Since the reform and opening-up, Chongqing’s industry has been developing rapidly. After the 18th CPC National Congress, Chongqing has put the quality development of the manufacturing industry at a higher position, taken the supply-side structural reform as the mainline, deeply implemented the strategy of innovation-driven development led by big data intelligence, and boosted the replacement of traditional drivers by new ones. Thus the structure of the manufacturing industry is more optimized, the quality of the supply system higher, the enterprises’ innovation stronger, and the integrative development deeper. Nowadays, Chongqing celebrates the basically-established industrial system supported by the multiple points of electronics, autos, equipment, chemical engineering, materials, consumer goods, energy, etc., featuring complete types which take account 39 of the 41 industrial categories nationwide. Besides, it is the largest manufacturing base of laptops around China and an important production base of autos, motorbikes, and mobile phones.
The data shows that in 2018, Chongqing produced 2.05 million autos, 3.89 million motorbikes, 53.02 million microcomputers, 190 million mobile phones, and 1.93 million tons of aluminum products, representing 59.2%, 80%, 54.5%, 55.8%, and 22.5% of those in Western China respectively. The city has 6,772 scale-class enterprises, accounting for 15.3% in Western China. Among them, 15 are listed in China’s Top 500 manufacturing enterprises, ranking among the best in the western region of China. Also in that year, the scale economy aggregate of Chongqing had exceeded RMB 2 trillion, ranking among the top in Western China.
Since 2002, it has been committed to promoting the construction of characteristic industrial parks and achieved the “1+4+7+36” industrial park system (one national-level new area, four comprehensive bonded zones, seven national hi-tech zones, and economic development zones and 36 industrial parks in districts and counties). It is among the regions with the largest number of industrial development platforms in Western China, with 11 national new-type industrial demonstration bases.
In recent years, Chongqing has seized the new round of historic opportunities for industrial reform and scientific and technical revolution, and its emerging industry, led by the smart industry, is developing quickly. In 2018, the added value in the strategic emerging manufacturing industry is RMB 116.1 billion, with a growth rate of 13.1%; the added value in the high and new technology industry is RMB 913.6 billion, with 13.7% growth rate, and in this industry, the smart industry enjoys the sales revenue of RMB 464 billion, with the growth rate of 19.2%.
Among China’s western regions, Chongqing’s innovation also comes out top. In terms of the R&D investment, 2018 has witnessed the investment scale of RMB 32 billion of the scale-class enterprises in R&D, representing over 26% of the total in Western China. As for the intensity, in 2018, the scale-class enterprises’ total R&D investment accounts for 1.4% of their main business incomes, about 0.5% higher than the average of Western China.
Chongqing is China’s important automobile making base. There are 41 auto-making enterprises, covering the complete product series of passenger, business and special vehicles. Chongqing also has over a thousand of enterprises of auto components, and they provide a full range of products like engines, transmissions, braking systems, steering systems, axles, interiors, air conditioners, etc. in the supply system. As much as 70% of the demand for auto components in the city can be satisfied locally. On this basis, the “1+10+1000” advantageous industrial cluster, with Chang’an system as the flagship, over ten auto enterprises of SAIC-IVECO Hongyan, SAIC-GM-Wuling, Dongfeng Xiaokang, BAIC Yinxiang, Beijing Hyundai, Brilliance Xinyuan, Lifan Motors, ISUZU, Weichai Motor, Beiben Trucks, Hengtong Bus, and others as the backbones, and over a thousand of supported companies. The comprehensive annual production is 4 million autos, with the yearly scale of production and marketing of 3 million.
Chongqing is also China’s important motorbike-making base. Currently, it has 36 motorbike making enterprises, with the comprehensive production ability of 10 million motorbikes and 20 million engines annually. Chongqing has also given birth to the well-known enterprises of Loncin, Zongshen, Lifan, Yinxiang, and others, enjoying the top production and sales volume for consecutive years.
By 2022, the auto industry of Chongqing is expected to keep its leading position in China, with the annual production of about 3.2 million, representing 10% of China’s total. It will also reach the output value of around RMB 650 billion, and the quantity of value for individual auto has increased dramatically. Specifically, the annual production amounts of new-energy vehicles and connected automated vehicles are about 400 thousand and 1.2 million respectively, making Chongqing a vital production, research, and development base of the two kinds of cars.
