Chengdu fishes for the world's top professionals

Two exhibitors from the Czech Republic assemble a jet at a trade fair in Chengdu, Sichuan province, in October 2013. [Photo by Yu Ping/For China Daily]

By Huang Zhiling in Chengdu | China Daily

The Shuangliu district of Chengdu in Sichuan province plans to become home to top professionals in international trade, finance and law from different parts of the world, to meet the needs arising from its inclusion in the China (Sichuan) Pilot Free Trade Zone.

It will rely on headhunters to hire such talent, offering each professional an annual salary of nearly 2 million yuan ($290,550), said Jiang Liwang, chief of the General Office of the Administrative Bureau of the Shuangliu section of China (Sichuan) Pilot Free Trade Zone.

On April 1, the unveiling ceremony for the China (Sichuan) Pilot Free Trade Zone was formally held in Chengdu. The zone consists of two parts: Chengdu in western Sichuan and Luzhou in southern Sichuan.

The Sichuan FTZ covers nearly 120 square kilometers, with 100 sq km in Chengdu and the rest in Luzhou. Of the Chengdu part, more than 34 sq km are in Shuangliu.

Wei Shuangdan, a policewoman with the Gongxing Town Police Station in Shuangliu, was transferred to the government service center of the Shuangliu part of the free trade zone more than two weeks ago. She will serve as the chief representative of the Shuangliu District Public Security Bureau in the Government Service Center.

She landed the coveted job thanks to her proficiency in English. She had passed the English Majors Band 8, the highest-level test for English learners in China.

"I graduated from an institution of higher learning a decade ago and seldom spoke English as a policewoman. I lamented my English major was useless," Wei said.

Her story reflects the shortage of professionals in the Sichuan FTZ, particularly in Shuangliu, one of the most advanced regions inthe zone. According to sources in the Sichuan provincial government, the Luzhou section of the FTZ is also considering wooing top professionals from different parts of the world.

The zone's Chengdu section has advantages like airport and railway transportation and the Luzhou section has a port connecting the Yangtze River to the East China Sea.

The Chengdu section will stress development of the modern services sector, high-end manufacturing, high-tech and airport-dependent economy. The Luzhou section will emphasize shipping logistics, port trade, equipment, food and beverage manufacturing, said Tang Limin, chief of the General Office of the Sichuan provincial government.

An inland province known for its inaccessibility in ancient times, Sichuan is the most advanced region in western China, thanks to the implementation of China's reforms and opening-up policies in the late 1970s and its go-west strategies adopted at the turn of the 21st century.

Most of the world's Fortune 500 firms have set up offices in Sichuan and the province has more foreign investment than any other region in western China.

"The unveiling of the China (Sichuan) Pilot FTZ will have a lasting influence on the province's economic, cultural and social fabric," said Yao Yi, president of the Institute of Economics, part of the Sichuan Provincial Academy of Social Sciences.

The FTZ means a new round of reform and opening up to the outside world. Benefits of its reform are expected to liberalize trade and investment, Yao said.

The FTZ also means two way free flow of top talent and capital, said Yao, adding systems have to be in place to spur more trade and higher investment.

The Sichuan Entry-Exit Inspection and Quarantine Bureau headquartered in Chengdu has formulated 10 inspection and quarantine systems to facilitate trade. This will shorten the quarantine time for special products such as blood to three days at most. The validity of the certificate of quarantine approval will be extended from three to 12 months.

It has started to process applications online for products to be processed, according to Ma Dongmei, an information officer with the administration.

Transportation networks link Chengdu to the world

Modern transport hubs, such an Shuangliu International Airport, and new rail links mark Chengdu as a national gateway for tourism and trade

Happy landing: passengers disembark at Shuangliu 

By Li Yu and Peng Chao

12:54PM GMT 27 Jan 2016

Poor transportation used to be a drag on the economic development of China’s inland areas, but with modern means of transport, Chengdu has gained wings in recent years.

Though far from the coast, this hub city in Southwest China has risen to be one of the most open cities in China with its large airport and numerous international air routes.

The annual passenger throughput of Chengdu Shuangliu International Airport surpassed 40 million on Dec 10, making it the fourth airport on the Chinese mainland to handle more than 40 million passengers in a year, after Beijing Capital International Airport, Shanghai Pudong International Airport and Guangzhou Baiyun International Airport.

