Chongqing’s Investment Zones

Wednesday, May 30, 2007 2:53

Like Chengdu, Chongqing was largely ignored by Western businesses until recently, Chongqing’s economy was limited to regional operations because exporting was not viable due to high transport costs. The “Go West” policy in 2000 and improvements in China’s western market conditions stimulated interest starting in 2001 and 2002.

Chongqing is one of China’s four major automobile manufacturing bases, one of the 10 largest iron and steel production centers, one of the three aluminum production bases, and has recently revamped its two largest parks (High Tech Zone and the Economic and Development zone) to draw more investment into the area.

As a guideline to future investment, Chongqing is encouraging investment in the following areas: Biotech and pharmaceutical, Automotive, and Chemical Processing, and its strongest parks are:

Chongqing High-Tech Development Zone
This is one of five pilot development zones designated by the State Science and Technology Commission and was established in March 1991. Industry scopes of the enterprises are electronics, communications, computer application and development, instruments and meters, photoelectric and electromechanical technology, bio-engineering, fine chemical industry, pharmacy, new materials, and other advanced fields concerning energy saving and environmental protection.
Basic Stats: 10 minutes drive to city; 10,000 companies have invested in the park, including Pepsi, METRO Cash and Carry, and Isuzu; Assuming all documents are in order it take 5 days to get business license; laborer is 1500RMB a month and management is between 2000-4000RMB per month

Chongqing New North Zone
Established in 2003, this zone is located in the metropolitan area of Chongqing near the intersection of the Yangtze and Jialing rivers. Priority is given to developing optical and electronic equipment industry, biological pharmaceutics, and high-grade residences. Chongqing Changan Ford Automobile Co., Ltd.; Hong Kong International Development Ltd. Co.; Chongqing Chaoli Electric Co., Ltd, Co., Ltd.; have all invested in the zone.
Basic Stats: 6km from city center; 4200 companies have invested in the park; average purchase price is 3500RMB a meter; >10 working days to get the license; 700-1500RMB a month for labor
Chongqing, like Chengdu, has benefited greatly from the “Go West” policy and the last 5 years have brought growth and prosperity to Chongqing. In addition to growth in industrial sectors like automotive, Chongqing is a consumer market that is attracting the attention of real estate developers, car manufacturers, and other consumer goods manufacturers.

Expect Chongqing to side by side with Chengdu in overall growth and exposure, but with a histroy of heavy industry, Chongqing’s draw will be very different from that of Chengdu’s overall. It is not a city that people tick as a preferred posting, but a city that “grows on you” according to one executive I spoke with.

If you have experience with any of the above parks, please share your thoughts in the comments section.

Stay tuned for part IV… Xiamen (Macro-profile here)

If you would like to know more about Chongqing’s zones, please leave a comment or sens us an email.

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3 Responses to “Chongqing’s Investment Zones”

  1. Adel Yasso says:

    September 8th, 2007 at 12:00 pm

    Hi there,
    Question, is there a demand for expats to represent Chinese Automotive Companies in the Middle East?

    Adel Yasso

  2. Rich says:

    September 8th, 2007 at 8:13 pm

    Hi Adel,

    Personally I do not know anyone in the Chinese auto industry, but I would say that there will most certainly be a need for representative in the MidEast market for Chinese auto.

    I would suggest attending the Shanghai Auto show, and perhaps contact Anhui Chery and the others.

    Rich

  3. Bert says:

    March 14th, 2009 at 6:54 pm

    I am well connected in the auto industry in China, and there is a clear demand for overseas representation. You need to show that you have the financial, technical, administrative, and market capabilities and that you are willing to do the necessary investments and undertakings to represent any Chinese vehicle maker. You also need to be prepared to take your time initially and spend some seed capital to get connected, accepted, and respected in the “system”so to say.

    There is no need really to attend the Shanghai auto show, you will only meet the junior sales reps there, you need to find networking channels to the senior executives who make the decisions. To some degree I can help you with that.

    Please be aware that the Chinese are only working along established personal relationships, they do not hire and pay people overseas as a rule.

    All the best
    Bert

    Bert Felt
    Email: kiwino1@gmail.com
    Skype: kiwino1

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