Sichuan Economy and Trade Trends

Monthly, January 2016

Published by CCPIT Sichuan Council

Contents

Macro Economy

Direct Revenue of Sichuan Ecotourism Reached RMB 65.86 Billion Last Year

In 2015, Sichuan had received 250 million ecotourism visitors and achieved direct revenue valuing RMB 65.86 billion, a 10% year-on–year growth.

Sichuan continued facilitating ecotourism increase last year, relying on forest parks, natural reserves, wetlands and rural ecotourism. Rural ecotourism revenue reached RMB 45.97 billion, taking up 70% of the total ecotourism industry.

Sichuan will continue to focus on forest park development and resource integration of red leaves, so as to further ecotourism development both in scope and depth. (January 12^th, Sichuan Daily/Wang Chengdong)

Leisure Agriculture Revenue of Sichuan Broke the Record of A Hundred Billion Last Year for the First Time

In 2015, operating agencies of leisure agriculture and rural tourism in Sichuan Province grew into 31,000, which had received 320 million visitors and achieved a comprehensive operational income of RMB 100.8 billion, scale economies effect ranking first in China. It had also helped 10.34 million farmers employed and contributed RMB 82.1 to income increase per capita of Sichuan farmers, thus becoming a new growth pole. (January 15^th, Sichuan Daily/Li Miao)

Economic Aggregate of Sichuan Exceeded Three Hundred Trillion

In 2015, Sichuan achieved regional GDP totaling RMB 3010.31 billion, 7.9% increase than that of last year on comparable prices, with an increase rate 1% higher than national average. Therefore, Sichuan became the first province in Western China whose GDP had exceeded three trillion.

As for the industrial structure, the primary industry in Sichuan increased RMB 367.73 billion, 3.7% more than last year; the secondary industry increased RMB 1.42932 trillion, 7.8%; the tertiary industry increased RMB 1.21326 trillion, 9.4%. It is noteworthy that the tertiary industry made a great breakthrough for that its GDP proportion reached over 40% and higher than that of the secondary industry for the first time.

The secondary industry, the mainstay of Sichuan economic development, maintained a steady growth. Industrial enterprises above designated size increased by 7.9% than that of last year, whose rate was 1.8% higher than national average. In terms of industries, 36 out of 41 major industries achieved growth in increment. The industrial structure made obvious optimization and adjustment. The increment proportion of six high energy-consuming industries in industries above designated size dropped from 27.1% in 2011 to 22.5% in 2015, while high-tech industries increased from 11.0% in 2011 to 13.9% in 2015.

The investment scale was enlarged. Sichuan has attracted a fixed asset investment totaling RMB 2.59737 trillion, 10.2% more than last year. Wherein, the fixed asset investment (excluding peasant households) 2.49656 trillion, increased by 10.2%. In the aspect of industrial investment, the amount invested to the tertiary industry is the largest, reaching RMB 1.76716 trillion, while the primary industry has the largest growth rate, 31.8% more than that of last year.

The consumption maintained a steady and rapid growth. The total retail sales of consumer goods is RMB 1.38777 trillion, 12% increase than that of last year. Catering industry achieved 195.6 billion, increased by 12.3%; rural consumer market saw rapid growth, 1.5% more than that of urban areas.

In the aspect of areas, the development strategy supported by multi-points and multi-poles was accelerating. Guang’an and Meishan had broken the GDP record of RMB 100 billion, becoming two new members in Sichuan cities (prefectures) whose GDPs have exceeded RMB 100 billion. Sichuan Province have saw a good development pattern with one city owning RMB 1 trillion and 13 cities (prefectures) owning RMB 100 billion. (January 21st, Sichuan Daily/ Dong Shimei and Wu Jing)

Foreign Trade

Deyang Issued the First C/O of China-SouthKoreaFTA in Sichuan Province

With China-South Koreaand China-Australia FTA went into effect, Deyang Entry-Exit Inspection and Quarantine Bureau issued the first C/O of China-South Korea FTA in Sichuan Province recently.

