwest of Chongqing at the meeting point of the Jialing, Qu and Fu Rivers. It is known by the world because of the famous Fishing City (Diaoyu Fortress) War which changed the battlefield strategy for the rest of Eurasia during the Mongol invasions. It’s the first stop of Chongqing–Xinjiang–Europe International Railway entering into Chongqing, the important pivot point of the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
Area: 2343km²
Population: 1,560,000

Bishan District

Bishan District is located in the western suburbs next to Chongqing main urban area. It is close to Chongqing University City and Xiyong Micro-Electronics Industry Park. It is the district undergoing Chongqing’s industrialization and urbanization. It has a variety of tourist attractions such as Qinglonghu National Forest Park and Xiuhu Park with ancient style Chinese architecture.
Area: 915km²
Population: 635,000

Tongliang District

Tongliang District is located in the northwest of Chongqing. It is the central area of the core economic belt on the upper reaches of the Yangtze River. It has convenient transportation: 30km away from Xiyong Comprehensive Free Trade Zone, 60km away from the Cuntan container terminal of the Yangtze River and 65 km from Chongqing Jiangbei International Airport. It is nicknamed “Dragon Lantern Hometown” and the Dragon Dance enjoys popularity both at home and abroad.
Area: 1340km²
Population: 840,000

Beibei District

Beibei District, one of the main urban districts, is located in the northwest of Chongqing. At the foot of the Jinyun Mountain, alongside the Jialing River, it enjoys high forest coverage and rich hot spring resources. Strong cultural, scientific and educational foundation here makes it a key area for high-tech and emerging industries.
Area: 755 km²
Population: 770,000

Jiangbei District

Jiangbei District, one of the main urban districts, is located on the north bank of the Yangtze and Jialing Rivers, with a riverside line of 103km. It is the information, financial, cultural and artistic center of Chongqing. Most foreign consulates are located here. It is an integrated transportation hub, a mature commercial and trade center, and a modern manufacturing base of intensive development in Chongqing.
Area: 221km²
Population: 870,000

Yuzhong District

Yuzhong District,one of the main urban districts, is on the upper reaches of Yangtze River. It is the oldest and most relevant part of this city, where the old Bayu Culture lives on today. Surrounded on three sides by water, Yuzhong is effectively a peninsula. Due to its hilly nature, and the fact that it is the main central business district for Chongqing, Yuzhong contains some of the tallest skyscrapers in China and is the most densely populated district in Chongqing.
Area: 23.24 km²
Population: 659,000

Nan`an District

Nan`an District, one of the main urban districts, is located on the south bank of the Yangtze River. Leaning on the Nanshan Mountain, with an overview of the Yangtze River, it gets breathtaking sceneries. Nanbin Road alongside the Yangtze River offers a variety of leisure activities such as sightseeing, catering and shopping. Chongqing Technological Economic Development Area (south bank), CBD Development Area (south bank) and Chongqing International Convention and Exhibition Center are located in the district.
Area: 265km²
Population: 700,000

Shapingba District

Shapingba District is located in the west of the main urban area of Chongqing. The popular tourist attraction, Ciqikou Ancient Town, is located here. Influenced by Bayu Culture of ancient times, and Shaci and Hongyan Alliance Cultures during World War II, it is the educational, scientific and cultural center of Chongqing, with University Town lying in the west of the district.
Area: 396.2km²
Population: 1,000,000

Jiulongpo District

Jiulongpo District is located in the southwest of the main urban area of Chongqing. It is an important part of the Yuzhong Peninsula surrounded by the Yangtze and Jialing Rivers. Its economy is well developed with vigorous development in commerce and trade, industries as well as logistics.
Area: 432km²
Population: 1,200,000

Dadukou District

Dadukou District, one of the main urban districts, is in the southwest of Chongqing, It lies between the Zhongliang and Tongluo Mountains and is surrounded by the Yangtze and Jialing Rivers. It’s an emerging district where new industries are developing quite fast as well as a pleasant district with a high-quality life.
Area: 103km²
Population: 340,000

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Home / Business /  Chongqing Foreign Investment Environment Evaluation Report 2018: the overall score of the environment is relatively high

 Chongqing Foreign Investment Environment Evaluation Report 2018: the overall score of the environment is relatively high

From Chongqing Association of Enterprises with Foreign Investment

The recently-released Chongqing Foreign Investment Environment Evaluation Report 2018 includes a  fundamental questionnaire, mainly covering the following five aspects: fundamental environment, market, policies and government services, living environment as well as corporate development. And the overall score of the environment is relatively high.