Shuangliu International is expected to have handled 42 million passengers in 2015, ranking it among the world’s top 30 airports in terms of passenger volume. The number of overseas passengers is expected to exceed 4 million.

Many of the airlines that run Chengdu routes have increased the number of flights to the city due to the good performance of the flights

Two days after it passed the 40-million milestone, Air China launched a direct route between Chengdu and Paris. Using an Airbus A330-200, Air China offers four round trips a week between the two cities. The one-way trip takes about 11 hours.

Chengdu has become a major air hub that connects China’s central and western regions to Europe, with five non-stop routes linking it to Amsterdam, Frankfurt, London, Moscow and Paris. The city launched 10 new international flights last year alone, including eight direct flights to Chiang Mai in Thailand; Nha Trang in Vietnam; Colombo in Sri Lanka; Osaka in Japan; Moscow; Jeju Island in South Korea; Mauritius and Paris, and two connecting flights to Los Angeles and Dubai.

To date, the airport has 165 domestic and 85 international routes. Its airline network covers the major hub cities in North America, Europe, the Middle East, Oceania and Asia.

Chengdu is the first city in central and western China to adopt a 72-hour-visa-free policy, which allows passengers from 51 countries and regions to stay up to three days in Chengdu so long as they have a valid onward ticket to a third country.

Many of the airlines that run Chengdu routes have increased the number of flights to the city due to the good performance of the flights. British Airways launched a direct Chengdu-London service in September 2013, the first to link the British capital with a city in central or western China. Within eight months, the airline had increased its number of flights from three to five a week and introduced the new Boeing 787 Dreamliner to the route.

Modern marvel: Shuangliu International Airport  Photo: Xie Minggang for China daily

In June 2014, United Airlines launched a thrice-weekly nonstop route between San Francisco and Chengdu. It is the first nonstop route connecting the United States to a city in China’s central and western regions. United Airlines increased the frequency of its nonstop Chengdu-San Francisco service from three times a week to daily in last summer.

Walter Dias, managing director for Greater China and Korea at United Airlines, said in a recent interview with China Daily that he was happy to see continued growth of revenue from Chengdu during the past year and a half. “In the peak season, the load factor of the route had surpassed our Asia average, which ranged from 80 to 90 per cent," he said.

"As the market continued to grow, we hoped to get daily service all year round in Chengdu.” he said.

Mr Dias also said that United decided to open the route because demand has been growing in Chengdu and the western region with the pushing forward of China’s go-west compaign.

A great number of multinationals are investing in Chengdu, and many of United’s corporate clients, including Apple, Texas Instruments and Dell, have factories in Chengdu, Mr Dias added.

National gateway

Located at the intersection of the Silk Road Economic Belt and the Yangtze River Economic Belt, Chengdu is acquiring global attention with rich development opportunities and rapid economic growth.

In line with the Belt and Road Initiative and the national strategy to develop the Yangtze River Economic Belt, government leaders in Chengdu are building the city into an international transportation and logistics centre, a national gateway for China’s westward opening-up, and an “economic highland” in China’s hinterland during its 13th Five-Year Plan (2016-20).

The city is scheduled to build a new airport southeast of Chengdu. It will be larger than Shuangliu and mainly serve international routes

According to the city plan, it will open at least three international nonstop routes in each of the next five years, which will enable the city to have 55 international non-stop routes by 2020.

An official at the Chengdu Port and Logistics Office said: “We will strengthen the city’s status as a national-level aviation hub and gateway city in central and western China, building it into an ideal transfer station that connects Europe, Africa and the Middle East to Southeast Asia, Oceania and North America.”

The city is scheduled to build a new airport southeast of Chengdu and 31 miles from Shuangliu airport, which will make it the third city on the Chinese mainland to have a second civil airport, after Beijing and Shanghai. Tianfu International Airport, which will be larger than Shuangliu airport, will mainly serve international routes.

The first phase of the new airport is scheduled to be completed by 2018, with annual capacity to handle 40 million passengers and 700,000 metric tonnes of cargo.

