Sichuan Economy and Trade Trends

Monthly, May 2016

Published by CCPIT Sichuan Council

Contents

Macro Economy

Investments for Industrial and Technological Improvement in Sichuan Achieved Double-digit Growth in Q1

In the first quarter of 2016, investments for industrial and technological improvement outperformed their targets, respectively totaling RMB 184.86 billion and RMB 133.75 billion, climbing by 10.8% and 15.1% from the same period last year, 8.1% and 9.0% more than the aggregate growth in 2015. Of the two categories of investments, the rebound of the former is particularly strong, reversing low-growth or even negative growth trends of the previous two years, reaching a double-digit rate for the first time in the past 19 months. Similarly, technological improvement investment also exhibited for the first time since 2014 a growth rate exceeding ten percent.

The significant increase in the number of new projects is one of the primary causes of investment growth. In the first quarter, there were 29 mass project commencements held separately, collaboratively or simultaneously in 20 cities and prefectures in Sichuan, with the total number of major project commencements at 425 and aggregate planned investments of RMB 120.8 billion. The mass commencements of major projects have driven the commencement of 1,468 new industrial projects throughout the province in the first quarter, with a year-on-year growth of 42.1%. These new projects accounted for 30% of all current construction projects, with a year-on-year rise of 8.6%, while their total planned investment is RMB 106.9 billion, up 17.5%. In terms of new projects related to technological improvement, there were a total of 1,415 projects in all, a jump of 57.7% year-on-year, and their total planned investment amounted to RMB 88.6 billion, swelling by 21.1%.

From the perspective of cities and prefectures throughout the province, 17 of them have seen positive growth in industrial and technological improvement investments, while 10 of them reported rates higher than the provincial average. Of which, Chengdu, Meishan, Liangshan, Ziyang and Deyang have performed well with mass commencements of projects and they posted the biggest contributions to industrial investment growth, respectively adding 4.82%, 0.8%, 1.52%, 1.176% and 0.55% to the industrial investment growth in Sichuan. There are also 17 cities and prefectures that maintained positive growth rates in terms of technological improvement investments, with 12 recording rates above the provincial average. Of which, Chengdu, Meishan, Deyang, Leshan, Bazhong, Panzhihua, Nanchong and Aba saw growth rates higher than 20%.

From the perspective of industries, the manufacturing sector, under the backdrop of continuous growth and a continually enlarging basis in recent years, completed RMB 132.4 billion in investments, a 9.9% year-on-year growth and constituting 71.6% of all industrial investments. Statistics from 41 industries show that, in the first quarter, there were 27 industries that reported increase in investment, six more than that of last year, and 13 of them reported rates exceeding 20%. Seven major advantageous industries accomplished an investment of RMB 149.8 billion, accounting for 81% of total industrial investments, and increasing by 0.9% compared to last year. Investments in industries with excess capacity or high emission such as the steel industry continued to stay under control, with the number for ferrous metal ores mining and dressing at -28.6%, and that for ferrous metals smelting and pressing at -3.2%. (April 26^th, Sichuan Daily/Dong Shimei)

Total Value of Output of S&T Service Industry Expected to Exceed RMB 340 Billion in Sichuan in 2016

Sichuan plans to open 570 incubation carriers of all kinds in 2016, incubating at least 9,000 S&T MSMEs (micro, small and medium-sized enterprises) with a total value of output exceeding RMB 340 billion, 8% more than the growth rate of 2015.

In 2015, Sichuan will accelerate the construction of S&T service industry clusters by optimizing one or two provincial-level demonstration cities for the S&T service industry for key construction, and creating one or two S&T service industry clusters. Sichuan will accelerate the construction of all kinds of incubation carriers, and forge a platform of mass entrepreneurship and innovation by the “Collaboration among Five Parties” (the sponsor, exhibitors, purchasers (visitors), service providers (contractors for booths, hotels and resorts, advertising and exhibition venues) and the management (fire control, public security and industry and commerce)) with large, medium and small enterprises, colleges and universities, and scientific research institutes.

Sichuan will establish and improve an key enterprise connection mechanism for the S&T service industry, follow up the cultivation of 50 demonstration enterprises and focus efforts on the construction of 60 demonstration projects.

Meanwhile, Sichuan will create 10 S&T service platforms based on “Internet Plus” and boost the establishment of an industrial technology research institute for the S&T service industry. It will forge a public service platform for technological transfer in Southwest China, prioritize 20 demonstration organizations for technological transfer at or above provincial level, include 7 new technological transfer demonstration organizations, 2 at state level and 5 at provincial level, achieving a turnover of more than RMB 24 billion for technological contract registration. It will make solid efforts for the Sichuan Capital Guidance Fund for Innovation and Entrepreneurship and set up 3 to 5 sub-funds to support S&T MSMEs in their initial period, seed stage and throughout their development. What’s more, Sichuan will also explore the foundation of risk mitigation funds incorporating the province, cities and counties so as to drive the development of S&T MSMEs with all-round invested social capital.

In addition, Sichuan will advance the development of S&T open innovation platforms such as Sino-ROK Innovation and Entrepreneurship Park, promote the cooperation between Sichuan Technological Innovation Alliance of New Energy Automobile and Hungarian Auto Innovation Alliance, as well as promote innovation and cooperation between China and Europe and technological transfer between Sichuan and countries such as Israel and ROK. (May 5^th, Sichuan Daily/Zhang Lan)

Foreign Trade

Sichuan and Lodz Form Official Sister Province Relations

On April 30^th local time, a CPC delegation led by Wang Dongming visited Lodz province, Poland. Wang, a member of CPC Central Committee and secretary of CPC Sichuan Provincial Committee, met with Lodz governor Witold Stepien for discussions and the two parties signed an agreement to form friendly relations.

