Sichuan Economy and Trade Trends

Monthly, March 2016

Published by CCPIT Sichuan Council

Contents

Macro Economy

Sichuan will Foster 20 or so Manufacturing Companies in 2015

Sichuan Province will focus on service-oriented manufacturing this year, promoting 8-15 typical cases in the fields of reshipment, textile and electronic information and fostering 20 or so demonstration companies.

Centering with expanding the scope of value-added services, Sichuan Province will actively promote the common growth of the manufacturing industry and the service industry. We will encourage manufacturing companies to develop integration services, provide support for qualified companies for their transformation of products and services from equipment to system integration general contracting, from products to solutions. Meanwhile, we also encourage well-known producer service providers at home and abroad come to Sichuan to set up centers for integration services and provide total solutions and efficient one-stop services.

For internal development of companies, we will encourage manufacturing companies to increase input of products and services, large backbone enterprises to develop new manufacturing modes including personalized services, product lifecycle management, webbing precision marketing and online support services, as well as enhancing after-sales services, remote detection and diagnosis, operation maintenance, technical support and other maintenance services.

Last year, we had seen stable growth of the producer service industry. Companies above designated size totaled 3,294 throughout Sichuan, making operation revenues of RMB 299.25 billion, a year-on-year growth of 3.2%. (March 8^th, Sichuan Daily/Wu Jing)

Foreign Trade

Sichuan and Nakhon Ratchasima Signed a Memorandum of the settling of Sichuan-Thailand Industrial Park in Nakhon Ratchasima

On February 25^th, Sichuan had an in-depth exchange with Nakhon Ratchasima Province to further strengthen trade, investment, tourism, transportation and youth exchanges, and together they signed the Memorandum on Establishing Friendly Cooperation Relation between Sichuan Province, PRC and Nakhon Ratchasima Province, Thailand.

Thailand is one of the key countries in Southeast Asia for Sichuan to have friendly exchanges with. Suphan Buri Province, Chiang Mai Province, Prachuap Khiri Khan Province and Kanchanaburi Province in Thailand are sister provinces and cities with Sichuan Province, Chengdu City, Leshan City and Liangshan Yi Antonomous Prefecture. Sichuan and Thailand are important tourist destinations to one another. In 2015, 434,700 Sichuan people traveled to Thailand, attaining a year-on-year growth of 47.85%. Their cooperation in the field of business and trade presents a trend of rapid and steady development. In 2015, the total import-export volume of Sichuan to Thailand reached USD 1.072 billion, a year-on-year growth of 46.17%.

According to the memorandum, Sichuan and Nakhon Ratchasima will exchange and cooperate in industry, agriculture, trade, science and technology, culture, education, sports, health, talents and social welfare in various forms in order to stimulate development of both sides. (February 26^th, Sichuan Daily/Xiong Runpin and Ren Hong)

Chengdu Public Service Platform for Cross-border Trade and E-commerce Released

On February 29^th, Chengdu Public Service Platform for Cross-border Trade and E-commerce was officially released. Chengdu will provide single window, “one-stop” Clearance, inspection and quarantine, tax reduction and foreign exchange services for cross-border e-commerce companies operating in the city.

Chengdu was given the approval by the State Council in January to set up a comprehensive pilot zone for cross-border e-commerce. The public service platform is one of the significant measures for the settlement of the pilot zone. It will act as a public tool to bridge the government, companies, third-party service providers and consumers.