Fundamental Environment

Energy Environment

►Power supply

93% of respondents were satisfied with the power supply in Chongqing, and considered that Chongqing’s power supply is adequate and has a moderate price. 41% of respondents chose “Excellent” (i.e., 10 score).

►Gas supply

93% of respondents were satisfied with the gas supply in Chongqing, and considered that Chongqing’s gas supply is adequate and has a moderate price. 43% of respondents chose “Excellent” (i.e., 10 score).

►Water supply

95% of respondents were satisfied with the water supply in Chongqing, and considered that Chongqing’s water supply is adequate and has a moderate price. 43% of respondents chose “Excellent” (i.e., 10 score).

►In conclusion, the overall score of the energy environment is relatively high.

Few respondents indicated that:

The price of water, electricity and gas were relatively expensive (especially for industrial electricity consumption), and the price of laying a natural gas pipeline was much higher.

Temporary power failure and gas stops occurred occasionally in some non-core areas of Chongqing.

►Recommendations by EY

It’s suggested to improve the linkage mechanism of coal and electricity prices, to implement the policy on the adjustment of the electricity price for industrial and commercial sectors, and to reduce the cost of electricity consumption for enterprises. The government needs to implement and improve the dynamic adjustment mechanism of natural gas purchase price and terminal sales price, and to appropriately adjust the sales price of pipeline natural gas to industrial and commercial users by taking the fluctuation of upstream air sourcing price into consideration.

 Land Environment

►Land supply

90% of respondents were satisfied with the land supply in Chongqing, and considered that Chongqing’s land supply is

adequate and has a moderate price. 34% of respondents chose “Excellent” (i.e., 10 score).

►Plant supply

91% of respondents were satisfied with the plant supply in Chongqing, and considered that Chongqing’s plant supply is

adequate and has a moderate price. 35% of respondents chose “Excellent” (i.e., 10 score).

►Office supply

91% of respondents were satisfied with the office supply in Chongqing, and considered that Chongqing’s office supply is adequate and has a moderate price. 36% of respondents chose “Excellent” (i.e., 10 score).

►In conclusion, the overall score of the land environment is relatively high.

  Few respondents indicated that:

The plant prices and plant rents are relatively expensive in some areas, and they grew rapidly.

The corresponding infrastructure and management services need to be improved.

►Recommendations by EY

To innovate the land supply mechanism and promote the optimal allocation of land resources, to achieve a virtuous cycle of land resource utilization. It’s also suggested to revitalize the stock of land, increase the supply of land and improve the re-use of inefficient industrial land in order to alleviate the contradiction between land supply and demand and reduce the cost of industrial land for companies.

To encourage and support the foreign investment to involve into the planning, consulting, investment and management of property such as industrial park facility and commercial office buildings, in order to improve the quality of the management services.

Market Environment

Economic environment

►Economic development level of Chongqing

92% of the respondents were satisfied with the economic development level of Chongqing. 19% of respondents chose

“Excellent” (i.e., 10 score).

►Market consumption capacity of Chongqing

89% of the respondents were satisfied with the market consumption capacity of Chongqing. 18% of respondents chose

“Excellent” (i.e., 10 score).

►Freedom degree of market competition of Chongqing

88% of the respondents were satisfied with the freedom degree of market competition of Chongqing. 19% of respondents chose “Excellent” (i.e., 10 score).

►Market radiating capacity of Chongqing for surrounding provinces and cities

88% of the respondents were satisfied with the market radiating capacity of Chongqing for surrounding provinces and cities. 19% of respondents chose “Excellent” (i.e., 10 score).

►Economic extroversion of Chongqing

88% of the respondents were satisfied with the economic extroversion of Chongqing. 19% of respondents chose “Excellent” (i.e., 10 score).

►In conclusion, the overall score of economic environment is relatively high, and most of the respondents considered that the economic environment in 2018 became better than that in 2017.