“The main purpose for this trip to Poland is to put into practice the consensus on cooperation reached by the heads of state of the two countries, strengthen inter-party exchanges and communication, and promote friendly cooperation between Sichuan and Poland, especially Lodz province. The Chengdu-Europe Express has the shortest running time among all China-Europe railways, and has been operating with high frequency between the two continents since last September. The Express has become an important logistics channel for the Silk Road Economic Belt,” Wang said. “We would like to work together with Lodz province to implement the ‘Chengdu-Europe Plus’ strategy, increase the frequency of trips between the two destinations and accelerate the construction of cargo distribution centers in Poland, other parts of Europe, as well as provinces and municipalities back in China, so as to further expand the scope of services. Meanwhile, we will enhance communication among operating enterprises from both sides, transport and deliver products with higher marketability, increase the cargo load factor for trains running in both directions, and use trade and logistics to promote manufacturing, production and mutual investments. All these efforts will leaverage on the function of the Chengdu-Europe Express as a major logistics conduit.”

Wang explained that Sichuan is dedicating great efforts to cultivate strategic emerging industries and high-level high-growth industries such as electronic information, new energy automobiles and energy conservation and environmental protection equipment manufacturing. At the same time, advanced technologies will be applied into the transformation and improvement of traditionally strong industries such as oil and gas, petrochemical, and food and beverages. Wang indicated that Sichuan and Lodz share wide prospect for cooperation in these fields, and expressed the hope to enhance exchanges and expand cooperation in industries and investment. In addition, collaborations in education, science and technology, and tourism in particular will continue to contribute to economic development, invigorate cultural exchanges and interaction, and strengthen public will for furthering friendly relations and cooperation.

Stepien said that in recent years Lodz considers its cooperation with Sichuan paramount, as it is an important province in China. He believed Wang’s visit would push cooperation to a new height. He hoped that Lodz will function as a door into Europe for China and Sichuan, and he indicated the commitment to forging the Chengdu-Europe Express as a new Eurasian continental bridge that will satisfy two-way cargo transportation needs and stimulate mutual investments. He welcomed and encouraged more Sichuan companies to invest in Lodz, and hoped that more Lodz projects can enter the Chinese province.

After the talks, Wang Dongming and Witold Stepien signed an agreement to establish friendly relations between the two provinces. The agreement confirmed exchanges and cooperation in various sectors including economy, trade, science and technology, culture, education, sports, healthcare and human resources, so as to promote mutual development. Deputy Minister of Foreign Affairs of the Republic of Poland Katarzyna Kacperczyk and Chinese Ambassador to Poland Xu Jian attended the conferences as witnesses for the signing of the agreement. (May 1^st, Sichuan Daily/Lin Ling)

Leading Enterprises Stand Out, Chengdu Hi-Tech Comprehensive Bonded Zone Notched 8% Year-on-year Growth in Foreign Trade in Q1

In the first quarter of 2016, Chengdu Hi-Tech Comprehensive Bonded Zone (Hi-tech Zone) achieved RMB 32 billion in total foreign trade, up 8% year-on-year and ranking third in the 39 comprehensive bonded zones nationwide with actual foreign trade performance.

This is a record-breaking number in terms of proportion in both provincial and municipal foreign trade, accounting for 49% of total foreign trade in Sichuan and 62% of Chengdu’s. This surge resulted from the outstanding import performance of leading companies in the Zone, while SMEs provided a new source of energy behind steady growth.

In this quarter, contributions from leading enterprises remain highly noticeable, helping the Zone achieve RMB 17 billion in imports, up 47% year-on-year and accounting for 59% of Sichuan’s total foreign imports. Growth in imports surged across the board, including 119% at Hongfujin Precision Industry, 58% at Intel’s Junma wafer integration testing center project and a tremendous 1,355% at Dell.

In addition to major projects and corporations, 15 manufacturers with foreign trade activities in Chengdu Hi-Tech Comprehensive Bonded Zone reported a 14% rise. Among them, Source Photonics provided a substantial lift with a year-on-year increase of 30% in foreign trade. Chengdu Advanced Power Semiconductor achieved 70% rise in trade, and Sigma, which accelerated product line structural adjustments, notched 40% growth in trade. (May 3^rd, Sichuan Daily/Zhang Lan)

Czech Opened a New Visa Application Center in Chengdu

In the afternoon of May 4^th, the Consulate General of the Czech Republic in Chengdu opened a new visa application center, mainly handling short-term (shorter than 90 days) Schengen visa services.

The Consulate started to sign Schengen visas since February 1^st, this year, and has handled over 1,000 of them. And the new visa center is opened to promote visa applications and help more people get a visa easily in no time. Chengdu citizens can apply tourist visas here, and also short-term visas to visit their relatives or do business in Czech, within the handling days of normally one week.

