Sichuan Economy and Trade Trends

Monthly, April 2015

Published by CCPIT Sichuan Council

Contents

Macro Economy

Singapore-Sichuan Hi-Tech Innovation  Park to be Invested with RMB18 Billion

As the only park established through joints efforts of Singapore and China in the western areas, the Singapore-Sichuan Hi-Tech Innovation Park is to start global investment attraction in 2015, mainly targeting Europe, America, Japan, Korea and other developed countries. Projects signing quantity is expected to hit above 20 and total planned investment will reach above RMB18 billion throughout the whole year.

There are planned to be more than 30 projects to be signed and a newly-introduced investment totaling above RMB50 billion in the district where the Park locates, wherein the Park will be placed under great emphasis. Strengthening measures will be taken to key links, weak links and missing links in chains of leading industries. In addition, BOE and other 123 projects will be commenced and major projects such as the "Horse" of Intel are also to be injected with much endeavor. (Sichuan Daily reported by Zhang Lan on April 8^th)

7 Logistics Alliances under Development to Achieve “Large-scale Logistics”

Great efforts are being made in Sichuan to build 7 logistics alliances, covering air & surface transportation, highway & railway transportation, railway & water transportation, highway & water transportation, drop and pull transportation, special freight line as well as logistics information, to elevate the efficiency of logistics, reduce all-around logistics costs and push up the modern level of logistics industry across Sichuan.

The above-mentioned logistics alliances were organized and led by Logistics Office of Sichuan Provincial People’s Government and Association for the Advancement of Modern Logistics Industry Development in Sichuan Province and participated by leading enterprises, to offer a service platform easily available to the public. The 7 logistics alliances almost cover all links in respect to logistics. Chengdu Railway Bureau, playing a leading role in the highway & railway transportation alliance, will offer preferential measures such as simplifying related procedures, providing or customizing special containers and the like as well as preference in warehouse entry and provide rewards based on performance to members of the alliance. In the meanwhile, information service alliance will make full use of “Internet +”, integrate multiple transportation patterns, work out problems related to information island, achieve “Large-scale Logistics” and offer subsidies to members of the alliance. When it comes to the drop and pulls transportation alliance, one of goals is to unify related policies, information, equipment, standards and operation in Sichuan, Yunnan, Guizhou, Chongqing and Shaanxi in 2020.

The 7 logistics alliances are expected to promote logistics development in Sichuan and provide most favorable conditions to help Sichuan logistics enterprises go outside and jump into the top-notch logistics chain in the world through extending supply chains and solve various bottlenecks in logistics industry. (Sichuan Daily reported by Liang Xiaoyu, Zheng Xiancong and Duan Yuqing on April 11^th)

Sichuan Economy Saw a Year-on-year Increase of 7.4% in the First Quarter of 2015

In the first quarter in 2015, Sichuan economy experienced a steady development roughly as expected, with the growth rate of main economic indicators higher than the average level nationwide. As examined by the State Statistics Bureau, in the first quarter, the GDP of Sichuan arrived at RMB623.45 billion, rising by 7.4% (worked out on the basis of comparable prices) from previous year; the growth rate was 0.4 percentage points higher than the average level nationwide. The primary industry had an added value of RMB52.63 billion, with a growth of 2.9%; the secondary industry had an added value of RMB349.14 billion, increasing by 7.9%; the tertiary industry had an added value of RMB221.69 billion, jumping by 7.3%.

Industrial increase underwent a quite steady trend. In the first quarter, the added value of industries above the designated size in Sichuan saw a year-on-year increase of 8%, with the growth rate 1.6 percentage points higher than the average level nationwide. Liquor, drinks and superior tea making industries, oil & natural gas exploration industry, non-metal mineral products manufacturing industry had a recovery increase, which drove the industries above the designated size in Sichuan to grow by above 50%.

Total investment in fixed assets reached RMB561.53 billion, rising by 11.6% year on year. Total investment in fixed assets (excluding farming households) arrived at RMB539.59 billion, with an increase of 12.6%. Investment in the primary and tertiary industries took on a quick increase while that in the secondary industry declined by 0.6%.

Overall consumption maintained a stable increase. In the first quarter, total retail sales of consumer goods came to RMB318.06 billion, with 11.8% up from previous year; the growth rate was 1.2 percentage points higher than the average level nationwide. (Sichuan Daily reported by Dong Shimei and Zhang Lan on April 18^th)

Foreign Trade

“International Standard” Set up in Chengdu

On April 2^nd, Chengdu Institute of Standardization and the British Standards Institution (BSI China) signed a strategic collaboration agreement, and the British Standards Institution (BSI China) formally unveiled its Chengdu liaison office.