With strong mechanical manufacturing and supporting capacities, Chongqing is China’s largest motorbike production base, important international combustion engine production base, largest instrument production base, largest inland ship R&D base, and large transformer production base. It also provides bases for 47 industries in six categories, including metal manufacturing, general equipment, transportation equipment, special equipment, electric and apparatus, instruments and others; more than 1,500 types of internal combustion engines, wind turbines, large gearboxes, instrument and apparatus, electric transmission and transformation equipment, ships, machine tools, etc.; and products of over 10,000 kinds.
Besides, 203 intelligent transformation programs have been implemented, and Chongqing has already recognized and constructed 76 digital workshops and intelligent factories. After the establishment, the production efficiency has increased by 67.3% on average, the rate of defective products reduced by 32% on average, the operating cost decreased by 19.8% on average, and the energy consumption per unit of production decreased by 17.3% on average. Now, Chongqing is accelerating its paces in constructing the top-level nodes of identification resolution of the Industrial Internet and developing Industrial Internet platforms. In 2018, 40 enterprises were listed in Chongqing’s first batch of Industrial Internet platform and cloud service pool. CASICloud, Tencent Cloud, JD Cloud, Inspur Cloud, UniCloud, Alibaba Cloud, Yonyou, iSESOL, China Mobile Internet and other platforms and cloud service enterprises have been developing their layouts in Chongqing in succession.
The city has also issued serial regulations to guide and support the intelligent manufacturing of its enterprises. Meanwhile, it also enlarged financial support. More specifically, 87% of its special funds for industry and informatization is used to support the big data intelligence, 1/3 is used to support the smart manufacturing, and thus realize the investment of RMB 45 billion in the intelligent technology transformation around the city.
Chemical Engineering and Medical Industry
Chongqing is also a fundamental base of the comprehensive chemical engineering industry in Southwestern China. After over six decades of development, the natural gas chemical industry system, enjoying technique and product advantages, has taken shape, giving birth to the industrial pattern with Changshou and Fuling chemical engineering industrial parks as the main bodies and other featured parks as the supporters. It has been developing the industrial clusters of natural gas chemical engineering, salt chemical engineering, fine chemical engineering, polyurethane, etc. In 2018, in Chongqing’s chemical engineering industry, there were 287 enterprises above designated size, with the total industrial output value of RMB 98.21 billion and year-on-year growth of 8.1%.
Due to continuous accumulation, innovation, and development, a group of flagship enterprises have been developed well, driving the overall growth of Chongqing’s chemical engineering industry. The traditional chemical engineering industry consists of the two parts: Basic products like the three acids and two sodiums (nitric acid, sulfuric acid, hydrochloric acid, and sodium hydroxide and sodium carbonate), urea, methyl alcohol, etc.; the advantageous and influential products in China like potassium permanganate, sodium carboxymethylcellulose, vinyl acetate, etc. Thanks to years of growth, Chongqing has settled BASF of Germany, BP of the UK, Huafon Group, and other domestic and overseas well-known enterprises. The structure of its chemical products has also changed, with parts of products, enjoying high additional value, produced locally.
Chongqing was one of China’s largest pharmaceutical bases. In its pharmaceutical enterprises, 177 are above designated size, 97 have the annual value of production of over RMB 100 million, 12 of the 1-billion-yuan level, and one of the 5-billion-yuan level. The ten listed enterprises in the Shanghai and Shenzhen Stock Exchanges occupy over 20% of the total listed ones in Chongqing. In the recent five years, Chongqing’s bio-pharmaceutical industry is maintaining rapid and stable development, with the annual composition rate of growth of 19.2%. In 2018, 176 bio-pharmaceutical enterprises above designated size had realized the value of gross output of RMB 61.507 billion, with the year-on-year growth of 11.9%. The investment in the pharmaceutical industry has reached RMB 7.31 billion, growing 18.8% of the year-ago period.
Next, Chongqing will take encouraging innovation and promoting quality development as its main task, the bio-pharmaceutical industry as the starting point for innovation orientation and industrial development, and “increasing quality types, improving manufacturing capacity, making up for shortcomings of the platforms, and optimizing the industrial layout” as the means to complete the industrial eco-system. It will take the featured fields as the basis and develop the layouts collectively for building a state-level bio-pharmaceutical industrial park. Meanwhile, it also encourages districts, counties, and autonomous counties to act according to circumstances and develop featured bio-pharmaceutical industrial basis, thus forming the “1+N” industrial layout.