In recent years, with the rapid development of bilateral relations between China and Czech, their exchanges and cooperation have made great progress. Fruitful results are achieved in high-level visits, trade and investment, the forming of sister city relations and cultural tourism. Now Czech has become one of Sichuan’s major trade partners in Central and Eastern Europe. Speaking of business investment, back in the year 2006, Changhong Group opened a flat screen television factory in Nymburk, Central Bohemian Region, and Czech’s light aircraft manufacturing project has already settled in Zigong, Sichuan. In February, 2016, Sichuan Airlines opened a direct route from Chengdu to Prague, which is expected to be adjusted to a regular flight twice weekly in June. (May 5^th, Sichuan Daily/Xiong Runpin)

Chengdu Creating a Bioindustrial Park with BioCubaFarma

At the China-Cuba (Chengdu) International Biomedical Industry Development Summit Forum (the “Forum”) on May 13^th, Chengdu Hi-tech Zone signed an agreement with BioCubaFarma, the largest biomedical and pharmaceutical group in Cuba, to conduct cooperation in the whole industrial chain from R&D to production in the Chengdu International Bioindustrial Park.

At the end of 2015, the both sides had already signed a framework agreement of strategic cooperation on matters concerning co-building the Chengdu International Bioindustry Park and its joint R&D center, and co-hosting the “Forum”. On the Forum, they signed another agreement for further cooperation and making clear the details such as patent portfolio of joint development. (May 14^th, Sichuan Daily/Zhang Lan)

300 or More Fortune Global 500 Companies Now in Sichuan

Sichuan’s open cooperation model embraces a landmark moment – As US-based Berkshire Hathaway and Japan-based AEON, two foreign corporations of Fortune Global 500 fame, set up their respective offices in Chengdu, the number of Global 500 enterprises in the city surpassed the 300 mark. Over 60% enterprises on the Fortune Global 500 list have been operating in Sichuan so far, ranking first in central and western China.

Of the two new Fortune Global 500 corporations, Berkshire Hathaway, founded by Warren Buffett and a world-famous insurance and diversified investment group, will be settled in Sichuan in the form of reinvestement; while AEON, on its way here, is the largest retailer in Japan.

In terms of development speed, more than 50 Fortune Global 500 enterprises have entered Sichuan over the past three years, a large number and high rate rare in China. In terms of the total number, Sichuan is home to Fortune Global 500 companies more than any other province in central and western China. The settlement of Fortune Global 500 enterprises implies the close relationship between local development and the world economy. As for now, there are 221 Fortune Global 500 enterprises in total setting up their branches or subsidiaries in Sichuan, ranking first in central and western China. Statistics from Sichuan Provincial Department of Commerce shows that, among the Fortune Global 500 enterprises that are investing Sichuan, 193 of them have made actual investment (including direct investment, reinvestment and subsidiaries), taking up 87.3% of all.

In respect of the structure of investment, most of the 88 Fortune Global 500 enterprises directly investing Sichuan are in the manufacturing industry, bringing constant optimizations to the investment promotion. Statistics from Sichuan Provincial Department of Commerce shows that, these 88 enterprises have set up 190 foreign-funded companies, 101 of which are in the manufacturing industry, involving USD 9.2 billion for aggregate investment, taking up 53.2% and 60.6% of the total number respectively.

In respect of investment sources, the 221 enterprises come from 21 countries and regions, 83 from Europe, 73 from the Americas, 62 from Asia and 3 from the Oceania. By country, the top 5 are the U.S., Japan, France, Germany and the U.K..

As for investment destinations, Chengdu has the most Fortune Global 500 settlement, while secondary cities (those develop depend on central ones) have also made great progress. At present, except for Northwest Sichuan Plateau areas, secondary cities in the rest parts of Sichuan are all covered by Fortune Global 500 enterprises. (May 25^th, Sichuan Daily/Zeng Xiaoqing)

Key Projects

Commencement Ceremony of the 2016 Sichuan Major Investment Promotion Projects and the CEC Generation 806 LCD Panel Production Line Held

Commencement ceremony of the 2016 Sichuan Major Investment Promotion Projects and the CEC Generation 8.6 LCD Panel Production Line was held on May 23^rd. The main venue for the ceremony was in Chengdu, and affiliated venues were in other 19 cities (prefectures) including Dazhou, Neijiang, Ganzi and Liangshan. Secretary of CPC Sichuan Committee Wang Dongming, deputy secretary and governor Yi Li, and director of China Electronics Corporation (CEC) Rui Xiaowu and general manager Liu Liehong attended the ceremony in Chengdu.

The 309 investment promotion projects commenced on that day, with a total investment volume of RMB 281.536 billion are mainly key projects signed in recent two years. Speaking of industrial distribution, there are 67 projects in the primary industry with an investment volume of RMB 66.04 billion; 139 in the secondary industry with an investment volume of RMB 109.802 billion; and 103 in the tertiary industry, RMB 105.694 billion. And the Generation 8.6 LCD Panel Production Line of CEC commenced in Shuangliu District, with a total investment volume of RMB 28 billion, is one of the largest electronic information industrialization projects in Sichuan Province for the past few years. The project, planned to build a global leading production line for 8.6 TFT-LCD display devices, will definitely introduce supporting companies of raw materials, components and parts and complete machine manufacturing for clustering development in Sichuan.

In recent years, CPC Sichuan Committee and Sichuan Provincial People’s Government focuses on opening-up, cooperation and investment promotion directly in the implementation of “Three Development Strategies” and advancing the “Two Leap overs ” in Sichuan. A series of major investment promotion activities and international exhibitions have been held successively, and a batch of major projects been signed. By the end of April, the performance rate of projects incorporated into provincial-level supervision signed in 2013 and 2014 has exceeded 93%, and that of those signed in 2015 has exceeded 84%.