The webpage now has five categories of comprehensive services including Government Affairs, Clearance, Business, Individual and Value-added Services. Besides, it has integrated e-commerce and logistics companies, payment systems and professional service agencies. Customs, inspection and quarantine, AQSIQ, national tax and foreign exchanges and other governmental supervision departments are also available on the platform to provide “one-stop” clearance services and industrial big data for companies. For example, the clearance is the core service, including four full modes for cross-border e-commerce on the platform. Companies can choose one according to their own product category and operation type. On the other hand, the platform provides diversified comprehensive services. The five categories contain specific items. For example, Government Affairs includes Latest Policy Interpretation, Information Inquiry and Document Download; Business Services includes Order Management and Multi-shop Management. (March 1^st, Sichuan Daily/Zhang Yuxi)

7,091 Foreign-invested Companies Settled in Chengdu

The number of foreign-invested companies in Chengdu reaches 7,091, with a total amount exceeding USD 60 billion. Among them, 863 companies are new in 2015, with a gross investment of USD 3.98 billion and a registered capital of USD 1.7 billion, a year-on-year growth of 20.6%.

The foreign investment aims at key industries and areas of strategic planning and development of the city. The quantity, scale and quality of companies are all growing steadily. As for quantity, the wholesale and retail industry, leasing and business service industry and manufacturing industry are in the largest number. Emerging industries such as information transmission, software and IT services continue growth, reaching 557, 7.86% of the total number of foreign-invested companies.

Report shows that foreign investment in Chengdu is gathering towards the tertiary industry and the modern service industry. (March 3^rd, Sichuan Daily/Ran Qianting)

Xiamen-Chengdu-Europe Express Will Be Extended to Taiwan in April

Xiamen-Chengdu-Europe Express will extend to Taiwan through sea-railway transportation in April, when “Taiwan-Xiamen-Europe” logistics route will be taken shape.

The express, starting from Haicang of Xiamen and ending in Europe via Chengdu, Xinjiang and Central Asia, is a new logistics channel more convenient than sea transportation and cheaper than air. In late December, 2015, Xiamen Logistics Office had organized relevant departments and companies to go to Taiwan to promote the Taiwan-Xiamen-Europe express and obtained ideal results. This April, sea-railway combined forms of transportation will be taken to deliver some goods from Taiwan to Europe by the express.

Sea-railway combined transportation will join the route with the Maritime Silk Road, connecting Brunei, Indonesia, Malaysia and other ASEAN countries with Xinjiang of China, the five Central Asian countries and Europe, so as to bridge the Maritime Silk Road with the Silk Road. The route is estimated to be put into operation in the first half of 2016. (March 18^th, Sichuan Daily/Fu Min)

Key Projects

Construction of the First Sichuan Robot Production Base Commenced in Meishan

On February 26^th, the Kaideer Technology robot transmission line automation equipment project was launched in Pengshan Qinglong Area, Tianfu New Area, which is also the first robot production base in Sichuan. On that day, the 2016 Commencement or Completion Ceremony of the First Batch of Major Projects and the Commencement Ceremony of Dongpo Section of Gongye Avenue was held in Meishan, when construction work of 92 projects with a total investment of over RMB 17.8 billion commenced or completed.

The greatest feature of the project is the high and new technologies with independent intellectual property rights. The company invited doctors from Tsinghua University to conduct professional studies and “customize” industrial robots for the Haier assembly line which had settled in Pengshan in 2013. The project is estimated to make an annual output of 5,000 robots with a value of RMB 200 million.

The 92 commenced or completed projects that day were mainly in the areas of industry and infrastructure, of which high and new-tech projects took up more than 40% of the total. (February 27^th, Sichuan Daily/Wen mingquan and Yuan Lixia)

Industries

Aggregation and Difficulty-overcoming for High-end Growth-type Companies, Sichuan Innovation Alliance of the Graphene Industry Founded

On March 3^rd, Sichuan Innovation Alliance of the Graphene Industry was founded in Deyang, which means that the graphene industry in Sichuan Province marched into an aggregation and difficulty-overcoming development.

As a typical high-end growth-type industry, graphene has wide prospects in the application of electronic information, aerospace, new energy and new materials and other fields. Sichuan is not only abundant with graphite and also solid foundation in the production, study, research and application of graphene. The alliance will promote the R&D and industrialization of the graphene industry in Sichuan and explore to establish mechanisms of cooperative research and sharing of intellectual property rights by means of promoting sharing upstream and downstream of production, study and research information and also scientific instruments. The alliance has attracted 30 members now.

