Sichuan Economy and Trade Trends

Monthly, April 2016

Published by CCPIT Sichuan Council

Contents

Macro Economy

Sichuan E-commerce Turnover Reaches RMB 500 Bln in First Quarter 2016

E-commerce is developing rapidly in Sichuan as it closely integrates with the real economy. In the first quarter of 2016, Sichuan has achieved an e-commerce turnover of RMB 484.1 billion, up by 28.37% year on year. Meanwhile, traditional enterprises accelerate their business transition towards e-commerce. Sichuan liquor and tea, household appliances, furniture and other industries promote flexible production using the Internet, presenting an obvious customization manufacturing.

The Internet has become a main way for Sichuan people to do the shopping. In the first quarter, e-retailing turnover reached RMB 50 billion in Sichuan, with a year-on-year growth of over 30%. It is estimated to take up 15.2% of the total retail sales of consumer goods, up by 3.4% compared to the previous year.

E-commerce has been well used in manufacturing, trade circulation and service industry, showing a trend of development in Sichuan. Chinese liquor brands such as Wu Liang Ye, Luzhou Laojiao, Changhong, Quanyou, Bangbangwa and other characteristic brands have gradually grown popular online. In the first two months of 2016, the online market shares of food and healthcare products have risen 6.66% compared with the whole year of 2015.

Experience consumption springs up rapidly. The integrated development of online and offline sales is accelerating in catering, tourism, photography, housekeeping and other industries, while new O2O patterns are emerging constantly in transportation, cosmetology and automobiles. In the first two months, the turnover of online catering is RMB 4.05 billion. Traditional Sichuan Cuisine and hot pot were the most ordered, talking up 25.9% and 31.16% of the total orders. (April 8^th, Sichuan Daily/Shu Lin and Zeng Xiaoqing)

Processing Trade Took the Lead in Economic Upturn in the First Quarter and Foreign Trade Expected to Grow in the Following Quarter

Sichuan achieved a gross value of imports and exports of RMB 64.98 billion in the first quarter, and the overall situation is improving month by month. The gross value reached RMB 27.37 billion in March, up by 9.8% year on year and ended the fall in the last 13 months.

In the first quarter, the volume of exports of the automobile industry represented by Volvo was RMB 180 million, a 1.1 times growth year on year. Liu Xin has estimated that with the capacity expansion of high-end “Made in Sichuan” automobiles, tens of millions of US dollars exports are hopeful to be achieved in the year of 2016. Exports of components and parts growth will also be driven.

The recovering electronic information market has brought a 2.3% recovery increase to Chengdu Hi-tech Comprehensive Bonded Zone in the first quarter.

The Chengdu-Europe Express attracts a great many processing enterprises to settle alongside, speeding up the gathering of related industries in Sichuan. At the end of March, the Chengdu-Europe Express – TCL Train departed from Chengdu, carrying TCL color TVs worth USD 5.1 million. 15 days will be saved for the delivery comparing with sea transportation. (April 15^th, Sichuan Daily/Zeng Xiaoqing)

Foreign Trade

China (Sichuan) • Nepal Economic and Trade Cooperation Seminar Held in Chengdu

China (Sichuan) • Nepal Economic and Trade Cooperation Seminar was held in Chengdu on March 27^th. More than 80 Sichuan-based enterprises and 30 Nepalese enterprises participated. Rt. Hon. Mr. K. P. Sharma Oli, Prime Minister of Nepal introduced his country to all participants.

Mr. Oli said that Nepal has a long history of economic and trade cooperation with China, and, as a key country involved in the Belt and Road Initiatives, it attaches great importance to the collaboration with China, especially Sichuan. At present, the two countries share large cooperation space in hydropower energy, road and transportation infrastructure, agriculture, tourism, ICT and many other fields. Nepal will provide tax reduction and exemption and other supportive policies to attract more investment from Sichuan, and more Chinese language trainings to its citizens to lower communication barriers.

Vice Governor Gan Lin mentioned in his speech that Sichuan was a leading province in economy, population, science and education in western China and also an important platform to bridge the Sino-Nepalese cooperation. Sichuan Province has seen increasing bilateral trade with Nepal these years, their exchanges and cooperation in infrastructure construction, agriculture, tourism and education increasing frequently. Last year, Sichuan achieved a total volume of imports and exports of USD 10.54 million with Nepal, leaving a tremendous developing space. Gan Lin hoped that the entrepreneurs in both countries can find opportunities to further their cooperation.