According to the “Project Year” work arrangement of CPC Sichuan Committee and Sichuan Provincial People’s Government, cities and departments are actively promoting investment promotion and major project construction. The integrated commenced projects have two major features, large scale as the first. There are 60 projects above RMB 1 billion, with a total investment of over RMB 200 billion and taking up 72% of the all. The other one is the optimized project structure. There are 180 projects concerning strategic emerging industries, high-end developing industries and emerging leading service industries, with a total investment of RMB 147.4 billion, 52.3% of the all. (May 24^th, Sichuan Daily/Chen Yan and Luo Xiangming)

Industries

SINOTRUK to Build a Production Base in Nanchong with RMB 516 Million as Investment

In the morning of April 25^th, Shunqing District Government of Nanchong City signed a cooperation agreement with China National Heavy Duty Truck Group Co., Ltd. (SINOTRUK) to build a production base of key auto components and parts in Yinghua Industrial Park, Shunqing District, Nanchong. When put into full operation, it will possess an annual output of 100,000 sets of components and parts such as hydraulic systems and high-pressure oil pump bodies.

The project, covering an area of 8.67 hectares (86,700m²) and with an investment amount of RMB 516 million, will build production lines for hydraulic cylinders, hydraulic lifting systems for heavy and medium duty trucks, accessories and structural parts, as well as introduce high-end accessories such as MAN axle, hydraulic systems and high-pressure oil pumps. (May 2^nd, Sichuan Daily/Wu Li)

Sichuan Power Exchange Center Established

Sichuan Power Exchange Center established in Chengdu on May 12^th. Being now China’s largest provincial power exchange platform for hydropower sending end, it has already incorporated 1,416 power generation enterprises and 589 power users, who can realize face-to-face transactions in the platform. This year’s transaction volume is expected to be over 160 billion kWh. (May 13^th, Sichuan Daily/Hu Chaohui and Li Xinyi)

Sichuan “B&R Initiatives” Economic and Trade Cooperation Promotion Council Founded

In order to incorporate the “Going Global” of Sichuan enterprises with the “B&R Initiatives”, Sichuan founded a “B&R Initiatives” Economic and Trade Cooperation Promotion Council on May 19^th, aiming at promoting enterprise clusters to launch overseas investment, trade, economic and technological cooperation. It has more than 130 members so far.

The Council, launched by Sichuan Academy of International Economy and Trade and relevant enterprises, research institutes and intermediaries, will help companies “going global” from five aspects including forging high-end idea banks, organizing economic and trade activities, creating service platforms, establishing cooperation mechanism and promoting resource sharing. As for forging high-end idea banks, the Council will aggregate intellectual resources of domestic and foreign experts, and create professional “B&R Initiatives” think tanks so as to provide references for government decision-making and enterprise development. As for creating service platforms, the Council will build a professional service and risk control platform to provide enterprises with legal, accounting, financial, HR and other business services. (May 20^th, Sichuan Daily/ Wang Yuxi and Dong Shimei)

Convention & Exhibition Economy

The 3^rd Forum of Sichuan-Taiwan Agricultural Cooperation Contributed to Contract Amount of RMB 1.19 Billion

The 3^rd Forum of Sichuan-Taiwan Agricultural Cooperation kicked off in Xinjin County of Chengdu on Tuesday announced that the first 10 Taiwan businessmen-invested agricultural industry companies including Chengdu Sunshine Earth Agricultural Science and Technology Co., Ltd. were granted as “Sichuan-Taiwan Agricultural Cooperation Demonstration Bases”. Five agricultural cooperation projects were signed at the forum with a total investment amount reached RMB 1.19 billion.

Among all the projects signed on site, there were three solely-invested projects, one jointly-developed project and one cooperative project, which are a RMB 30 million Sweet Potato Vine TINA Manor Project in Xinjin County, a RMB 30 million Tongchuan District Taiwan Milk & Strawberry Themed Park Project in Dazhou City, a RMB 270 million Solar Photovoltaic Plant Project in Panzhihua, a RMB 860 million Phase II Project of Taiwan Chengfu (Meishan) Modern Technology Agricultural and Ecological Sightseeing Demonstration Park and the Accommodation Training and Exchange Cooperation Project jointly carried out by Taiwan Farmer Entrepreneurial Park in Xinjin and Taiwan Accommodation Association.

Since the beginning of this year, Sichuan and Taiwan has successively concluded over 10 agricultural cooperative projects with a total investment amount up to RMB 2.26 billion.

Presently, over 200 cooperation agreements have been signed between Sichuan and Taiwan enterprises with a total investment amount of more than USD 2 billion. Last year, seven Taiwan-invested agricultural companies were newly established with new investment of USD 250 MILLION. Both two indicators of Sichuan Province ranked second in China. Sichuan became the most important agricultural investment base and agricultural products trade market to Taiwan in western region. (April 29^th, Sichuan Daily/Li Miao)

Emei Tea Expo Contributed to a Total Contract Amount of Over RMB 16 Billion

Emei Tea Expo was unveiled in Emeishan City yesterday contributed to a total contract amount of amount RMB 16 billion. On that day, Emei Xueya and Longsheng Pu’er tea were brought to Mengdingshan Tea Exchange for transaction. The World Tea Tourism Union jointly established by 12 tea companies was built in Emeishan City.

