Sichuan Economy and Trade Trends

Monthly, July 2015

Published by CCPITSichuan Council

Table of Contents

Macro Economy

The Province Brought in More Than RMB 400 Bln Domestic Capitals within the First Five Months, Achieving the Biggest Scale in Western China

In the first five months of this year, Sichuan has received RMB 409.85 billion in domestic capital from outside the province, and the scale tops the whole Western China.

Our province has enhanced open cooperation and investment promotion to an overall important level that will facilitate the development of the whole province, and it has accumulatively brought in more than RMB 2 trillion in domestic capital since 2013. In the past two years, fixed capital created by invited investment accounts for about 30% of the total amount of the whole province, which has continued more than 10% to GDP.The whole province highly regards quantity stabilization and quality promotion during the introduction of large-scale and quality businesses.Within the introduced domestic capital of the first five months, the paid-in investment ratio of key projects holding an investment of more than RMB 500 million has reached 67.1%; a batch of important industries have settled in Sichuan, which is represented by a new generation of information technology, automobile manufacturing, new energy and new material.

We have received clear effects after building open platforms. Project contracts signed in our province in total value RMB 3.6 trillion within the recent three years by large investments and special investment promotion activities, such as the Well-Known Domestic and Overseas Enterprise Sichuan Trip, Western China International Economic & Trade Fair, Sichuan Automobile Industry Development and Investment Forum and Sichuan Electronic Information Industry Cooperation and Development Fair.During the 2015 Well-known Domestic and Overseas Enterprises Sichuan Trip, we have signed 842 projects with a total investment of RMB 601.56 billion. In pace with the facilitated implementation of projects, our province will receive newly increased investment valuing RMB 120 billion to RMB 150 billion, which can motivate the development of relevant industries.

SichuanProvince has also concentrated on accelerating signed projects to be settled and implemented.Paid-in capital of signed projects in the provincial investment promotion platforms and activities of last year reached RMB 403.2 billion by the end of May. The provincial level has selected 600 projects from important industries and with an independent investment of RMB 500 million to carry forward, the contract fulfillment rate, operation rate and paid-in investment rate have reached 90.5%, 77.7% and 27.7% respectively.

On the other hand, each subordinated city and prefecture has carried out practical policies to accelerate the settlement of signed projects. MeishanCity is creating a business card MeishanCity, servicing the Chengdu Region, and its introduced domestic capital have been successively listed in second place for 7 years. Luzhou City highlights the Yangtze River brand and focuses on industrial transformation to promote investment, which has accumulatively received domestic capital from outside the province of RMB 90 billion since 2013. Suining City adheres to the industry-based, ancillary-based, and platform-based enterprise-establishing policy, which has brought in 343 projects of more than RMB one billion in capital within three years, and its investment promotion has a contribution rate to GDP greater than 50%. Aiming at Chongqing and Shenzhen to conduct precise investment attraction, Guang’an City has attracted a lot of investment from Chongqing, and the paid-in capital has accounted for 40% of the total amount of the entire city since 2014. Leading electronic information companies centering in Shenzhen have also settled here one after another. A Western China mobile phone manufacturing kingdom will rise in Guang’an. (Sichuan Daily, reported on June 30^th by Zeng Xiaoping)

Foreign Trade Transforms across the Province from Flow of Quantity to Flow of Quality

Growth of import and export trade largely declined in Sichuan in the first half of the year due to sluggish international market demand. According to data released by Chengdu Customs on July 15^th, the province has realized a total import and export value of RMB 169.08 billion in the first half of the year, declining by 18.1% in comparison with the same period last year. However, our imports and exports to countries and regions along the One Belt One Road grows rapidly, which is transforming from flow of quantity to flow of quality.

Imports and exports to all older markets, such as America, Europe and Japan, have declined by double digits in the first half of the year, but imports and exports to such countries and regions as Africa, Singapore, Vienna, Iraq and Turkmenistan have realized more than 20% growth, especially that of the growth of imports and exports to Iraq grew by a factor of 1.1. Additionally, our exports to part of BRICS, such asSouth AfricaandBrazil, each grew by 45% and 3.9% respectively.

Our province continues to optimize the export and import trade model and structure. Compared with the same period last year, the generation trade model was higher, 5.9% more in proportion to the total import and export value of the entire province in the first half of the year. Meanwhile, the total import and export value of Chengdu declined from 79.7% to 74.8% in proportion to the total import and export value of the entire province, and eight cities from 21 cities and prefectures made more import and export trade, wherein, Bazhong City and Guangyuan City achieved a doubling of growth, Panzhihua City and Guang’an City achieved a tripling of growth. Foreign trade development is in a multi-spot and multi-pole trend across the whole province.