Few respondents indicated that compared with some coastal developed areas, Chongqing has a lower degree of openness, a higher external transportation cost and a lower industrial cluster effects. Some respondents felt that the local economy is affected by the recession of global economic environment and the overall market consumption is declining.

►Recommendations by EY

To encourage the innovation trial in Chongqing Pilot Free Trade Zone, deeply involve into the national initiative of “One Belt and One Road”, broaden the range of the inland area’s opening highland construction, implement China- Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity with high standards, strengthen the construction of large channel, large platform and large custom clearance and consistently promote the foreign capital utilization level which is regarded as a significant measure of opening up.

To expand the open areas, optimize the industrial structure, innovate the management system, improve the service quality, enhance the IP protection, improve the communication channel between enterprise and government and build a better business environment.

Financial Environment

►Completeness degree of financial services

90% of respondents were satisfied with the completeness degree of financial services of Chongqing. 20% of respondents chose “Excellent” (i.e., 10 score).

►Financing convenience

86% of respondents were satisfied with the financing convenience of Chongqing. 18% of respondents chose “Excellent” (i.e., 10 score).

►Financing cost

86% of respondents were satisfied with the financing cost of Chongqing. 18% of respondents chose “Excellent” (i.e., 10 score).

►In conclusion, the overall score of financial environment is relatively high.

In March 2018, the Chongqing Municipal People’s Government issued Yufubanfa [2018] No. 25 which provides policy support to promote the economic and financial development of enterprises, to reduce corporate financing costs, to regulate financial service charges, and to further reduce the cost of corporate mortgage restructuring. The above policies also show Chongqing’s positive attitude towards promoting supply-side structural reforms, reducing the cost of real economy enterprises effectively, and optimizing the development environment of enterprises.

Some respondents indicated that the overall level of financial service in Chongqing is relatively lower than that in China’s coastal developed areas, e.g. more complicated financial formalities and more time-consuming. Few indicated that it is difficult to conduct financing, especially for small and medium-sized enterprises, for example, banks set lots of restrictions for unsecured loans or long-term loans, which increased the cost of financing.

►Recommendations by EY

To guide the banking institutions to optimize the credit orientation by increasing the credit quota and providing interest discount. To increase the credit support for key industries and projects based on the principles of risk control and business sustainability. Through the improvement of the financial system, the transaction costs of financial institutions will be reduced and their operational efficiency will be enhanced.

To encourage the banking institutions to carry out business innovation, set reasonable loan term, innovate the repayment methods under the prerequisite of no systemic risk, in order to reduce the repayment pressure of small and micro enterprises and decrease their turnover cost of capital.

To treat equally to private economy, formulate and implement a unified credit policy.

Matching Industry Environment

►Concentration and completeness of the matching industries of Chongqing

90% of the respondents were satisfied with concentration and completeness of the matching industries of Chongqing.

20% of respondents chose “Excellent” (i.e., 10 score).

►Enterprise management quality level of the matching industries of Chongqing

89% of the respondents were satisfied with enterprise management quality level of the matching industries of Chongqing.

20% of respondents chose “Excellent” (i.e., 10 score).

►In conclusion, the overall score of the matching industry environment is relatively high.

Few respondents indicated that the degree of industrial concentration is relatively low and the city lacks supporting industries in some areas of Chongqing. Some respondents complained that their original industry has decayed due to some specific policies.

►Recommendations by EY

To insist on the investment attraction mode featuring “set up, supplement and enhance the industrial chain”, to

introduce high-end enterprises to invest in Chongqing.

To enhance the government services in factor supply, administrative examination and approval, operating guarantee and financing.

To provide the special funds to encourage the development of industry chain.

To promote the financial services to support the development of industry chain, such as financial leasing and

commercial factoring services.

Human Resources Environment

►Scoring of labor quality of Chongqing

80% of the respondents were satisfied with labor quality of Chongqing. 15% of respondents chose “Excellent” (i.e., 10

score).

►Convenience of obtaining common labors

86% of the respondents were satisfied with convenience of obtaining common labors. 24% of respondents chose

“Excellent” (i.e., 10 score).

►Convenience of obtaining intermediate and senior labor

79% of the respondents were satisfied with convenience of obtaining intermediate and senior labor. 15% of

respondents chose “Excellent” (i.e., 10 score).