Companies from 15 countries and regions, over 200 domestic exhibitors and over 130 purchasing delegations at home and abroad attended the Expo. Its exhibition hall covered an area of 28,000 m². Yesterday, a series of contracts on investment and trading projects including organic agricultural investment project, tourism project and tea purchasing projects were concluded with a total contract amount of more than RMB 16 billion. The only specialized tea exchange –Mengdingshan Tea Exchange made a debut at the Expo and held the listing ceremony for Emei Xueya and Longsheng Pu’er Tea. (April 30^th, Sichuan Daily/Xu Wen, Liu Xing, Wu Yafei)

The 5^th China Sichuan International Tea Fair Successfully Held

The 5^th China Sichuan International Tea Fair was unveiled in Chengdu yesterday. Deputy secretary of Sichuan Provincial Committee of the CPC announced the inauguration of the Expo and visited the Tea Fair Exhibition Hall in Chengdu Century City New International Convention and Exhibition Center.

The Tea Fair themed by “Unique Charm of Sichuan Tea, A World Taste” covered an area of over 40,000 m². Four functional exhibition areas including Sichuan Famous Tea Exhibition Hall, China Famous Tea Exhibition Hall, International Famous Tea Exhibition Hall and Tea ware Culture Exhibition Hall were established and appealed to more than 650 domestic tea companies from more than 20 provinces (autonomous regions and municipals) as well as government organizations and companies from 11 countries including India, Sri Lanka, Korea, Japan, Vietnam, Bangladesh, Thailand, etc.

A series of professional tea-related activities including “Tianfu Longya Sichuan Tea Regional Brand” Summit and the “Global CHINATEA” Summit were held in this period to gather tea lovers together to exchange and deep explore culture of Sichuan teas, develop Sichuan tea brands and promote the integrative development of Sichuan tea culture and tourism. The China Sichuan International Tea Fair has been successfully held for 4 times, actively boosting the regional branding, enterprise brand upgrading, industrial base developing and product quality improving. Deputy director of the Standing Committee of Sichuan Provincial People’s Congress – Huang Yanrong, vice governor – Qumu Shiha and vice chairman of Sichuan Provincial Political Consultative Conference Chen Fang attended the opening ceremony and visited the exhibition halls. (May 6^th, Sichuan Daily/Zhang Lidong, Zhang Yuxi)

The 5^th Western China Hi-Tech Industry & Financial Capital Matchmaking Forum Opened

The 5^th Western China Hi-Tech Industry & Financial Capital Matchmaking Forum, with the theme of “Deep Integrations of Science, Technology and Finance, Comprehensive Promotion of Innovation and Entrepreneurship”, commenced in Chengdu yesterday. Chen Changzhi, vice chairman of the Standing Committee of NPC and chairman of China National Democratic Construction Association attended and delivered an address at the opening ceremony. Secretary of Sichuan Provincial CPC Committee Wang Dongming was in attendance, deputy secretary of Sichuan Provincial CPC Committee and Sichuan governor Yin Li was present and delivered a speech, and deputy secretary of Sichuan Provincial CPC Committee Liu Guozhong hosted the ceremony.

At the Forum, 404 contracts with a total contract amount of RMB 19.3 billion were signed, hitting a new high record.

Among the 404 projects, there were 116 equity investment projects with a total contract amount of RMB 3.876 billion, 247 bank loan projects with a total contract amount of RMB 13.039 billion, 24 bank credit projects with a total contract amount of RMB 1.371 billion, 4 science and technology insurance projects with a total contract amount of RMB 834 million and 13 science and technology guarantee projects with a total contract amount of RMB 180 million.

At the field signing ceremony, the Science and Technology Department of Sichuan Province signed scientific and financial cooperative agreement with Sichuan Provincial Branch of Bank of China and Chengdu Branch of China Zhejiang Bank. At the same time, the National Engineering Research Center for Biomaterials and West China Hospital of Sichuan University signed biomedical material achievements transformation agreement with Deno Medical Group of America. Representatives from more than 40 investment financing institutions and companies concluded project cooperative agreements at site.

Altogether 510 investment and financing contracts were signed by the scientific and technological companies in Sichuan with a total financing amount of RMB 38.8 billion. (May 19^th, Sichuan Daily/Zhang Lan, Lu Wei, Wang Yuxi)

CCPIT Sichuan Council

The 2016 China Automotive Industry Venture Competition Closed in Chengdu

After the preliminary rounds of the 2016 China Automotive Industry Venture Competition held in Shanghai, Shenzhen and Beijing, the concluding "Final of 2016 Sichuan Provincial Automobile Industry Youth Innovation and Entrepreneurship Competition and Preliminary Contest of 2016 China Automotive Industry Venture Competition" was held in Jincheng College of Sichuan University on May 5. Vice chairman of the CCPIT Sichuan Council Lv Furong, deputy secretary of Sichuan Provincial Committee of the Communist Youth League Tang Jingtian, deputy director of the Industrial Policy Department of the Sichuan Provincial Economic and Information Commission Liu Ke, president of Zhongyi Hi-Tech Investment Group Zhou Hongliang and investment director of DT Capital Partners Sun Shuang formed the judges panel at the contest.

Such a major event of the 2016 CAPAS Chengdu has attracted participation from many industry professionals and entrepreneurs. After the first round of mass selection, 14 automobile start-up projects were elected for the final in Sichuan province. According to the contest procedures, contestants first have 15 minutes to explain their idea through PPT presentation and then proceed to Q&A session with the judges. Among the projects, quite a few are already operating at a profit and some have applied for patents.