Chongqing’s material industry mainly includes metallurgical industry and building materials industry. As for the metallurgical industry, Chongqing is one of China’s top ten iron and steel bases, the largest base of refined steel for ships, and largest aluminum processing base. It is producing over 2,000 types of metallurgical products, including puddling, steelmaking, steel rolling, fireproofing, coke, metal products, functional materials, powder metallurgy, magnetic materials, electrolytic aluminum, electrolytic copper, electrolytic nickel, aluminum processing, copper processing, magnesium-aluminum alloy and others.
With regard to building materials industry, the integrated-developing product system of cement, glass fiber, sanitary ceramics, wall materials, chemical building materials, and decoration materials has already taken shape. The new material industry, represented by high-precision aluminum plate and foil, high-strength ship plate, temperature measuring material, new-type magnesium alloy, copper-based powder, high-performance glass fiber, and its related products, is developing rapidly.
Chongqing’s key development direction and investment-inviting fields are listed as follows: The advanced basic materials like the advanced steel and iron materials (e.g. steels for basic components, high-strength steels, and others), advanced light non-ferrous metals (e.g. aldural, titanium alloy, magnesium alloy, copper alloy, and others), advanced chemical engineering materials (e.g. high-end polyolefin, special rubber, engineering plastics, and others), advanced building materials (e.g. green building materials, special ceramics, special glass, etc.); key strategic materials like the special alloys for high-end equipment (e.g. anti-high-temperature alloy, corrosion-resistant alloy, high-strength lightweight alloy, etc.), high-performance separating membrane materials (e.g. reverse osmosis membrane, perfluorinated ionomer membrane, etc.), high performance fibre, composite material, high-performance rare earth functional material, wide-bandgap semiconductors, new-type display materials, new-type energy material, biomedical material, etc.; cutting-edge new materials (e.g. graphene, nanometer materials, metals, high-polymer additive manufacturing, etc.), and so forth.
Consumer Products Industry
Chongqing also has a sound development pattern with the food industry as the main pillar and the seven ten-billion-level sub-industries of textile and garment, papermaking, home furnishing, plastics, leather and shoes making, printing and packaging, and fuel gas and lighting as the supporting points. It also has over 20 industrial types, namely food industry, leather and leather products industry, household appliances production industry, papermaking, and paper product industry, textile and garment industry, household chemicals industry, silicate industry, etc. covering over 80 sub-industries.
The food industry is one of Chongqing’s traditional advantageous industries. In recent years, it has seized the opportunity of building Chongqing into a state-level demonstration city of food safety to carry out the national strategies of “category expansion, quality improvement, and branding” and promote the integration of industry and commerce. The traditional manual workshop is developing toward mechanization, automation, digitalization, and intelligent application in due course, and the output value of the enterprises above designated size has exceeded the one-hundred-billion level, accounting for 7% of the total in Chongqing. This industry, with groups of emerging brands and enterprises well-known at home and abroad, has become the powerhouse for Chongqing’s economy in terms of stabilizing growth, adjusting structure, and benefiting people’s livelihood.
In 2018, for Chongqing’s enterprises above designated size, the growth rate of the total output value was 1.1%, the profit growth rate was 5%, and the profit margin of the main business income was 7.3%. The value-added growth rates for the farm and sideline food processing industry, food manufacturing industry, wine, beverages, and refined tea, and tobacco manufacturing were -0.7%, 1.7%, 5.7%, and 11.1% respectively. The feed processing, vegetable oil processing, slaughtering and meat processing, fruit and vegetable processing, tobacco and other sub-industries have already boasted the industrial scale of over ten-billion-yuan.
The specialization in industrial clusters is improving. The edible oil industrial cluster, represented by that in Degan Industrial Park of Jiangjin District, has gathered the five brands of Arawana, Fulinmen, Luhua, RDGO, and Blessing Mill. The preserved vegetable industrial cluster, mainly located in Fuling District, has gathered Fuling Zhacai Group, Spice Girl, and other enterprises of one-hundred-million-yuan, with the annual processing capacity of more than 600 thousand tons. The represented food processing brands in the industrial food park of Qijiang District are Truelove melon seeds, Guan Sheng Yuan, Xiao Dong Tian, and others, totaling over 30, with the annual value of production of over RMB 3.5 billion.