The British Standards Institution was founded in 1901 and nowadays is a synonym for standards, being used by more than 500,000 organizations around the world.

This time the British Standards Institution has touched down in Chengdu, and will handle running operations from its Chengdu office, including developing international and domestic standardization activities, training talent according to international standards, popularizing advanced international standards for advertising, developing standardization in key industries as well as many other aspects. They British Standards Institute will also develop a close-knit collaboration with the Chengdu Institute of Standardization and will unceasingly open new spheres of collaboration. (Sichuan Daily, April 3^rd, Chen Jin, Luo Xiangming

China (Sichuan)-GermanyCommunication Deepened after the CeBIT

March 16-20, the Sichuan delegation along with 13 Sichuan companies attended the Hannover,Germany’s 2015 CeBIT (From here on called the CeBIT), which held a series of marketing events.     

This year was the first time Sichuan established its own pavilion and received merchants from home and broad and a captivated audience. While there, Sichuan companies that attended along with German, English, Russian, Italian, Dutch and enterprises from other countries engaged in cooperative talks, and some enterprises were able to attract orders at the event.

Sichuan andGermany’s exchanges and collaboration in areas have continued to broaden in recent years and become more substantive. The China (Sichuan)- Germany Machinery Investment and Trade Cooperation Fair, China (Sichuan)- Germany Urbanization and Cooperation Forum and other series of exchange events that were held one after the other. The 15th Western Fair for the first time cooperated with the Hanover, Germany Exhibition Group and successfully created the Western China International Industry Fair, which spurred both sides to cooperate even more deeply in the manufacturing industry (Sichuan Daily, April 7^th, Zhao Ruoyan)

Chengdu and Lahore,PakistanBecome Sister Cities

InPakistan's capital Islamabad on April 20, a formal ceremony to commemorate the partnership between Pakistani and Chinese cities was held. Chengdu andPakistan's second largest city Lahore officially became international sister cities.

Lahore is the capital ofPakistan's largest province Punjab with a population of 12.5 million covering 1,772 square kilometers. It is not only a city famous for its culture, but it is also a business center, agricultural distribution center and a transportation hub. Sichuan and Chengdu's amicable relationship with the Punjab province could be traced back to the 1990s, when they developed bilateral, collaborative research and development projects in fields like scientific research, aviation and space flight. As actively promoted by the Pakistan Consulate General in Chengdu and with bilateral government collaboration, the two cities have established a long withstanding communication mechanism and are actively developing their amicable association, deepen mutually beneficial cooperation and help a Sino-Pakistani friendship that will weather any storm and establish a Sino-Pakistani economic corridor. (Sichuan Daily, April 22^nd, Liu Miaomiao)

Chengdu's 2015 First Quarter Contracted Foreigner Investments Increased by 150.53%

From Chengdu's first quarter investment promotion project emerged five important points which were namely: attracting and recruiting better results and projects, advanced manufacturing projects growth topping the list, optimizing investment architecture even more, upgrading stable domestic capital and stimulating foreign investment, and the link relative ratio rising greatly and continuing the growing trend of foreign investments.

Statistics show that between January and March, Chengdu signed contracts (including capital increases) that have introduced 12 projects from top 500 global companies totaling RMB 4.641 billion; 38 projects with investments over RMB 500 million, totaling RMB 34.11 billion. The proportion of newly introduced large investment projects from the contracts is about three quarters of the total amount. Most significant is Dalian Wanda's investment which is RMB 102 billion, the largest single largest investment in the service industry in Chengdu's history.

In regards to industry, in total there were 48 major projects introduced via the contracts with a total investment of RMB 20.49 billion, accounting for nearly 50% in both. Compared to the same time last year, industrial investments realized strong growth, and a growth rate that surpassed primary and tertiary industries.

In regards to the investment architecture, with a model of high-end maturation and a strategy of focusing on introducing and creating breakthroughs in strategic emerging industry projects, including Hong Kong Guangda Tianfu New District environmental energy project and others to settle in Chengdu soon after. Statistics show that January to March in Chengdu the top five projects among the first batch here in Chengdu or investments above USD 10 million are: Electronic equipment manufacturing, business services, logistics warehousing, modern financing, and the metropolitan modern services complex.