In June, the decline of foreign trade was slowed down compared to the same period of the previous year, and the import especially the processing trade was largely recovered. It is beneficial for the export of processing trade in the following months.(Sichuan Daily, reported on July 16^th by Pan Pengshan and Zeng Xiaoqing)

Values of Signed Tourism Projects Reached RMB 88 Bln in Sichuan in the First Half of the Year, Realizing a Year-On-Year Growth of 94.6%

The gross revenue of the tourism industry across the entire province reached RMB 307 billion in the first half year, realizing a year-on-year growth of 28.6%. Sichuan is the region with the fastest tourism development in Western China, and the endogenous power keeps growing.

Value of signed tourism projects of the entire province reached RMB 88 billion within January and June of this year, realizing a year-on-year growth of 94.6%. Investments on tourism projects achieved RMB 53.2 billion, realizing a year-on-year growth of about 36.5%. The sum of signed contract and the sum of closed investment have separately finished at 88% and 53% of the double hundred-billion target of tourism investment of the whole year. Large projects were steadily carried forward in the first half of the year. (Sichuan Daily, reported on July 20^th by Liu Xing)

Foreign Trade

Xiamen-Chengdu-Xinjiang-Europe Regular Train to Open in July

The Entry-Exit Inspection and Quarantine Bureau of Sichuan, Xiamen and Xinjiang jointly signed the integration inspection and quarantine working plan for the Xiamen – Chengdu – Xinjiang – Europe regular trains in Qingbaijiang District of Chengdu on June 26^th, the three regions will adopt the integration customs clearance model for cargo transported by the Xiamen – Chengdu – Xinjiang – Europe regular trains, i.e., direct exports and import based on one stop inspections and quarantines. The Xiamen – Chengdu – Xinjiang – Europe regular train is to open in July.

The freight volume of the Chengdu – Europe International Express Railway has taken 43% of total freight volume transported from China to Europe at this point, and it has been domestically the most rapid and stable China – Europe regular train. It will only take about 13 days to transport cargo from Xiamen to Lodz, Poland when the Xiamen – Chengdu – Xinjiang – Europe regular train is open. This route will also realize interconnection, cooperation and mutual winning in Chengdu, Xiamen and Xinjiang, which will accelerates the merging of the Silk Road Economic Belt and the Maritime Silk Road.

Sichuan Province, Xiamen City and Xinjiang Province will jointly formulate negative lists for the directly imported cargo and directly exported cargo. Cargo not listed in the negative list can make once declaration and receive one inspection and quarantine without repetitive inspections along the route when transported by the Xiamen – Chengdu – Xinjiang – Europe regular trains from now on, and it can save 20% to 30% customs clearance costs for companies.

Chengdu will conduct active cooperation with Kunming, Ningbo and Shenzhen to facilitate and increase accessible stops for the Chengdu – Europe regular trains, which can also expand trade to the ASEAN, Japan, Korea, Hong Kong and Macao Regions via cooperative relations to eventually create a traffic hinge connecting intra-Asian regions and Europe and turn Chengdu into a trade center of Pan-Asia. (Sichuan Daily, reported on June 27^th by Pan Pengshan, Zeng Xiaoqing and Chen Bihong)

The First International FTA Project in Southwestern China Established in Pengzhou

The Mudan Plaza, the famous project in Pengzhou, has been formally undersigned by Korea Town International Commercial Management Co., Ltd. and is the first international FTA demonstration project in the southwest. From now on, Pengzhou residents, in line with international commercial styles, can conveniently purchase various Korean directly sold commodities and take pleasure in products from international fashion brands with a big discount and free tariffs within multiple free trade zones.

Pengzhou will establish a most splendid and fashionable vertical commercial block downtown on Jan. 1^st, 2016 at the earliest, boosting its economic development. The Mudan Plaza enjoys the first and only multi-functional, comprehensive shopping center in the downtown area integrating shopping, catering, entertainment and leisure that embodies a new commercial landmark and business card for Pengzhou. The Korean Town welcomes the first Korean business enterprises for contract-signing and the opening of the Korean Town Pavilion, symbolizing the preliminary featured scale of commercial projects in Mudan Plaza and its radiant architecture in the form of cultural and commercial real estate. The establishment of Mudan Plaza must brighten the history of Pengzhou and start a new era for the area's modernizing commerce so as to build high-quality of life for Pengzhou residents. (Sichuan Daily, reported on July 2^ndby Fan Ruiming)

Chengdu Signed Friendly City Agreements with Lodz, Poland

On June 29^th local time, Chengdu formally signed friendly city agreements with Lodz at the 3rd Poland-China Forum Regional held in Lodz, Poland. Chengdu has signed friendly city agreements with 27 cities exempt from signing is Daegu, Korea, which has not formally signed an agreement with Chengdu but is included.

