Electronic Monthly Magazine

Of Sichuan Economic and Trade Updates

The Issue of June, 2014

China Council For the Promotion Of International Trade, Sichuan Council     Main Sponsor

Table of Contents

Macroeconomics

2017 online trade target: 800 trillion Yuan

On 10^th of June, Chengdu published “The implementation suggestions about building the demonstrative city of national online trading”, plan by 2017, the size of online trading reaches 800 trillion Yuan.

According to “Suggestions”, by 2017, the percentage of Chengdu online retail sales in total social retail sales would strive to achieve more than 15%, online business application penetration rate in SMEs would reach 80%. Developing 10 online business platforms in specific sub- industry with the largest trading size and strongest market penetration; incubating 1000 entrepreneurial online business companies, and fostering 300 innovative online business companies; bringing in more than 20 new regional headquarters or functional headquarters of well-known online business enterprises, both domestic and international. The status of online business as the core industry has been established.

Other than those four main attack directions, “4586”also include 5 platforms such as mobile pay, 8 industrial parks such as online business industrial park, 6 supporting systems such as online business entrepreneurs. (11^th of June, Sichuan Daily)

Sichuan’s economy has been steady and going up,

Main indicators ‘growth is faster than national average

In the first 5 months, Sichuan’s economy has achieved a steady growth, and main economic indicators’ growth is evidently higher than national average, at the front of provinces with more than 2000 trillion Yuan GDP.  In the first 5 months, the industrial added value of Sichuan enterprises above designated size increased by 9.5%, the growth rate is approximately 0.8% higher than national average; completed fixed assets investments of 863.39 trillion Yuan, growth rate is 0.1% higher than national average; total social retail sales increased by 12.9%, compared to last year, growth rate is 0.8% higher than national average.

In terms of industries, since this year, impacted by lack of market demand, the growth of Sichuan industries slowed dramatically compared to last year, however key industries such as automobile manufacturing and electronic information have achieved continuous and faster growth, and the coal industry has been gradually recovering, pulled by favorable factors such as increase in the number of newly-added enterprises, January to May the industrial added value of Sichuan enterprises above designated size has been growing 0.1% higher than the first 4 months, increased by 0.3% compared to first quarter. Among them, February increased by 7.7%, March increased by 9.5%, April increased by 10.0%, May increased by 10.2%.

In terms of investment, January to May Sichuan total social fixed assets investments achieved 910.45 trillion Yuan, in the first 5 months completed approximately 2 times of the investment volume of 2006; among them, fixed assets investment (excluding farmers ‘investment) completed 863.39 trillion Yuan, increased by 17.3% compared to last year, growth rate is equal to the growth rate from January to April, 0.1% higher than national average within the same period. Among provinces with large economy, the growth rate of Sichuan fixed assets investment is only lower than Henan, standing side by side with Guangdong in second place. It is notable that private investment continues to achieve fast growth. From January to May, Sichuan private investment increased by 16.1% compared to last year, accounting for 57.4% of total social investment, increased by 1.6% compared to comparable periods last year, contributing 70% to total social investment growth. (16^th of June, Sichuan Daily)

Chengdu completed 243.88 trillion Yuan investment in the first 5 months

Chengdu completed 243.88 trillion Yuan investment in the first 5 months of this year, increased by 1.7% compared to last year, continuing to be the No.1 among 15 sub-provincial cities in China.

Chengdu fixed assets investment from January to May has the following characteristics:  1. tertiary industry is still a major force supporting investment, accounting for 77.3% of total investment of Chengdu. 2. The supporting effect of key regions, such as High-tech Zone and Tianfu New Zone Chengdu Provincial Directly Governing Zone, is evident, among them, Tianfu New Zone Chengdu Provincial Directly Governing Zone completed investment 10.41 trillion Yuan, increased by 32.3% compared to last year. 3. Key projects are still the key factors supporting investment, the 750 key projects completed investment of 95.71 trillion Yuan. 4. Private investment is still a major force supporting investment, accounting for 57.4% of total fixed assets investment. (30^th of June, Sichuan Daily)

International Trade

15 foreign banks set up subsidiaries in Chengdu

Currently, banks from 10 countries and regions such as United States, United Kingdom, France, Australia, Singapore, Japan, South Korea, Thailand, Hong Kong, and Taiwan have established agencies in Chengdu. These banks’ radius of service has been expanded to places such as Mianyang, Deyang, Yibing, Panzhihua, Leshan, Zigong, Ziyang, Nanchong, Dazhou, and Luzhou. The Sichuan subsidiaries of foreign banks leverage its global network and product technologies to provide financial services to Sichuan, for instance, providing services, such as international bonds issuance and international syndicated loan, to Chinese companies, helping them achieving “going out”. (3^rd of June, Sichuan Daily)