Compared to domestic investment projects, foreign investment projects have become more common. Most significant is contracted foreign investment has welcomed a new round of a large margin of growth, with a total investment of USD 940 million and a growth rate of 150.53%. In the first quarter, foreign investments in Chengdu originated inSingapore,Japan,GermanyandSouth Korea, and the margin it was utilized compare to last year was much larger. The international investment strategy of solidifyingJapanandSouth Korea, deepening in Europe andAmericaas well as promoting Southeast Asia is paying dividends.

This data makes it clear that Chengdu's comprehensive superiority to investment environment is strengthening without interruption and its comprehensive competitiveness to attract foreign investments is also getting stronger as well. (Sichuan Daily, April 22^nd, Chen Bihong)

Sichuan's plan to establish a North  Rhine-Westphalia-Sichuan Center

The Sichuan and North Rhine-Westphalia,Germanyeconomic and trade agreement has taken the next step and picked up speed. On April 23, the North Rhine-Westphalia-Sichuan cooperative promotional event was held in Chengdu with the theme of “Cooperation and Investment Opportunities with North Rhine-Westphalia’’. At the time when the North Rhine-Westphalia Center in Tianfu New District is about to be opened, Sichuan has also planned to establish a Sichuan Center in North Rhine-Westphalia, Germany to support Sichuan companies going abroad.

The North Rhine-Westphalia isGermany's economic center and Europe's largest center to buy and sell goods. It is also one of the world's top class research and development bases and world leader in automobile manufacturing, machinery and equipment, energy saving and conferences & exhibitions. It is understood that the North Rhine-Westphalia Center at Tianfu New District will represent companies from North Rhine-Westphalia and showcase their products, and  Gemany will actively recommend and introduce high-tech and high-end manufacturing companies and research and development institutions to settle in as well as provide going abroad services to Sichuan companies.

To speed up the companies that want to immigrate, Sichuan is also speeding up companies that want to emigrate. Except for the twenty or so pharmaceutical, machinery and other industry companies attending the event, there are eighty or so Sichuan companies that are attending as well to find opportunities. To support the companies looking to emigrate, Sichuan is planning to establish a Sichuan Center in North Rhine-Westphalia and make the Center into an incubation center for Sichuan companies that immigrate toGermany. (Sichuan Daily, April 24^th, Dong Shimei & Zhang Lan)

Key Projects

Track-laying for the First Tramcar in the West Commenced

On the morning of April 3^rd, the track-laying for the first tramcar in the west – Xinjin Modern Tramcar Demonstration Line R1 commenced. The Section laid with tracks at early stages was expected to be put into service at the end of the year.

The Line R1 starts at the main urban area of Xinjin and connects Puxing  Town and the industrial park, totaling 19.82km in length. The section laid with tracks at early stages starts at the head of No. 3 Bridge in Xinjin, goes along No. 321 Bridge and Xinpu Road and ends at Puxing Town, stretching about 8.68km. According to the Constructor, this section was expected to be laid with complete tracks at the end of June and to be put into service in about October.

Overall considerations were taken of requirements for track structures in respect to operation of tramcar in the construction of Line R1. A brand-new rail structure – embedded continuously-supported fastening-less track system was adopted, for the first time in the country. (Sichuan Daily reported by Zhang Yuxi on April 4^th)

The First Special “Transporting-Grains-to-Sichuan” Railway in Southwestern Areas was Put into Service

On April 8^th, the first special “Transporting-Grains-to-Sichuan” railway in southeastern was officially put into service in COFCO  Chengdu Industrial   Park.

This special train, comprising 50 special L18 bulk grains cars of COFCO Beiliang Port, carried about 3,000 tons of high-quality maize grown in northeastern areas of China from Qian’an Station, Songyuan, Jilin and arrived at COFCO Chengdu Industrial Park 5 days later, which was actually the sixth one reaching the Park, officially symbolizing the steady operation of the “Transporting-Grains-to-Sichuan” railway.

Since the NDRC officially approved that Chengdu could start “Transporting-Grains-to-Sichuan” in containers along special railway in 2013, the COFCO Chengdu Industrial Park had accomplished 2 block train loading/unloading lines and two 80m special underground tunnels for unloading bulk grains; loading/unloading of 2 special trains can be simultaneously carried out along the effective loading/unloading lines stretching about 1.7km, which owns a 400t/h unloading capacity and a 300x10⁴ t/a grain handling capacity.