After fierce competition and professional reviews from the judges, Chengdu Uni-Link, PoPo, Wache Technology, Chejiewang and Static Traffic Big Data Platform emerged as the five winners. The group of five will attend the nationwide final of the 2016 China Automotive Industry Venture Competition held in Chengdu Century City New International Convention and Exhibition Center on May 18. At that time, 14 contestant teams from four regions will compete for the crown. Renowned Chinese investors and VCs will also attend the final.

This event provided an opportunity for young entrepreneurs in Sichuan to showcase their fashionable, unique, innovative and passionate characteristics. On the other hand, the activity also established an exchange platform for young intellects to contribute to CAPAS, and will function as a viable opportunity for young entrepreneurs to become involved in the reform and innovative development of Chengdu.

Economic and Trade Delegation of CCPIT Sichuan Council Visited Finland, Sweden and Latvia

An economic and trade delegation of the CCPIT Sichuan Council visited Finland, Sweden and Latvia at the invitations from Finpro, the Sweden-China Trade Council and the Latvia-China Commercial Association for economic and trade activities between April 30 and May 9, 2016. The delegation's aims included in-depth implementation of the open cooperation strategy, discovering potential business partners from Central, Eastern and Northern European sister countries along the “One Belt One Road”, and assisting the Sichuan Provincial Party Committee and Sichuan Provincial People’s Government to carry out the “10,000 Enterprises Going Abroad” initiative.

During the staying in Finland, the delegation met Finpro Ｅxecutive vice president Jukka Salo. CCPIT Sichuan Council president Li Gang indicated that the industrial chains of Sichuan and Finland complement each other, and suggested the establishment of a liaison system and enhancing information exchanges, so as to forge cooperative relationships in economics and trade with focuses on clean energy, innovative technology, energy-conservation and environmental protection, and equipment manufacturing sectors. Li also invited Salo to lead and organize companies to visit Sichuan for the WCIF, as well as the CCPIT-sponsored Smart City Expo China and the CAPAS Chengdu.

Li also exchanged opinions on the future direction of bilateral cooperation with Finland Bureau of Investment leader Turow Newmira and the head of Chinese affairs at the Finland Bureau of Export Chen Shiting.

In order to acquire a better understanding of the Finnish investment climate, the delegation visited the local office of China's renowned ZPARK in Finland and conducted an in-depth discussion with office director Zhu Ziqi. Li suggested introducing the Slush startup event into Sichuan to promote interaction and communication between hi-tech companies of both regions.

The delegation visited the Chinese Embassy in Finland and its Business Department. Discussion was carried out with Embassy representative Tan Xin and Business Department counselor Qiao Shouwu. Li expressed the hope that the Embassy and its Business Department can help Sichuan companies undertake trading and investment activities in Finland and develop the markets of Northern Europe.

Li and the delegation met with Sweden-China Trade Council Secretary General Elisabet Söderström. Based on mutual consent, both parties agreed to leverage on the advantages of industry and business associations, and strengthen information exchange, especially in terms of trade, market, investment, forum and exhibition, so as to provide high-quality services for companies.

During the staying in Sweden, the delegation also went to the Business Department of the Chinese Embassy in Sweden. Li had talks with the commercial counselor of the Business Department Han Xiaodong. Li made suggestions to enhance cooperation in the fields of innovative technology, cultural education, electronic information, as well as food and beverages. He also encouraged more Swedish companies to come to Sichuan to discover business opportunities.

In Latvia, the delegation visited the Latvia China Business Council and conversed with board chairman Artis Kampars. Li suggested to Kampars the establishment of a Latvian office in Sichuan to provide services to companies from both regions, also stating the CCPIT Sichuan Council's intention to offer assistance. Kampars said his party would actively encourage Latvian companies to expand into the Sichuan market and tap cooperation potential.

In order to build an effective long-term cooperation mechanism, the delegation also visited the Latvian Chamber of Commerce and Industry and held talks with chairman of the board Rostovskiys Aigarces and other Ｅxecutives. During the session, the two leaders represented their respective parties and signed an MOU.

After the visit, Li and his delegation went to the Business Department of the Chinese Embassy in Latvia. Li underwent a discussion with the commercial counselor of the Embassy Liu Shaojun, expressing the hope that the Embassy can encourage local companies to participate in Sichuan exhibitions and conferences. He also took this opportunity to establish cooperative relationships with industry and business associations and other Latvian institutions to enhance mutual understanding and galvanize interactions among companies from both sides.

During the trip in Latvia, the delegation made a special visit to Ramkalni, a famous local food manufacturer, and exchanged thoughts on bilateral cooperation with general manager Victor of the company.

On the one hand, the visits to the commerce chambers, industry associations and relevant institutions in Finland, Sweden and Latvia helped formulate a more comprehensive liaison mechanism with these organizations. On the other hand, establishing cooperative relationships with the business departments of the Chinese embassies in these three countries will help make up for the lack of cooperation between Sichuan companies with their Baltic counterparts. This trip has laid a solid foundation for Sichuan enterprises seeking for market space and business opportunities in Northern Europe and the Scandinavian Peninsula.

The Final of the 2016 China Automotive Industry Venture Competition Smoothly Closed

The final of the 2016 China Automotive Industry Venture Competition (hereinafter referred to as the Competition) was held in Chengdu Century City New International Convention and Exhibition Center on May 18^th. Vice president of Sina Chu Dachen, founder of Autolab Zhao Yi, founder of renrenche.com Li Jian and other famous professionals delivered excellent speeches on the field.

