1. Chengdu’s Metro Line 1 laid completely, to start trial operation next October
On November 30th, the municipal government of Chengdu held a press conference, announcing that the track-laying of the Metro Line 1 of Chengdu has been completely finished, and the trial operation is predicted to begin next October.

2. Chengdu expected to become emerging growth pole in Asia Inland in future
On December 5th, the third Chengdu Economic Development Forum sponsored by the Chengdu Economic Development Institute was inaugurated, and around the topic of “Chengdu Economy in fifty years”, guests from the National Development and Reform Commission, the China International Economic Exchanger Center, Chengdu-based higher learning institutions and research organizations and relevant governmental departments of the city, have discussed the road of future development of Chengdu. Experts thought that in about 20 years, Chengdu is expected to become an emerging inland growth pole in Asia and an innovative international hub city.

3. Among most investable new energy cities in 2009, Chengdu ranked No. 1
At the 2009 China Economic Development Annual Meeting of New Energy Industry held recently, Chengdu was awarded the title of the “most investable new energy city of China in 2009”, and ranked No. 1 among the 15 cities on the list, learnt the journalist on December 8th from the municipal economic commission.
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With the DOW Jones hitting recent highs, and all the economic markers pointed up, it appears that people are beginning to come out of their hibernation as I have received several invitations ffrom government agencies to help promote their Shanghai events.

Personally, I will have to sit both out as I will be on the road, but if your firm is interest (and has the cash to invest), then perhaps attending one of the events may be useful.  Typically well attended, and drawing out senior park officials, it isn’t the best time for a deal – kind of like getting a deal at Guangzhou fair – but could be the start of a relationship that turns into a piece of land..

Suzhou Nantong Technology Park (pictures above)
December 1, 2009 from 3pm
JW Marriott 5th floor banquet hall
Full invitation here

Chengdu Hi-tech Zone and Tianfu Software Park
November 25, 2009 from 4pm
Shanghai Hall, 2nd floor, Pujiang Building, Shangri-La Hotel
See full details here

1. Comparing urban education competitiveness, Chengdu ranking fourth
The study report on Educational Competitiveness of Chinese Cities released on August 30th by Chinese Academy of Social Sciences shows that among 15 deputy provincial cities in China, Shenzhen ranks first in terms of educational comprehensive competitiveness, and Chengdu ranks fourth.

2. FAW new-energy passenger car to be put into production in 2011
The FAWER Chengdu base, the FAWAY Chengdu base and the FAW southwestern base of new-energy passenger car had officially signed with the Chengdu Economic and Technological Development Zone (CETDZ), learnt the journalist on August 30th from Longquanyi district. The total investment of the 3 automobile and parts production companies is more than 1.1 billion yuan, and according to plan, projects will be completed and put into production in 2011, which by then will greatly enrich the automobile industrial chain of the CETDZ.

3. First foreign-invested wholesale bank, JP Morgan Chase& Co’s Chengdu branch operated
On September 10th, the first wholesale foreign bank JP Morgan Chase& Co.’s Chengdu branch officially began operation, which means that Chengdu’s financial patterns become richer, whereas Chengdu also became JP Morgan Chase& Co.’s fifth chosen cities for conducting business after Beijing, Shanghai, Tianjin and Guangzhou. The opening of the Chengdu branch also signifies that the number of foreign banks operating in Chengdu has risen to 9.

4. CNBM’s “three flowers” blossom in Chengdu in one day
China’s first 0.5mm LCD glass substrate production line laid foundation in Chengdu, the seismic energy-saving house of the new rural construction project started construction in Chengdu, the 2 billion yuan investment in building light building materials industrial base project were formally signed… As the country’s largest comprehensive building materials industry group, the China National Building Material Group Corporation reached a package of cooperation agreements with Chengdu in merely one day of August 30th. The two parts’ collaboration starting from building materials and houses as the base is extending fully towards such new fields as photo electricity and new energy.

5. 390 million yuan investing in Longquanyi district, two projects settled in logistics center
Recently, the Minsheng (Longquan) logistics project and Changjiu Group’s southwestern commercial car transferring base project of total investment of 390 million yuan were settled in Longquan Logistics Center. The Minsheng Longquan logistics project has an investment of 170 million yuan, mainly engaged in building warehouse distribution center, container yard and regional headquarters and so on, and will achieve an annual turnover of 160 million yuan, annual tax revenue 4 million yuan after meeting full capacity; Changjiu Group’s southwestern commercial car transferring base project invested with 220 million yuan, will build high-end vehicle storage, high-end parts warehouse, vehicle parking, automobile preparation base and regional headquarters, and is expected to realize an annual turnover of 250 million yuan, annual tax revenue 8 million yuan. The two projects are planned to start construction in September of this year, and to be completed in 2010.