At present, Sichuan was widely regarded as the province with the largest grain consumption amount (46 million tons per year) and the second largest grain transfer amount (more than 15 million tons per year). Chengdu, as the major area receiving the grains transferred, mainly received grains grown in northeastern, northwestern and northern areas ofChinadepending on railways for far distance from the golden waterway of Yangtze River; most conditions are packaged grains in open cars. (Sichuan Daily reported by Yang Lifeng and Zhang Yuxi on April 10^th)

Industries

CAINIAO to Add Distribution Centers in Chengdu

CAINIAO planned to add 3 distribution centers of Tmall.com in Chengdu in this year, covering extensive markets in Sichuan and Chongqing. CAINIAO was to develop a warehouse & distribution network (including the existing distribution centers in Tianjin, Shanghai, Suzhou and Guangzhou) covering northern, southern, eastern, southwestern and central areas inChina. In future, cities with easy access to Tmall.com services will amount to above 250, including 50 ones where commodities can be received on the day of or the next day after placing the order.

Shuangliu government ever signed agreement with CAINIAO about establishing China Smart Logistic Network (Chengdu Shuangliu), with a planned investment reaching RMB 2 billion. (Sichuan Daily reported by Li Longjun on April 3^rd)

Auto Output Reached 233,500 in the First Quarter, Chengdu Economic & Technological Development Zone Made a “Good Start”

233,500 "Made in Chengdu" cars came out in the first quarter in Chengdu Economic & Technological Development Zone, rising by 20,000 year on year, with a growth rate of 9.4%.

Most remarks in the economic operation statement of major enterprises in the Zone were “production expansion”. With joint efforts of all auto enterprises, a quite good start was made; thus the goal of making 1 million autos in this year seemed hopeful.

FAW-Volkswagen was the largest contributor and produced 161,500 autos in the first quarter, accounting for 69.16% of total output of the Zone. In addition, as the Volvo (Chengdu) plant started production earlier than planned, the structure of “Made in Chengdu” products took on positive trends, that is, higher percentage of middle-end and high-end cars. On March 30^th, the first domestic PRADO 2.7L got off the production line of Toyota, an excellence member in the middle-end and high-end products group.

In the first quarter, 15,820 Volvo S60L and XC60 and other models in total are sold out, far better than expected. Based on the market feedback, sales of Volvo in domestic market had a quite steady increase trend. Hence, the Volvo (Chengdu) plant had to make a larger scale production for both domestic and oversea markets. According to the current schedule, Volvo was expected to manufacture above 60,000 cars in this year.

Chengdu Gaoyuan Automobile Industry Co., Ltd. had an output with a slight increase; especially GX7 and GX9 enjoyed great sales performance, with the output reaching 18,000. Last year, Geely automobiles were loaded at Qingbaijiang onto the Chengdu-Europe Express Railway and sold toSaudi Arabia,Iraq,AlgeriaandLebanon, etc.

Chengdu Dayun Automobile Co., Ltd. produced about 10,500 autos in the first quarter, the best performance since foundation. (Sichuan Daily reported by Xu Wei and Zhang Shoushuai on April 14^th)

To Start 38 New Major Projects in Aviation & Gas Turbine Industry this Year

In this year, 38 new major projects are to be started in the aviation & gas turbine industry, with the total investment reaching RMB10 billion, including RMB3.8 billion to be injected this year. According to statistics worked out by related authorities in Sichuan, the supporting projects in the aviation & gas turbine industry across the province amount to 181 with a total investment of RMB33.85 billion up to now.

The aviation & gas turbine industry, as one of five major high-end growth industries in Sichuan, took on a stable development last year; corresponding manufacturing industry achieved a total industrial output of RMB32 billion. To further promote the development of aviation & gas turbine industry, Sichuan will attach great importance to the development of major projects this year. According to insiders of the Sichuan Provincial Economic and Information Commission, great efforts will be made this year to start 38 projects covering Chengdu aviation domestic civil aircraft demonstration operation research, high-strength aluminum alloy melting & casting production line, gas turbine maintenance base building and aero-engine commissioning platform building.

In addition, aviation & gas turbine industry cooperation plan will be prepared and made to the public and related events will be carried out, to connect enterprises respectively dedicated to main engines and components in the industry. (Sichuan Daily reported by Dong Shimei on April 14^th)

Seed Enterprises in Sichuan Led in the West

Up to the end of 2014, total assets of seed enterprises in Sichuan reached RMB7.055 billion, rising by RMB3.758 billion compared to 2010; sales income of above enterprises came to RMB3.428 billion, with RMB1.199 billion up from 2010. There are now 2 national-level leading enterprises, 7 provincial-level leading enterprises, 3 national backbone seed enterprises and 5 3A credit enterprises (all members of China National Seed Association), leading in the west and with good ranking nationwide.