In addition, Sichuan Province will strongly support graphene achievement transformation and industrialization through achievement transformation capital (fund), and popularization and application of graphene products through government procurement, subsidies for the first product and other measures. (March 4^th, Sichuan Daily/Dong Shimei, Chen Luyun and Zhu Xueli)

Cross-border E-commerce (Deyang) Industrial Incubation Center Founded, Cultivating Cross-border E-commerce Talents for Companies Free of Charge in the First Year

On March 9^th, Cross-border E-commerce (Deyang) Industrial Incubation Center was founded in Deyang Broadcasting and Television Center and put into use. In the very beginning year, it is going to cultivate and provide three to five high quality cross-border e-commerce talents for companies free of charge.

Cross-border E-commerce (Deyang) Industrial Incubation Center is supported by Deyang Hi-tech Zone and guided by National Human Resources Institute for Service Outsourcing, Tsinghua University. The entered companies will not only be granted “Two Remissions and Three Half Reductions” for location rentals, bag check and other central special policies and local supportive policies, but also enjoy eight services including common resources, enterprise development, policy-making consulting, e-commerce logistics and financial serivces and technical guidance.

The center will incubate and promote the development of the e-commerce industry in Deyang and also drive productive and foreign trade companies to upgrade and transform towards cross-border e-commerce. (March 14^th, Sichuan Daily/Yuan Jing)

Chengdu Will Build an International Bioindustrial Town

The Management Committee of Chengdu Hi-tech Zone and Shuangliu government signed a cooperation agreement to co-build Chengdu International Bioindustry Town and jointly push the development of the bioindustry in Chengdu.

Chengdu International Bioindustrial Town will take Sino-Cuban cooperation as the major concern, bio-pharmaceutical and other industries as the key point to construct a bioindustry carrier system integrating “innovation and R&D, pre-commissioning test acceleration and industrialization” and forge a central accumulation area for bioindustry in Sichuan. The planning area of the industrial town is about 45 km², while the three major parks planned are bio-pharmaceutical, bio-medical engineering and health industrial parks. The entered companies will be granted relevant policies of National Independent Innovation Demonstration Area of Chengdu Hi-tech Zone. (March 15^th, Sichuan Daily/Chen Yan)

World’s Largest Semiconductor Association Set Its First Western China Branch in Chengdu

On March 17^th, Jinjiang District government and Chinese American Semiconductor Professional Association (CASPA) signed a strategic cooperation framework agreement concerning in-depth cooperation in innovation and entrepreneurship, semiconductor technology, investment promotion and talent exchanges. It marks that the first CASPA branch in western China settled in Chengdu.

CASPA, the world’s largest association in the semiconductor industry, is headquartered in Silicon Valley and has branches in Beijing and Shanghai. According to the framework agreement, CASPA will use its own strength to make international recommendations of the entrepreneurship in Jinjiang District, semiconductor company investment and human resources, and introduce relevant companies and organizations at home and abroad to investigate, start up and invest in Chengdu. Both sides will make effort for the friendly relationship between Jinjiang District and Cupertino, California. (March 18^th, Sichuan Daily/Lei Jie)

Convention & Exhibition Economy

Ambassadors from Four Countries Came to Chengdu to Promote Cooperation in Multiple Fields

The 17^th African Country Ambassadors Tour Chengdu Stop was held in Chengdu in the morning of March 9^th. Ambassadors (representatives) from South Africa, Zambia, Nigeria and Sierra Leone respectively made introductions on their own countries at the event. More than 80 companies in Sichuan, including Chengdu Construction Engineering Group Corporation, Huaqiao Fenghuang Group and others which have laid solid development foundation in Africa attended the event.

The event was sponsored by the Chinese People’s Association for Friendship with Foreign Countries and jointly undertaken by the Chengdu Municipal Foreign and Overseas Chinese Affairs Office and the Chengdu People’s Association for Friendship with Foreign Countries. By communicating with companies or company representatives from other counties, Sichuan companies got to know more about the investment environment and policies in Africa, which provided favorable conditions for practical cooperation between Chengdu and African countries in many fields.