By the end of 2015, there had been four Nepalese enterprises investing Sichuan and the contractual foreign investment was USD 220,000, while Sichuan set up five enterprises in Nepal with an approved invested amount of over USD 54 million. Many Sichuan companies and institutions participated in the post-disaster reconstruction after the April 2015 Nepal Earthquake. Some private companies have already entered in Nepal’s electric power, infrastructure and other fields. (March 28^th, Sichuan Daily/Lin Ling)

China-UAE Economic, Trade and Cultural Summit 2016 Held in Chengdu, MOUs Signed with Dubai

On April 1^st, the China-UAE Economic, Trade and Cultural Summit 2016, one of the important activities during the 3^rd Chengdu Dubai International Cup Wenjiang Meydan Horse Race, was held in Chengdu. Abdul’ahat Abdulrixit, vice chairman of the 10^th and 11^th CPPCC, Mohammad Xiexi, vice minister of UAE Ministry of Economy and Chen Wenhua, vice chairman of Sichuan Provincial Committee of the CPPCC were present at the summit.

China has now become the largest trade partner of Dubai. Hammad Bamimu, director of Dubai Chamber mentioned in his keynote speech that Dubai is looking forward to all-round cooperation with Chengdu. Before the 3^rd Race, Chengdu Dubai International Cup Wenjiang Meydan Horse Race, as a key cooperation platform, was already held twice successfully.

On the summit, Chengdu signed several MOUs with Dubai, including the MOU on Overseas Projects signed between Chengdu Construction Engineering Corporation Group and Dubai Yaode Investment Management Co., Ltd., the MOU on Chengdu Overseas Publicity between Chengdu Culture & Tourism Development Group and Meydan Group LLC as well as the Framework Agreement on the Horse Industry and Big Health Industry Cooperation signed by Wenjiang District Government and Dubai Yaode Investment Management Co., Ltd. (April 2^nd, Sichuan Daily/Jiang Junfang)

2016 Well-known Chinese and Foreign Enterprises’ Visit to Sichuan Successfully Held

On April 11^th, the 2016 Well-known Chinese and Foreign Enterprises’ Visit to Sichuan was launched. Lasting for three days, the event had seen more than 2,300 projects with a total investment of over RMB 3 trillion from cities and autonomous prefectures in Sichuan, attracting 420 well-known companies, chambers of commerce and industrial associations from home and abroad.

Among the companies, there were more than 150 Fortune 500 companies, China’s Top 500 and China’s Top 500 in Private Sector. Pragmatic and professional introductory activities were shown to the guests, such as the investment recommendation of the graphite industry held in Bazhong and the one-to-one meeting aimed at Taiwan companies held in Neijiang. The meetings and activities achieved fruitful results. During the event, 668 investment contracts worth RMB 20 million were signed by Sichuan-based companies with investors at home and abroad, with a total amount of RMB 500.1 billion. Fields such as electronic information, automobile and equipment manufacturing, new energy resources and new materials, modern logistics and finance, old-age and healthcare services and infrastructure were involved.

The theme of the event has changed from the “Invest Sichuan, Share Opportunities” two years ago to the “Opening and Cooperation, Mutual Development” this year, reflecting the change of opening up and cooperation concepts. Furthermore, this event should provide help not only for “introducing in” but also for “going abroad” of Sichuan companies. Foreign cooperation should be promoted in an all-round way, multi-fields and in deep level. (April 12^th, Sichuan Daily/Zeng Xiaoqing)

Finland Visa Application Center Opened in Chengdu

The opening ceremony of Finland Visa Application Center in Chengdu was held on April 15^th. It is one of the new application centers to be opened in 13 Chinese cities in 2016. The new Chengdu center will definitely provide convenient visa services for Sichuan people in that only Beijing and Shanghai had Finland visa application centers before.

Finland Visa Application Center in Chengdu is a part of the united visa application center consisting of several Schengen countries. All tourists travelling to Finland, Austria, Croatia, Lithuania, Portugal and Spain can apply for a visa from this united visa application center.

Sichuan and its provincial capital Chengdu is an important cooperative partner for Finland in western China. The new Finland Visa Application Center in Chengdu will make the city one of the vital cities for Finland to expand services. “Some people compare the bilateral ties between China and Finland to the three legs of a traditional Chinese teapot. One is the relationship between governments; the second is business relationship; the last one is the interpersonal communication. We hope that the three ties will be tightened with the establishment of this visa center.” Ms. Ma Huanya, the Ambassdor of Finland to China said on the opening ceremony.

In addition, the Finnish National Tourist Board and Finnair will launch the “StopOver Finland” project this May, providing products and services for tourists hoping to stop over in Finland for five hours to five days. (April 16^th, Sichuan Daily/Xiong Runpin)

KIP Settled in Sino-ROK Innovation and Entrepreneurship Park

On April 19^th, the Administrative Committee and Bureau of Finance of Chengdu Hi-tech Zone separately signed strategic and fund cooperation agreements with Korean Investment Partners (“KIP” for short), the leading VC investment firm based in Korea. They agreed to co-establish an innovation and entreperneurship investment fund worthy of RMB 500 million so as to drive the construction of the Sino-ROK Innovation and Entrepreneurship Park. KIP is the first Korean investment institution settled in the park, and it’s also the first time for Chengdu Hi-tech Zone to set up an investment fund together with an overseas institution.