On track

Chengdu also boasts an advanced rail transport system. Railway lines starting from Chengdu not only connect to cities all over China, but also to Central Asia and Europe.

The city opened the Chengdu-Europe Express Rail in April 2013, and the weekly train departs from the Chengdu Railway Container Logistics Centre and terminates in Lodz, Poland. It takes about 10 days for the train to reach Lodz.

From there, within three days, cargo shipments can be delivered to customers in London, Paris, Berlin and Rome. It is currently the fastest and most frequently used direct freight service between China and Europe, the Chengdu Port and Logistics Office said.

Chengdu is becoming a key transportation hub for Asia and Europe as more cities link to the Chengdu-Europe Express Rail system

The express rail line transports laptops, iPads, auto parts, home appliances, clothing, shoes and toys produced in Chengdu and other Chinese cities to Europe, and brings back mechanical and electrical products, clothing, food and beverages.

Since its operation, the express rail has run 174 journeys to and from Chengdu, transporting 35,000 tons of cargo worth $780 million by Dec 14. At least 300 cargo train trips in both directions will have been made some time this year, according to the city’s latest plan.

Chengdu is becoming a key transportation hub for Asia and Europe as more cities link to the Chengdu-Europe Express Rail system.

The railway has expanded to eastern coastal cities including Shenzhen, Xiamen and Ningbo, and will soon connect to Kunming, Nanning and Wuhan. In Europe, the railway has been connected to Germany and the Netherlands.

The Chengdu-Central Asia Express Rail, opened in July 2014, connects Chengdu to Central Asian countries within nine to 11 days. By the end of November, the railway had run 28 journeys and transported cargo worth $29 million.

Chengdu is also upgrading its domestic railway network. By 2020, the railway network will make it possible to travel between Chengdu and nearby Chongqing within one hour; major cities such as Xi’an, Kunming, Guiyang and Wuhan within 4 hours; and to the Yangtze River Delta, Pearl River Delta and the Bohai Rim area within eight hours.

This article was originally produced and published by China Daily.

Chengdu first choice for investors in west China

Chengdu is right on the way to become a “national central city” with its greater interaction with global communities. At a time when the country is gearing up for another round of reform and opening up to the outside world, Chengdu is set to take the lead and make good use of being a core city in the Belt and Road Initiative.

The city would be taking a more active role in the world’s economic development and speed up its construction as a central city serving China’s western areas, officials said at a recent conference calling for further progress in opening up the market. The capital city of Sichuan Province will open more areas under the Belt and Road Initiative.

Chengdu’s opening-up policy strategy holds the idea of “three steps” at its core. And at the foundation of the policy is the goal of building a “global city of sustainable development.”

With the strategy, Chengdu will build itself into “a global transportation hub, the most open inland city, a garden city, and a national central city,” according to the government reports.

Over the past 40 years when China continued to deepen its reform and opening up endeavors, Chengdu has leapfrogged in its economic growth. Its gross domestic product was 386 times that of 1978, making it the third-strongest in China’s provincial-level cities and an important center for economy, technology, finance, culture and creation, and foreign communication, as well as a global hub for transportations and communications.

Chengdu has established business relationships with 228 countries and regions, while its trade volume grew by 26.5 times in the past 20 years.

A total of 281 companies on the 2017 Fortune Global 500 List have a presence in Chengdu, covering industries from information technology, automobiles, aviation, crude oil and food processing to finance, retail and logistics. They are from 22 countries and regions, including the United States, Europe, Japan and South Korea.

Chengdu has already become a major point of interest for external and foreign investments in recent years, the mantra of “Chengdu, the first choice for investments in the west,” has gained popularity in investment circles as well.

In order to hasten, rectify, globalize and add convenience to the business environment, Chengdu has brought about a seven-pronged measure which include making Chengdu more open economically, increasing the efficacy of government administration as to create a more livable city, creating a model of how to make customs processes more convenient, becoming a leader in the realm of improving intellectual property protection, creating an advanced system of support service in Chengdu, becoming a recognized standard of internationalism and globalism, and increasing the quality of living in the city.

For foreign investors, Chengdu is aiming to take an active role in trialing various pilot programs to become a front runner in the new round of opening-up efforts. The city has planned to fully implement the negative list for foreign businesses and offer them the same treatment as domestic firms. So far, 95 percent of affairs applied by foreign companies have been registered in Chengdu, while a platform to manage all the data of foreign investment and a reporting system have been set up.

