Chengdu’s July Investment Briefing

Tuesday, July 31, 2007 3:18

The month of July has been a busy one for my friends in Chengdu, and I would like to thank them for providing us with their update.  there is something for everyone this month: investors, retailers, service providers, and tourists alike.

Chengdu released tourism investment information
On July 17, Chengdu Development and Reform Commission and Chengdu Tourism Bureau released the 2007 investment information of Chengdu tourist industry, and 34 important tourism projects were revealed to investors. Detailed information can be found at the portals of Chengdu tourism (www.cdbot.chengdu.gov.cn ).

It is reported that in 2006, the total economic volume of Chengdu tourist industry accounted for 40% of the whole province’s, ranked respectively first among cities in 12 provinces and regions in western China and fifth among 15 deputy-provincial cites of the country, and the number of tourists Chengdu has received was the second highest among the 15 deputy provincial cities.

RMB 685 million pushes Chengdu into digital TV age
On July 17, Chengdu High-tech Zone and Shenzhen Coship Electronics Co., Ltd., Shenzhen Coship Video & Telecom Media Co., Ltd. and Chengdu Xinwang Media Co., Ltd. held a signing ceremony for cooperation in digital TV projects.

It is reported that Coship Electronics is to establish “Chengdu R&D and Production Base for Digital Video & Telecom Products” in High-tech Zone, while Coship Video & Telecom and Xinwang Media are to jointly found a joint venture and build “West China R&D Center of Digital TV and Creative Industries”. RMB 685 million yuan will be invested in the two projects.

The projects will further push the development of Chengdu’s digital television services and accelerate the forming of the city as the content production pool of digital TV programs and added-value services as well as cultural industry center in central and western China.

Chengdu’s patent application ranked second among deputy-provincial cities
According to latest statistics of the State Administration of Intellectual Property, from January to June in 2007, the patent application from Chengdu counted 5,923 cases, of which 3,282 were approved, up 41.2% and 44.8% respectively over the same period of last year, hitting a record level. The number of cases submitted and approved ranked second and fifth among 15 deputy-provincial cities in China.


Deutsche Bank willing to establish a branch in Chengdu
On July 18, “the 1st Talkfest of Deutsche Bank – Deutsche Börse on Overseas Financing in Southwest China & Being Listed Overseas” was held in Chengdu. Ge Honglin, vice secretary of CPC Chengdu Municipal Committee and mayor of Chengdu, met with the German financial delegation. The two parties reached a consensus on making an effort to help Deutsche Bank to establish a branch in Chengdu and also to help Chengdu enterprises to be listed on Deutsche Börse.

First Chengdu-made small-size excavator off production line
On July 18, the first small-size hydraulic excavator co-developed by Japanese Kobelco Construction Machinery Co. Ltd and Chengdu Construction Machinery Co. Ltd was off production line in Chengdu. This was reported to have filled the gap of such machines produced by joint venture, and also given birth to the first Chengdu-made small-size excavator. It is predicted that the annual production will be more than 2000 units and expand to 3000 before year 2010.

Chengdu-made Jetta cars was officially launched
On July 19, Chengdu FAW Automobile held the launch ceremony of production of Jetta cars, which marked the starting of production of Chengdu-made Jatta cars. Martin Winterkorn, president of Volkswagen, and Zhu Yanfeng, chairman of FAW, attended the event. It is reported that the Chengdu FAW project with an investment of nearly RMB 800 million yuan currently has a production capacity of 20,000 to 30,000 cars per year and is expected to be able to make 100,000 cars annually by 2010.
According to the general plan of FAW Volkswagen, Chengdu will become its third base after Changchun and Tianjing, to be equipped with three entire car production lines.

First direct cargo air route from US to Chengdu expected to open
It was learned on July 18 that 3E Airlines (US) intends to open a regular two-way international cargo air route from Los Angeles to Frankfurt via Chengdu. 3E is now applying for traffic rights and the schedule and waiting for approval. This air route, if approved, will be the first direct one from the continental US to Chengdu, and also the first direct air route of Shuangliu International Airport that flies across the three continents of North America, Asia and Europe. Therefore, it is of great significance. This will be the third transcontinental regular cargo air route that the airport operates after the air routes of Chengdu – Beijing – Frankfurt and Seoul – Chengdu – Delhi – Brussels.
By then, the regular international air routes at the airport will be over 30.

Expert Delegation: Chengdu is the coziest city in China
As a best tourist city of China, Chengdu has been chosen as a candidate for CCTV’s big television program “Chinese famous cities most worthy to be introduced to the World”. From July 18 to 22, an expert delegation of 12 members including Colin Clark from UN’s World Tourist Organization was in Chengdu for their inspection trip.

Experts stressed that Chengdu has deep historical and cultural deposits which appear a distinct multifaceted character, and also praised Chengdu is a city of originality and innovation, and the coziest city in China.

Construction of Chengdu Polar Region Ocean World started
On July 19, the Ceremony for Starting Construction of “Chengdu Polar Region Ocean World” was held in Shuangliu County, Chengdu, signifying that the construction of the first theme park of polar ocean in inland China formally started.

“Chengdu Polar Region Ocean World” is a large scale project to be delicately built into a polar-ocean-themed resort, with an investment of RMB 1.2 billion yuan from Dalian Haichang (Group) Co., Ltd. The park is expected to open to the public by the May holiday in 2009, when visitors will be able to see large numbers of rare polar marine animals like white whales, penguins, dolphins and polar bears.