KIP has branches in Shanghai and Beijing, and the KIP office in Chengdu Hi-tech Zone is the first in western China. According to the agreements, Chengdu Hi-tech Zone and KIP will co-establish an RMB 500 million innovation and entreperneurship investment fund to promote investment inside Sichuan Province, with digital entertainment and games, the Internet, bio-medicine and AI included as the key fields.

It has been written in the agreements that KIP will provide consultations and advice to Chengdu Hi-tech Zone in the development, planning and park services of the Sino-ROK Innovation and Entrepreneurship Park, introduce Chengdu Hi-tech Zone to Korean companies and bring in capital, technologies, equipment and talents from Korea.

On the signing ceremony, Chengdu Hi-tech Zone also announced that the Sino-ROK Innovation and Entrepreneurship Park had already been settled at Jingrong Start-up Hub. In the future, Building 2 will be forged into “Sino-ROK Maker Space” and Building 3 will be “Sino-ROK Promotion Center for Youth Innovation and Entrepreneurship”.

At the end of October 2015, China and Korea reached the intent to establish the Sino-ROK Innovation and Entrepreneurship Park in Chengdu. Later on, the park was settled in Chengdu Hi-tech Zone. The relevant principal of Chengdu Hi-tech Zone said that the Sino-ROK Innovation and Entrepreneurship Park project was making progress in an orderly way from this year on. Many Korean projects were under negotiations at the moment. (April 21^st, Sichuan Daily/Zhang Lan)

Chengdu Denmark Visa Application Center Opened, Handling Visas to 30 Countries

The Opening of Denmark Visa Application Center and Denmark Tourism Promotion Meeting were held in Chengdu on April 21^st. As one of the five newly established visa application centers of Denmark in China, the Denmark Visa Application Center has been available for Chengdu people and citizens from neighboring provinces, regions and cities who intend to travel to, do business or visit relatives in Denmark to get visas within 5 to 11 workdays after applications submission and fingerprints inputting.

The Government of Denmark established visa application centers in Chengdu, Hangzhou, Jinan, Nanjing and Shenyang in April. The Denmark Visa Application Center in Chengdu is located at No. 11 (15-18), 4^th Section of South Renmin Road, Wuhou District. The service time for taking in applications and issuing visas is from 8 AM to 3 PM on weekdays. After an application is submitted, the visa can be issued within 5 to 11 workdays.

In addition to the local agencies in Denmark, the Denmark Visa Application Center is the only agency providing visa registration service for visitors to Greenland and Faroe Islands in North Atlantic Ocean. Among the countries in the Schengen zone, Denmark entitles visitors to visit other Schengen countries after their stay in Denmark.

Presently, Denmark Visa Application Center in Chengdu can issue visas to 30 countries, including Denmark. (April 22^nd, Sichuan Daily/Que Xiaomei and Xiong Runpin)

Key Projects

Chengdu Cyberport Big Data Industrial Base Commenced

20 projects including Chengdu Cyberport Big Data Industrial Base were intensively launched in Pixian County on March 30^th. According to previous agreement, an investment of RMB 7.111 billion has been put into these projects. Among these projects, Chengdu Cyberport Big Data Industrial Base is funded with an investment of RMB 5 billion.

Covering an area of 510,000 m², Chengdu Cyberport Big Data Industrial Base is constructed with two other major projects - Chengdu Cyberport Big Data Industrial Base Project and Chengdu Cyberport Cloud Computing Operation Center Project. Many structures, including large-scale data center, data acquisition and analysis center, cloud computing center, R & D office area and venture capital investment incubator, etc. will be set up here.

As planned, the Chengdu Cyberport Big Data Industrial Base Project will be carried out in two phases and completed in three years. After being put into operation, the project will realize an annual revenue of RMB 2.5 billion, including the annual revenue of RMB 1.2 billion expected to be made by Cloud Computing Operation Center. (April 2^nd, Sichuan Daily/Zhang Minghai)

Industries

The Number of E-Business Companies in Mianyang Surged

In Sichuan Province, Mianyang has the second largest number of newly established service companies above designated size last year and gained the highest net increase of company above designated size, accounting for 20.5% of the total net increase of Sichuan Province. Service industry has become a pillar industry for economic growth of Mianyang.

By implementing a series of policies including special funding, tax deduction and exemption, loan with discounted interest, etc., revenues made by service industry in Mianyang keeps growing year-on-year with a rate of over 10%. And more and more companies get into the service industry. Among the 134 newly established service companies above designated size, 2 more companies made sales of over RMB 100 million and 8 more companies realized sales of over RMB 50 million. The remarkable effect of leading companies has been further highlighted.