South African ambassador in China Ms. Dolana Msimang, ambassador from Zambia in China Winnie Chibesakunda, Nigerian ambassador representative Mr. Oreba and ambassador representative from Sierra Leone Ms. Kumba Momo introduced policies in their countries on economy, tourism, energy development, etc. respectively at the meeting. They said Chinese companies have a broad investment prospect in Africa as they can make investments in many fields like energy, machinery, agriculture and agriculture products processing, finance, electronic telecommunication and infrastructure construction.

Leaders of the Department of African Affairs of the Ministry of Foreign Affairs of the P.R.China, Department of Asia and Africa of the Chinese People’s Association for Friendship with Foreign Countries, the People’s Government of Chengdu as well as relevant authorities and industry associations above municipal level and leaders of companies involving in agricultural farm machinery, infrastructure construction, food, costumes, home furnishing and logistics participated in the event. (March 10^th, Sichuan Daily/Xiong Runpin)

The 3^rd Sichuan (Jintang) Edible Mushroom Fair Opened

The 3^rd Sichuan (Jintang) Edible Mushroom Fair opened in Jintang County on March 12^th. The 3-day event was themed “green and sharing” and the principle of “promoting economic growth, pulling up local consumption and helping farmer increase their income”. Nearly 700 people including representatives from more than 30 counties which are the mainly planting areas of edible mushrooms, industrial representatives from Korea, Japan, the Netherlands and other countries and Chinese experts in this field attended the fair.

Jintang was also named as the “core area for artificial cultivation of Chinese morchella” by the International Medicinal Mushroom Society and the “Sichuan Edible Mushroom Engineering and Technological Research Center” by the Science & Technology Department of Sichuan Province. (March 13^th, Sichuan Daily/Ran Qianting)

2016 China International Alcoholic Drinks Expo Opened in Luzhou

On March 19^th, the vice chairman of the National Committee of the Chinese People’s Political Consultative Conference in Luzhou announced the opening of ^the 2016 China International Alcoholic Drinks Expo. The deputy secretary of the Sichuan Provincial Committee of the CPC and the governor of Sichuan – Yin Li, president of the China Alcoholic Drinks Association – Wang Yancai, director of the Wine Bureau of Georgia - Giorgi Samanishvili attended and gave their remarks at the opening ceremony.

With the theme of “raise the glass and enjoy the life”, the position of host country and national exhibition hall were set up for the first time to promote the communication on traditional and modern alcoholic drinks culture, Chinese alcoholic culture and world wine culture. More than 700 companies from 25 countries and regions attended the expo. Compared with the last session, both exhibition area and number of the exhibitors from foreign countries rose by nearly 50%. Over 20 activities including International Wine Industry Development Forum, Purchasers Convention, etc. were held. 266 projects were signed at the expo with a total amount of contract of RMB 50.37 billion. Wherein, 231 were wine industry-related projects with a contract amount of RMB 12.66 billion. (March 20^th, Sichuan Daily/Hu Yanshu, Zhao Ruoyan, Wang Yuxi, Luo Zhiyang)

The 94^th China Food & Drinks Fair Opened

The 94^th China Food & Drinks Fair (CFDF) was held in the New International Convention and Exhibition Center of Chengdu from March 24^th to 26^th. This was the 27^th time for CFDF to be held in Chengdu. This time, the CFDF attracted nearly 3000 exhibitors and more than 100,000 visitors working in this industry.

Exhibitors from over 40 countries and regions displayed their products in the exhibition hall which covered an area of 128,000 m². Among all exhibits, overseas exhibits accounted for 20%. The entire exhibition hall was divided into seven theme exhibition areas, involving tradition liquor, wine and international spirit, food, beverage, condiment, food machinery and food packaging.