Food industrialization has achieved initial success. Making full advantage of the name cards like Chongqing Hotpot and Chongqing Xiao Mian, the city has promoted the implementation of a series of key programs and thus gives new impetus to the development of this industry. Dezhuang Food, Huangchao Food, Dayou Xiao Mian, Tiao Tiao Noodles, and others are striving to develop instant Chongqing Xiao Mian and Hotpot products. Pangzi Tianjiao Food, QiaoTou Hot-Pot Sauce, and Zhoujunji Hot Pot Food are developing the special-made sauces for Xiao Mian. They are committed to satisfying people’s aspirations for a good life.
Chongqing’s food industry takes meeting the requirements of safety, diversity, health, nutrition, and convenience as the goal and the production bases of potatoes, oranges, beef, vegetables, live pigs, ecological fishery, vegetable oil, industrial crops and others as the bases. It utilizes the ports of food and meat products, integrates the two kinds of resources, and is striving to build green and ecological crop farming, fish breeding, and poultry raising. From the processing and manufacturing in intelligent plants to the industrial ecology of the new retail shopping experience, it has underpinned and reshaped the eight ten-billion-level industrial clusters of meat product processing, fruit and vegetable processing, edible oil processing, beverages and dairy products manufacturing, snack food manufacturing, flavorings manufacturing, cigarette manufacturing, etc. It also focuses on guiding the development of such instant, green, nutritious, and healthy products of additives, pastries, candies, ice products, and thus building the sound industrial pattern with the co-existence of large, middle, small, and micro-sized enterprises.
From January to October in 2018, the added value of industries above the designated size across Chongqing increased by 1.2% in real terms year on year (the following growth ratios of added value all in real terms). An analysis on three types demonstrated that during this period, the industrial added value of mining industry fell 12.2% year on year, manufacturing industry grew 1.0%, and production and supply industry of electricity, gas, and water grew 9.2%.
In recent years, Chongqing has formulated the Action Plan of Chongqing Municipality on Pursuing the Innovation-Driven Development Strategy with Big Data Intelligence as the Guidance (2018-2020), Polices for Further Developing the Integrated Circuit Industries, and others based on its market demands, forefront industries, and advantageous resources. It has already set up the infrastructures of big data intelligence, key direction for industrial development, key application fields, and others strong supports. Besides, Chongqing has put forth efforts to construct the industrial frameworks, drive the industry chain and upstream and downstream supply chain, and accelerate the building of industrial clusters. In 2018, Chongqing’s growth rate in the strategic and emerging manufacturing industry was 13.1%, with the contribution rate to the sectors above state designated scale of 495.2%, becoming the main engine to drive the industrial economic growth.
Chongqing sticks to the direction of smart manufacturing and increases the complementarity with China’s new round of key technical transformation and upgrade programs. It is devoted to accelerating the digitalization, networking and intellectualization transformation for enterprises, stimulating the innovation vitality, transformation power, and development potential of the manufacturing industry. It has promoted the intelligent transformation of over 200 enterprises, including 14 smart plants and 62 digital workshops. The popularizing rate of Chongqing’s digitalization R&D and design tool is 73.4%, the numerical control rate for key procedures of 48.6%, and the completion rate of smart manufacturing of 8.7%. In terms of Industrial Internet platforms, the city is in cooperation with CASICloud in building Industrial Big-data Innovation Center and Cloud Manufacturing Industry Base and with Tencent in constructing the intelligent supercomputing center of the Industrial Internet. Moreover, Chongqing CCID Institute and Alibaba Cloud have joined hands in building Feixiang Industrial Internet Platform, and thus accelerate the enterprises’ steps toward migration to the cloud and platform.