Sichuan Provincial Department of Finance established special fund for seed industry development in 2012 and raised RMB48 million annually to support enterprises for commercial breeding. 18 seed enterprises accomplished merging and reforming of over 40 enterprises and the number of new breed patent applied by the above 18 enterprises accounted for 47.2% across the province; hence, they gradually played a key role in protecting new varieties of plants. Last year, the exports of hybrid rice breed of Sichuan took up above 50% across the country; 5 years ago, exports flew toVietnam,BangladeshandPakistanand now markets also includeBurma,Ugandaand other countries. (Sichuan Daily reported by Li Miao on April 21^st)

First O2C Platform inChinaEstablished in Chengdu

On April 23^rd, 2015, the first O2C (Origin to Customer) platform – “Juzhang” was launched in Chengdu, offering customers quality commodities in original packaging with guarantees.

2 requirements for O2C: 1. commodities sold through the platform shall be delivered from the place of origin with official authorization; 2. commodities sold through the platform shall be delivered directly to customers. O2C, with strict requirements for shops in respect to qualifications, is only open to shops with official authorization and proprietary intellectual property rights, which can effectively avoid fake commodities. It is a quite good platform for brand businesses to promote their products. “Juzhang” was independently developed by Sichuan Wuxian Gongchuang Technology Development Co., Ltd. and O2C was also coined by the Company. (Sichuan Daily reported by Yang Fan on April 23^rd)

Convention & Exhibition Economy

Sino-Russia Drainage Basin Exchange Conducted in Chengdu

On March 23^rd, the Sichuan delegation composed of the Sichuan Provincial Economic and Information Commission, Administration of Quality and Technology Supervision of Sichuan Province PRC and the Sichuan Bureau of Expo Affairs attended the Sino-Russia Drainage Basin Economic and Trade Cultural Exchange and Sichuan Promotion Conference in Moscow,Russia.

Relevant events including the promotional conferences have been actively preparing for the successful convening of the 4^th Sino-Russia Drainage Basin Local Leaders Symposium held in Chengdu for the first time this year. Altogether more than 60 people including related federal government representatives from Russia-the Chuvash Republic, Penzenskaya Oblast, Moscow Oblast and other regions along the Volga River, relevant personnel from the Russian Commodity Producer Alliance, Sino-Russia Council and other industrial and commercial circles as well as Russian media reports participated in the conference.

A series of events including the 2015 Sino-Russia Drainage Basin Youth Exchange Plan, Sino-Russia Drainage Basin Provincial and State Economic and Trade Investment Promotion Conference, etc. will be carried out during the 4^th Sino-Russia Drainage Basin Local Leaders Symposium. Wherein, the Economic and Cultural Exchange Achievements Exhibition undertaken by the Sichuan Bureau of Expo Affairs will display the current development situation of the economy, culture, society, etc. in the Sino-Russia Drainage Basin Region as well as the time table of achievements of mutual cooperation. (Sichuan Daily reported by Zhao Ruoyan on April 7^th)

2015 Annual PATA Conference Kicked Off in Leshan on April 23^rd

The 2015 Annual Conference of Pacific Asia Travel Association (PATA) was held from April 23^rd to 26^th in Leshan. There were altogether more than 300 persons including the Chairman of PATA-Scott Supernaw and domestic and foreign honored guests from tourist administrations, Boeing and countries like Malaysia,Palau, theSolomon Islands, etc. will come to the conference.

Unlike traditional conferences held in previous years, this time, Leshan characteristics-contained events, including PATA-Unveiling Ceremony for Leshan Mountain Tourism Demonstration Base, Theme Symposium, etc., will be held. In addition, an Intangible Cultural Heritage Exhibition Show will be prepared and tourism services will be provided for international travel experts scholars and tourism product distributors to enjoy the beautiful scenery in Emei Mountain and the Leshan Giant Buddha, visit the Jiayang Small Train in Qianwei and pay a visit to other popular scenic spots, promoting the development of the Leshan tourist industry.

The PATA, a non-profit international organization founded in 1951, is one of the three most influential international tourist organizations in the world. At the 1^st Sichuan International Travel Expo (SCITE) held last year, an agreement was reached between the PATA and Leshan Government to make the Leshan government responsible for hosting the 2015 Annual PATA Conference. (Sichuan Daily reported by Zhuli on April 9^th)

Western Culture Finance Forum Held in Chengdu

The Western China International Capital Forum, Western Culture Finance Forum and Project Match-making Fair sponsored by the Institute of Economic Development Sichuan University and the China Foundation for the Development of Social Culture was held in Chengdu on April 10^th.

