Chongqing - A profile

Chongqing - A profile

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This article provides an overview of Chongqing for those keen on exploring the possibility of living and working there. The information presented is gathered from open sources and is not exhaustive or meant to supplement or substitute legal and professional advice.

Key Facts

  • Land area: 82,400 sq km1
  • Population (2019): 31.24 million2
  • Gross Domestic Product (GDP) (2019): RMB 2,360.577 billion3
  • GDP per capita (2019): RMB 75,8284

Introduction

Chongqing is located at the confluence of the Yangtze and Jialing Rivers in southwest China. It is surrounded by Hubei and Hunan to the east, Guizhou to the south, Sichuan to the west and north, and Shaanxi at its northeast corner. It was established as one of the four direct-controlled municipalities in 1997 and the only one in west China. Chongqing reports directly to the central government.5 Comprising 21 districts and 17 counties,6 it has become the largest economic centre in west China as well as an important transportation hub and an inland port.7

Economy

Chongqing is one of the fastest growing cities in China.8 Besides the construction of the Three Gorges Dam Project, its rapid economic growth could also be attributed to China’s “favourable policies”, particularly the “Go West” strategy launched in 2000, which aims to generate investment in western China. Chongqing has largely benefitted from the policy and became a significant trading and manufacturing hub as well as a major gateway to west China.9 With its strategic location, Chongqing is also “a key strategic node” of the Belt and Road Initiative, which was unveiled in 2013 and aims to connect 65 countries across three continents through China.10

Industry

Chongqing is one of China’s oldest industrial bases, and its major industries include automobiles, iron and steel and aluminium. Heavy industry is the backbone of Chongqing, accounting for 79.6 percent of its gross industrial output in 2018.11 However, Chongqing is moving towards the manufacturing of electronic and high technology products. In December 2000, its municipal government established the Chongqing New North Zone (CNNZ), a modern industrial base aimed at developing high-tech industries. The zone comprises several zones including the Chongqing Economic and Technological Development Zone, Chongqing High‑Tech Industrial Development Zone and Chongqing Export Processing Zone. Amongst the leading computer and related products manufacturers that have established plants in Chongqing are Foxconn and Inventec from Taiwan.12

Foreign trade and investment

Chongqing’s total imports and exports reached US$83.95 billion in 2019, an increase from the US$79.02 billion achieved in 2018.13The United States was its leading export market, accounting for 29.4 percent of its total exports. Other major export markets include Germany (11.4 percent), South Korea (5.2 percent) and Hong Kong (4.2 percent). Major import sources were South Korea (accounted for 17.1 percent of total imports), Taiwan (11.6 percent) and Malaysia (7.9 percent).14

Over the years, many multinational companies from the electronic industries have established their presence in Chongqing. By the end of 2019, 293 of the world’s top 500 companies have set up operations there.15 With the Belt and Road Initiative, Chongqing is expected to seek more foreign investment and trade opportunities.

Consumer market

Chongqing is an important consumer market in southwest China due to its large population. Its per capita disposal income of urban households in 2018 was RMB34,889, an increase of 8.4 percent from 2017.16Its total retail sales of consumer goods reached RMB1,163.17 billion in 2019, up 8.7 percent from the RMB1,070.52 billion achieved the previous year.17Some of the major local and overseas retailers that have established their presence in Chongqing include Gome from Beijing, Carrefour from France, Walmart from the United States and Metro from Germany.18

Tourism

Chongqing enjoys a great natural and cultural heritage. Besides its breathtaking landscapes of mountains, rivers, forests, springs, waterfall gorges and caves, Chongqing also has the Dazu Rock Carvings, the Three Gorges, Small Little Gorges and the Natural Pit and Land Crack in Fengjie. Chongqing boasts a number of historic sites and tourist attractions. These include the residence of General Joseph Stillwell, an American army general who was the Chief of Staff in the China Theater of Operations and Commander-in-Chief of the American army in the China Burma India (CBI) Theater, the site of the provisional government of the Republic of Korea, and the Fishermen’s Castle in Hechuan, an ancient battlefield and the Capital of the Ghost World in Fengdu.19

Singapore and Chongqing

Chongqing Connectivity Initiative (CCI) is a Singapore-China government-led project launched in 2015. The CCI is aimed at supporting China’s key development strategies and enhancing connectivity in the areas of finance, aviation, transport and logistics and info-communication technology.20

In August 2017, Singapore and Chongqing signed agreements for two joint ventures: the Chongqing Logistics Development Platform (CLDP) and the Multi-Modal Distribution and Connectivity (DC) Centre. These ventures aim to help “develop Chongqing into an inland international logistics hub and contribute to the development of the CCI Southern Transport Corridor”, which in turn aims to enhance connectivity between west China and Southeast Asia.21

Other commercial signings between Singapore and Chongqing include the following:

  • China-Europe Rail Logistics plans to develop less-than-container-load freight consolidation using Yu’Xin’Ou railway to expand China and Europe sales markets.
  • BASH @ Chongqing aims to establish an Innovation and Entrepreneurship Centre to groom talent, adopt acceleration/incubation methodologies from Singapore, and develop Chongqing as a springboard into the rest of China.
  • Data Analytics Collaboration wants to provide cross-border information services (e.g. credit ratings) and business assessment tools developed through advanced analytics, artificial intelligence, machine learning and other web technologies.
  • B2B Creative Services Platform works towards developing a B2B bilingual online creative services platform targeted at small medium enterprises (SMEs) in Singapore, Malaysia and other parts of Southeast Asia.
  • China-Singapore Talent Centre plans to implement joint projects in areas such as training of both government officials and the managers of state-owned companies. It also wants to develop technical personnel, talent exchange, corporate collaboration, project consultancy and knowledge transfer.
  • Cross-Border Financial Innovation and Cross-Border Trade Financing plan to promote in-depth collaboration on cross-border financial innovation so as to bring about, firstly, a modern connectivity of the China-Singapore (Chongqing) pilot project, and secondly, dual factoring service for trade financing respectively.
  • Singapore-Chongqing Medical Centre aims to promote a strategic cooperation partnership to cooperate in healthcare-related projects.22