Among the newly established companies, e-commerce companies indicated a strong growth. Taking e-commerce and “Internet Plus” as the key projects has directly boosted the development of Internet and relevant service companies. According to statistics, there were 5 Internet and relevant service companies, 11 software and IT service companies, 23 leasing and business service agencies and 9 cultural and creative firms last year. Among them, modern service companies accounted for 42%. (March 31^st, Sichuan Daily/Zu Mingyuan)

Core Industrial Park of Sino-Germany Innovative Industry Cooperation Platform Planned in Tianfu New Area

The “Sino-Germany Innovation Industry Cooperation Platform Sichuan Exchange Meeting” jointly sponsored by the Ministry of Commerce of the P.R.China and the Sichuan Provincial People’s Government was held in Chengdu on April 13^th. According to the preliminary idea, Sichuan Province will carry out Sino-Germany Cooperation Projects in Chengdu, Deyang and Mianyang via the platform. The core industrial park of the platform is planned to be established in Tianfu New Area of Chengdu.

It is planned to develop in an open and integrated way. Based on a common cooperation mechanism and standard, the government, institutions and companies will work together to realize the all-around integration of “Germany Industry 4.0” and “Made in China 2025” through the integrated platform.

According to the project layout plan, Chengdu will be taken as the operational center of the industrial park and Deyang and Mianyang will be developed into supporting bases by establishing Sino-Germany Core Industrial Park in Tianfu New Area and setting up supporting cooperation regions in Deyang and Mianyang according to their own industrial characteristics.

In Sichuan, more than 40 projects in medicine, fine chemicals, energy saving and environmental protection, exposition and exhibition, etc. are under tracking, facilitation and conversation via the platform. (April 13^th, Sichuan Daily/Guo Jingwen and Zeng Xiaoqing)

Convention & Exhibition Economy

The 94^th CFDF (China Food and Drinks Fair) Closed with a Record of Over 300,000 Visitors a Total Transaction Volume of RMB 23.02 Bln

The 94^th China Food and Drinks Fair closed on March 26^th. The fair attracted over 300,000 visitors and achieved a total transaction volume of up to RMB 23.02 billion, including liquor sales of RMB 11.87 billion, food and drinks sales of RMB 8.71 billion, seasoning sales of RMB 1.39 billion as well as food machinery and packaging sales of RMB 1.05 billion.

The 128,000 m² exhibition hall of the fair was divided into 7 themed exhibition areas for traditional liquors, wines and international spirits, foods, beverages, seasonings, food machineries and package. There were altogether 2,836 exhibitors, 150,000 professional buyers and over 300,000 visitors. According to the questionnaire results, most of the participants and visitors expressed their appreciation of the fair.

Foreign exhibitors from more than 40 countries and regions including France, Spain, Italy, Chile, Australia, America, Germany, Korea, etc. brought their products to the fair. Among them, exhibitors from 13 countries and regions including France, Spain, Italy, New Zealand, Chile, etc. participated in the exhibition in groups. The booths for foreign exhibitors covered about 28.2% of the total area. French ambassador in China, Canadian ambassador in China, Spanish commercial counselor, officers from the U.S. Department of Agriculture came to the scene to pep Chinese exhibitors up.

The high international level of the fair is not only reflected in the number of foreign exhibitors of different nationalities but also mirrors the high service standards at the same level of the international standards.

A growing number of purchaser groups came to Chengdu for the event. Some purchasers from Henan, Liaoning, Hubei, Hunan, etc. came in visiting and purchasing delegations. Companies engaged in imported foods and catering chains also organized groups of professional buyers to take part in the event.

Booths layout and exhibits mirrored the pursuit of exhibitors for food safety, health, green, simplicity, experience and characteristics. Various robotic systems appeared in large numbers at the fair, showing the automation and intelligence of manufacturing and packaging equipment. It fully demonstrated that the supply-side policy greatly boosted the reform of food, liquor and relevant industries.

Nearly 20 themed events, including 2016 China Brand Agriculture Summit, the 7^th Chinese Food and Drinks Industry Investment Cooperation Fair were conducted at the same time. In addition, a series of activities like exhibitor tasting, products presentation, promotion meeting and business events were also carried out. (March 28^th, Sichuan Daily/Shao Mingliang, Zhang Yuxi and Zhou Wei)

The 5^th China (Sichuan) International Tea Fair Opens in Chengdu this May

The 5^th China (Sichuan) International Tea Fair and Tianfu Longya Tea Cultural Festival will be held in the New International Convention and Exhibition Center of Chengdu Century City from May 5^th to 8^th, when the first tea brand of the province, "Tianfu Longya Tea", will be unveiled.

In addition to Sichuan Famous Tea Exhibition Pavilion, many other themed exhibition pavilions like Chinese Famous Tea Exhibition Pavilion, International Famous Tea Exhibition Pavilion and Tea Set Cultural Exhibition Pavilion will be set, covering an area of more than 40,000 m². Nearly 600 tea and tea set-related exhibitors come from more than 20 provinces and cities including Yunnan, Guizhou, Fujian, Zhejiang, Anhui, Hunan, Guangdong, Guangxi, Shaanxi, etc. as well as Taiwan to join in the event. Sri Lanka and Korea will also organize representatives from over 20 companies to come to the Fair.