The upgraded version of Sichuan-France cooperation have showed embryonic form

During the time Sichuan representatives are conducting investment promotion activities in France, Sichuan and France have signed a large number of cooperative projects, including both traditional cooperation areas such as energy and electronic power, trade and logistics, modern agriculture, and emerging areas such as health and retirement care, culture and tourism. Up until last year, there are 96 France companies investing in Sichuan, receiving foreign capital 0.354 trillion dollars; there are 4 Sichuan companies investing in France, approved total investment 20,440,000 dollars. One-direction investment is shifting to two-direction cooperation. From traditional industries to emerging industries, from one-direction investment to two-direction cooperation, from Fortune 500 companies to co-constructing platform, the upgraded version of Sichuan-France cooperation have showed embryonic form. (6^th of June, Sichuan Daily)

60 Chengdu high-tech enterprises have formed an alliance to seek business opportunities in Europe

On 11^th of June, a group of economic and trade representatives, comprised of 60 high-tech companies from Chengdu High-tech Zone, will go to Europe, conducting activities such as project promotion and business opportunity matchmaking in areas revolving around innovative cluster, life science, renewable energy, and general aviation. Representatives will go to countries such as Belgium and Germany. The Innovation Centre of Chengdu-EU Projects encourages companies to seek opportunities in the west, which is the inherent requirement of transitioning and upgrading, Chengdu High-tech Zone has fostered a number of high-tech companies with excellent innovation capabilities, who have both the desire and ability to go international. (7^th of June, Sichuan Daily)

Sichuan’s international trade increased by 15.2% in May

From January to May this year, Sichuan’s total imports and exports from foreign trade have achieved 172.35 trillion Yuan, increased by 7.2% compared to the same period last year. At the beginning of May, the total value of Sichuan’s exports and imports is 35.55 trillion Yuan, increased by 15.2%, turning around the downward spiral in the first two months, among them, total exports value increased by 15.3% compared to last year, total imports value increased by 14.9% compared to last year.

There are 3 reasons why Sichuan’s exports and imports stopped falling and started to go up in May: trade between Sichuan and countries and regions, such as United States, the Association of Southeast Asian Nations, European Union, has increased evidently; private companies continued to prosper with faster growth rate; production capacity of Shuangliu Industrial Park, Chengdu Comprehensive Bonded Zone continued to release. During the same period, inbound and outbound goods supervised by Customs in Shuangliu Industrial Park, Chengdu Comprehensive Bonded Zone increased by 78.5% compared to last year, goods value more than doubled compared to last year. (13^th of June, Sichuan Daily)

Województwo ódzkie province of Poland will set up

Economic and Trade Representative Agency in Chengdu

As the place where terminal station of Chengdu-Europe Fast Train located, Województwo ódzkie province is actively preparing an Economic and Trade Representative Agency in Chengdu. It will be the second Economic and Trade Representative Agency worldwide set up by Województwo ódzkie province, after the establishment of an agency in Brussels. The 4^th Imported Goods Exhibition held in Chengdu will have a Województwo ódzkie display area, and an Economic and Trade Promotion Conference for Województwo ódzkie province, Poland will be held. As an exploration of Sichuan market, special agriculture products of Województwo ódzkie province will be displayed in the exhibition. (14^th of June, Sichuan Daily)

Major Projects

The bullet train between Shanghai and Chengdu was brought into use,

since then Sichuan became a part of national high-speed train system

On the 1^st of July, the bullet train from Chengdu to Shanghai will be opened.

This bullet train passes Chengdu, Chongqing, Wuhan, Hefei, Nanking, Shanghai etc., crossing the eastern, central and western areas in China, marking the main land passage, Shanghai –Wuhan-Chengdu High-speed train, on Yangtze River Economic Belt, are completely opened to traffic, a big passenger and goods channel connecting the whole Yangtze River Economic Belt will officially be formed.

Other than Shanghai-Chengdu bullet train, Sichuan will also increase bullet train network density in the future. By the end of this year, Chengdu-Mianyang-Leshan Passenger Line will be competed and put into operation. Next year, Chengdu-Chongqing High-speed Train will be competed and put into operation. With the construction and operation of Mianyang-Leshan Passenger Line and Chengdu-Chongqing Passenger Line, the bullet train system of Sichuan will become denser.