►Labor price

84% of the respondents were satisfied with labor price of Chongqing. 16% of respondents chose “Excellent” (i.e., 10

score).

►In conclusion, the overall score of human resources environment is relatively high.

Acquisition of labor force: some respondents indicated that Chongqing was short of intermediate and senior professionals and technical personnel compared with some coastal developed areas. The recruitment need of senior professionals are difficult to meet.

Labor price: some respondents indicated that there are still some improvement could be made for labor price. Some respondents considered that their labor cost is rising year by year due to the annual increase of social security calculating base in Chongqing.

Besides, some respondents considered that compared with some coastal developed areas, the overall quality of labor force in Chongqing is poor. The work efficiency of the labor force is relatively low and the work cooperation abilities is relatively poor. In addition, some respondents indicated that there is higher turnover rate for young employees.

►Recommendations by EY

To promulgate relevant policies to reduce the charge rate of social security.

To implement the national individual income tax reform and to encourage the implementation of various special deductions.

To set up a minimum wage adjustment mechanism which is in line with the level of economic development.

To build an efficient public employment service platform, support the specified recruitment projects, promote the mass

employment to reduce the hiring cost.

To provide training subsidies to employers / employees which organize / participate the skill trainings according to the relevant skills promotion subsidy policy.

To support the training related to high-level talents, promote the cooperation between enterprises and campuses, and encourage the technical colleges and vocational colleges to actively cooperate with the enterprises in industrial parks.

To improve the introduction policy of high-skilled and high-level professionals, and introduce the policy to attract talents to Chongqing, so as to provide high-quality talent for enterprises.

To formulate the localized incentive policy to attract talent. To appropriately lower the threshold of talent introduction policy so as to attract more talents to work and live in Chongqing.

Logistics Environment

►Completeness of logistics supporting system

92% of the respondents were satisfied with the completeness of logistics supporting system. 22% of respondents chose “Excellent” (i.e., 10 score).

►Logistics cost

84% of the respondents were satisfied with the logistics cost of Chongqing. 17% of respondents chose “Excellent” (i.e., 10 score).

►Infrastructure and convenience of urban transport

88% of the respondents were satisfied with the infrastructure and convenience of urban transport of Chongqing. 21% of respondents chose “Excellent” (i.e., 10 score).

►Infrastructure and convenience of railway transport

91% of the respondents were satisfied with the infrastructure and convenience of railway transport of Chongqing. 23% of respondents chose “Excellent” (i.e., 10 score).

►Infrastructure and convenience of air transport

92% of the respondents were satisfied with the infrastructure and convenience of air transport of Chongqing. 22% of respondents chose “Excellent” (i.e., 10 score).

►Infrastructure and convenience of port transport

91% of the respondents were satisfied with the infrastructure and convenience of port transport of Chongqing. 23% of respondents chose “Excellent” (i.e., 10 score).

►Infrastructure and convenience of highway transport

93% of the respondents were satisfied with the infrastructure and convenience of highway transport of Chongqing. 23% of respondents chose “Excellent” (i.e., 10 score).

►In conclusion, the overall score of the logistics environment is relatively high, and most of the respondents considered that the logistics environment in 2018 is better than that in 2017.

Few respondents indicated that:

The logistic cost is relatively high and time consuming, and logistics support is not very good.

The traffic congestion was very serious in downtown, and the transportation in some industrial parks is inconvenient.

Some regions’ urban road planning was not reasonable, and the planning proposals were not widely publicized in advance.

The municipal maintenance and repairs were conducted frequently and inadequately planned (such as road pipelines).

►Recommendations by EY

To promote the market-driven reform of transportation of airport and railway, standardize the agreed pricing behavior between transport operators and goods owners by negotiation or trading platform to reduce the freight service cost.

To support the constructions of logistics center, urban logistics distribution, cold chain logistics, cross-border e- commerce and logistics standardization system.

To set up the logistics public information platform and promote the informatization and intelligence level of logistics operation.

To develop urban rail transit, improve the urban road network system, promote the construction of three-dimensional parking lot and pedestrian system, enhance the transportation interchange and connection ability for industrial parks.

To support the foreign enterprises to invest, operate and provide consult services regarding the public transportation, so as to promote the modern level of traffic management.