The “1^st Chinese Tea Brand Cultural Development Fair” with the theme of “New Silk Road and Chinese Tea around the World” will also be held at the same time. In addition, a variety of tea business activities such as spring tea purchasing festival, national yellow tea contest, tea culture trip to Sichuan, Tea Expo, tea party for “mother’s festival”, famous tea tasting, etc. will be carried out. (April 14^th, Sichuan Daily/Shao Mingliang and Zhang Yuxi)

CCPIT Sichuan Council

CCPIT Sichuan Council Delegation Headed for South and Southeast Asia for Fairs and Economics & Trade Activities

The CCPIT Sichuan Council has given priority to the market development of the countries on the “Belt and Road” in South and Southeast Asia in recent years to promote the business. Our delegation of 22 people from 13 companies went to Nepal, Laos and Vietnam to participate in the “5^th Nepal International Trade Fair” (hereinafter referred to as “Nepal Trade Fair”) from March 15^th to 24^th, 2015. At the same time, our delegation also held the “China (Sichuan) – Vietnam Economics and Trade Communication Fair”, carried out a series of economics and trade activities and paid field visits to many Sichuan companies overseas. The event contributed to a transaction volume of USD 343,400, preliminary agreements valued at USD 2.3452 million and foreign investment agreements valued at USD 1 million.

An exhibition area of 315 m² was prepared for Sichuan exhibitors at the Fair to showcase more than 30 exhibits, including Mining machineries, small hydroelectric generator, engineering equipment, auto parts, agricultural products and food, agricultural machineries, etc. President Bedia Devie Bhandari, chairman of the Federation of Nepalese Chambers of Commerce and Industry – Mulaka, deputy director of the Department for Foreign Trade Development of the Ministry of Commerce of the P.R.China – Wu Tongdiao, vice chairman of the CCPIT Sichuan Council – Lv Furong and a group of famous politicians and business men attended the opening ceremony and visited the Sichuan Exhibition Area. More than 400 professional traveling merchants took part in the event which contributed to a transaction volume of USD 343,400, preliminary agreements valued at USD 1.9952 million and foreign investment agreements valued at USD 1 million. Nepal Daily, Xinhua News Agency and other media companies made special interviews with Sichuan participants.

The China (Sichuan) – Vietnam Economic and Trade Communication Fair was held in Hanoi in Vietnam. Deputy Director of the Trade Promotion Bureau of the Ministry of Industry and Trade of Vietnam – Du Jinlang and vice chairman of the CCPIT Sichuan Council – Lv Furong delivered their address at the Fair. Both introduced the current economics and trade development situation and key cooperation projects. Sichuan companies held talks on trade with over 30 Vietnamese companies, among which Sichuan Hong Water Conservancy Machinery Manufacturing Co., Ltd. preliminarily concluded hydroelectric equipment export agreement valued at USD 150,000 with Vietnamese Industrial Equipment and Materials Joint Venture Co., Ltd. In addition, Sichuan Huaxia Jianhui Doors and Windows Curtain Wall Decoration Co., Ltd. concluded preliminary agreement valued at USD 200,000 with Vietnamese Peidequan Company. For the mean time, Rong Cheng Lao Ma, Sichuan Kaihong Water Conservancy Machinery Manufacturing Co., Ltd. and other companies carried out market investigation.

Lv paid a visit to economic and commercial counselor of Chinese Embassy in Nepal – Peng Wei, chairman of the Nepalese China-Invested Enterprise Association – Yuan Zhixiong, chairman of the Chinese Chamber of Commerce and Industry in Nepal – Rajesh, chief deputy chairman of the Federation of Nepalese Chamber of Commerce and Industry – Bhawani Lana, director of the Nepal-China Economic and Trade Association – Anubo and chairman of the Federation of SAARC Chamber of Commerce and Industry – Suraj Widya, director of the Trade Products Promotion Department of the Ministry of Industry and Trade of Laos – Song Nitanong, vice chairman of the National Chamber of Commerce and Industry of Laos – Dooven Pachataven, deputy director of the Trade Promotion Bureau of the Ministry of Industry and Trade of Vietnam – Du Jinlang, vice chairman of the Chamber of Commerce and Industry of Vietnam- Duan Weijiang, general manager of Vietnamese National Advertisement Company – Ruan Wenyin and other politicians and merchants. Lv made an introduction to the economics and trade development of Sichuan and pinpointed the matters that need to be concerned during the cooperation between us and other agencies. In addition, Lv also extended the warmest welcome to them to Sichuan for the 16^th Western China International Fair, the 7^th South Asia – China (Sichuan) Business Promotion Round – Table Conference, the CAPAS Chengdu 2016, the 2016 China (Chengdu) Smart Industry International Fair and other major economic and trade events. Relevant commercial associations of Nepal promised to attend the 7^th South Asia – China (Sichuan) Business Promotion Round – Table Conference and would hold the Nepalese Special Subject Promotion Meeting, at which the post-disaster reconstruction projects would be introduced. The National Chamber of Commerce and Industry of Laos signed memorandum of cooperation with us, clearly indicating that they would enhance cooperation with us in the sectors of hotels and tourism, infrastructure construction, home furnishing and decoration, handcrafts, agricultural machinery, food processing and other key fields. The Trade Promotion Bureau of the Ministry of Industry and Trade of Vietnam planned to set an office in Chengdu this year to further promote the economics and trade communication with us. Deputy President Lv also paid visits to many other Chinese companies in Laos, including Nanmang River Power Company in Laos which is a subsidiary company of Dongfang Electric Corporation, Bayi (Laos) Investment and Trading Co., Ltd. invested by Chengdu Bayi Furniture, etc.