The products involved in the C/O were 500 tons of feed grade Dicalcium phosphate, worth USD 215,000 and produced by an enterprise in Mianzhu. With the C/O, the products will not need to pay tariff anymore when accessing South Korean market. (January 4^th, Sichuan Daily/Ran Qianting)

53 New Taiwan-funded Enterprises Settled in Sichuan Last Year

In 2015, Sichuan made significant achievements in Taiwan-related affairs, especially the sustained development of economic and trade cooperation. 53 new Taiwan-funded enterprises had settled in Sichuan last year with new investment and additional share totaling USD 2.5 billion, and a Taiwan-related trade volume of USD 1.59 billion, which further secured Sichuan’s status as the first choice forTaiwanbusinesses investing Western  China.

By the end of 2015, the number of Taiwan-funded enterprises in Sichuan had reached 1,763 and project aggregate investment USD 16.5 billion. Sichuan had held a series of important Taiwan-related economic and trade activities including 2015 Western China Cross-Strait Economic and Trade Cooperation Exchange, the 2nd Sichuan-Taiwan Agricultural Cooperation Forum, Sichuan-Taiwan Financial Cooperation Forum as well as Sichuan-Taiwan Agricultural Cooperation Accomplishment Exhibition to set up platforms for Sichuan-Taiwan cooperation. In order to support Taiwan-funded enterprises to develop and grow, Sichuan Provincial Office of Taiwan Affairs also organized a “Visiting Season for Taiwan-funded Enterprises”, in which more than 1,400 enterprises had been involved andTaiwancompatriots’ legitimate interests were effectively protected.

There were many exciting cultural exchange activities between Sichuan andTaiwan. Tianfu Summer Camp for Taiwan Students, Sichuan Cuisine Culture Camp for Sichuan and Taiwan College Students, Joint Interview of Cross-Strait Media Revisiting Rear Areas of Anti-Japanese were held successively in Sichuan. 300 Sichuan rural tourism foregoers were organized for training inTaiwanin six batches. Zigong Acrobatics Troupe and Sichuan Ethnic Song and Dance Ensemble also went to Central and South Taiwan to give grassroots exchange performances.

Exchange on personal level between Sichuan andTaiwanbecomes more frequently. In 2015, Sichuan has made 852 communication projects withTaiwanand sent 6,338 personnel toTaiwan. Over 310,000Taiwancompatriots have visited Sichuan, while over 60,000 Sichuan residents went toTaiwanfor sightseeing tour. (January 8^th, Sichuan Daily/Liu Miaomiao)

Sichuan Airlines Plans Direct Flights to Prague, the 6^th Direct Flight from Chengdu to Europe

On January 7^th, Sichuan Airlines announced that direct flights from Chengdu to Tokyo, Osaka andSingaporewould be opened later this month. It will also open a direct flight to Prague in February, which will be the 6^th direct flight from Chengdu to Europe.

A twice-every-week Chengdu-Prague direct flight will be opened in February which is a nearly nine hours’ flight. Airbus A330 will be adopted. At present, it takes 15 to 30 hours to travel from Sichuan to Czech Republic by air, transferring in Amsterdam or Beijing. The Chengdu-Prague direct flights will make a trip to Prague more convenient and faster.

This will also be the 6^th direct flight from Chengdu to Europe, succeeding Amsterdam, Frankfurt, London, Moscow and Paris. In recent years, Chengdu accelerates its flight arrangement in Europe. There are 19 flights, nearly 4,000 seats for Europe every week, ensuring direct flights with the four European airline hubs. (January 8^th, Sichuan Daily/Wang Meiling)

The Largest Private Medical Group in Asia Set Branch in Chengdu

On January 15th, ParkwayHealth, the largest private medical group in Asia whose headquarter is in Singapore, has set a branch in Chenghua District, Chengdu. This is the first foreign-funded third-level hospital in Western China that Chengdu has introduced, which will fill up Western China’s blank in international medical market.

ParkwayHealth Chengdu Hospital, with an investment of USD 200 million, is located on the north side of Chengdu East Railway Station and plans gynecology and obstetrics, pediatrics, cardiology, orthopedics, ophthalmology, general medicine and other departments. ParkwayHealth is the largest international health care service provider in Asia and invested its first hospital in Shanghai in 2005. ParkwayHealth Chengdu Hospital is the second of its branch hospitals inChina. (January 16th, Sichuan Daily/Zhang Minghai)

Key Projects

Chengdu High-tech Zone Started 12 High-end Manufacturing Projects

On January 6^th, 12 high-end manufacturing projects with total investment of RMB 7 billion started in the Western Park of Chengdu High-tech Zone.