The Competition is one of the theme activities of the 2016 Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (2016 CAPAS Chengdu), organized by the Automotive Industry Committee of the China Council for the Promotion of International Trade, undertaken by the Sina Auto and the Sichuan Council of the China Council for the Promotion of International Trade and supported by the Sichuan Provincial Committee of the Communist Youth League. Competitors elected out from the preliminary contests carried out in Beijing, Shanghai, Guangzhou and Chengdu respectively can have the qualification to participate the final which was held in Chengdu.

The 14 winners elected from the nationwide preliminary contests played road shows at the final. Automotive aftermarket e-commerce platform including “bimawen.com” and www.dashibaoyang.com, cutting-edge automotive new technologies like smart car of “space time shuttle - radium” and common micro computer module system of “Chengdu Uni-Link”, on-campus creative student team, experienced social entrepreneurship groups and many academic professors at home and abroad debuted at the same time. Rated by 20 founders and co-founders of famous investment organizations including Baic Motor Corporation Ltd., Angel Plus Innovation Space, EtherCap, Zhen Fund and Hi-Coffice, Autoio, cheyuwo.com and Wind Booster Electric Roadster won the First, Second and Third Prizes respectively. Venture capital institutions and investment funds from all over the world also came to the site for viewing, had talks with interested teams, established project cooperative and investment platforms and finished achievement transformation and project signing.

In order to improve the innovative and entrepreneurial ability of Sichuan youths and promote the innovative development of Sichuan automobile industry, the Sichuan Provincial Committee of the Communist Youth League held the final of the 2016 China Automotive Industry Venture Competition in Chengdu on May 5^th. Boasting core technologies, perfect product design ideas and experienced and competitive crew, Chengdu Uni-Link stood out from 14 competitors at the preliminary contest held in Chengdu, won the championship to participate in the final and ranked in top six at the final.

Competitors including Chengdu Uni-Link thought that the Competition provided them a wonderful opportunity to talk to many famous investment organizations face to face, through which they can not only improve their innovative and entrepreneurial ability but also get the chance to make investment directly which also played a driving role on the transformation of innovative automotive scientific achievements.

TusStar, DT Capital Partner and Zhongyi Hi-Tech Investment Group regarded the Competition as a rich ore, in which they could seek out potential companies and projects. By publicizing the companies, solving practical difficulties of small and medium entrepreneurs in terms of financing, producing, marketing and recruiting and mobilizing their initiative, the potential companies and projects can jointly promote the innovative and entrepreneurial development of Sichuan automobile industry.

2016 China Auto Venture Capital Summit and China (Sichuan) Automobile Industry Investment Cooperation Convention Held in Chengdu

The China Auto Venture Capital Summit and China (Sichuan) Automobile Industry Investment Cooperation Convention was held in Chengdu from May 18^th to 19^th, 2016. With the theme of “Focusing on New Energy and Concentrating on New Development”, the conference was organized by the Sichuan Provincial People’s Government and the China Council for the Promotion of International Trade, jointly undertaken by Sina Auto, the Sichuan Board of Investment Promotion, the Sichuan Provincial Economic and Information Commission and the CCPIT Sichuan Council and assisted by Messe Frankfurt (Shanghai).

Before the conference, the secretary of the Sichuan Provincial Committee Wang Dongming met the president of Dongfeng Motor Zhu Yanfeng and the president of Geely Auto Li Shufu respectively. Deputy secretary of the Sichuan Provincial Committee and Governor Yin Li met the president and general manager of Chery Automobile Co., Ltd. Yin Tongyue, general manager of CITIC Group Wang Jiong as well as the president and CEO of CSC Group Shan Xiangshuang. Vice Governor Liujie met relevant management of the organizing institution as well as leaders of some foreign-invested and domestic enterprises. A series of activities including the Sichuan Provincial Key Cities (Prefectures) Automobile Industry Promotion Conference as well as round-table forums with the themes of New Intelligence: Intelligent Drive Expedites New Relationship Between Human and Cars, New Future: Seeking for Development Potential of Automobile Industry and New Era: Fighting in the New Era of Second-Hand Automobile were successively held during the period. Chengdu Municipal People’s Government signed deepen strategic cooperation agreement with Dongfeng Motor on the field.

Deputy secretary of the Sichuan Provincial Committee and the governor of Sichuan Province Yin Li attended the conference on the morning of May 19^th and gave a welcoming address. Vice Governor Gan Lin and secretary-general of the Sichuan Provincial People’s Government Luo Qiang were present at the conference. Director of the Automotive Industry Committee of the China Council for the Promotion of International Trade Wang Xia, COO and co-president of Sina Du Hong made speeches at the conference. Director of the Sichuan Provincial Economic and Information Commission Chen Xinyou made an introduction and recommendation on the automobile industry of Sichuan. Deputy general manager of Baic Group Cai Suping, Ｅxecutive vice president of Volkswagen Group China Du Sikai, founder, president and CEO of China Science & Merchants Capital Management Shan Xiangshuang, vice president of Baidu, chairman of Baidu Technical Strategy Committee and general manager of Automatic Drive Department Wang Jing and general manager of Tesla Motors in China Zhu Xiaotong delivered excellent speeches respectively. The Sichuan Auto Industry Major Projects Signing Ceremony and Opening Ceremony of the 2016 CAPAS Chengdu were held at during the period.