At the same time, the section from Ya’an to Kangding (Xinduqiao) of Sichuan-Tibet train, the section from Xuyong to Bijie of Longhuang Train, and the Chuannan intercity railway, these 3 projects are striving to begin construction next year. Since last year, 6 new projects, such as Xicheng Passenger Line, Chenggui Railway, section from Chengdu to Emei and section from Miyi to Panzhihua of Chengkun Railway, have started building, and there are 16 ongoing railway projects in Sichuan province, mileage of ongoing projects is 2215 km, investment 270 trillion Yuan, leading the country in both investment size and number of projects in construction. (12^th of June, Sichuan Daily)

Industrial Information

Establish an alliance of vanadium and titanium iron concentrate enterprises

On 3^rd of June, the alliance of vanadium and titanium iron concentrate enterprises in Panzhihua City was officially established, and this alliance is comprised by more than 30 vanadium and titanium iron concentrate enterprises in Panzhihua city, will formulate standards for “vanadium and titanium iron concentrate“ and  “vanadium and titanium secondary iron concentrate “according to company’s actual production conditions.

Panzhihua City has abundant vanadium and titanium iron concentrate resources, but because lack of national and industry standards guidance, production technical level of different companies varies considerably, the overall market competitive capability is low. After establishment of the alliance, it will regularly update, supplement, and revise standards among member companies, making companies strictly follow the standards to organize production and inspection, facilitating standardization and scientification of tasks such as production and operation. (5^th of June, Sichuan Daily)

Sichuan will establish the “Silicon Valley “for West China geographic information industry

Sichuan will establish a national first-class West China Geographic Information High-tech Industry Park in Jinniu District.

After completion, West China Geographic Information High-tech Industry Park can generate 2 trillion Yuan production value in the first year, creating 10 thousands job opportunities, will become an aircraft carrier attracting Geographic Information companies, from Sichuan and other western provinces, to cluster here, and become the “Silicon Valley “for West China geographic information industry, stimulating the development of Chengdu and radiating across China. By 2020, a comprehensive Geographic Information Industry Park with evident concentration effect and strong brand effect will be built, by and large forming a complete Geographic Information industry chain which is comprised by basic surveying and mapping, data processing, system integration, service outsourcing, equipment manufacturing, etc., production value of the industrial park will exceed 10 trillion Yuan, production value of related service brought by the park will exceed 100 trillion Yuan.

The total investment of industrial park is 3.5 trillion Yuan, the construction has officially started since November, last year, and there are currently 41 well-known domestic and foreign Geographic Information companies such as Beijing Tianyuansiwei Technology in the park. (6^th of June, Sichuan Daily)

Vehicle manufacturing increased by 40.3% in the first 4 months, compared to last year

This year, from January to April, Sichuan’s automobile manufacturing industry has remained a fast growth trend compared to the same period last year, and overall production and selling have been well-coordinated. Sichuan manufactured 315,000 automobiles, increased by 40.3% compared to last year; the gross industrial output value of Sichuan automobile manufacturing industry is 75.32 trillion Yuan, increased by 20.2% compared to last year, with sales ratio of 99%. (9^th of June, Sichuan Daily)

The port throughput of Sichuan increased by 12.27% in the first 5 months

Port's throughput of Sichuan has reached 8,830,000 tons in May, this year, increased by 9.39% compared to the same period last year. From January to May, Port's throughput of Sichuan has reached 39,040,000 tons, increased by 12.27% compared to the same period last year, among them, Luzhou port is 13,440,000 tons, increased by 11.75%; Yibing port is 5,830,000 tons, increased by 42.88% compared to the same period last year.

From January to May, container throughput of the Sichuan ports has reached 151,655 standard boxes, increased by 126.75% compared to the same period last year. Among them, the throughput of Luzhou port is 100,106 standard boxes, increased by 99.17% compared to the same period last year; the throughput of Yibing port is 51,527 standard boxes, increased by 209.97% compared to the same period last year. (11^th of June, Sichuan Daily)

Equipment manufacturing exports increased by 43.6% in the first 4 months, compared to last year

The export of Sichuan equipment manufacturing industry above designated size has decreased last year, export commercial value in the first 4 months of this year is 7.39 trillion Yuan, increased by 43.6% compared to the same period last year; gross industrial output value is 255.6 trillion Yuan, increased by 15.6% compared to the same period last year. (17^th of June, Sichuan Daily)

Electronic Information industry has achieved a steady growth in the first 4 months

From January to April, Sichuan electronic information industry has achieved a steady growth. Among them, the industrial added value of computer communication and other electronic manufacturing industries has increased by 16.7% compared to the same period last year; primary business revenue of software and information service industry has achieved 68.159 trillion Yuan, increased by 21.96% compared to the same period last year. (18^th of June, Sichuan Daily)

Chengdu High-tech Zone and the Czech Republic have reached a

Memorandum of Cooperation in the area of general aviation

From 11^th to 21th of June, a delegation comprised by 60 high-tech companies and 82 entrepreneurs from Chengdu High-tech District went to European countries such as Germany，Belgium, and Czech Republic, focusing on areas such as innovative cluster, life science, renewable energy, and general aviation, holding business conferences in Brussels, Prague, and Hamburg, attracting 120 companies from 10 different countries, conducting almost 300 talks.   