Environmental Protection

►Environment issues to be improved

Based on the survey, regarding the environmental issues to be improved, 15% of the respondents considered that air quality shall be improved, 14% considered that waste-water treatment and water quality shall be enhanced, 14% considered that garbage disposal shall be strengthened, 13% considered that noise control shall be increased, 10% considered that the investment in environmental protection facilities shall be increased, 9% considered that more specific policies for promoting the energy conservation and environmental protection shall be formulated, 8% considered that the enforcement of environmental law shall be strengthened, and 8% considered that the administrative procedures for environmental protection of enterprises shall be simplified.

►In conclusion, the overall score of the environmental protection is relatively high, and most of the respondents considered that the environmental protection in 2018 is better than that in 2017.

However, some respondents indicated that the smog and haze problem and the river sewage treatment shall be improved urgently; the garbage sorting and garbage disposal processes are relatively weak; the public’s awareness of environmental protection is relatively weak; and there is trend that noise pollution became worse.

►Recommendations by EY

To consistently enhance the comprehensive prevention and treatment of environmental pollution, including the air pollution, water pollution, noise pollution, garbage pollution and hazardous waste pollution. To implement the strict environmental protection monitoring administration in order to conduct the environmental protection supervision and administrative enforcement independently.

To support the foreign enterprises to invest, manage and provide consulting services regarding the areas related to distributed energy sources, comprehensive urban underground pipeline, urban household refuse, industrial garbage and hazardous waste treatment.

 Scientific and Technological Environment

►Capacity for technological innovation, research and development (“R&D”) and transformation of Chongqing

89% of respondents were satisfied with the capacity for technological innovation, R&D and transformation of Chongqing.

17% of respondents chose “Excellent” (i.e., 10 score).

►Policy support for technological R&D of enterprises of Chongqing

92% of respondents were satisfied with the policy support for technological R&D of Chongqing. 23% of respondents

chose “Excellent” (i.e., 10 score).

►In conclusion, the overall score of the scientific and technological environment is relatively high, and most of the respondents considered that the scientific and technological environment in 2018 is better than that in 2017.

Few respondents indicated that it’s relatively time-consuming to obtain the government’s R&D subsidy.

►Recommendations by EY

To support enterprises to carry out a new round of technological transformation by providing interest-discounting loan and other support. To support enterprises engaging in R&D innovation by providing financial subsidy and setting up the risk compensation fund for technology business incubators.

To fully implement the incentive policies such as super-deduction of R&D expenses, simplify and optimize the relevant procedures. And to encourage companies to enjoy preferential policies completely.

To grant one-off financial reward to enterprises’ high-end talents based on certain proportion of their annual remunerations.

To optimize the evaluation standards of foreign talents and expand the admission scope.

To implement a strict intellectual property protection system in order to crack down on infringement of intellectual property rights by multi-department joint together.

Policies and Government Services

System Factors

►Maturity of laws and regulations

94% of respondents were satisfied with the maturity of laws and regulations in Chongqing. 25% of respondents chose “Excellent” (i.e., 10 score).

►Policy transparency

92% of respondents were satisfied with the policy transparency in Chongqing. 24% of respondents chose “Excellent” (i.e., 10 score).

►Channel for communication with the government

90% of respondents were satisfied with the channel of communication with the government. 22% of respondents chose “Excellent” (i.e., 10 score).

►Working efficiency of government sectors

90% of respondents were satisfied with the working efficiency of government sectors. 22% of respondents chose

“Excellent” (i.e., 10 score).

►Enforced power of discretion

88% of respondents considered that Chongqing had a moderate enforced power of discretion. 11% considered it as slightly powerful. 1% considered it as excessively powerful. Therefore, almost respondents considered that Chongqing had the reasonable enforced power of discretion.

In conclusion, the overall score of system factors are relatively high.

Compared with last year, the evaluation of this year is better. However, some respondents indicated that the communication channels between enterprises and government sectors are relatively inefficient. Respondents hope to strengthen communication with government departments and get more timely feedback. For some respondents, they hope that the government departments could improve the transparency of policies, so that enterprises can understand the latest policies in a timely and complete manner. They also hope that enterprises could enjoy equal treatment by government.