As for company development, products and local market demands, our delegations also communicated with the Chinese Chamber of Commerce and Industry in Nepal and the Chamber of Commerce and Industry of Vietnam.

Through this event, Sichuan Province achieved remarkable results in the cooperation with the countries and regions on the “Belt and Road”, strengthening Sichuan companies’ confidence to go out and develop their international market.

CAPAS Chengdu 2016

- Big and Specialized Exhibition

By virtue of its solid developing foundation, Chengdu will be going to organize a grand exhibition—Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS Chengdu 2016) on an exhibition scale of 35,000 m² with more than 730 enterprises in attendance.

The preparation work is now well under way. Many famous brands at home and abroad will be present at the fair, such as Olympus, Ultrasuede, Magic Bullet, Liqui Moly, LUOSHI, Mitasu, Musicson, Ruili Group China, Ruiming, Zhejiang Songtian, Zhejiang Vie Group, Zhejiang Winsafe, Zhejiang APG, Guangzhou ENEOS, Zhejiang Zhenhuan. The exhibition area of the Sichuan pavilion is around 6,500 m², much larger than the previous one. Seven cities are confirmed to participate in the fair, including Ziyang, Guang’an, Neijiang, Suining, Meishan, Nanchong. Moreover, the Sichuan pavilion will set up a new energy vehicle exhibition area for the first time; the 3,000 m² display zone is estimated to attract 15 well-known brand car companies like Volkswagen, Mustang and BYD. Also, it is the first time to reserve an area for commercial vehicles at the CAPAS Chengdu 2016, where a variety of products from noted commercial vehicle suppliers will be displayed to crater for the growing demand of this industry.

The number of both the participating enterprises and the professional buyers are on the rise at the fair. The show is estimated to attract 16,000 domestic and foreign audiences, including over 500 high-quality specialized distributors and maintenance enterprise representatives invited by the China Commercial Vehicle Parts Market Federation.

Through the exhibition, Chengdu will stick to the market supply and demand and build with unremitting efforts a high-quality one-stop business platform for auto parts and aftermarket services in southwestern China.

[Expo Info] the News Exchange Meeting for CAPAS Chengdu 2016 Sichuan Held in Chengdu

On the afternoon of April 7^th, 2016, Sichuan Provincial Economic and Information Commission (SPEIC) and CCPIT Sichuan Council held the Sichuan News Exchange Meeting for Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS Chengdu 2016), notifying the pubic of the preparation work of the exhibition and its Sichuan pavilion, features and highlights, as well as the current state of Sichuan’s auto industry. The vice president of SPEIC Wang Wankun and the deputy director of CCPIT Sichuan Council Lv Furong were in attendance and delivered a speech. Cui Gui’en, sub-inspector of CCPIT Sichuan Council, was the host. There were 15 mainstream media from Sichuan and automobile-specialized media were present at the meeting: Sichuan Daily, West China Metropolis Daily, Chengdu Commercial Daily, Chengdu Metro Express, SCTV 9, Chengdu People’s Broadcasting Station, FM 92.5, www.newssc.org, www.China.org.cn, www.QQ.com, www.sohu.com, auto.sina.com.cn, news.autov.com.cn, Jiaqu’s Grip, Auto Fashion News.

Ms. Lv has briefed the history of the CAPAS Chengdu and bulletined its overall plan and preparations and the distinctiveness of the Sichuan pavilion. She points out that the CAPAS Chengdu 2016 has gained more supports from the local government. Its orientation and objective are more explicit, and the exhibitions and activities are even more exciting. Particularly, there are five highlighted merits: first, agglomeration of industrial magnates and further investment stimulating development; second, the automobile industry powered by new energy vehicles; third, stresses laid on the innovation and business startup of the automobile industry to expedite the creation of platforms for innovation and collaboration; fourth, providing self-driving tours and services to boost the aftermarket industry; fifth, trying hard to open wider to the outside world via continuous interactions between internal and external exhibitions. In the end, she hopes that the media at the conference would continue to address and cover the exhibition in detail, especially wonderful moments, important segments and significant achievements.