In local time on June 28^th, both Sichuan Province and Chengdu were awarded the Sino-Poland Friendly Cooperation Award during the opening banquet of the Forum. Sichuan and Poland have maintained a close and friendly relationship over the years with resilient cooperation between local governments. In recent years, the opening of the Chengdu-Europe International Cargo Express Railway has promoted the relationship between Chengdu, Sichuan and Poland and has developed larger space for mutual cooperation. Additional good news: the Chengdu Economic and Trade Office in Lodz was officially opened in local time on June 28^th. Last year, the Lodz Economic and Trade Office in Chengdu was officially opened in EUPIC. (Sichuan Daily, reported on July 4^thby Liu Miaomiao)

Chengdu Becomes the Fourth City to Open Direct Flights to Five Continents with Its Flights to Africa Every Tuesday

Direct flights from Chengdu to Mauritius will be a regular route starting on July 7^th. At that time, Chengdu will have become the fourth city in China to have direct flights to five continents.

The flight is once a week, generally taking off at 23:30 from Chengdu on every Tuesday and arriving in Mauritius at 5:35 the next morning (local time). The return flight takes off at 16:00 (local time) from Mauritius and arrives in Chengdu at 6:15 next day (every Tuesday). The type of airplanes is the Airbus A340-300 flying one-way flight in 9.5 hours.

Mauritius opened international travel charter flights from Chengdu to its country on February 5^th. Four flights during the Spring Festival travel time were full of passengers. Air Mauritius decided to change the travel charter flights to regular routes. There will be additional flights if the passenger capacity exceeds expectations.

Chengdu opened its first direct European flight to Amsterdam in May 2006. With the direct flights to Melbourne in February 2013, Chengdu could reach Oceania. Direct flights to San Francisco opened in June 2014 and were the first one to take off from Midwestern China. With direct flights to Mauritius opened, an international flight pattern connecting America, Oceania, Africa, Europe and Asia to Chengdu has taken shape. Direct flights to five continents are weekly regulars.

Chengdu Shuangliu International Airport has opened 246 domestic and international flights leading to 190 cities, 83 of which are international and regional flights. A relevant person in charge at Shuangliu International Airport said that efforts have been made to open flights to Paris within the year. (Sichuan Daily, reported on July 7^th by Wang Meiling)

Bill English- Vice Premier of New Zealand and the Director of the Ministry of Finance of New Zealand Paid a Visit to Sichuan

On July 15^th, Vice Premier Bill English of New Zealand flew into Chengdu for his first visit.

Bill English used to be the head of the Ministry of Education of New Zealand, Ministry of Health of New Zealand, Ministry of Tax of New Zealand and Ministry of Finance of New Zealand. Presently, he serves as vice premier of New Zealand, deputy leader of the national party, head of the Ministry of Finance of New Zealand and the capable minister of the Ministry of Housing of New Zealand. Mr. Bill aims to take this opportunity to learn more about the development situation of the Sichuan economy to further promote the cooperative relationship between both countries in terms of business, trade, cultural industry, etc.

Vice Premier Bill English has already been to Beijing and Shanghai two to three times. This time, he was supposed to go to Southwestern China to see firsthand at the rapid development in that region. In recent years, bilateral communication and cooperation have developed rapidly, and mutual investments became increasingly dynamic. More than twenty New Zealand enterprises have set up offices in Sichuan and New Hope Group, MianyangDingfeng Investment Co., Ltd., Sichuan Yahua Industrial Group Co., Ltd., etc. have also established branch offices in New Zealand. (Sichuan Daily, reported on July 16^th by Liu Miaomiao)

Over 4,000 Travelers from the UAE Introduced to Sichuan Every Year.

On July 6^th, the Sichuan Provincial Tourism Marketing Group publicized scenic spots in Sichuan to citizens in the capital of the UAE Abu Dhabi. With the support of the Sichuan Provincial Tourism Bureau, Sichuan Sunny Trips signed a cooperative agreement with UAENimeida International Travel Agency Co., Ltd. to introduce Sichuan tourism products into the hot travel routes to energize popularization. Under the far-reaching mass appeal of mass media in the UAE, it has been promised that more than 20 travel groups with a total number of more than 4,000 travelers can be introduced to Sichuan Sunny Trips every year. (Sichuan Daily, reported on July 16^th by Qin Yixuan and Liu Xing)

Key Projects

The First Multiple-Unit Train Depot in the Southwest Region Put into Service

The first multiple-unit train depot in the southwest region of China has been fulfilled and put into operation over the course of two years. The Chengdu Multiple-Unit Train Depot at Bali Station provided an overhauled capacity of 300 multiple-unit trains has been officially put into service, serving as the fifth multiple-unit train depot operating in China following the successive openings of multiple-unit train depots in Beijing, Shanghai, Wuhan and Guangzhou.

