Our office's mission is to assist American businesses enter and succeed in the Southwest China market (the provinces Yunnan, Guizhou and Tibet, as well as the Chongqing and Chengdu municipalities).
Chengdu, the capital of Sichuan Province, is the most important commercial center in Western China. This metropolis of 10.44 million lies 1,500 miles from China’s eastern seaboard. The city has a market reach of 200 million consumers and it is the distribution center for southwest China encompassing Sichuan, Yunnan and Guizhou Provinces, the Tibet Autonomous Region, and the Municipality of Chongqing. Sichuan Province boasts one of the most diversified industrial bases in the country and Chengdu is a key manufacturing center for the electronics, machinery, pharmaceuticals, chemicals, metallurgy and food processing industries. The IT industry has been designated as a key sector for growth in Sichuan Province. Sichuan is also the national headquarters for feed grain companies. In 2007, the city of Chengdu had a GDP of RMB 390.00 billion ($56.5 billion), a 12.1% increase over 2007.
In the aftermath of the devastating May 12, 2008 Wenchuan earthquake, , the Sichuan government has projected an investment of RMB 1.7 Trillion ( $248 Billion) for reconstruction for the next 2-5 years. The reconstruction will focus on sectors such as infrastructure, education, public health, energy and technology. Overall, the Wenchuan earthquake did not have a major impact on Chengdu’s business environment. Local and MNC businesses continue to operate normally, however some sectors such as tourism and commercial/residential real estate have been impacted. The government has placed a stronger emphasis on building the economic base in Chengdu and outlying areas, with an increased push for foreign investment into the region. As a result, several MNCs are considering additional expansion into Sichuan realizing already strong business fundamentals. Reconstruction will create additional opportunities for U.S. firms across a variety of best prospects.
Chongqing, the most recently established municipality directly under the Central Government since 1997, is the largest administrative municipality in China with a population of 32.4 million. Chongqing is strategically located in the upper reaches of the Yangzi River. According to current patterns of Chinese economic development, there are three economic regions: the eastern, western, and central belts. Chongqing has been identified as the connecting point between the eastern and western belts. Chongqing has received a great deal of financial and policy support from the Central Government, enabling its economy to grow rapidly and increasingly compete with Chengdu. Chongqing is famous for the scenic Three Gorges and the Three Gorges Reservoir. Once the construction of the Three Gorges Dam is competed, river navigation between Chongqing and Shanghai will become more reliable. Pillar industries in Chongqing are machine building, metallurgy, chemicals and pharmaceuticals. Since the early 1980’s, many companies in the national defense industry have shifted to manufacturing civilian products, playing an important role in the automobile and motorcycle industries in the city. With its strong heavy industry foundation, Chongqing is expected to become the automotive capital of western China. In 2007, Chongqing had a GDP of RMB 411.8 billion ($59.7 billion), a 15.6% increase over 2006. Southwest China’s economy has enjoyed relatively sustained growth in recent years and will continue to grow at 9 to 10% over the next few years.
Encouraged sectors for foreign investment include: infrastructure, agricultural projects, R&D, and modern services such as banking, insurance, securities, logistics and tourism.
4 Lingshiguan Lu, Renmin Nanlu Section 4
Chengdu, Sichuan 610041, China
Tel: (86-28) 8558-3992/9642
Fax: (86-28) 8558-9221/3520