Chengdu will also strengthen interaction between different government departments, such as the commerce commission and the bureau of industry and commerce, encouraging them to share data and make it convenient for investors to complete registration in a one-stop process.

By the end of this month, Chengdu will have revamped the online platform system to realize shared information between the commerce commission and the bureau of industry and commerce, in a bid to streamline red tape for businesses.

With the Belt and Road Initiative, which involves more than 60 countries and one third of the world’s trade, Chengdu was the starting point of China’s ancient South Silk Road and is currently a pivotal city in the Road and Belt Initiative. This very unlikely occurrence has boosted the power and fame Chengdu has had on a global stage.

In order to steadily increase the international trade and investment performance of Chengdu, a “six-program” plan was devised. The different plans include increasing abundance of the headquarters of transnational enterprises in Chengdu, boosting the amount of small and medium-sized business that choose to develop in Chengdu, expanding Chengdu’s economic power to other countries, introducing new plans directed at foreign trade, increasing the development of the service industry in Chengdu, and globalizing consumerism in the city.

“It is a right decision to pick Chengdu as one of our key bases, because the city is strategic in the Belt and Road initiative,” said Zhu Rong, general manager of the Chengdu branch of DHgate.com, an e-commerce company focusing on small and medium-sized traders.

The company is constructing an online “canal” to connect countries along the Belt and Road route. A digital trading exhibition center has been established in Chengdu Shuangliu free trade zone, which was put into operation in middle May.

“We are confident that e-commerce will have a faster growth and of higher quality in Chengdu, when the city is guided by the Belt and Road Initiative and is opening further to the outside world.” Zhu said.

Chengdu has also built up a comprehensive transport network, made up of air, rail and waterways, to facilitate logistics for traders and investors.

A government delegation visited Shanghai early this month to promote investment in Chengdu. The delegation held eight meetings with foreign companies in Shanghai within three days.

German-based Siemens has increased its investment in Chengdu in recent years and it was the first company to be visited by the delegation.

Pu Zhengrong, vice president of Advanced Therapies of Siemens Healthineers China, said Chengdu has special charm for people due to the city’s unique cultural genes.

“People working in Chengdu are more loyal to their employers,” Pu said. “The city has created an atmosphere for a balanced work and life. When people come to Chengdu, they fall in love with it and are reluctant to leave.”

A rich history, relaxed lifestyle, low living costs and a good talent pool are among the advantages of Chengdu, Pu said.

Chengdu offers a lot of opportunities as a frontier city in the new round of development in the west, officials said.

Chengdu opens its arms to overseas investment, business opportunities

By Li You | China Daily 

Chengdu pledged to further open its local market and improve its business environment to welcome more overseas enterprises at a project signing ceremony held on Nov 6 during the China International Import Expo in Shanghai.

At the subsidiary event to the expo, Chengdu signed contracts on 14 large-scale projects with companies from countries including the United States, the United Kingdom, Australia and Japan, covering intelligent manufacturing, automobiles, new energy and the service industry.

During the ceremony, the city government also released a string of new policies to attract foreign investment, highlighting Chengdu's desire to do business with companies from around the world.

At present, Chengdu is holding fast to the opportunities springing from the Belt and Road Initiative, expanding its business channels and deepening its opening-up, said Luo Qiang, the city's mayor.

"The next years will witness new growth in both import and export volumes in Chengdu on its path to building itself into an international hub city in West China," Luo said.

To provide better services for its overseas investors, Chengdu has set up a BRI international exhibition and exchange center and BRI international food street, according to Li Dongchuan, secretary-general of Sichuan Promotion Association for the Belt and Road Initiative.

"Prior to the expo, we have already reached agreements of intent on cooperation enterprises in the US, Australia, New Zealand, South Korea, Japan and Sri Lanka," said Li, praising the actions taken by the promotion association.

More than 300 delegates from world renowned enterprises, cross-border traders, international business associations and foreign-funded enterprises as well as representatives from State-owned and private enterprises in Chengdu attended the project signing ceremony.