On 16^th of June, Czech Republic Investment Promotion Bureau, Chengdu- EU Project Innovation Center and Chengdu High-tech District Administrative Committee reached a Memorandum of Cooperation in Prague, promising to promote communication and cooperation between Sichuan and Chengdu government institutes, companies, general airports and corresponding institutes in Czech Republic, promoting cooperation between two parties in areas such as general aviation industrial park construction, air traffic control system, pilots training, and the production, selling, operation and repair of small airplane.  (26^th of June, Sichuan Daily)

Exhibition Economy

2014 Xindu South Asia Special Goods Exhibition opened

On 20th of June, the 2014 South Asia Special Goods Exhibition opened at Xindu Northern Shopping Mall, this is the first large business and trade activity with the theme of South Silk Road held by Chengdu. This exhibition has 8 exhibition rooms- silk exhibition room, Xindu special goods exhibition room, Xindu Northern Shopping Mall exhibition room, Vietnam exhibition room, Thailand exhibition room, Sri Lanka exhibition room, Pakistan exhibition room, Burma exhibition room, Malaysia exhibition room, Laos exhibition room, cuisine exhibition room, foreign businessmen brought local special goods from their home countries.  

This exhibition is one of a series of activities with the theme of “South Silk Renaissance Road, Restart of Xindu”. Based on the advantage of Xindu District as starting point of South Silk Road, Xindu District used Northern Shopping Mall as a carrier, and held a series of international and domestic activities such as business and trade exhibitions, investment talks, culture tourism. In the previous “South Silk Road “exploring activities, Xindu District and Panzhihua East District Trade Association held business and trade communication activities, and reached strategic cooperation, 4 companies from these two regions signed letters of cooperation intent. Recently, Xindu District also held “Xindu-India Business and Trade Conference “in order to find new development opportunities for Xindu, Chengdu, and Sichuan enterprises. (23^th of June, Sichuan Daily)

2014 China-South Korea (Chengdu) Economic and Trade Fair was held in Chengdu

On 25^th of June, 2014 China-South Korea (Chengdu) Economic and Trade Fair was held in Chengdu. Daegu city and Chengdu may officially sign a city memorandum of cooperation in the near future, and Daegu will become the 34^th friendly cooperative cities of Chengdu.

Daegu is the third largest city in South Korea, a Guangyu City directly administered by South Korean central government. 

This year, the Southeast China Branch of South Korea Daegu Qingbei Mechanical Industrial Association plans to hold a bigger economic and trade conference at Chengdu in September, and organizes Chengdu entrepreneurs to visit South Korea in August and October, to conduct field research and project communication. (26^th of June, Sichuan Daily)  

Sichuan Trade Promotion

The fifth China （Sichuan）- South Asia Economic and Trade Cooperation

 Round Table Conference was held in Chengdu

   Co-organized by CCPIT, Sichuan Provincial People’s Government，and SAARC Chamber of Commerce, “The fifth China （Sichuan）- South Asia Economic and Trade Cooperation Round Table Conference“ organized by CCPIT Sichuan Council was held in Chengdu from 10^th to 11^th of June, 2014. The theme of this round table is “New opportunities in South Asia countries ‘infrastructure construction and development ”. Officials from embassy and consulates in China, from 7 countries such as Afghanistan, Bangladesh, India, Maldives, Nepal, Sri Lanka, Pakistan, Chamber of Commerce representatives of each country, and representatives of Sichuan infrastructure construction entrepreneurs in total 200 guests attended the conference. 

This round table revolves around the theme of “New opportunities in South Asia countries ‘infrastructure construction and development”, business associations representatives from South Asian countries and officials from embassy and consulates in China introduced the current status and characteristics of infrastructure construction in each country respectively. About 80 Sichuan companies have communicated with South Asian business associations’ representatives and entrepreneurs to discuss cooperation. In project promotion conference and face-to-face communication fair, Afghanistan, Bangladesh, and Sri Lanka promoted projects such as power station projects and road and bridge construction projects.