The project was started in the beginning of 2013, mainly used to advance third-level overhauls for CRH multiple-unit trains of the Chengdu Railway Bureau and take partial responsibility for third-level overhauls for multiple-unit trains of other railway administrations in the southwest region. It was designed to provide an overhaul capacity of 300 8-unit trains and an expanded capacity for fourth-level or fifth-level overhauls for multiple-unit trains in the future. Presently, 120 standard CRH multiple-unit trains have been equipped by the Chengdu Railway Bureau and the Chengdu Multiple-Unit Train Depot can provide overhaul capacity for 300 multiple-unit trains.

It is assured that the multiple-unit train industry of Sichuan will be rapidly developed in the next few years. (Sichuan Daily, reported on July 3^rd by Wang Meiling)

Industries

International Entrepreneurship Incubation Center Established An Incubation Park in Sichuan

The International Business Incubation Center launched the Sichuan Incubation Park Project in Chengdu on July 1^st that was aimed at covering all businesses across the entire province and attracting over 40,000 entrepreneurs here to pioneer new methods and modes.

With the purpose of solving all challenges in terms of strategies, talent, funds and markets for producers, the project plays an integral function of cultivating producers, establishing commercial colleges, investing and providing consultation services. By acting as one of the shareholders, the project will fund RMB 500,000-2,000,000 to all producers that develop in the park and will occasionally invest varying amounts of funds to successfully cultivate enterprises in line with the growth and development demands. (Sichuan Daily, reported on July 3^rd by Zhang Lan)

Twenty-Four National-level Enterprise Technical Centers Settled in Chengdu

There are 24 national-level enterprise technical centers in Chengdu which ranks fourth among the 15 sub-provincial cities in China. By fostering innovation and entrepreneurship, the government of Chengdu is aiming to boost economic transformation and upgrades. Up until now, there were altogether 527 enterprise technical centers in Chengdu, wherein, national-level, provincial-level and municipal-level enterprise technical centers accounted for 24, 231 and 272. There were another 7 national-level technical innovation demonstration enterprises also constructed in Chengdu.

In order to strengthen the corporate independent innovation consciousness, the government of Chengdu has made efforts to provide innovative impetus for enterprise transformation and upgrades by establishing enterprise research and development organizations, focusing on the establishment of corporate R&D systems based on enterprise technical centers, industrial design centers and other R&D institutions and give support to enterprises, schools and research institutions to jointly build united laboratories and academician (expert) work stations.

In 2014, there were 3 national-level, 44 provincial-level and 85 municipal-level enterprise technical centers newly established in Chengdu. Hi-tech industries above the designated size with a year-on-year growth in added value of 25.9% achieved a main business income of RMB 309.57 billion with a year-on-year growth of 11%. (Sichuan Daily, reported on July 6^th by Cheng Xuan and Jiang Junfang)

Geely New Energy Commercial Vehicles R&D Production Project Started in Nanchong

The first domestic new energy commercial vehicle project of Geely- the GeelyNanchong New Energy Commercial Vehicle R&D Production Project was announced to begin operations in Nanchong on the morning of July 9^th. Secretary Wang Dongming of the Sichuan Provincial Party Committee attended the commencement ceremony.

The new energy vehicle industry is one of the five key high-end growth industries in Sichuan Province. Nanchong provides a good base for producing completed automobiles, gas engines and spare parts. Last year, the government of Nanchong officially signed a cooperative cooperation agreement with Geely to carry out a new energy commercial vehicle R&D production project. The Project located in the New Energy Vehicle Industrial Park in Jialing District with a total investment of RMB 7 billion will focus on establishing stamping, welding, final assembly, engine electronic production lines, new energy commercial vehicle research institutions, etc. On the basis of Geely distributed and smart integrated new energy dynamic systems and light-weight car body technology, a manufacturing base with an annual output of 100,000 new energy commercial vehicles and 50,000 gas engines will be established and put into production in 2017. (Sichuan Daily, reported on July 10^th by Zhang Hongping and Wu Li)

The Western China Entrepreneurship and Innovation Alliance Founded

The Western Entrepreneurship and Innovation Alliance was founded by the Western Innovation Co., Ltd. in Chengdu on July 13^th. Nearly 40 enterprises involved in manufacturing, health and service, finance, tourism and other industries attended the ceremony.

The organizer indicated that the Alliance will make full use of the mutual advantages of members and is aimed at integrating enterprise resources, raising funds and establishing a platform to provide support for enterprises. (Sichuan Daily, reported on July 14^th by Dong Shimei)

iPad Global Maintenance Center Expected to Be Established in Sichuan

A Press Conference was held by the Chengdu Customs District of the People’s Republic of China on July 15^th, 2015. At the conference, relevant personnel indicated that five customs supervision reform policies have been implemented in Sichuan since being studied in the Shanghai Free Trade Zone last August. Wherein, the most representative reform of domestic and overseas maintenance policies in China will provide policy support for establishing the Global Apple iPad Maintenance Center in Sichuan.