The Wine and International Spirit Exhibition Area was opened for exhibitors from 20 European countries including France, Spain, Italy, New Zealand, Chile, etc. The Hong Kong, the Imported Food Exhibition Area was for exhibitors from countries and regions in Southeast Asia, including Thailand, Korea, Singapore, Taiwan, etc. and the Catering Chains and Franchises Exhibition Area was for famous catering chains and franchise brands from America and Taiwan in China.

The “Global Food Shopping Festival” was held in many international department stores in Chengdu like Ito Yokado, Wangfujing Department, Lotte Department, Yonghui Supermarket, Renhe Spring from March 18^th to 27^th. Nearly 50 food manufacturers from over 10 countries were invited to conduct a series of popularizing, promotion and experiencing activities in the theme of “enjoy food from around the world”. Meanwhile, many national theme festivals for Germany, Australia, Korea, Thailand, etc. were held successively. (March 24^th, Sichuan Daily/Shao Mingliang, Zhang Yuxi, Zhou Wei, Zou Jing)

CCPIT Sichuan Council

Vice President Li Li Met Chief Representative Guangtianyingye of JETRO in Chengdu

Vice president Li Li met the chief representative of JETRO in Chengdu – Guangtianyingye on February 26^th, 2016.

Li expressed his welcome to Gangtianyingye and his delegation and gave positive appraisal to their jobs. Li introduced the economic situation of Sichuan and Japan, put forth the plan of this year and expounded the situations on the China (Chengdu) International Intellectual Life Expo and the CAPAS Chengdu which would be held by our council. Li hopes relevant principals of JETRO can make efforts to strengthen the bilateral communication and encourage Japan-invested companies to participate in the exhibitions and establish cooperation relationship with Sichuan companies.

Gangtianyingye extended his gratitude for our supports. He stated the business situations of the representative office of JETRO in Chengdu, described its working plan of this year and explained details on the investment promotion meeting about to be held in Chengdu in the last ten days of March. He hopes our council and relevant Sichuan companies can join in to conduct the activity together.

Ms. Lv Attended the 5^th Nepal International Trade Fair in Accompaniment of Her Delegation

The 5^th Nepal International Trade Fair was kicked off in Kathmandu on March 17^th. Nepalese president Bidia Devie Bhandari, president of Nepal Chamber of Commerce and Industry – Mr. Mulaka and representative of the Foreign Trade Development Bureau of the Ministry of Commerce of the P.R.China – Wu Tongdiao attended and address their remarks at the opening ceremony.

Vice president Lv Furong and her Sichuan economic delegation participated in the event. Representatives from 13 companies involving in food, building materials, machinery, automobile accessory and farm machinery industries also took part in the event.

President Bhandari, Mr. Mulaka and vice president Wu Tongdiao looked around the Chinese Exhibition Area. Sichuan exhibition area attracted a large number of Nepalese merchants for its popular products. Mr. Wu Tongdiao, counselor of the Economic and Commercial Counselor’s Office of Chinese Embassy in Nepal – Peng Wei, president assistant of Nepal Chamber of Commerce and Industry – Arlen Shrestha, president of Nepal-China Chamber of Commerce and Industry – Rajesh and principals of other commercial associations visited Sichuan exhibition area.

Ms. Lv attended the opening ceremony and communicated with many company representatives to know about the demands of exhibitors and promote the communication between companies, Nepalese associations of commerce and industry and Chinese-invested Nepal companies.

CCPIT Sichuan Council Sign the MOU with Lao National Chamber of Commerce and Industry

Vice president of the CCPIT Sichuan Council – Lv Furong met the Lao National Chamber of Commerce and Industry in accompaniment of her delegation on March 21^st, 2016 and signed the MOU between Lao National Chamber of Commerce and Industry and CCPIT Sichuan Council.