Of these 12 projects, 7 are biological industrial projects, 3 are high-end equipment manufacturing, and the other 2 are energy conservation and environment protection. They covers an area of more than 1,000 mu (1 mu equals to 666.67 m²) and their overall floorage is over 800,000 m². From the aspect of investment, they are all over RMB 200 million. Two of them have an overall investment of RMB 1 billion and five have an overall investment between RMB 500 million to 1 billion. Among them, the seven biological industrial projects have an investment totaling RMB 5.11 billion, taking up more than half of the overall investment. Biological industrial projects such as Chipscreen Ltd. and Huahao Zhongtian Pharmaceuticals are high-tech enterprises established by Chinese teams returning from theUS. Chipscreen Ltd. is good at the R&D of original small molecule medicine; Huahao Zhongtian Pharmaceuticals plays a leading role internationally in producing epothilones, the new anti-cancer medicine. The other five biological industrial projects are funded by local enterprises. They will produce various kinds of products including innovative medicine, biotechnological medicine, blood products, injection, aerosol and Chinese materia medica preparation. The investors of the three high-end equipment manufacturing and two energy conservation and environment protection projects are all leading enterprises in the industry.

On 6^th, Medtronic, the world largest independent producer for medical apparatus and instruments signed a contract with Chengdu Municipal Government and Management Committee of Chengdu High-tech Zone, a production project of the next generation probe-enhanced insulin pumps will be established in Chengdu High-tech Zone. (January 7^th, Sichuan Daily/Ran Qianting, Zhang Lan and Wu Li)

Industries

Nanchong Modern Logistics Park Opened, Cargo Handling Capacity Expected to Reach 40 Million Tons by 2020

After three-year construction, the Nanchong  Modern Logistics  Park is officially put into operation on December 26^th.

The Park with a total investment of about RMB 5 billion as of today is one of the 8 largest logistics centers on Sichuan's planning. There are 9 enterprises in the Park whose “three longitudinal and two cross” main roads are paved out completely and supporting facilities like water, power and gas supply are in place. Major projects of enterprises including Transfar Group, Nanxing International, Usisen Group and China Grain Reserves Corporation are ready to operate.

On December 29^th, the core project of the Park – the Nanchogn Transfar Road Port invested by the Transfar Group with RMB 1.5 billion - was put into operation officially. The project is planned to be the urban logistics center in the Northeast Sichuan with the ambition to be “One Port and Three Center”, namely the core of Road Port, and centers of Urban E-commerce, Regional Express and Transfar Auto Trade.

The Park covering a planning area of 11.6 sq. km and gross investment of RMB 16 billion will be constructed completely in 2020. It is expected to serve for 400 million tons of goods, generating a sum of RMB 100 billion annually. (Sichuan Daily reported on December 30^th by Zhao Ruoyan)

Sichuan Association of Agricultural Products Circulation Established

The first industrial association of agricultural products circulation - Sichuan Agricultural Products Circulation Association – was officially established on December 18^th in Chengdu. The organization is committed to developing famous brands by strategies and improving safety awareness to bridge the government and its members, help them create the agricultural products quality safety tracking systems, build e-commerce platforms and develop agricultural products market and offer technical consultation about channel management, operation modes, etc. On that day, the Edible Mushrooms and Yak Meat Alliances were established too to develop share brands of edible mushrooms and yak meat for Sichuan by bringing enterprises in such areas together.(Sichuan Daily reported on December 30^th by Zhou Wei)

Passenger Throughput of Chengdu Shuangliu  International Airport Exceeded 42 million in 2015

With the arrival of the last flight related to Chengdu Shuangliu  International Airport on December 31^st, 2015, over 42 million passengers traveled through the Airport in that year, hitting new record high.

On the last day of 2015, the traffic of Chengdu Metro also created a new high in its history with its all lines carrying passengers of over 1.57 million, 340000 passengers more than the history high. In addition, Passenger flow of Lines 1, 2 and 4 on that day hit their new high. Facing heavy traffic pressure, the Chengdu Metro is still doing well.