In business association working conference, leading officials of SAARC Chamber of Commerce and 7 South Asian countries’ business associations held comprehensive talks with CCPIT Sichuan Council, deciding “The sixth China （Sichuan）- South Asia Economic and Trade Cooperation Round Table Conference” will be held in Chengdu in June, 2015, rotating presidency is passed to Bangladesh, and the theme is “continuing to deepen cooperation between Sichuan and South Asian countries in the area of infrastructure building”.  During the meeting, Sichuan Trade Promotion Association also signed a cooperation memorandum with Indian China Economic and Culture Committee.

The fourth China （Sichuan）Imported Merchandizes Exhibition and

the second China （Sichuan）International Home Furnishings Exhibition,

i.e. Soft Decoration Design Art Exhibition, was held in Chengdu

From 13^th to 16^th June, 2014, the fourth China （Sichuan）Imported Merchandizes Exhibition and the second China （Sichuan） International Home Furnishings Exhibition, i.e. Soft Decoration Design Art Exhibition were held in Chengdu by CCPIT Sichuan Council at Chengdu New Century City International Exhibition Center. “These two exhibitions “has distinctive theme, international coverage, many kinds of companies, close to market and consumers, the effect is evident, gaining acknowledgement from participating enterprises and consumers.   

 “Imported goods exhibition “was participated by more than 380 companies and institutions from 30 countries and regions such as EU, Latin America, ASEAN, South Asia, Northeast Asia, the exhibition area is 15000 km2. During the 3 days of exhibition, there are 40000 visitors and professional buyer, and two fairs were held. Deals worth 3370000 Yuan were made on site, and more than 13000000 Yuan agency contract and letter of intent were signed. Thailand, Malaysia, South Korea, and Chile have decided to display products at Sichuan International Goods Exhibition Center on a long-term basis.

The purpose of “Home Furnishings Exhibition “is to build a displaying and communication platform for Sichuan home furnishing and soft decoration industry, promoting the inward transfer of consumption and industry. There are more than 300 participating companies, and the exhibition area is 15000 km2. Deals worth more than 5100000 Yuan were made on site, 5800000 Yuan of purchase contracts or letters of intent were signed.

 “Italy Veneto Region- Sichuan Enterprises Face-to-face Conference “was held in Chengdu

  On 25^th of June, 2014, delegation of Italy Veneto Region visited our council, and co-organized “Italy Veneto Region- Sichuan Enterprises Face-to-face Conference”.

Vice president Lili welcomed the delegation and met with Zhangluka, the business consul of Italy consulate general in Chongqing, and Belva Antonella, the leading official of China, trade promotion center, Italy Veneto Region,.

As an important region in Northeast Italy, Veneto has evident advantages in areas such as machinery, leatherworking, furniture, decorative lighting, clothing, and gold processing. In recent years, it has shown strong capabilities in areas such as environmental protection technology, nanotechnology and relics restoration. Chengdu hopes this visit will further strengthen communication between Veneto, and our council and Sichuan companies, providing assistance to cooperation between both parties. 

On “Italy Veneto Region- Sichuan Enterprises Face-to-face Conference”, about 20 Sichuan companies from areas such as furniture, decoration, and machinery have communicated with their Italian counterparts, furthering understanding, promoting cooperation, with excellent results.

The Economic and Trade representatives of CCPIT Sichuan Council

went to South Africa, Namibia, and Tanzania to conduct economic and trade activities

  At the invitation of the South African Department of Trade and Industry, South African International Trade Exhibition Committee, Namibia Chambers of Commerce, and Tanzania Chambers of Commerce and Agriculture, a 49 people economic and trade delegation comprised by representatives from 26 companies and led by president of CCPIT Sichuan Council Ligang, from 22th of June to 1^st of July, 2014, went to the aforementioned three countries to conduct economic and trade activities

At this South Africa International Exhibition, Sichuan set up 25 display areas, covering 225 km2, participating companies mainly from areas such as construction materials, food and beverage, hardware, and furniture. Among them, products such as mobile house, furniture and window or gate, steel-structure products, were especially well-liked by South African businessmen.

During the exhibition, economic and commercial counselor from embassy of the Republic of China in South Africa Leizhigang, consul general stationed in Johannesburg Sundali, president of Republic of South Africa-Chinese Chamber of Commerce and Industry Chenyiqiao, president of South Africa Chinese Business Association Xuchangbing, Chinese enterprise representatives in South Africa, South Africa government officials, 39 South African companies, 26 Sichuan companies, attended the enterprise conference co-organized by CCPIT Sichuan Council and Republic of South Africa-Chinese Chamber of Commerce and Industry.