Few respondents indicated that the information collection request by government is an extra cost for enterprises. Because enterprises need to spend a lot of time and labor costs to fulfill the information collection requested by government. It is recommended that the government optimize the information content to be collected by using big data analysis, and try not bother enterprises to request unnecessary information.

►Recommendations by EY

To further simplify the approval procedures for enterprise reorganization and business reformation, establish the green channel for approval, and carry out the online parallel examination and approval.

To uniformly disclose the preparation materials in the approval process, and timely communicate with enterprises regarding their special needs.

To collect feedback from enterprises regularly, flexibly adjust the approval process according to specific needs, and increase the efficiency of government services for enterprises as much as possible.

Comments on quality of government affairs service at district and county level

►In conclusion, the overall score of government affairs service at district or county level is relatively high, and most enterprises considered that the service in 2018 is better than that in 2017.

Few respondents indicated that:

The attitude of few personnel who providing government affairs service at district and county level could be further improved.

Few governmental personnel had excessive power of discretion, for example, they may casually require the enterprises to submit additional information which are not required by the regulations / rules.

There is a big gap between the actual implementation of the policy and the propaganda.

►Recommendations by EY

To establish a supervisor mechanism for consistently supervising the investment environment for foreign-invested enterprises, and a scoring mechanism could be established to regularly publicize the evaluation of service personnel, so as to strengthen the service transparency and improve the administrative effectiveness.

To set up a special docking specialist to solve corporate complaints in order to improve government service level.

To setup a unified information collection system to collect information requested by governmental authorities from enterprises. To setup an enterprise big data system with one-submission-and-all-shared mechanism to improve the efficiency of information collection and reduce the cost of enterprise.

Policy Factors

►Limitations on market and industry access

92% of the respondents considered that Chongqing had moderate limitations on market and industry access (that figure was 87% in the 2017 Evaluation Report).

►National treatment for foreign investment

86% of the respondents were satisfied with the national treatment for foreign investment in Chongqing (that figure was 81% in the 2017 Evaluation Report).

►Tax-levy burden

82% of the respondents considered that Chongqing had the reasonable tax-levy burden (that figure was 74% in the 2017 Evaluation Report).

►Freedom degree of financing

85% of the respondents were satisfied with the freedom degree of financing in Chongqing (that figure was 80% in the 2017 Evaluation Report).

►Convenience of cross-border fund transfer

83% of the respondents were satisfied with the convenience of the cross-border fund transfer in Chongqing (that figure was 80% in the 2017 Evaluation Report).

►Protection of intellectual property

87% of the respondents were satisfied with the protection of intellectual property in Chongqing (that figure was 83% in the 2017 Evaluation Report).

►Management mode of processing trade

89% of the respondents were satisfied with the management mode of processing trade in Chongqing (that figure was 85% in the 2017 Evaluation Report).

►Labor force policy

88% of the respondents were satisfied with the labor force policy of Chongqing (that figure was 84% in the 2017 Evaluation Report).

►Fair competition

89% of the respondents considered that Chongqing maintained a comparatively good performance in promoting fair competition (that figure was 84% in the 2017 Evaluation Report).

►Environmental protection

89% of the respondents were satisfied with the environmental protection in Chongqing (that figure was 83% in the 2017 Evaluation Report).

►Anti-monopoly control

87% of the respondents were satisfied with the anti-monopoly control in Chongqing (that figure was 83% in the 2017 Evaluation Report).

►Management on exit mechanism

87% of the respondents were satisfied with the management on exit mechanism in Chongqing (that figure was 83% in the 2017 Evaluation Report).

►In conclusion, the overall score of policy factors is relatively high. The score has increased compared with that of 2017.

Based on the survey, the respondents’ assessment of tax-levy burden and cross-border funds transfer were relatively lower comparing with other items.

From tax-levy burden perspective:

Compared with other policy factors, the respondents’ satisfaction rate of the tax burden is only 82%, which is at the bottom. However, compared with last year’s satisfaction rate (74%), this year has increased by 8% which thanks to tax cuts and fee reduction measures launched by governments recently. However, it should be noted that other reasons (such as variety types of tax collection, tax authorities may require prepayment of tax, inconsistent tax enforcement, and enterprises fail to improve their tax optimization capabilities and etc.) leads to the not-high score of evaluation. In recent years, the government has successively launched a series of taxes and levies reduction measures, and it’s expected that there would be more measures in future.