Previously, it took a lengthy amount of time and astronomical costs to send broken and faulty Apple products to designated maintenance depots for repair as all problematic products would be sent to the appointed overseas distribution center first for classification in accordance with the degree of damage.

With the strives made by the Chengdu Customs District of the People’s Republic of China, Hongfujing Precision Electronics (Chengdu) Co., Ltd. became one of the first pilot enterprises in China for domestic products maintenance by the end of 2012, being capable of providing maintenance services for the iPad, which is made in Chengdu. In August, 2014, with the approval of the General Administration of Customs of the P.R.C., all iPads made in China produced by Hongfujing Group can be returned for maintenance. This July, the General Administration of Customs of the P.R.C. agreed to maintain all iPads made in different countries all over the world. That is to say, all iPads, no matter where it was made can be brought to the Chengdu Hi-tech Comprehensive Bonded Zone for maintenance.

Any product defects found during maintenance will be timely informed to the R&D Center to promote the each upgrade of each product. It also marks the Chengdu Hi-tech Comprehensive Bonded Zone development is becoming a top-level organization in the value chain by becoming a monitoring and maintenance center instead of a sole processing and manufacturing center.

In addition, the reforms of two other policies are also very advantageous to the development of trade processing enterprises. One is the reform of a worksheet write-off policy which shortens the write-off period from half a year to 70 days and has been implemented to 80% of qualified enterprises across the entire comprehensive bonded zone. The other is the reform of centralized declarations for large batches of imported and exported goods which can not only prevent having to pay customs clearance fees but also shorten customs clearance time. (Sichuan Daily, reported on July 16^th by Pan Pengshan and Zeng Xiaoqing)

Tianjin Equity Exchange Corporation Service Center Has Been Settled in Deyang.

The Deyang Corporation Service Center of the Tianjin Equity Exchange, the first enterprise service center in Sichuan Province, was inaugurated in Deyang on July 21^st. At the ceremony, the Tianjin Equity Exchange signed a cooperation framework agreement on promoting listing trades between SMEs with the People’s Government of Deyang to propel equity and bond financing and transactions between enterprises, especially SMEs, in Deyang. (Sichuan Daily, reported on July 22^nd by Wang Yuxi)

Convention & Exhibition Economy

Thousands of Products Exhibited at the International Furniture Fair Chengdu

The 16^th International Furniture Fair Chengdu kicked off on July 3^rd. Thousands of furniture enterprises from all over the world came to the event to showcase their products.

Following the mode of the exhibition divided into two phases, the First and Second Phase of the International Furniture Manufacturing & Supply Fair Chengdu held this year were held within July 3^rd-6^th and July 12^th-15^th respectively. With a total exhibition area of 170,000 m², over 1,100 enterprises participated in exhibition activities, wherein, participants from other provinces accounted for nearly 20% of the attendants. The internationalization of this fair has been improved significantly. Nearly 40 enterprises from America, Italy, the Netherlands and more than ten other foreign countries and regions will participate in the Second Phase of the International Furniture Manufacturing & Supply Fair Chengdu. (Sichuan Daily reported on July 5^th by Zheng Yanmei and Zhao Ruoyan)

The Sichuan Agricultural Fair Was First Jointly Held with the Chengdu International Urban Modern Agricultural Expo

The 3^rd Sichuan Agricultural Fair (hereinafter referred to as Agriculture Fair) and Chengdu International Urban Modern Agricultural Expo (Chengdu IUMAE) will be held on November 19^th-23^rd in Chengdu. It is the first time the Agricultural Fair and Chengdu IUMAE are jointly held.

After the national government issued relevant policies on standardizing celebration conferences, forums and exhibitions, with the approval of related government authorities, the Agriculture Fair along with the Western China International Fair as well as the China (Mianyang) International Hi-tech Expo have still been kept as the three government-leading exhibition activities in Sichuan Province. (Sichuan Daily, reported on July 7^th by Zhao Ruoyan)

The 3^rd China (Luzhou) Southwest Commodity Fair Will Be Held in Luzhou in September to Showcase More Than 100,000 Commodities

The 3^rd China Luzhou Southwest Commodity Fair (hereinafter referred to as Commodity Fair) will be held on September 16^th-20^th in Luzhou, focusing on exhibiting and selling over 100,000 different commodities. In addition, the E-commerce Development and Trade Logistics Revolution Summit Forum, Sichuan Provincial Chamber of Commerce Conference and Sourcing Fair, Modern Specialized Market Development Tendency Seminar and other events will be carried out.