6. Making of prototype of home-made C919 large passenger aircraft head started in Chengdu
On September 1st, the head works prototype of China C919 large passenger aircraft project started production formally in the AVIC/Chengdu Aircraft Industrial Company, which marks that China’s independent design and manufacture of large passenger aircraft C919 has achieved a breakthrough – Chengdu “leading” large passenger aircraft project set sail.

7. Summer Tour Scoreboard, Chengdu ranks third
According to the “2009 National Summer Tour List” released by the Strip.com on September 2nd, under the leveraging effect of panda cards, tourists coming to Chengdu this summer increased by more than 200% compared with the same period of last year, which made Chengdu just behind Beijing, Xiamen, with the city ascending the second-runner “throne” as the third most popular summer tourist destination in China.

8. At new energy international forum, Shuangliu signed contracts of 5.6 billion yuan
The 2009 China (Chengdu) New Energy International Forum and Solar Energy Exposition were held in Chengdu on September 3rd to 6th. At the Chengdu new-energy industry promotion meeting and signing ceremony held on 5th, Shuangliu County signed 13 contracts with various parties, with total agreed investment of 5.6 billion yuan.

9. Belgium will set up a BCECC representative office in Chengdu
Belgium’s Belgian-Chinese Chamber of Commerce will set up a representative office in Chengdu, and also a dedicated office. It is reported that this is the first representative office to be set up by the BCECC in China. On September 6th, leaders of Sichuan Commerce Department and Sichuan Provincial Import and Export Chamber of Commerce met Dewit, the visiting president of the BCECC, and an economic and trading cooperative agreement was signed between the provincial import and export chamber of commerce and the BCECC.

10. Ministry of Culture formally approved intangible heritage festival to permanently reside in Chengdu
The Ministry of Culture had returned a formal letter of approval, agreeing to hold with Sichuan Provincial People’s Government in Chengdu an edition every two year of the China Chengdu International intangible cultural heritage festival during the period of the national “cultural heritage day”, learnt the journalist on September 6th from the municipal bureau of culture.

11. Three important domestic design companies to enter Redstar 35
On September 9th, ARTOP Industrial Design Co., Ltd., a domestic well-known industrial design company, was formally settled in the Redstar 35 Chengdu Cultural Creative Industrial Parks, and together with the previously stationed Newplan and the upcoming LKK Design, the three most famous industrial design companies in China all have a presence in the Redstar 35 – Chengdu Cultural Creative Industrial Park, which will shoulder the flag of industrial design locally even in west regions.

12. Investing 30 billion yuan, West China Clothing Capital landed in Pengzhou
On September 10th, the fifth congress of Sichuan Household Textile Industrial Association was held in Pengzhou. It is reported that the major developer Huamao Construction Company collaborating with Chengdu Industry Investment Group, will gradually invest 30 billion yuan and devotedly build in Pengzhou the “West China Clothing Capital”. Its prophase project – the first phase construction of Huamao•Chengdu Household Textile Industrial Park has already completed, and 18 leading household textile companies will soon enter.

13. Chongzhou Chuanhui investing 100 million yuan to build a plastic pipe production park
On August 29th, Chongzhou Chuanhui Plastic, one of Sichuan’s leading plastic companies, invested 100 million yuan in Chongzhou’s industrial park, to add a 100-mou plastic pipe production park.

14. Chengdu entered China’s top ten e-commerce innovation and entrepreneurship cities
The 1997 – 2009: Survey Report on China’s E-commerce in Twelve Years released by the China B2B Research Center recently in Hangzhou has selected the “top ten e-commerce innovation and entrepreneurship cities/regions in China”; Chengdu was among the list, becoming the only selection from West China, learnt the journalist on September 13th.

15. Dujiangyan signed in Shanghai, obtaining investment of 3.06 billion yuan for post-disaster reconstruction
On September 14th, the Dujiangyan post-disaster reconstruction introduction and project promotion meeting were held in Shanghai, at which signed were a total of 53 post-disaster reconstruction projects, the investment amounting to 3.06 billion yuan, involving 4 primary industry projects, 10 secondary industry projects, 17 tourist cooperation projects, 12 commercial projects and 10 science and technology projects.

Entering the Chinese mid-market segment: key to long-term success?, by Heiko Gebauer, Thomas Fischer and Elgar Fleisch, is an academic report that I found interesting lately while studying a 2nd tier market plan, and as a followup to a recent conversation about firms moving into the 2nd/ 3rd tier looking for growth.