On the first day of New Year's Day, passenger flow was increasing instead of dropping. Although the frost was thick, airplanes flied smoothly with 778 takeoffs and landings in Chengdu Airport which increased by 12% compared to the same day in 2014, carrying 50000 people out of mainland of China which rose by 28% than that of the same day in 2014. (Sichuan Daily reported on January 2^nd, 2016 by Wang Meiling)

Panzhihua National Vanadium Titanium High-tech Industrial Development Zone Signed 13 Enterprise Project Contracts

On December 30^th, 2015, a united signing ceremony of Panzhihua National Vanadium Titanium High-tech Industrial Development Zone was held at the Panzhihua National Vanadium Titanium Technology Incubator. The Zone signed 13 project contracts worth RMB 3.72 billion with 13 companies engaging in vanadium, titanium, energy saving, environmental protection, new energies, eco-tourism and infrastructures.

In response to the “new normal” economy, the Zone carries out its investment promotion work by actively digging new drives and continually attracting a batch of high-tech and high added value project to settle in it. There are 6 projects including upgrading of 2000 tons/year vanadium and titanium in vanadium titanium industry, 3 projects like low-temperature waste heat recovery in production of sulphuric acid in the areas of environmental protection, a project of ground photovoltaic power station, its power electronic elements, materials and new energy suppliers, two projects including Panzhihua Shangcun Auto Self-drive Camp Park in aspect of eco-tourism, and an infrastructure project. (Sichuan Daily reported on January 4th, 2016 by Luo Benping)

The Number of State-level Agricultural Science and Technology Parks in Sichuan Province Increased to Nine

Mianyang, Suining and Bazhong Agricultural Science and Technology Parks were approved to be the national level parks by the Ministry of Science and Technology, increasing the number of all national agricultural science and technology parks in Sichuan to 9, continuing to take the lead in Western China.

State-level agricultural science and technology parks play important roles in startup and innovations of agricultural science and technology. There are such parks in Leshan, Ya’an, Guang’an, Yibin, Neijiang and Nanchong of Sichuan. The three new national parks are equipped with sound management and investment organizations, clear development ideas and solid e-commerce foundations. Feasible plans on transferring achievement rapidly, alleviating poverty by technology, and creating more jobs for farmers are put forward.

The Bazhong State-level Agricultural Science and Technology Park characterized by “Green Agriculture” aims to establish a poverty-alleviation template supported by technology in hilly areas. It is targeting the goal of “Transfer Highland for Specially Ecological Agricultural Innovation Achievements in Qinling-Daba Mountains, Demonstration Area of Poverty Alleviation System Supported by Technology, Incubation Platform of Innovation and Entrepreneurship”, mainly develops organic mushrooms and vegetables, green Bazhong medicines, ecological breeding, and tea and fruits native to high mountains. The Mianyang State-level Agricultural Science and Technology Park is committed to developing a demonstration park of Internet Plus modern agricultural technology by its strategy of “Joint-Action of Three Industries” including biological seed industry, industry of optimum silkworm and mulberry, and Fucheng radix ophiopogonin industry. In this way, it plans to be a leading high-tech agriculture zone inChina, the first civil-military integration area and e-commerce concentration zone. The Suining State-level Agricultural Science and Technology Park focuses on “Circular Agriculture” and the transition and upgrading of agriculture in hilly areas. It aims to develop the ecological breeding, planting and processing industry and leisure agriculture industry, and establish a platform for technical innovations, agricultural achievement transfer, technology training, effective agriculture demonstration and agricultural innovation and startup.  (Sichuan Daily reported on January 7^th by Zhang Lan)

Panzhihua's First Chloride Process Titanium Dioxide Production Line Launched

Ansteel launched its Panzhihua Chloride Process Titanium Dioxide Project (Phase I) with invested capital of RMB 110 million, which will lead to a production line with an annual output of 15,000 tons titanium dioxide. As the first such line in the city, it will help increase its utilization level of resources.

Sulphate route and chloride process are the main measures for produce titanium dioxide in the world. The former method uses low-cost ilmenite and sulfuric acid as main materials in production of titanium dioxide by intermittent acidolysis and hydrolysis, and continuous roasting processes. It not only requires a lot of water and sulfuric acid but also produces low quality products and a great deal of waste, the treatment of which will cost a lot. But the chloride process enjoys short and continual processes with high quality products and relative low output of waste water and solid waste. Besides, chlorine is able to be used in a recyclable way. Hence, it is to be promoted inChina.