From cross-border funds transfer perspective:

Satisfaction ratio for convenience of cross-border funds transfers was only 3% higher than that of 2017. In recent years, the government has strengthened the management of cross-border transfer of funds due to the international financial environment and macro-control. The government classified 15 categories to restrict the cross-border funds transfer regarding the outbound investment. In practice, enterprises need to communicate with the foreign exchange bureau in advance regarding significant foreign exchange flows. Although such measures have effectively cracked down on illegal cross-border capital flows, such foreign exchange restrictions also have affected certain enterprises’ normal financial flows (there may be adverse impact on legitimate investment or trading activities to some extend).

In addition, certain respondents also indicated that there are some restrictions in financing. Additionally, there are certain defects in the labor management system which need to be improved.

►Recommendations by EY

To ensure the implementation of tax incentives, and encourage enterprises to enjoy the preferential policies.

To fund the patent applications, intensify the investigation of IP violations, protect the IP (like patent rights, trademark rights, and well-known brands) from illegal infringement, encourage the enterprises’ technology innovation (especially for high-tech enterprises).

To improve the complaint mechanism for foreign-invested enterprises, coordinate and resolve the concerns raised by foreign investors, and secure the foreign-invested enterprises to enjoy the post-establishment national treatment.

To set up a special docking window to enhance the efficient flow of legally and compliant funds entry and exit cross- border.

To actively promote “Internet + Government Services”, so as to build an efficient and convenient post supervision and service system for foreign investment.

Local governments at all levels should strictly comply with their commitments made to foreign investors and foreign- invested enterprises, and earnestly perform the undertaking in the investment contracts signed during the foreign investment attracting activities (but such commitments and contracts shall be in accordance with the law).

To set up an enterprise cancellation and migration joint office window, improve the enterprise exit mechanism and protect the right of enterprises to recover their legal investment.

Living Environment

►Residential conditions (e.g., living facilities)

93% of respondents were satisfied with the residential conditions in Chongqing.

►Educational environment (e.g., international school)

86% of respondents were satisfied with the educational environment in Chongqing.

►Medical treatment and public healthcare (e.g., international hospital)

84% of respondents were satisfied with the medical treatment and public healthcare in Chongqing.

►Language environment

85% of respondents were satisfied with the language environment in Chongqing.

►Tourism

90% of respondents were satisfied with the tourism in Chongqing.

►Food

92% of respondents were satisfied with the food in Chongqing.

►Air environment

87% of respondents were satisfied with the air environment in Chongqing.

►Water environment

88% of respondents were satisfied with the water environment in Chongqing.

►Logistics

92% of respondents were satisfied with the logistics in Chongqing.

►Culture, art and sport

89% of respondents were satisfied with the culture, art and sport in Chongqing.

►Public transport

92% of respondents were satisfied with the public transport in Chongqing.

►City greening

92% of respondents were satisfied with the city greening in Chongqing.

►Public security

94% of respondents were satisfied with the public security in Chongqing.

►Commodity price level

88% of respondents were satisfied with the commodity price level in Chongqing.

►In conclusion, the overall score of the living environment is relatively high, and most enterprises considered that the living environment in 2018 is better than that in 2017.

Based on the survey, Chongqing still has potential to improve the medical treatment/public healthcare and language environment.

Few respondents indicated that:

The living facilities in Chongqing could be further improved. Chongqing has less international hospitals and the cost is relatively high.

Some Chongqing citizens do not speak Mandarin, which causes certain communication barriers.

The international schools in Chongqing are still insufficient, which makes foreign children’s education inconvenient.

Traffic congestion and poor infrastructure are also two big issues that need to be improved.

►Recommendations by EY

To use the experience of international standard as reference, to build and improve the public facilities, design the international leisure streets, communities, clubs and other supporting facilities. To attract foreign investment to establish the international schools and hospitals.

To build an international language environment. To standardize the translations regarding transportation and architecture marks, leisure and shopping labels, catering and tourism language. To encourage the production of multi- language TV and radio programs.

To use big data and other scientific means to divert traffic and increase the supply of public transportation.

 

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2019-02-01
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