As part of their report, the professors highlight 5 major missteps groups take when trying to assess or enter China’s middle market:

1. Managers use their existing customer segmentation and transfer it to the Chinese market.
2. Managers fail to continually update their understanding of the Chinese mid-market
3. Managers assume that because mid-market consumers can’t afford top quality merchandise therefore they will accept products and service that aren’t customized
4. Managers overestimate the willingness of mid-market customers to pay a premium for international brands over locally made equivalents.
5. Managers assume that mid-market growth is concentrated in the first and second tier cities such as Beijing, Shanghai and Xian and that the third and fourth tier cities are restricted to the low-end market and do not experience accelerated market growth

Key factors for formulating the product strategy appear to be up-to-date market analysis, early market entry and moderate prices.

• Setting up separate organizational units targeting the mid-market is the key factor for implementing the product strategy.
• Localizing research and development, and adjusting manufacturing processes seem to present both major challenges and the key to success for the separate organizational unit.
• Only if domestic companies have already achieved reliable and constant product and service quality should they undertake the adventure towards the mid-market segment.
• A market entry that is too early and too ambitious can put the company at risk.

The report, while brief (email me for a copy), highlights some critical factors that firms should certainly consider ( there are certainly others that are firm/ industry/ product specific), but on a larger level where I liked this study/ report was that it had the potential to open smart dialogue.

1. VXI US to set up western call center in Chengdu
The global one-stop call center solution provider VXI US had settled in the Tianfu Software Park, learnt the journalist on August 16th. It is introduced that the size of the Chengdu call center will exceed 1,000 seats, equivalent to the total sum of seats VXI has in the call centers of Shanghai and Guangzhou.

2. Giant investors from across China came to Chengdu, nearly a hundred Sichuan-based companies obtained investment of 8.8 billion yuan
On August 18th, the grand gathering of deep connection of high-tech industries and financial capital – the matchmaking meeting between Sichuan’s financial organizations and high-tech enterprises was held in the Chengdu High-tech Zone. Tens of investment “magnates” from across the country gathered together with over 400 high-tech companies from Sichuan, making matches between projects and capital.
At the meeting, nearly 100 Sichuan-based high-tech companies signed various agreements with such organizations as banks, insurance, guarantee and venture capital, obtaining financed and invested capital totaling 8.8345 billion yuan, among which, 13 banks including the Bank of China and the Industrial and Commercial Bank signed loan agreements with 85 enterprises, with loan amounting to 7.208 billion yuan.

3. More than 100 million US dollars attracted, building “leisure sports complex” in North Lake
On August 18th, the Chenghua district government and the China Merchants Property Development signed an investment agreement on the “Comprehensive Development Cooperation project of 198 North Lack Region of Chengdu”: with an investment estimation of 117 million US dollars, China Merchant Property Development will build an “urban leisure sports complex” covering an area of 1,700 mou, integrated with leisure sports, tourist sightseeing and vacation residence, whose construction is predicted to be roughly completed in 3 to 5 years.
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Like to thank Ian for sending this Youtube clip along of the new Guangzhou train station.  Perhaps one of the busiest in the world, this new station is HUGE.  Apologies for those of you behind the firewall, but for those of you who are able to view… enjoy.

1. To establish corporate headquarter in Chengdu, company could be granted highest government reward of 20 million yuan
To establish corporate headquarters in Chengdu, companies could be granted the highest government reward of 20 million yuan. On August 5th, the General Office of Chengdu Municipal Government forwarded the Chengdu Investment Promotion Commission about Implementation Measures (Trial) on Encouraging Set-up in Chengdu of Headquarters and Regional Headquarters of Foreign and Domestic Large-scale Companies, in which were put forward for the first time the grant of more important financial aid and incentive to headquarters and regional headquarters set up in Chengdu, the offer of settlement subsidy and financial reward to high managerial officials, as well as the giving of the most preferential benefits and conveniences for talent introduction, capital management, entry-exit and customs clearance, etc.

2. TCL Chengdu liquid crystal production line put into operation
On July 29th, the rollout and production launch ceremony for the liquid crystal project of TCL Home Appliances (Chengdu) Co., Ltd. was held in the Chengdu High-tech Zone. The TCL Corporation has become Chengdu’s first LC flat television producer, filling in the gap of flat television production in Chengdu area.

3. Chengdu starting protection and utilization of 20 famous historical and cultural towns
On July 31st, the municipal planning bureau arranged a working conference on the protection and utilization of the famous historical and cultural towns of Chengdu, and kicked off the third-phase protection and utilization of 20 famous historical and cultural towns.

At present, Chengdu has 5 historical and cultural towns of national level, namely Anren, Xinchang, Huanglongxi, Pingle and Luodai, 8 provincial-levels and 7 municipal-levels.

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1. GDP increased by 14.3 % in first half year
In the first half of this year, Chengdu’s GDP has increased by 14.3%, far higher than the national GDP growth of 7.1%, while the second quarter’s growth rate is 2% higher than that of the first quarter; over half of the task has been realized in 50% of the time. Chengdu’s economy shows a tendency of stopping slide and rising up, the impact of financial crisis on which is gradually reducing.