Thanks to the open and inclusive environment in the city, it has become common sense for entrepreneurs to start businesses in Chengdu, according to the organizer of the ceremony.

Chengdu Better City Group, a State-owned capital investment and operation company, announced an investment worth 62.5 billion yuan ($8.99 billion) at the CIIE.

As the company that has invested in more than 1,000 key projects for Chengdu's urban planning, it is now paving the way for the projects by building apartments for skilled professionals, medical and health industry infrastructure, as well as the landmark projects such as the Jincheng Greenway and Tianfu Cultural Park.

At present, the group is listed as a top 500 Chinese enterprise, with assets exceeding 150 billion yuan. In order to speed up the global expansion, the company has set the goal to enter the ranks of the world's top 500 enterprises by 2022.

"The rise of the company is reliable evidence of the city's development," said Ren Zhineng, president of the company.

"Better City is a representative model of State-owned enterprises in Chengdu, and also the epitome of thousands of enterprises in Chengdu. Chengdu will surely become a great place for more enterprises to develop their businesses and discover their own treasure," Ren said.

Lord James Sassoon, chairman of the China-Britain Business Council, said: "Last year, I visited the China (Sichuan) Pilot Free Trade Zone in Chengdu's Tianfu New Area. It impressed me deeply with the facilitation for trade. We hope to perform deeper cooperation with Sichuan via the platform of CIIE."

Luo added that the area has plenty more to offer too. "Jinbao, the mascot of CIIE, is mirrored with the giant panda. Chengdu is not only the home to giant pandas, but also a large number of historical sites including the celebrated Dujiangyan Irrigation System, Wuhou Shrine, Du Fu Thatched Cottage and Qingcheng Mountain."

The unique lifestyle of Chengdu citizens, which features dining in hot pot restaurants and sipping tea in tea houses, has helped the city to become a popular destination in the world, as rated by international tourism organizations, Luo said.

In addition, the transport network established by Chengdu in recent years is helping to spearhead increased trade with foreign countries.

Chengdu was included in the rail network initiated by the China Railway Express to Europe service five years ago. The Chengdu-Europe railway has linked 14 Chinese cities and 16 overseas cities as of the end of July.

In the wake of Chengdu's increasing connection to the outside world, Chengdu has established economic and trade relations with 228 countries and regions worldwide. A total of 285 companies listed as the world's top 500 enterprises have invested in Chengdu.

In 2017, the international trade volume for the city reached 394.18 billion yuan, an increase of 45.4 percent year-on-year. Foreign investment reached 1.84 billion yuan, an annual increase of 59.1 percent.

liyou@chinadaily.com.cn

Chengdu holds a project signing ceremony on Nov 6 during the China International Import Expo in Shanghai, releasing a string of new policies to attract foreign investment. Photos provided to China Daily

More than 300 delegates from global enterprises and associations attend the event, where a total of 14 contracts for large-scale investment projects are signed.

Attendees exchange their business cards during the project signing ceremony.

Chengdu: China's Next Big Mega City Is Attracting Tech Startups And Foreign Investment

Chengdu China Development: (L-R) Chengdu Planning Exhibition Hall, Chengdu's Hi-Tech Zone, network equipment at Maipu, Chengdu's new Silicon Valley employees residences (Photos: Lianna Brinded)

The southwestern city of Chengdu, located in China’s Sichuan province, is known mainly for its fiery food, beautiful women, and giant pandas. But what was once just one of thousands of the nation’s unassuming cities has become one of the biggest cities to watch in China.

In the past, Chinese hubs like Shanghai, Beijing and Hong Kong had been big sites for business and investment. However, more and more, second- and third-tier cities like Chengdu are on the rise for local and foreign investment, attracting tourists, businesses and new industries to the city. Backed by Premier Li Keqiang, who has called for the development of western China, Chengdu’s local government is making a push to be one of China’s globally recognized hubs, opening up the country’s often underexplored western regions.

Some of Chengdu’s quick numbers:

18 million: The estimated population of Chengdu in 2030, compared to its current 14 million. As the cities add additional large-scale construction projects, and airports, the city’s limits are also likely to expand.