References

  1. Chongqing: Market profile. (2020, April 15). HKTDC Research. Retrieved January 27, 2021, from https://research.hktdc.com ↩

  2. 2-6: Population at year-end by region. (2020). National Bureau of Statistics of China. Retrieved January 27, 2021, from http://www.stats.gov.cn ↩

  3. 3-9 Gross regional product. (2020). National Bureau of Statistics of China. Retrieved January 27, 2021, from http://www.stats.gov.cn ↩

  4. 3-9 Gross regional product. (2020). National Bureau of Statistics of China. Retrieved January 27, 2021, from http://www.stats.gov.cn ↩

  5. Chongqing: Market profile. (2020, April 15). HKTDC Research. Retrieved January 27, 2021, from https://research.hktdc.com; Chongqing (Chungking). (n.d.). China Today. Retrieved January 27, 2021, from http://www.chinatoday.com; Chongqing. (2016, September 9). Government of Canada. Retrieved January 27, 2021, from http://www.canadainternational.gc.ca ↩

  6. Chongqing travel guide – how to plan a trip to Chongqing. (2021, February 7). China Highlights. Retrieved January 27, 2021, from https://www.chinahighlights.com ↩

  7. Zhang, H. (2016, January 29). Chongqing building on location advantage. China Daily Europe. Retrieved January 27, 2021, from http://europe.chinadaily.com.cn; Chongqing municipality. (2017). New Zealand Foreign Affairs & Trade. Retrieved January 21, 2021, from https://www.mfat.govt.nz ↩

  8. China’s big cities target slower growth in 2017. (2017, January 15). Fortune. Retrieved January 27, 2021, from http://fortune.com ↩

  9. Wong, P., Lin, M. C. Y. & Jackson, J. (2016, September). Best-performing cities: China 2016. Milken Institute. Retrieved January 27, 2021, from https://milkeninstitute.org; Chongqing. (n.d.). China Briefing. Retrieved January 27, 2021, from http://www.china-briefing.com; New five-year plan brings hope to China’s west. (2016, December 27). The State Council: The People’s Republic of China. Retrieved January 27, 2021, from http://english.gov.cn ↩

  10. Chongqing profile. (n.d.). International Students’ Department. Retrieved January 27, 2021, from http://interstar.sisu.edu.cn; China: Market profile. (2020, October 13). Enterprise Singapore. Retrieved January 27, 2021, from https://www.enterprisesg.gov.sg ↩

  11. Chongqing: Market profile. (2020, April 15). HKTDC Research. Retrieved January 27, 2021, from https://research.hktdc.com ↩

  12. Chongqing New North Zone. (2012, December 11). HKTDC Research. Retrieved January 27, 2021, from http://hkmb.hktdc.com; Chongqing: Market profile. (2020, April 15). HKTDC Research. Retrieved January 27, 2021, from https://research.hktdc.com/ ↩

  13. National data. (2020). National Bureau of Statistics of China. Retrieved January 27, 2021, from http://data.stats.gov.cn ↩

  14. Chongqing: Market profile. (2020, April 15). HKTDC Research. Retrieved January 27, 2021, from https://research.hktdc.com/ ↩

  15. Chongqing: Market profile. (2020, April 15). HKTDC Research. Retrieved January 27, 2021, from https://research.hktdc.com/ ↩

  16. Chongqing: Market profile. (2020, April 15). HKTDC Research. Retrieved January 27, 2021, from https://research.hktdc.com/ ↩

  17. 15-12: Total retail sales of consumer goods. (2020). National Bureau of Statistics of China. Retrieved January 27, 2021, from http://www.stats.gov.cn ↩

  18. Chongqing: Market profile. (2020, April 15). HKTDC Research. Retrieved January 27, 2021, from https://research.hktdc.com/ ↩

  19. Chongqing profile. (n.d.). International Students’ Department. Retrieved January 27, 2021, from http://interstar.sisu.edu.cn; Biography: Joseph Warren Stilwell. (n.d.). China-Burma-India: Remembering the forgotten theater of World War II. Retrieved January 27, 2021, from http://www.cbi-theater.com ↩

  20. Lee, S. (2016, April 15). S’pore delegation to visit Chongqing. The Straits Times. Retrieved January 27, 2021, from https://www.straitstimes.com; Balakrishnan, V. (2016, March 1). Singapore-China ties: A progressive partnership. The Straits Times. Retrieved January 27, 2021, from http://www.straitstimes.com ↩

  21. Greater connectivity between Singapore and Chongqing with the China-Singapore (Chongqing) Connectivity Initiative – Southern Transport Corridor. (2017). Ministry of Trade and Industry Singapore. Retrieved January 27, 2021, from https://www.mti.gov.sg ↩

  22. Full list of commercial signings. (2017). IE Singapore. Retrieved January 27, 2021, from https://www.nas.gov.sg ↩

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