Mr. Wang has introduced the developing condition of Sichuan’s automobile industry. He states that the Party committee and the government office of Sichuan Province highly regard the automobile industry, for they will incorporate automobile manufacturing into seven advantageous industries that have been given priority for accelerated development. One million cars were produced and sold in 2015 when the output of finished automobiles and automobile parts surpassed RMB 220 billion. The industry in Sichuan, however, still has its bottlenecks: small productivity scale, low local matching rate, weak integrated technical level of automobile parts. Especially, it has been restricted by the imbalanced expansion of automobile parts companies and finished automobile companies, incomplete industrial chain links, and low local matching rate. In this context, the opening of the CAPAS Chengdu 2016 is prompt and inevitable. He hopes that participants and guests can make further exchanges with their peers in Sichuan, further build consensus, promote cooperation, and adopt new collaborative patterns to bring Sichuan’s automobile industry into the path of healthy and rapid expansion.

The media at the exhibition will work with the sponsor to report exhaustively the preparation and whole process of the exhibition.

[Expo Info] The Working Progress Meeting of CAPAS Chengdu 2016 Opens

On the afternoon of April 7^th, 2016, the Working Progress Meeting of Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS Chengdu 2016) was held in Chengdu. The vice president of Sichuan Provincial Economic and Information Commission (SPEIC) Wang Wankun and the deputy director of CCPIT Sichuan Council Lv Furong addressed the meeting. Other participants include China Communist Youth League Sichuan Committee, Sichuan Provincial Campsite & Self-Driving Tour Association, Chengdu Automotive Maintenance and Repair Trade Association, as well as heads of economic and information commissions and directors of councils for the promotion of international trade from eight cities with major support for automobile industry, i.e., Chengdu, Mianyang, Suining, Neijiang, Nanchong, Guang’an, Meishan and Ziyang.

Ms. Lv have shared the overall plan, preparations and outstanding issues of the CAPAS Chengdu 2016 and its Sichuan pavilion and specified the key emphasis and requirements for the following work. She puts forward that the CAPAS Chengdu has ranked among the largest professional expos for automobile parts in west China through resource integration and power alliances. This year is a crucial year for the expo, because it will encounter a rare opportunity. First, Sichuan provincial government has enrolled it into the top ten brand fairs that will be specially fostered according to the Suggestions for the Implementation of Further Reforming and Developing the Exhibition Industry. The provincial departments of Sichuan are requested to establish a sound, linked and collaborative development mechanism for auto parts exhibition; the SPEIC and the CCPIT Sichuan Council will be going to hold the Investment Conference for New Energy Vehicle Industry Chengdu, arrange an exhibition area for new energy automobile, jointly set up a self-driving tour automobiles & aftermarket service exhibition area, organize self-driving activities, and convoke an innovation and entrepreneurship contest among the youth from Sichuan’s automobile industry together with the China Communist Youth League Sichuan Committee. Moreover, the expo with an approximately 800 m² booth area will be attended by a group of eight key industrial cities, i.e., Chengdu, Mianyang, Neijiang, Guang’an, Nanchong, Suining, Meishan, and Ziyang. Second, with powerful strength, the sponsor of the expo will host the China Auto Venture Capital Summit and the China Auto Business Startup and Innovation Competition with auto.sina.com. There will be a specialized area for commercial vehicle at the exhibition. The exhibition area has completed 30,000 m² so far. Third, the enterprise demand potential is being released step by step, and the enthusiasm in participation is on the rise. The exhibition areas of local enterprises have doubled. Fourth, new media play an active part in the expo, for example, cd.qq.com involves in organizing the new energy vehicle exhibition area while sohu.com helps arrange self-driving tour activities. Ms. Lv stresses that the emphasis at the next stage lies in four aspects: investment, exhibition, innovation and business opening, and publicity, aiming at better understanding the contents of the CAPAS Chengdu 2016 as a platform, bringing more achievements and projects to Sichuan, and offering commercial opportunities for more enterprises.

Mr. Wang Wankun mentions in his speech that automobile manufacturing is one of the seven dominant industries with developing priority. In 2015, the production and marketing scale first hit one million and the industrial output of finished cars and parts exceeded RMB 220 billion. Despite the achievements made, the automobile industry of Sichuan still has its limitations; objectively, there are many bottlenecks, such as small productivity scale, low local matching rate, and weak integrated technical level of automobile parts. As planned, the development goal of Sichuan is to do all it can to double the car output by 2020 and increase the matching rate from 30% to 60%. In this context, the opening of the CAPAS Chengdu 2016 is in due time and necessary. The SPEIC deeply involves in supporting the activities of the Sichuan pavilion, for it values the leading function of the exhibition as a platform and its industrial promotion function. He hopes that, a bridge can be built through the platform for the auto parts and the new energy automobile industry in Sichuan to go out and others to come in. He asks for all the key industrial cities in Sichuan to proactively take part in and make the best of the exhibition. First, organize the exhibition-related work in earnest, namely, invite prestigious companies of auto parts and new energy automobiles to the exhibition, responsible for planning, packaging, display and publicity, and jointly set up the Sichuan pavilion; second, take charge of investment and promotion, and above all, organize the signing of major projects, and well prepared for the investment promotion on automobile industries of key cities. Each department should take the initiative to seize the opportunity to accelerate the promotion, make due arrangement and implementation, and work together to put across the exhibition.

