Southwest hub seeks closer ties with neighbors
Updated: 2012-10-12 08:11
By Zhuan Ti(China Daily)
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Chengdu will further consolidate the city's status as a leading economic center in China's southwest by opening itself up to more economic cooperation with South Asian countries, local officials said.
The capital city of Sichuan province has the largest economy in western China, and it is the closest major city to South Asia. Its GDP reached 550 billion yuan ($87.5 billion) in 2010, accounting for more than 30 percent of the whole province.
It also ranks highest in terms of exports among the cities in central and western China, and the city has established economic relationships with 189 countries and regions in the world.
Additionally, the region's largest convention center is located in Chengdu, providing a platform for the series of trade talks and fairs with South Asian countries every year.
Chengdu's significant advantages in economy and its urban infrastructure make this city attractive. Some 200 of the world's top 500 companies have settled there, making it a hot spot for foreign and domestic investment as well as a top destination for coastal industries seeking to relocate inland.
In addition to strong economic strength, more preferential policies have been implemented by the city and provincial governments. Promoting and strengthening economic cooperation with South Asia has become a major strategic task of Sichuan and was listed in the 12th Five-Year Plan, which guides the development of the area from 2011 to 2015.
Following this plan, Chengdu released more policies and took new steps, including hosting the China-South Asia Economic Trade Cooperation Fair annually and building a trade center to showcase goods from South Asia.
Companies from Chengdu have begun investing in infrastructure construction, tourism, hydropower development, and catering and recreation in South Asian countries in recent years. For example, they are seeking to cooperate in tourism with Sri Lanka, Nepal and the Maldives, all of which are world-famous tourist destinations.
In India, the value of contracts with companies from Chengdu has reached $5 billion. Half of this comes from a contract to provide equipment for a power project, which was signed between Abhijeet Group and Dongfang Electric Corporation, a domestic company specializing in manufacturing and electrical engineering.
At the same time, Chengdu is the first choice for these companies when they are investing in China. Given the city's advantages in the sectors of services, software, education and financial services, many international companies are looking to do business there.
Wipro Limited, an Indian multinational provider of IT, consulting and outsourcing services plans to build a new R&D center in Chengdu with more than 1,000 employees and then transfer 60 to 70 percent of its current services and projects out of India to this city.
IT companies are not the only ones finding opportunity in Chengdu. Companies involved in jewelry and tea are also expanding their presences in this booming market.
In addition, the domestic market in China has a large demand for raw materials, such as iron ore, manganese ore, copper and coal, which are abundant in South Asian countries. Together with other commodities like jewelry and jade, they account for a large portion of Chengdu's imports.
zhuanti@chinadaily.com.cn
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View of Chengdu International Trade City, the venue for this year's China-South Asia Economic Trade Cooperation Fair. Photos Provided to China Daily |
(China Daily 10/12/2012 page12)