2. High-tech Zone selected among Chinese top-ten high tech zones with most investment potential
Aiming to build a world first-rate industrial pack, the Chengdu High-tech Zone entered the list of the top ten high-tech zone with most investment potential in China. On July 19th, the “Future of a development zone and a city – the summit forum on and the metal presentation of China’s high-tech zones with most investment potential” was held in Beijing, the Chengdu High-tech zone among 10 national high-tech industrial development zones were selected as the “top-ten high tech zones of most investment potential of China”.

3. Venture capital magnate joining hands with Chengdu, to set up sub-funds of 500 million yuan
After having jointly set up a sub-fund of 500 million US dollars with the Korea Development Bank and the Korea KTB, on July 15th, the Chengdu government guided fund “Yinke Venture Capital” made another big endeavor: the company signed with the domestic VC magnate DT Capital Partners, to jointly establish a CV fund of 500 million yuan, which is the first time for the government-guided fund to introduce a pure RMB fund to support the local industries.

It is predicted that by the end of the year, Chengdu will in total own 5 CV sub-funds, and Yinke also plans to introduce 3 American and Chinese investment organizations to set up sub-funds in Chengdu.

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1. Chengdu to become foreign-invested financial “fourth city”, with currently 8 foreign invested banks
Recently, the Chengdu branch of Nanyang Commercial Bank (China) Limited opened to public, and the number of foreign-capital banks in the city has reached 8. According to the statistics, in counting the JPMorgan Chase and the Bank of Tokyo-Mitsubishi which are under preparation, Chengdu will have 10 foreign-invested banks, the number ranking first in western regions and fourth in China, becoming the “fourth city” of foreign-invested finance.

2. “Ranking of Comprehensive competitiveness of Western Economic Development”, Sichuan’s general ranking topped the list
On July 12th, the ranking of the comprehensive competitiveness of West China Economic Development was released, in which Sichuan, Shanxi and Inner Mongolia were list the top three. The conclusion was drawn from the “2009 West China Blue Print: West China Economic Development Report”, which is conducted by the West China economic development research center of the Northwest University.

3. Degree of Chengdu’s integrated urban and rural development reached 65.9%
The 2008 Appraisal and Monitoring Report on the Integrated Urban and Rural Development of Chengdu conducted jointly by the Chengdu Bureau of Statistics, the Coordinating Committee of the municipal party committee and the Chengdu survey team of the National Bureau of Statistics was recently released. The report shows that the balancing urban and rural development of Chengdu in such four appraisal fields as economic development, social undertaking, cultural development and democratic political development has been fully improved in 2008, and its overall degree of realization has reached 65.9%, up 4.4% over last year.

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TEDA AND ZTE AGRIBUSINESS COMPANY LIMITED SIGN AN INVESTMENT FRAMEWORK AGREEMENT
On May 31, TEDA and ZTE Agribusiness Company Limited inked an investment framework agreement to co-establish the ZTE Agribusiness Tianjin Edible Oil and Bio-energy Industrial Base in the Nangang Industrial Park, with a total investment of 194 million dollars.

The base will be comprised of such projects as a palm oil processing and storage base with an annual output of 900,000 ton, a bio-diesel production base of an annual output of 100,000 ton, a fuel ethanol production base with an annual output of 100,000 ton, an agricultural and bio-technology research institute, a global sales center, etc. After its completion, the base will attain an annual sales income of 6.4 billion yuan and profits of 500 million yuan and contribute tax of nearly 190 million yuan. Besides, the company will regard Tianjin as its base to develop overseas agricultural projects. It plans to invest 880 million dollars in five years to grow crops on 200,000-hectare land abroad and reserve one million-hectare overseas agricultural land in ten years. (Tr. by Chen Yu)

SIBRE OPENS NEW PLANT IN TEDA
Sibre China recently celebrated its ten-year anniversary by launching a new plant for wind turbine brakes in TEDA.
Set up in 2004 as a joint venture by the Sibre Group from Germany, Sibre Brakes (Tianjin) Co., Ltd. has grown into a heavyweight player on the local machinery manufacturing arena in five years. Nationwide, Sibre has expanded its Chinese team from 3 to 60 people in ten years, with sales revenue soaring from 3 million to 300 million in 2008.
Sibre, incorporated in 1958, is the biggest industrial brake producer in Germany and a technological leader in the industry. Its block and disc brakes are now widely applied on port cranes, steel mill cranes, thermal and nuclear power plants, hydro-power plant cranes, wind turbines, belt conveyers, piling machines, and other equipments. (Tr. by Zhang Shanshan)

VIMICRO ELETRONICS R&D CENTER BREAKS EARTH
On June 10th, TEDA Service Outsourcing Park witnessed the grand earth-breaking ceremony for the Starlight China Chip Project R&D Center of Vimicro Electron Corporation.

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