71: The number of international air routes that go directly to Chengdu, including cargo routes, making it the biggest hub of international flights in the central and western regions of China. Chengdu’s international accessibility continues to expand. This year, the city plans to establish direct routes to the U.S. and Russia, and to make currently existing flights to Europe, the Middle East and other parts of Asia more frequent.

252: The number of Fortune 500 companies that have set up office locations in Chengdu. Companies that have set up shop in Chengdu cover a range of industries, from food and beverage, like Nestle and Danone Group, to medical giant’s GlaxoSmithKline and Unilever.

8.8 billion: The amount of foreign investment in U.S. dollars that has been put into the city, according to the Chengdu Investment Promotion Commission.

Though Chengdu has a rich history, like much of China, the city is keen on portraying an image of modernity and attracting foreign investment. Tapping into the tech industry is one way that the city plans develop that image.

Chengdu is already a hub of sorts for a lot of tech manufacturing. Somewhere between one-third and one-half of all iPads sold around the world are assembled in Chengdu, while about half of Intel’s microchips are also made in the city. But the city is striving to be more than just a manufacturer, but a Silicon Valley of sorts. “Software Park” is intended to focus more on innovation rather than immediate money-making schemes.

Additionally, the city’s “Go West” program offers startups one-year interest-free loans, giving them incentive to put down roots in Chengdu. The city’s “hi-tech development zone” has attracted about 29,000, of which 1,000 are foreign enterprises. 

Chengdu blazes trails in country’s opening up

The Business & Innovation Centre for China-Europe Co-operation is a major hi-tech powerhouse in Chengdu, utilising resources from developed countries in Europe. CREDIT: CHINA DAILY

By Li You

More multinationals invest and settle in the Sichuan provincial capital as it strives to become a world-class new economy launch pad

Eleven major projects were launched in the Chengdu Hi-Tech Industrial Development Zone last month, bringing in a total of 8.25 billion yuan (£921 million) in fresh investment. 

These projects, covering fields such as integrated circuits, artificial intelligence, robotics, big data, precision healthcare and new-energy vehicles, were introduced to boost the development of the city’s new economy.

A major city in western China, Chengdu has played a key role as a hub in the country’s opening-up and the Belt and Road Initiative. Drawing on its geographical advantages, it has been blazing trails for more international communications and collaboration. 

The institute will support Industry 4.0-based quality engineering, provide comprehensive solutions in the field of intelligent systems and serve corporate innovation.

Consequently, a large number of industrial leaders and institutions had settled their projects in the city by the beginning of 2018, showcasing Chengdu’s appeal for investors and potential for development.

On Jan 9 the launch of the China-UK Institute of Innovative Quality Engineering and Smart Technology was announced at the Business & Innovation Centre for China-Europe Co-operation, a major industrial park in Chengdu, to support the city’s strategy to build itself into a world-class place for scientific research.

The institute was founded through the collaboration of Brunel University London and the National Physics Laboratory in Britain, as well as the Chinese company Sichuan Mingxin Energy Group.

“The institute will support Industry 4.0-based quality engineering, provide comprehensive solutions in the field of intelligent systems and serve corporate innovation, aiming to improve the quality of products, processes and services,” said Liu Jing’an, the Chinese-nationality president of the institute.

Industry 4.0 is a term for the current trend of automation and data exchange in manufacturing technologies. It includes cyberphysical systems, the internet of things, cloud computing and cognitive computing.

The institute will focus on research into sensing technology and artificial intelligence systems and put the research results into practical applications. The institute will help Chengdu set up an innovation centre in London for exchanges in the areas of personnel, technology, products, financing and marketing.

In addition, the institute will help as Chengdu works with global research institutions to try to set up a scientist alliance to work on the study of patent and intellectual property development.

The institute has forged links with Britain’s leading universities and institutions. These include the Alan Turing Institute, the University of Oxford, the University of Cambridge, the British Standards Institution, the Institute of Engineering and Technology as well as the Welding Institute, Mr Liu said.

The Business & Innovation Centre for China-Europe Co-operation was set up in the Chengdu hi-tech zone last May. Since it was established it has attracted institutions and companies from European countries such as Britain, France, Germany and Italy.

Last month Chengdu hi-tech zone announced it is working with China Unicom Group, the French communications service provider Sigfox and the French elderly healthcare services provider SeniorAdom for a smart elderly care project in the zone.