For a very long period, the chloride process has been monopolied by foreign companies. With its core technology of chloride process, the Ansteel is able to produce superior titanium dioxide, making a breakthrough of producing high-end titanium products by Panxi titanium resources than ever. It will be a titanium processing enterprise with the most complete industrial chain around the world. (Sichuan Daily reported on January 11^th by Qin Yong)

Convention & Exhibition Economy

-The China International Alcoholic Drinks Expo Commenced in Luzhou on March 19^th

The China International Alcoholic Drinks Expo will be held from March 19^th to March 21^st.

Hosted by the China Alcohol Drinks Association, supported by the Sichuan Provincial Government and co-organized by the Sichuan Provincial Department of Commerce, Sichuan Bureau of Expo Affairs and Luzhou Municipal Government, this China International Alcohol Drinks Expo, with the theme of “Enjoying Toast in China, Appreciating Taste from the World”, is predicted to welcome over 700 enterprises with a number of over 3500 participants including professional purchasers and dealers.

The China International Alcohol Drinks Expo will be held upon the 100^th anniversary of Luzhou’s gaining of the title “City of Wine”. Wine enterprises to have passed audits from the organizing committee during the expo can voluntarily produce customized products as special editions for the Expo and is able to name the price and sell them on site on the premise of good quality with the organizer charging nothing. Song Shuyu, the secretary-general of the China Alcohol Drinks Association thinks: “this customized product will not only satisfy the needs of wine collectors but also can exert more influence domestically and internationally of the CIADE. “Sichuan Daily reported by Tong Yinsong on January 12^th”

China Council for the Promotion of International Trade Sichuan Council (CCPIT Sichuan Council)

XXI Triennale International Exhibition Milan 2016 Held a Road Show in Chengdu

The XXI Triennale International Exhibition Milan 2016: “Extreme Design” road show was held in Fangsuo, Taikoo Li Chengdu in the afternoon of January 6^th, 2016. CCPIT took the lead in organizing the international exhibition in the part of China and CCPIT Sichuan Council, actively cooperated with CCPIT to participate and spared no effort to support this road show in Chengdu.

Lv Furong, the president of CCPIT Sichuan Council, began with expressing her favors of this show, then summarized the fruitful results achieved in cooperative projects involving economy, tourism, education and so on between Sichuan Province and Italy and introduced how architecture and city planning as well as landscape design could fit with the “Triennale Exhibition”.  Meanwhile, she suggested that respective advantages should be well utilized to make a good platform for cooperation of mutual benefits.

During the meeting, Sergio Maffettone, the Consul-General of Italian Consulate in Chongqing, expressed his gratitude toward the overall arrangement of this exhibition and hope of more and enhanced interactions in culture, education and business between the two countries. Andreas Cancellato, the Director of the organizing committee of the “Triennale Exhibition”, elaborated on the development history of the “Triennale Exhibition” as well as the main characteristics of the XXI Triennale International Exhibition Milan 2016. The detailed arrangements and relevant introductions of activities for this exhibition will be released globally by February, 2016.

In order to achieve substantial effects from this road show, we have invited 37 enterprises in various industries including design, museum, architectural decoration and culture brand, etc. and 60 university representatives as well as a great many media agencies. Representatives present raised their questions one after another; several journalists also paid much attention to the exhibition and online media made site report about this exhibition in a timely manner. Chengdu Road Show has gained a favorable effect.

-Gather Wisdom from Chambers of Commerce, Facilitate Development of Foreign Trade and Promote Social Poverty Alleviation

“2016 System Work Symposium of Sichuan International Chamber of Commerce was held in CCPIT Sichuan Council on January 11^th. This meeting studied the work of International Chamber of Commerce in promoting foreign business, strengthening efforts in poverty relief and development as well as participation in “targeted poverty alleviation”. 15 commerce chambers and institutions including Sichuan Convention and Exhibition Industries Association, Sichuan World Trade Center Association, Sichuan Chamber of International Commerce of Hardware & Electro-machine”, Sichuan International Chamber of Commerce of Furniture and Fitting, the Specialized Committee of the International Chamber of Commerce in Sichuan Province Machinery Industry etc. and representatives of member enterprises including Sichuan Mingchuan Chengyu, Jiahao Investment and so on were present at the symposium.    