Vice president of Messe Frankfurt Stephan Buurma, president and general manager of Chery Automobile Co., Ltd. Yin Tongyue, deputy director of Hyundai, general manager of Sichuan Hyundai Motor Company Xin Mingji, famous economist Mao Yushi and representatives from over 210 world-known companies like Flat Chrysler, Bosch and Michelin attended the conference on the morning of May 19^th. Leaders from party committees or governments of Chengdu, Deyang, Mianyang, Suining, Neijiang, Nanchong, Guang’an, Dazhou, Ya’an, Meishan and Ziyang and representatives from relevant authorities under the direct control of Sichuan Province also took part in the conference.

The Sichuan Provincial Key Cities (Prefectures) Automobile Industry Promotion Conference was conducted simultaneously. At the Conference, the representative of the Sichuan Provincial Economic and Information Commission introduced the development tendency and relevant policies of Sichuan automobile industry. Government personnel of Chengdu, Mianyang, Suining, Neijiang, Nanchong, Guang’an and Meishan presented the development status quo of local automobile industry and introduced some important industrial parks. After the conference, relevant organizers led the participants to the project site for field visit.

By holding in-depth discussions, Sichuan companies signed 33 automobile industry investment cooperation projects with domestic and overseas investors at the Conference, contributing to a total investment amount of RMB 37.912 billion. The 33 projects included 11 projects under formal contract with a total investment amount of RMB 10.262 billion and 22 projects under framework agreements with a total investment amount of RMB 27.65 billion. Project sites were distributed in Chengdu, Panzhihua, Deyang, Mianyang, Suining, Neijiang, Guang’an and Dazhou.

Classifying by the level of industry, there were 23 secondary industry projects with a total investment amount of RMB 15.382 billion and 10 tertiary industry projects with a total investment amount of RMB 3.65 billion. Classifying by the type of industry, the 33 projects included 4 automobile manufacturing industry projects with a total investment of RMB 3.65 billion, 3 new energy automobile projects with a total investment amount of RMB 5.1 billion, 14 auto parts manufacturing projects with a total investment amount of RMB 6.472 billion, 3 automobile R & D projects with a total investment amount of RMB 360 million, 3 automobile industrial park projects with a total investment amount of RMB 1.9 billion, 1 automobile headquarters economic project with an investment amount of RMB 13 billion and 5 automobile service industry projects with a total investment amount of RMB 7.43 billion.

Contracts of eight projects including (Suining) new energy automobile project of Jiangsu Tianyang Group, (Mianyang) automobile industrial park project of China Gezhouba (Group) Corporation and (Guang’an) auto and motorcycle parts and electronics manufacturing project of Chongqing Shengda Cable Co., Ltd. were signed on the site of the Conference on the morning of May 19^th.

The 2016 CAPAS Chengdu Smoothly Ended

The 2016 CAPAS Chengdu jointly organized by the Automotive Industry Committee of the China Council for the Promotion of International Trade, Messe Frankfurt (Shanghai) and the Sichuan Council of the China Council for the Promotion of International Trade was unveiled in Chengdu Century City New International Convention and Exhibition Center on May 19^th. Purchasers and merchants will gathered in the 35,000 m² wide exhibition hall to jointly boost the exchange of information.

The CAPAS kept developing steadily over the past three years. This time, 2016 CAPAS Chengdu had appealed 728 exhibitors from all over the world, with a growing rate of 9%. The exhibition hall was divided into three areas. Over 16,000 professionals from different countries gathered here, with a year-on-year growth of 20%.

Industries of Sichuan Province developed fast over the past years, especially the automobile industry. A mass of manufacturers established factories here with its capacity growing rapidly. The CAPAS firmly grasped the industrial development momentum and built solid bridge for exhibitors and purchasers to gain a firm foothold in the market.

The number of exhibitors was growing year by year. Large quantities of world famous brands in the industry were appealed to the 2016 CAPAS Chengdu this year. The exhibitors were from 10 different countries and regions, including Indonesia, Italy, Germany, Korea, Canada, America, Japan, China, Taiwan and Hong Kong.

Further implementing the “Belt and Road” initiative has connected up the western, middle and eastern parts of China, linked the Asian, European and African continents together and remarkably promoted the rapid growing of commercial vehicle industry. By establishing “Special Exhibition Hall for Commercial Vehicles”, the 2016 CAPAS Chengdu aimed to establish more business contacts and explore more potential business opportunities.

This time, about 16,000 professional purchasers from around the world came to the site to search for innovative technologies and products applied to the whole automobile industrial chain from manufacturing to after sales services. Numerous overseas purchasers including purchasers from Malaysia and Turkey formed a group to participate in the CAPAS. In addition, a bulk of domestic visiting groups also came to the site to explore the development tendency of automobile industry and market potential in southwest region.

About 17 activities involving auto parts and supplies manufacturing, retrofitting, repair and maintenance were carried out during the period. A series of high-quality industrial forums and activities including the “Made-in Sichuan” self-driving tour theme series activities, CAPAS 2016 Seminar, Auto Parts Intelligent Manufacturing, CAPAS 2016 Automobile Modification Cultural Festival, the 2016 China Auto Venture Capital Summit and China (Sichuan) Automobile Industry Investment Cooperation Convention and the 2016 China Automotive Industry Venture Competition left a pleasant memory to the participants and exhibitors during their trip to Chengdu.