The Jingrong Startup Hub in Chengdu has gathered a great number of innovative start-ups from China and overseas. CREDIT: CHINA DAILY

The three parties decided to develop the Sino-French Chengdu International Smart Elderly Care Demonstration Community, involving 300 million euros (£266 million) in investment.

The project was signed during French President Emmanuel Macron’s recent visit to China and Chengdu hi-tech zone became the first Chinese business partner of Sigfox and SeniorAdom.

Chengdu is speeding up efforts to achieve a new norm of sustainable development and pave the way for it to become a livable city and a hub opening up to the world.

Early last year Global Foundries, the world’s second-biggest wafer producer, launched its 12-in wafer fabrication base in Chengdu with an investment of more than £7 billion.

In October the US company Medtronic, one of the world’s top medical services and technology corporations by size, announced it would set up a medical innovation centre in Chengdu, the third project of the company with the city. The car maker Volvo is now building a plant in Chengdu for the production of its new energy vehicles.

Chengdu is home to the operations of global companies such as IBM, SAP, NEC, GE, Huawei, Siemens, DHL and Tencent. The city is said to have 24,396 hi-tech companies, 965 research and development institutions and 31 unicorns — start-up companies with market value of more than $1 billion (£706 million) — in various industries.

Read more news and features at www.chinadaily.com.cn

Brief Introduction To Chengdu Key Industries,Incorporate Business,Company Registration In Chengdu China

Chengdu is the capital of Sichuan Province and a major city in western China. A thriving economic, transportation and communications center in southwestern China, Chengdu is also one of China’s primary manufacturing and agricultural bases. The city is part of the West Triangle Economic Zone along with Xi’an and Chongqing.

Chengdu is mainland China’s top performing economy in job growth, foreign investment and high-value-added industries. The city has a land area of 4787 mi (12,400 km²) and a population of more than 14 million. Accorded sub-provincial administrative status by the Chinese government, it has direct jurisdiction of more than 10 districts, five counties and four major cities.

In the past 10 years, Chengdu rapidly developed its sophisticated transportation system. It hosts one of China’s busiest airports – Chengdu Shuangliu International Airport – and four trunk railway systems that start or run through the city. Chengdu is also an important center for education and R&D in China. Several prestigious universities are located in Chengdu, including Sichuan University, the University of Electronic Science and Technology of China, Southwestern University of Finance and Economics, and Southwest Jiaotong University.

Chengdu has a rich cultural heritage originating from the Shu Kingdom and the Three Kingdoms Period at the end of the Han Dynasty. The city’s unique architecture, scenic beauty, Sichuan cuisine and Sichuan opera attract tourists to the region. Chengdu is also the birthplace of the country’s tea culture and a major tea base in China.

Key Industries

The economic growth of Chengdu’s service industry recently surpassed manufacturing. In 2013, services contributed to 50.2 percent of the city’s GDP, while the manufacturing industry contributed 45.9 percent. Chengdu has eight primary industries – electronic information, food processing (including tobacco), machinery, petrochemicals, metallurgy, automobiles, building materials and light industry. Collectively, their value added output in 2013 was U.S.$32.8 billion (RMB 251.8 billion) – a rise of 14.4 percent over 2012 and 86.3 percent of total industrial output.

Tourism is a pillar of Chengdu's service sector. In 2013, Chengdu welcomed more than 153.39 million visitors, providing revenues of US $19.5 billion (RMB 128.54 billion) (27.2 percent annual growth). Foreign exchange earnings amounted to U.S. $730 million during the same year, an increase of 16.5 percent over 2012. Chengdu is one of the top 14 service outsourcing cities in China and is among the world's top 50 emerging outsourcing cities.

In 2014, total foreign trade grew 9.3 percent reaching U.S.$55.32 billion (RMB 342.98 billion). Imports rose 16.7 percent and totaled U.S. $21.83 billion (RMB 135.32 billion). Key sectors of Chengdu’s economy which are easily accessible to U.S. exporters include the following:

Food and Agricultural Products

Fueled by Chengdu’s rapidly growing middle class, the demand for imported products has skyrocketed. Within the vibrant tourism sector, hotels in particular are avid consumers of imported food and beverage products. As an interior emerging city market, Chengdu has experienced less import penetration than other Chinese port cities, despite China’s burgeoning demand for imported goods. This provides attractive advantages to U.S. exporters.