With the theme of “cultural development and financial support”, topics of discussion at the forum included challenges and opportunities of the culture industry, major problems for the development of the culture industry, an understanding of the culture and financial cooperation policy, etc.

Most of the participants think that Western China is facing a great opportunity for emerging industrial development. The exchange and cooperation between cultural enterprises and financial institutions will mitigate the contradiction between financial service supplies and cultural development demands and further facilitate the standardized development, integrated development and specialized development of the culture industry. (Sichuan Daily reported by Lu Wei on April 14^th)

Chengdu Software Service Industry Created Another New Record in 2014

At the Chinasoft 2015 kicked off in Chengdu on April 23^rd, a series of data was revealed. In 2014, the software services industry in Chengdu achieved a main business income of RMB 239.85 billion with a year-on-year growth of 17.5%.

Chinasoft 2015 is sponsored by the CSIA, the China Electronics Enterprises Association and IDG. Representatives from altogether more than 800 domestic and overseas IT companies like Microsoft Corporation, Digital China, International Data Group and Analysys International Group attended the event.

With a theme of value promoting software and information at the service of bettering people’s live hood, special topic discussions, technical exchanges, product exhibitions and interactive experiences, a project investment road show, investigations for investment promotion and other activities were carried out by mainly focusing on the industrial trans-boundary development and integration, hasten the creation of new business formats under the reconstruction of industry structure and innovative business models as well as concentrating on the hot topics of technical and industrial development tendencies, integration of informatization and industrialization, mobile interconnection, information security, intelligent manufacturing, bid data, “internet+”, etc.

A special report on the development of domestic international software information industry was made at the main forum to analyze study and judge the industry development status and development opportunities forChinaafter entering into the new normal stage. The IDC formulated a special analysis and evaluation on the development of smart cities at the event. In addition, honored guests from national smart city joint labs, Digital China, Analysys International Group, Microsoft Research and other organizations shared their opinions on the smart cities, information security, "internet +", big data and investment in their speeches.

Since 2003, the Chinasoft has been held consecutively 12 times, becoming the most influential and the most specialized platform for people to exchange ideas and build cooperative relationships, greatly promoting the rapid development of the Chengdu software service industry. (Sichuan Daily reported by Yang Lifeng and Zhang Yuxi on April 24^th)

CCPIT Sichuan Council

President Li Gang Met Mr. Szilagyi Balazs-the New Consul-general of the Hungarian Consulate General in Chongqing and His Delegation

On the morning of April 13^th, 2015, President Li Gang-the head of the CCPIT Sichuan Council met Mr. Szilagyi Balazs, the new Consul-general of the Hungarian Consulate General in Chongqing, and his delegation.

President Li Gang extended a warm welcome to Mr. Szilagyi Balazs on his first visit to Sichuan after taking up the post of Consul-general and expressed thanks to the Hungarian Consulate General in Chongqing for its consistent support. President Li Gang indicated that the Hungarian Consulate General always maintained good cooperative relations with local economic and trade organizations. The CCPIT Sichuan Council attaches great importance to economic and trade relations withHungary. Each year, many representatives of Sichuan companies will visitHungaryand make plentiful and substantial achievements. At present, the related industries in Sichuan  Province are in the process of transformation and upgrades, offering a huge opportunity for collaboration for both parties. It is expected that the Hungarian Government can promote bilateral cooperation and enhance their supportive efforts by encouraging their high-level officials to frequently pay visits to Sichuan as the Czech Government did to advance the economic and trade cooperation between Sichuan andHungaryto a higher level.

Consulate-general Szilagyi Balazs thanked President Li Gang and the CCPIT Sichuan Council for their support and showed his willingness to maintain friendly relations with us. He indicated that Sichuan, as a major economically developed province in Western China, provides potential development opportunities in the fields of automobile, medical treatment, medicine, spring facility, agricultural technology, etc. especially in soil improvement, and will introduce Sichuan to Hungarian enterprises.

President Li Gang extended his welcome to Hungarian enterprises from the automobile spare parts industry to come to Sichuan and participate in the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services jointly held by the CCPIT Sichuan Council and Frankfurt (Shanghai) Co., Ltd. and encouraged Hungarian export-oriented enterprises to display and popularize their products at import commodity exhibitions.