Director of the Trade Promotion Department of the Ministry of Industry and Trade of Laos - Somvang NINTHAVONG and the vice president of the Lao National Chamber of Commerce and Industry - Daovone PHACHANTHAVONG met Ms. Lv and her delegation. They had an informal discussion on the trade investment situation of Sichuan and Loas, key cooperation fields and establishment of cooperation platform. Both parties hope to strengthen the trade investment and communication efforts on infrastructure construction, tourism industry (including hotel, historical and cultural traveling, leisure tourism, etc.), food and beverage, electronic information, automobile and motorcycle accessories, furniture industries, etc., establish trade bridge together with existing resources, promote the practical bilateral cooperation through exhibition, promotion meetings, discussions and other cooperative platforms and make new progress in economic cooperation.

2016 China (Sichuan) – Vietnam Economic and Trade Fair Held in Hanoi

The 2016 China (Sichuan) – Vietnam Economic and Trade Fair was held in Hanoi in the morning of March 23^rd. Representatives of 8 Sichuan companies involving in machinery, food, building materials and automobile accessories industries attended the fair.

Deputy Director of the Trade Promotion Bureau of the Ministry of Commerce and Industry of Vietnam – Du Jinlang and vice president of the CCPIC Sichuan Council – Lv Furong addressed their remarks at the meeting. Mr. Du indicated that Vietnam government had paid highly attention on the economic cooperative relationship with China. They made efforts to promote the export of superior products to China. Both Sichuan and Vietnam companies made fierce discussion at the meeting. Sichuan Kaihong Water Conservancy Machinery Manufacturing Co., Ltd. made further communication with Vietnam Industrial Equipment and Material Co., Ltd. and reached an agreement with a contract amount of USD 150,000. Sichuan Huaxia Jianhui Doors Windows and Curtain Walls Decoration Co., Ltd. signed cooperative contract with Vietnam Peidequan Company and achieved a contract amount of USD 200,000. Rong Cheng Lao Ma and Sichuan Kaihong Water Conservancy Machinery Manufacturing Co., Ltd. had taken this opportunity to make a field visit on the Vietnam market.

After the meeting, Ms. Lv and Mr. Du exchanged opinions on the efforts to strengthen the bilateral economic cooperation. Mr. Du said the Trade Promotion Bureau of the Ministry of Commerce and Industry of Vietnam was planned to set up office in Sichuan to better boost the bilateral economic cooperation and market development in western China. Ms. Lv suggested shortening the economic gap between both regions through important international economic platforms, especially exhibition meetings and discussion fairs. Based on the similar cultural custom and strong economic complementarity, both parties need to establish opening cooperation platforms, unblock economic trade and cultural tourism channels and further promoting the development of companies in both regions.

President Li Gang Met with Consul-General of the Consulate General of the Federal Democratic Republic of Ethiopia in Chongqing

On February 23^rd, 2016, President Li Gang of CCPIT Sichuan Council met with Consul-General Mr. Kebede Abera Ido of the Consulate General of the Federal Democratic Republic of Ethiopia in Chongqing and his delegation.

President Li Gang made a brief introduction to Consul-General Mr. Kebede Abera Ido on Sichuan economic conditions in 2015, its characteristic and advantageous industries. He especially mentioned that Sichuan Dongfang Group International Cooperation Co., Ltd. and Chengdu Engineering Corporation Limited played an important role and cooperated well with Ethiopian companies in the construction of its largest hydropower station.

Consul-General Mr. Kebede Abera Ido also introduced Ethiopia to President Li Gang. He said that Ethiopia is a great agricultural country. It has the second largest population among African countries. Its capital, Addis Ababa is the place where the AU (African Union) headquarters is. He emphasized that Ethiopia has demands on infrastructure, investment and labor-intensive industries, and also expressed his wish of further cooperation between the Consulate General of the Federal Democratic Republic of Ethiopia in Chongqing and CCPIT Sichuan Council.

Li agreed with Mr. Kebede Abera Ido on his views of the cooperation prospect. He also invited Mr. Kebede Abera Ido to participate in “CAPAS” and “ILE” to be held by CCPIT Sichuan Council in 2016.