The OneNET Platform of China Mobile Internet and the Public Service Platform for Basic AI Resources of Zhongke Cloudwalk Technology have been listed in the key programs of the National Development and Reform Commission; Changan Auto and K.C Home have been selected in China’s Pilot Project for the Integrated Development of Manufacturing and Internet; China Unicom, West Institute of CAICT, and ZBJ.COM have been listed in China’s Pilot Platform for the Integrated Development of Manufacturing and Internet; Changan Auto has become a service-type demonstration manufacturing enterprise; Loncin Motor, Chongqing Haiwang Instruments and Meter, Chongqing New Standard Medical Equipment Co., Ltd., and ZBJ.com have already built China’s service-type demonstration manufacturing programs. Tencent has established the intelligent supercomputing center of the Industrial Internet, which takes the intelligent supercomputing cloud service as the basis and cooperates with Changan Auto in building the ecology of cloud design, big data, and intelligent Internet of vehicles for the Changan brand series, thus speeding up their migration to the cloud and platform. Chongqing Changan Automobile Co., Ltd. and Chongqing Hongjiang Machinery Co., Ltd. have become the pilot demonstration enterprises of intelligent manufacturing, approved by the Ministry of Industry and Information Technology of China.
Emerging manufacturing industry is pooling and expanding
The integrated circuit is upgrading, and the design of ADC chips taking the lead nationwide. As for the LCD, the whole industry chain from the glass substrate to the terminal display has already taken shape. The annual outputs of industrial robots have exceeded 2,000 annually. For the Internet of Things (IoT), the “three-in-one” whole industry ecology combing hardware manufacturing, system integration, and operation service has taken initial shape. 208 types of Chongqing-made new-energy vehicles have been listed in the Catalogue of Models of New-Energy Automobiles Exempt from Vehicle Purchase Tax, with the output of 38 thousand. In addition, the connected automated vehicle celebrates the growth rate of 38.9% with an output of 128 thousand. The annual output of shale gas is 6 billion m3. And the bio-pharmaceutical, new materials, high-end transportation equipment, and energy-saving and environment-protection industries are developing acceleratedly. The added value of the strategic emerging manufacturing industry has increased by 25.7%, whose growth rate is 16.1% higher than that of Chongqing’s industrial enterprises above designated size. The growth rate holds 17.3% of the city’s industrial proportion, with the rate of contribution of 37.5% to its industrial development.
Blueprint for the future development
In the future, Chongqing will take “high quality, supply-side structure, and intelligence” as the mainline, deeply promote the strategy of big data intelligence, advance the digital industrialization and industrial digitalization, boost the smart industry, and optimize the industrial structure. It will vigorously conduct intelligent manufacturing and improve industrial development, promote intelligent application and high-quality development. By 2020, the added value of the advanced manufacturing industry, with smart industry as the core, will be around 30% of the total in this city under Chongqing’s tireless efforts. Besides, it will basically build China’s important smart industry base and top demonstration city of intelligent applications.
Chongqing has taken the big data intelligence as the top priority in implementing the Action Plan of Chongqing Municipality on Pursuing the Innovation-Driven Development Strategy with Big Data Intelligence as the Guidance and built complete eco-system of the digital economy and the new sources of economic growth. It will also stimulate the development of the 12 intelligent industries of big data, artificial intelligence, integrated circuit, intelligent supercomputing, software service, the Internet of Things, automotive electronics, intelligent robots, intelligent hardware, connected automated vehicle, intelligent manufacturing equipment, digital contents, etc. promote the technical transformation and product innovation in this field, advance the technology integration and innovation in the business model, arrange the middle and high end industrial chain, and build competitive cluster of smart industry. Chongqing is striving to set up several leading advantageous industrial cluster in China in such fields as intelligent hardware, big data, intelligent manufacturing equipment, connected automated vehicle and others by 2020, thus reaching the scale in the intelligent industry of RMB 750 billion.
Chongqing will stick to the direction of intelligent manufacturing. It is devoted to accelerating the digitalization, networking and intellectualization transformation for enterprises, stimulating the innovation vitality, transformation power, and development potential of the manufacturing industry.
Firstly, promote robot-to-manpower replacement in enterprises. Chongqing is making efforts to facilitate enterprises to transform the non-automatic equipment via intelligent techniques, guide them to utilize automatic equipment, arrange on-line monitoring (testing) and connection control system, advance the system integration and connectivity of equipment production and manufacturing unit, and stimulate the advance of automatization from equipment to production lines, workshops and plants.