Biggest packaging base in Southwest was settled in Chengdu
On July 19, COFCO Pack (Chengdu) Co., Ltd formally launched its production in Chengdu Cross-Strait Scientific Industry Development Park, Wenjiang County. The project contains professionalized design, photoengraving, publication and production of various metal packing products for the storage of vegetables, fruits, seasoning and beer etc. It also engages in R&D and manufacture of food packing machines. It will be the biggest and most competent metal packing base in southwestern China, able to produce more than 40,000 tons of packing products per year with annual sales of RMB500 million yuan.

American GE strides into information industry and will purchase big in Sichuan
The famous American Global Fortune 500 enterprise GE announced in Chengdu on July 20 that it will set foot in information industry. Jim Fisher, president of GE China came to Chengdu and signed a cooperative agreement with Digital China, China’s biggest IT distributor.

It was said that GE thought highly of Chengdu’s huge development potential as a newly nominated Special Zone and its Silicon Valley leadership in West China. GE will hold a largest purchasing meeting ever in Sichuan and increase its purchase quantity by two to three times at the end of this year, revealed by Jim Fisher.

Chengdu was selected as China’s best IT outsourcing city
It was learned on July 20 that Alsbridge, an advisory firm providing advice and assistance on outsourcing, offshoring and shared services, has selected 10 best IT outsourcing cities in China, based on criteria of transportation, population, education, resources and economic stability, Chengdu is in the list.

Robust economic development, Chengdu’s GDP grew by 14.4% in first six months
It is learned from relevant governmental departments, in the first half of 2007, Chengdu realized a fairly good economic development, and regional GDP attained RMB 144.63 billion yuan, up 14.4% over the same period of last year. The added-value of the premier industry was RMB 8.42 billion yuan, up 5%; that of the secondary industry RMB 66.91 billion yuan, up18.7%; that of the tertiary industry RMB 69.3 billion yuan, up 11.8%.
Chengdu has ratified 168 foreign-invested projects, up 4.3% over the same period of last year, and the actually utilized foreign investment was US$ 640 million dollars, up 62.0%, while 2440 domestic projects were newly approved, with RMB 55.035 billion yuan been funded, up 60.03%.

156 foreign-invested companies were newly approved, an increase of 27.9%, of which, 103 are solely foreign-invested firms, up 51.5% over the same period of last year.

Hong Kong and Chengdu will exchange 160,000 tourists each year
On July 24, Travel Industry Council of Hong Kong and Chengdu Tourist Association signed an agreement on tourism cooperation between Hong Kong and Chengdu, aiming to strengthen dialogue and cooperation, and also agreed to send to the counterpart 160,000 tourists per year. He Baiting, president of TIC, was appointed as senior consultant of CTA at the occasion.

Chengdu enters into the age of digitalized city management
Chengdu’s digitalized city management system has recently passed the acceptance of the state construction department, as learned from Chengdu bureau for municipal design on July 24. The network has fully covered the central city, signifying the entering of Chengdu into the digitalized management age.

In consideration of the outstanding performance in construction of the system, Chengdu was granted by the state construction department the title of National Model City for Digitalized City Management.

China Southwest Innovation Center for Agricultural Technology inaugurated in Chengdu
As an important part of the state innovation system of agricultural technology, China Southwest Innovation Center for Agricultural Technology was inaugurated in Chengdu on July 25, which is a new milestone for Sichuan’s development in the field.

It is reported that the center will set up 6 service platforms for scientific innovation, pilot-scale incubation, model transformation, agro-information, personnel training and technical cooperation, and joint efforts to concentrate on 6 domains, namely, breeding of new life variety, standardized planting techniques of good quality, high productivity and efficiency, standardized and healthy aquiculture techniques, prevention and control of biohazard, biotechnology application and deep processing of livestock products, etc.

Chengdu-made MP7500 router was officially released
It was learned from Sichuan Provincial Electronic Information Field Guidance Team on July 25 that the world’s first multi-core open standard router based on ATCA – MP7500 high-end router, had been successfully developed and produced by Chengdu Maipu Communication Technologies Co., Ltd., which owns the router’s full and dependant intellectual property. It has been appraised and recognized by the state.

Experts hold that the development of this router has changed the long-time situation of technology isolation and monopoly, which is caused by the private technologies of each company in the field of data communications, and has begun to drive a new wave of open and standardized network technologies.

Chengdu won China’s Best Exhibition City prize in terms of service facilities
It is learned on July 29 that on the third China’s International Exhibition Cultural Festival and Chinese Exhibition Annual Meeting 2007, Chengdu stood out among numerous candidates and won the prize of 2006 China’s Best Exhibition City of service facilities.
Chengdu’s exhibition industry is reported to have generated revenue of RMB 968 million yuan in 2006, up 21 % over the previous year.

First International Residential Cultural Festival to unveil
First International Residential Cultural Festival of West China Furniture Trade Capital (Chengdu Wuhou) will open on August 1. It is at one time a furniture exhibition, commercial exchange, artistic display and theoretical research, and is an important platform to carry forward the local furnishing tradition and elevate Sichuan’s furniture brands.

In July 2005, Wuhou County of Chengdu was granted the title of West China Furniture Trade Capital by China National Light Industry Council and China National Furniture Association after the inspection and reasoning of an expert group.

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