In the symposium, Li Li, the Vice-President of CCPIT Sichuan Council gave a general introduction of current foreign economy and trade and summarized the overall situation of the commerce chamber systems in 2015, hoping that everyone would analyze economic trend in a serious manner, improve internal work, grasp opportunities, enhance Ｅxecutive ability in various work and promote pragmaticality and effectiveness, bring the industries and enterprises’ leading role to the full play,  strengthen enterprises’ driving force and participate in the social poverty alleviation work and make contributions to the cause that all population under the poverty line will be up to a well-off stage by 2020.

Representatives present reviewed work having done last year briefly and reported the focus for this year’s work. At the same time, they were quite active in offering advice and suggestions to the chamber’s work and putting forward implementation schemes for participating in targeted poverty alleviation work. Specialized Committee of Commodity Identification Code mentioned that identification code of commodity would be largely promoted at home and abroad and a portion of profits gained by the commodity identification code would be used as poverty relief subsidies to contribute to the society.ChinaCross-border Electronic Commerce Professional will strengthen the operation of electronic commerce platform and realize electronic commerce service which will be used in comprehensive support to targeted poverty relief and realization of “one leading industry for one township”, “one characteristic product for one village” through the platform of electronic commerce. Sichuan Chamber of International Commerce of Hardware & Electro-machine” has started to carry out poverty alleviation work in Guangyuan and will gather efforts from enormous enterprises subordinate and arouse enthusiasm from various sides to be involved in the poverty relief work, Representatives from Sichuan Convention and Exhibition Industries Association, Sichuan World Trade Center Association, Sichuan Chamber of International Commerce of Hardware & Electro-machine”, Sichuan International Chamber of Commerce also showed that they would actively participate in the poverty relief work and try their best to raise capital for poverty relief. Other specialized and enterprise representatives also talked about how to cut the edge of enterprises to good use, raising awareness of social responsibility, docking industrial service and carrying out good poverty relief work.

The president of CCPIT Sichuan Council Li Gang made a conclusion remark in which he expressed his affirmation of international and domestic economy and trade work implemented by industrial commerce chamber and specialized committee and hope that everyone would take active participation in “ten thousand enterprises going abroad” activity in Sichuan province and other major economic and trade event including CAPAS Chengdu, International Smart City Exhibition and Conference, etc. He also emphasized that various industries, associations and specialized commissions should actively respond to the calls of the central government and provincial party committee, mobilize member enterprises to be engaged in the poverty relief work as well as making full use of their own advantages and making poverty alleviation work as a long-term cause to strive for. On one hand, industrial poverty relief efforts should be mounted; one the other hand, targeted poverty alleviation should be well performed to offer concrete help and support in housing, breeding houses, student loans and medication of the poor households to change their conditions.

-Li Gang, the President of CCPIT Sichuan Council, Attended the Opening Ceremony ofKoreaInternational Trade Association (KITA) Chengdu Branch

Li Gang, the President of CCPIT Sichuan Council, attended the Opening Ceremony of KITA Chengdu Branch on January 19^th, 2016 at the invitation of KITA.

Before the opening ceremony, Li Gang had a friendly talk with Kim In-Ho, the director of KITA and the delegations, introduced Sichuan social and economic landscape and the work of our council towardSouth Korea. He also suggested that both sides should enhance communications and interactions to facilitate economic cooperation between Sichuan andSouth Korea. Members of Korean delegation agreed with Li Gang’s suggestions and hoped that, with the aid of CCPIT Sichuan Council; both sides could expand their cooperation areas and construct a platform of communication for them.

KITA was established in 1946 and engaged in various activities for the purpose of accelerating and revitalizing trade. KITA set its third office in Chengdu following Beijing and Shanghai. 

Responsible persons from Sichuan People’ congress, Sichuan Provincial Department of Commerce, Chengdu Hi-Tech Industrial Development Zone and Korean Consulate in Chengdu also attended this event.