Secondly, propel the integration of enterprise information system. Chongqing will guide enterprises to build and utilize such information systems as R&D design, technology and simulation, data collection and analysis, manufacturing execution, enterprise resources plan, supply chain management, product lifecycle management, warehousing and logistics management, etc., build plant-level and workshop-level industrial communication network, and promote R&D design, product data management, enterprise resource planning, production schedule, manufacturing implementation, warehousing and logistics management, and other high-efficiency coordination and data collection applications.
Thirdly, construct the eco-system of the Industrial Internet. Chongqing will build the nodes of every level and basic function platform for the identity resolution of the Industrial Internet, and utilize the identity resolution to promote the industrial manufacturing synergy, review and manage the product life cycle. It will also accelerate to introduce and develop the Industrial Internet platforms, build such platforms for different industries, regions, and levels, thus underpinning the foundation for intelligent manufacturing. Chongqing will also advance such key processes of R&D design, manufacturing and producing, operating management, service operation, etc. of enterprises and thus accelerate their paces to migrate to the cloud. It has realized the high coordination of the industrial chain in the manufacturing industry and thus gives birth to batches of new models and new businesses in the manufacturing industry.
Fourthly, develop new models and new businesses in intelligent manufacturing. 1. Promote the networked collaborative manufacturing of enterprises. Chongqing will facilitate enterprises at such different links as the development of upstream and downstream products, producing and manufacturing, operation and management, manufacturing service, etc. to realize information sharing and business collaboration, promote the inter-enterprise manufacturing resource sharing and collateral organization and coordinated optimization of key manufacturing links. 2. Strive to develop large-scale customizing-type enterprises. Chongqing will guide enterprises to construct platforms for customized services, and realize large-scale flexible order processing from R&D design, production plan, flexible manufacturing, to logistics, thus strengthening enterprises’ ability to satisfy customers’ individual demands rapidly and efficiently. 3. Foster enterprises that offer remote operation and maintenance services. It will also foster and support enterprises to build platforms for product life-cycle management, develop remote operation and maintenance, quality control, early fault alert, product optimization, and other online support (information value-added) services, and innovate the produce + service mode.
Smart city construction
The intelligent applications should fully utilize the government, commercial and civil values of big data intelligence, focus on the five sectors of industrial integration, government management, people’s livelihood services, public goods, and social governance and cover 33 fields. By 2020, 80 key programs of intelligent applications will be launched for accelerating the processes of intelligent government affairs, intelligent transportation, intelligent logistics, intelligent education, and intelligent healthcare. The extensive utilization of big data in different industries has stimulated economic development and facilitated people’s production and life.
In terms of industry integration, the pilot/demonstration projects of intelligent application will be launched in eight industries, including the agriculture and energy, and the intelligent products and techniques will be utilized to promote the third intelligent transformation and upgrade. For example, the support of big data will ideally promote the implementation of rural revitalization, targeted poverty alleviation, and reduction of the digital gap between rural and urban regions; the development of digital finance will give birth to more efficient credit system platforms and solve the problems of complicated and expensive financing faced by middle and small-sized enterprises; construction of electronic ports under the support of intelligent logistics will largely improve the clearance efficiency and reduce the costs, thus better smoothing the goods flow and strengthening the construction of the new focus of opening-up in inland China.
As for government management, it will promote inter-department resource integration and sharing, government affair platform, and other intelligent applications, thus enhancing governments’ efforts effectively, democratic and law-based governance. To promote the intelligent government affairs, the data integration and connectivity of various departments will be utilized to normalize enterprise information collection, record and register, mutual recognition of information, and other functions, accelerate the transformation of integrating multiple certificates into one, thus increasing governance efficiency. The related departments will also encourage the public to handle the administrative examination and approval online and build online government service halls. Thus the individuals and enterprises will make fewer visits to government departments to get things done based on the inter-department information sharing system.
In regard of public service, on the one hand, the in-depth integration of big data intelligence and healthcare, education, social security and other services of the people’s livelihood will be promoted, and the telemedicine and distance education will also be encouraged to reduce the public resource imbalances. On the other hand, the utilization of intelligent techniques in the fields of transportation and environment will be expanded, and importance will be laid on building intelligent Chongqing supported by the “city brain” and connect its “neural network” through the big data intelligence. Moreover, the convenient, livable, benefit-to-all, and people-oriented intelligent living environment will be built through the real-time analysis of the whole city and public resource allocation in an automatic way.