With the theme of innovative development and transformation & upgrades, this Commodity Fair will be jointly held by the China General Chamber of Commerce, the Sichuan Provincial Department of Commerce, the Sichuan Bureau of Expo Affairs and the People’s Government of Luzhou. With a total exhibition area of about 500,000 m², the whole exhibition hall will be divided into the Primary Exhibition Area and the Secondary Exhibition Area. Featuring the O2O e-commerce, modern logistics and innovative products, the Primary Exhibition Area will also be divided into three exhibition sub-areas in terms of product categories, including Commodity Exhibition Areas, Service Exhibition Areas and Innovation & Entrepreneurship Exhibition Areas. Wherein, the Commodity Exhibition Area will be divided into the Imported Commodity Area, Eastern and Coastal Commodity Area, Southwest Special Commodity Area and Luzhou Special Commodity Area.

In order to create a condition for Chinese citizens to buy overseas products without going abroad, the imported goods of the Import Commodity Exhibition and Sales Center in Chengdu Shuangliu Comprehensive Bonded Zone and Luzhou Bonded Imported Goods Outlet Center will be put on display. In addition, merchants or dealers engaged in selling imported daily necessities, craft gifts, beauty skin care products, foods and health care products from ASEAN, East Asia, Hong Kong and Taiwan, etc. will be invited to this Commodity Fair. During this period, the Promotion Conference of the Luzhou Bonded Imported Goods Outlet Center will also be held.

The Commodity Fair has been successfully held twice. The Second Commodity Fair held last year had attracted 572 domestic and overseas participants with a passenger flow volume of over 330,000 visitors, a volume of transaction more than RMB 133.5 million and a year-on-year growth of 24%. (Sichuan Daily, reported on July 17^th By Pan Pengshan and Zeng Xiaoqing)

The China (Sichuan) International Tourism Investment Conference Held in Chengdu

The China (Sichuan) International Tourism Investment Conference, cosponsored by the Sichuan Provincial People’s Government and China Investment Association, was held in Chengdu on July 23^rd. The conference included a signing ceremony, industry introduction, speeches, tourism project promotions, summit forums, etc.

During the signing ceremony, the government signed a strategic cooperation agreement on promoting the development of the tourist industry with the China National Travel Service (HK) Group Corporation and China International Travel Service Group Corporation; the Sichuan Provincial Tourism Administration signed a strategic cooperation agreement on supporting the development of the tourist industry with the China Development Bank of Sichuan Branch, China Construction Bank of Sichuan branch, China Minsheng Bank Chengdu Branch, and Chengdu Agriculture and Commerce Bank respectively; cities signed 20 tourist project cooperation agreements worth RMB 39.37 billion with numerous investment enterprises. (Sichuan Daily, reported on July 24^th by Zhang Hongping and Liu Xing)

CCPIT Sichuan Council

CCPIT Set up Sichuan Provincial Economic and Trade Friction Warning Center in Sichuan

On June 2^nd, 2015, CCPIT approved the establishment of the China Council for the Promotion of International Trade (China Chamber of International Commerce) Sichuan Provincial Economic and Trade Friction Warning Center (referred to as the CCPIT Sichuan Provincial Economic and Trade Friction Warning Center). Based on enterprises’ needs, it emphasizes on operations as follows:

I. Transferring warning information bilaterally. Informing relevant industries and enterprises of critical information obtained from the CCPIT and other authorities promptly and passing relevant information on industries and enterprises to the CCPIT.

II. Organizing enterprises to participate in case treatment. Mobilizing and organizing enterprises concerned in joining friction management operations including pleas, lobbying, negotiations, and dialogue between the government and the people, media, etc. according to the unified arrangement of the CCPIT.

III. Investigating economic and trade friction occurring in Sichuan, analyzing difficulties and problems arising in foreign trade in or out of the province, finalizing reports concerning demand for foreign laws, regulations and friction treatment and presenting reports to relevant governmental departments.

IV. Preparing excellent training concerning the treatment of corporate economic and trade friction and improving their senses and capabilities of dealing with economic and trade friction.

V. Carrying out relevant inspection, visits and lobbying.

Associate Counsel of CCPIT Sichuan Council Zhu Xiaojin Led a Delegation of Economic and Trade Activities to Brazil, Mexico and America.

From June 10^th to 19^th, 2015, Associate Counsel of CCPIT Sichuan Council Zhu Xiaojin led a delegation to participate in the 31stFISPALFood Service and carry out economic and trade activities in Mexico and America.

Delegations participated in the 31stFISPALFood Service in St. Paulo, Brazil.This exhibition attracted 1,450 exhibitors engaged in food production, refrigeration, cleaning, packing equipment, etc.It also included exhibitions for food additives, coffee, pizza, cold drinks, etc. with an excess of 51,000 distributors During the exhibition, the delegations exchanged in-depth ideas and views with dealers, with the expectation of integrating Chinese food such as cookies, pickles, beef jerky, etc. with Brazilian food habits by introducing them to Brazil and collaborating to develop food catering to both markets and consumers. Meanwhile, the delegation also talked to some exhibitors from China, generating good feedback.For example, some Chinese characteristic food such as crackers, shredded kelp in combination with Brazilian canned tuna is a favorite among local Brazilians.