The meeting was presided over by the deputy inspector Cui Gui’en of CCPIT Sichuan Council and attended by the deputy inspector Zhu Xiaojin and other leaders from relevant departments.

The 2016 FTA Preferential Origin Policy & Practice Training Session Unveils in Chengdu

On the morning of April 14^th, 2016, the 2016 Preferential Origin Policy & Practice under the Free Trade Agreement (FTA) Training Session was held in Chengdu by the CCPIT Sichuan Council. The attendants, totaling over 180 in number, were the heads and officers from the signing agents of the council for certificate of origin in Mianyang, Leshan, Zigong, Meishan, and the principals from export-oriented enterprises, international trade managers, as well as the persons for manual signing and operators assigned by the council to work at authentication and registration companies. Deputy Inspector Cui Gui’en was present at the meeting and delivered a speech. Professor Lu Qiang, director of the department for certificate of origin at the commercial affairs law center of the council, was invited to the meeting.

Mr. Cui has introduced in his speech the background and purpose of this training session. The certificate of preferential origin under the FTA is a proof and a document of value for enterprises to enjoy the treatment of lower tariffs or even zero tariffs. Most international trade enterprises in Sichuan are unfamiliar with and never fully use the FTA preferential policies in cases of international trade practice. This results in their failure to get benefits from the dividend policy. The aim of the training session is to help these companies to better understand the Free Trade Area strategy and FTA preferential policies and enhance their operation and management level, to bring more construction fruits of the Free Trade Area to a greater number of companies, and to improve their international competitiveness.

Mr. Lu Qiang has explained several aspects regarding the promotion of international competitiveness with preferential origin policies in simple terms. He has introduced the background, specific tariff preference policies and tariff concession schedules of the FTA strategy, the criterion and rule for certificates of preferential origin, how to use the certificates to gain maximum benefits, and how to reduce the transaction cost. Besides, he has expounded the services, functions and service platforms of the CCPIT Sichuan Council. In the end, he hopes that import and export companies can seize the opportunity and fully use the certificates of preferential origin to explore the emerging markets. Officers from the law department of the council have recounted the concrete enforcement of the certificates of origin between China and South Korea and between China and Australia.

The session is informative with typical and practicable cases. After the meeting, the participants express they have learned a lot from it and will use the certificates of preferential origin as much as possible in trade practices.

Sichuan-Veneto Enterprise Investment Symposium

On April 20^th, 2016, the Sichuan-Veneto Enterprise Investment Symposium was held at the CCPIT Sichuan Council between the council and the China-Italy Chamber of Commerce and the Veneto Trade Promotion Center. More than 30 Sichuan companies conducted one-to-one negotiation with the companies from the Veneto region. The industries discussed at the meeting involve agricultural machinery, building materials, air filtration, rainwater treatment, cereal storage. The Italian side introduced their projects to the Chinese side and both exchanged their ideas on cooperation.

Before the meeting, the vice chairman Li Li of CCPIT Sichuan Council had made a short talk with Ms. Piva, head of the Veneto Trade Promotion Center. They reviewed the good and friendly interactions and visits between Sichuan and Veneto in recent years and signed a memorandum for further cooperation.

The International Trademark Registration and Protection Practice Training Conference Raises its Curtain in Chengdu

On the afternoon of April 21^st, 2016, the International Trademark Registration and Protection Practice Training Conference unveiled in Chengdu by the CCPIT Sichuan Council, Sichuan Provincial Administration for Industry and Commerce and Sichuan Provincial Department of Commerce. More than 250 people attended the meeting, leaders coming from part of trade promotion systems, industrial and commercial administration systems, reputed and famous trademark firms, and export-oriented companies across the province. To top it all, Zhou Lin, an expert from the domain of intellectual property rights, was invited to give a lecture on the knowledge of international trademark registration and protection practices. The meeting was followed by the 2015 Chinese Reputed Trademarks & Sichuan’s Famous Trademarks Award Ceremony, at which Norbu Gyaincain (Luobu Jiangcun), vice chairman of Sichuan Committee of Chinese People’s Political Consultative Conference, was in attendance and conferred awards to Chinese renowned trademarks and Sichuan’s famous trademarks.