Currently, U.S. exporters may find strong markets for the following agricultural/food products in Chengdu: Soybeans, poultry (especially chicken feet and wing tips), nuts, fresh fruits (oranges, California table grapes, apples, cherries), dried fruits (prunes and raisins), wheat, breakfast cereal, dairy products, seafood, spaghetti sauce/tomato products, candy and chocolate, baby food, premium ice cream, coffee and potato products.

During the past decade, U.S. agricultural exports to China have risen sharply, transforming the country into the fastest-growing and highest-value export destination for U.S. food and agricultural products. In 2011, China surpassed Canada to become the top U.S. export market. Approximately 16 percent of all U.S. agricultural exports are now to China. In 2015, food and agricultural exports totaled U.S.$25.9 billion.

Automobiles

With its growing upper class population and strategic location, Chengdu provides immense opportunity for U.S. auto exporters. China's State Council recently designated Chengdu’s railway port as an automobile import port – the first in Sichuan Province. American automobile manufacturers and auto parts exporters could find tremendous business opportunity just as European automakers have found. Hybrid cars and environmentally friendly automobiles are particularly in demand. In 2014, China’s vehicle market continued to be among the top five performing export segments for the U.S., worth U.S. $136 billion (8.4 percent annual growth), but still showed a trade deficit of U.S.$125.1 billion.

Machines, Engines and Pumps

Manufacturing provides more than 45 percent of Chengdu’s GDP. The city implemented a “1-3-13” development strategy, whereby the establishment of one modern industry system is enhanced by three levels of development, in turn promoting 13 industries such as electric information, automobiles, petrochemicals, and energy conversation. Consequently, there is a market for U.S. machines, engines and pumps, particularly for Chengdu’s aviation, aerospace and automobile industries. This segment is the top performer among U.S. exports, reaching U.S. $219.8 billion (13.6 percent of total exports) in 2014.

Development Zones

The city of Chengdu has two state-level development zones. Each of these zones cater to the specific requirements of their investors.

Chengdu Hi-Tech Industrial Development Zone

Ranking fourth among national hi-tech zones, the Chengdu Hi-Tech Industrial Development Zone was established in 1988 as part of the first group of national hi-tech development zones. Membership was extended to Asia-Pacific Economic Cooperation (APEC) members in 2000.

Chengdu Economic & Technological Development Zone

The Chengdu Economic and Technological Development Zone was established in 2000 and ranks 25th among national development zones for comprehensive strength in China and 2nd in western China. The zone is hailed as the gateway connecting Chengdu with the Chongqing-Shaanxi-Guangxi sea-bound channel. The leading industry is automobiles (engineering machinery).

To facilitate people who want to invest and set up business in Chengdu, here is an introduction of Types of business presence in China: 

Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise(WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.

Wholly Foreign OwnedEnterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires no registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE.

Representative Office (RO) is aLiaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.

Joint Venture (JV) is a Limitedliability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.

Since March 1, 2010: Measures of Establishment of Foreign Invested Partnership Enterprises (FIPE) in Chinaistaking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou and rest cities of China

Hong Kong Company usually been used as a Special Purpose vehicle (SPV) to invest Mainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China (Mainland China and Hong Kong, See Wiki 1 country, 2 systems), lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.

After China's entry to WTO, most industries in China welcome foreign investment, WFOE setting up in China becomes the first option of foreign investment's entity structures instead of Rep. Office setting up in China. At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China.

Business set-up in Chengdu is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls . Tommy China Business Consulting has direct connections in the local government

Since 2006, TCBC has been focusing on consulting services for our clients to invest in Chengdu China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization, Assist in obtaining government approvals and certificates for running business, negotiate and draft various legal documents provide legal advice, negotiate government officer for Land acquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Chengdu China, drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in Chengdu China. We offer a range of company formation services including helping you to set up:

-Wholly Foreign Owned Enterprises (WFOE )

-Representative Offices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-HongKong Holding Company.

Contact Tom Lee for business setup consulting in Chengdu now.