The delegation visited the St. Paulo Chamber of Commerce, Economic-Commercial Office of the Consulate General of the People’s Republic of China in St. Paulo, Brazil, Association of Southwestern China Followers in Brazil and Brazil BWP Projects Consulting Company. On top of that, they also went to the largest wholesale market of agricultural by-products in South America the St. Paulo Market to learn more about sales, categories, imports and exports of agricultural and by-products, etc. Representatives of the local Chamber of Commerce expressed their willingness to help Brazilian small and medium-sized enterprises explore the Chinese market, the China (Sichuan) Import Goods Exhibition, China (Chengdu) Spring Sugar & Wine Fair, Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS), Chengdu Agriculture Expo recommended by the delegation are all willing to join in and develop cooperation in infrastructure construction, logistics and transportation, clean energy, agricultural products, etc. Meanwhile, the Economic-Commercial Office of the Consulate General of the People’s Republic of China in St. Paulo, Brazil expressed their willingness to assist Sichuan enterprises in exploring the Brazilian market, providing personalized and efficient investment plans and suggestions of how to invest in Brazil in order to realize mutual benefits for both sides. This visit not only deepens our knowledge about Brazil’s competitive industries and economic complements on both sides, but also lays a solid foundation for Sichuan enterprises to explore more extensive cooperation in Brazil.

During the visit to Mexico, the delegation made an official call to Mexico’s Foreign Trade, Investment and Technology Enterprises Council and held talks with its representatives and member enterprises. Meanwhile, the delegation also visited the Economic-Commercial Office of the Consulate of the People’s Republic of China in the United States of Mexico and went to wholesale markets for agricultural by-products to get more information about the import and export of local agricultural by-products.

The delegation also seized important information about the trade and investment environments and risks in Mexico and prepared to participate in the 9th China-LAC Business Summit in the next half of the year by organizing targeted enterprise delegations to join.

During the trip to America, the delegation visited the Sino-USA Entrepreneur Association and the partners of the MSK Law Firm, or the World Trade Council of the World Trade Center of Los Angeles and Sino-USA Investment Group to further deepen our economic and commercial ties with the Sino-USA Entrepreneur Association and other associations, establishing good information service operations for Sichuan enterprises for market expansion into California. After the meeting, the delegation and Sino-USA Entrepreneur Association together witnessed the Sichuan Chuan Hong Group signing a cooperation agreement with America’s Five Continents Company, bringing Sichuan tea to the USA.

CCPIT Sichuan Council Signed Cooperative Agreement with the Australia International Trade Association & Associates (AITA& Associates).

At the invitation of the president of AITA& Associates, President Li Gang of the CCPIT Sichuan Council attended the Sino-Australia Economic & Trade Fair and the Melbourne Royal Exhibition-the Chinese Promotion of the Year on July 1^st, 2015. In the meeting, Li Gang spoke with the honorary head of the delegation of AITA& Associates and the speaker of the Tasmania Upper House of Australia, exchanging ideas on how to enhance economic and trade relations between Sichuan Province and Tasmania and promoting mutual business trips between entrepreneurs on both sides. In addition, Li also informed Michael Guo, the CEO of AITA& Associates that the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services to be held in Chengdu in 2016 to Michael Guo and invited correspondent enterprises of Australian organizations to participate in the fair. The Australian side agreed to help invite Australia's enterprises to participate in the fair, hoping to strengthen exchanges of exhibition information and catch up with the latest information by keeping in touch.

In order to facilitate comprehensive economic and trade exchanges between Sichuan Province and Australia, both sides decided to establish partnerships of strategic cooperation based on joint research. Both sides agreed to accelerate cooperation in the aspects of Sino-Australia project promotion, investment attraction, economic cooperation, trade contact, visits and exchange, overseas investment & acquisition, training, etc. The honorary head of the Australian delegation and speaker of the Tasmania Upper House, Jim Wilkinson signed a cooperative agreement with Li Gang, the president of the CCPIT Sichuan Council. Gregory Raymond, the Deputy Speaker of the Tasmania Upper House; David Downie, the Mayor of Northern Midlands of the State of Tasmania; Mark O’Sulliva, the CEO of the Royal Agriculture Society of Australia; Steven Moon, the Vice President of the New South Wales Senate, Vice President of the Council of the Sydney Municipal Government, Honorary Secretary-General of the Australian Federation Free Trade Organization, President of the Ausmine Group, etc. were also present at the signing ceremony.

Principals of Center of International Cooperation Services, the Ministry of Agriculture, Central CCPIT, Commerce Department of Liaoning Province, Commerce Department of Fujian Province, Overseas Chinese Federation of Heilongjiang Province, Health Planning Council of Heilongjiang Province, Tangshan Investment Promotion Bureau, Foreign Affairs Office of the Liyang Municipal Government of Jiangsu Province, CCPIT Construction Industry Sub-Council, and representatives of enterprises attended this meeting as representatives of China.

CCPIT Sichuan Council Organized A Business Delegation of Sichuan Casting Industry to Attend the 2015 Dusseldorf Newcast in Germany

From June 8^th to 22^nd, 2015, the council organized 21 casting enterprises to participate in the 2015 Dusseldorf Newcast in Germany and develop economic and trade exchanges respectively in the Czech Republic and Hungary.

The Dusseldorf Newcast is held every four years by the German exhibition company, Messe Dusseldorf and is the largest exhibition in casting industry in the world currently. This exhibition covered an area of 150,000 square meters with 2,214 exhibitors in total, attracting 48,700 visitors from over 120 countries. During the exhibition, viewers accounted for 56% of the total, and 51% present were exhibitors. Sichuan had 7 stands in this exhibition. Enterprise docking meetings were held in Szekszard, Hungary, the hometown of steel and wine and the capital of the Czech Republic- Prague.

This exhibition deepened casting enterprise understandings about the trend of the world casting industry and broadened their horizons; through this exhibition, we displayed our castings and relevant products, expanding our international market. Meanwhile, enterprises in the delegation reached many cooperative agreements through several economic and trade exchange activities. Chengdu Xingyu Precision Casting Co., Ltd engaged in 2 cooperative projects during official activities in Germany and the Czech Republic. The German project has been settled, and the company will go to Germany to discuss matters concerning company registration in late July; Chengdu Hydromechanical Co., Ltd confirmed a joint venture and cooperation in solid garage technology and filters in Germany; Chengdu Lijun Corporation planned to set up an agency for product sales, and the other side is giving assistance to this project; Yibin Push Linkage Technology Ltd. wants to purchase one casting corporation producing cylinder block for heavy duty engines in Germany, and the other side is helping look for an appropriate company; the company also had the opportunity to meet a client from the Alston Rail Transit Department, and this client is deciding on a quote through the Shanghai Purchase Office now; Sichuan Xiangye Machinery Manufacturing Co., Ltd has reached an intentional agreement of technological cooperation with a German company manufacturing gear cases.

Vice President Li Li Attended the 11thChina, Russia & Mongolia Industrial and Commerce Forum and the 2nd China (Baotou) International Equipment Manufacturing Exposition

At the invitation of the Inner Mongolia Council for the Promotion of International Trade, Li Li, Vice President of the CCPIT Sichuan Council attended the 11thChina, Russia & Mongolia Industrial and Commerce Forum and the 2nd China (Baotou) International Equipment Manufacturing Exposition cohosted by the Chamber of Commerce and Industries of the Russian Federation (CCIRF) and Mongolia Chamber of Commerce and Industry (MNCCI) from July 21^st to 22^nd, 2015. Zhang Wei, the Vice President of CCPIT; Wang Zhonghe, a member of the Standing Committee of the CPC Inner Mongolia Autonomous Region and the Secretary of Baotou Municipal Committee; Yun Guangzhong, Vice President of the Inner Mongolia Autonomous Region; Strashko, Vice President of the CCIRF; Lahazhabu, President of the MNCCI and 500 entrepreneurs from the three countries were present at the forum.

On July 21^st, Investment and Trade Promotion Conferences of China, Russia and Mongolia under the framework of the forum were respectively held. Representatives from each business circle introduced their competitive industries, local investment environments and projects, hoping to enhance cooperation and seek common development through the forum. After promotional conferences, representatives of the enterprises from each country held talks, reaching several cooperative agreements. 20 cooperative agreements worth of RMB 4 billion were signed on site by business representatives of the three countries.

On July 22^nd, the 11th China, Russia and Mongolia Industrial and Commerce Forum was officially held. All spokespeople pointed out that leaders from the three countries had a second meeting during the Ufa Summit recently, disclosing the mid-term cooperative roadmap. Cooperation among the three sides has made substantive breakthroughs, specifying the direction of cooperation. Leaders from the chambers of industry and commerce of the three countries said that we should utilize of Shanghai Cooperation Organization and Eurasian Economic Union to realize synergistic development. During the meeting, Li Li met with the Chief Delegate of the CCIRF in Beijing, President of the Chamber of Commerce and Industry of Altay, Russia, Vice President of the Chamber of Industry and Commerce of Far East, President of the MNCCI, indicating taking the initiative to promote a cooperative relationship between Sichuan Province and the areas mentioned above.

The China, Russia & Mongolia Industrial and Commerce Forum was founded in July 2005, being an important mechanism for cooperation among China, Russia and Mongolia. 11 forums have been successfully held, and the 3 countries have taken turns to organize the forum with every country cohosting each event. The 12th China, Russia and Mongolia Industrial and Commerce Forum will be held in Russia in 2016.