Home » City specials » Chengdu
Chengdu signs big deals in Go-West drive
By Maggie Zhang |
January 15, 2013, Tuesday
|
Print Edition
Print Edition
EDITOR'S note:
Chengdu, capital of China's southwestern Sichuan Province, is renowned as being the home of the panda, plus much more besides. This year, the city will host the prestigious Fortune Global Forum, acknowledging Chengdu's growing reputation as a major business center. Much of this success can be attributed to the city's fast growth "can-do" attitude, together with its relaxed lifestyle. It's a combination proving every bit as appealing as Chengdu's cute black and white natives.
Flying to three Chinese metropolitan centers in three days last month, top Chengdu officials secured investment deals worth billions of dollars, clearly building the economic clout of a city already renowned for its tourism.
Led by Chengdu Mayor Ge Honglin, the delegation inked contracts with big-name companies in Beijing, Shanghai and Shenzhen totaling a combined 42.2 billion yuan (US$6.7 billion) for projects in the city in the vanguard of China's Go West development initiative.
Chengdu is selective, seeking investment in environmentally friendly, innovative and sustainable projects and services, and reaching out to companies that have already footprints in the Chinese capital, the Yangtze River Delta and the Pearl River Delta. Officials say they have no intention of turning Sichuan's capital city into another highly polluted, low value-added manufacturing base with cheap labor.
"We ran the tightly scheduled event at year's end to push investment ahead and get corporate feedback on how to make the city more attractive to investors," Mayor Ge said.
In Shanghai, the Chengdu government signed 12.4 billion yuan in deals with advanced manufacturing and service companies for 17 projects. They cover bio-pharmaceuticals, information technology, autos, logistics and organic agriculture.
For instance, Tony's Farm, a major organic vegetable farm, agreed to invest 1 billion yuan in Chengdu to build an organic farm producing, processing and selling organic vegetables. Organic food is increasingly demanded by wealthier Chinese consumers. The 170-hectare farm will also develop a farm sightseeing business, in which city people spend a day or two in the country.
Beijing and Shenzhen
In Beijing, 17 investment deals worth 18.1 billion yuan were signed. In Shenzhen, 16 projects worth 11.7 billion yuan were secured. The three-day investment campaign is the latest example of how Chengdu is luring quality investment to build the economy in a sustainable way.
"In China, the west stands out for investment, and Chengdu stands out in the west," according to a popular saying.
Multinational chipmaker Intel invested in Chengdu nine years ago. Ge Jun, managing director of Intel China, praised the city's business-friendly administration, calling it a growth engine for the central and western regions. Intel believes in the rise of the west and in Chengdu's expanding economic role in China's interior. Intel's investment that started in 2003 expanded in three years to a level that could take a decade anywhere else for the industry, Intel's Ge said.
"We have sensed the benefits in Chengdu since Day One; it's the leader in the west," said Managing Director Ge.
"Though an interior city itself, Chengdu takes China's coastal cities as examples of development," the Chengdu mayor said. "Chengdu's growth will make life better for its people, with rising incomes and social benefits."
Chengdu aims to attract more projects in modern, light manufacturing and other sectors. To date, 229 of the Fortune 500 global companies have planned to invest in the city, compared with 42 in 2002.
Since taking the helm in 2003, Mayer Ge Honglin has run 38 quarterly symposiums with foreign investors to get input on their operations and what they need from the administration. He said he "cherishes" the feedback on how the administration can make the city more business-friendly and attract and retain investment.
Chengdu is courting industries such as information technology, bio-pharmaceuticals, autos and other advanced industries. The city is already relocating highly polluting industries, such as small cement mills that are common in developing cities.
From June 6-8, the city will host the 2013 Fortune Global Forum. The event will be another showcase for the world to see Chengdu's accomplishments.
Chengdu's population includes 2 million registered professionals with special skills and management expertise, ranking the city No. 4 in China and No. 1 in the west region in terms of highly trained professionals. Chengdu also has a low 5 percent labor turnover rate, lower than that in Shanghai and Beijing.
More foreign investors now incorporate Chengdu into their China strategy.
The city is home to IT giants Intel, Dell and Lenovo. Volkswagen, Toyota, Volvo and China National Heavy Duty Truck all manufacture vehicles there.
In the first three quarters, foreign investors channeled US$6.54 billion into Chengdu, up 14.4 percent from a year earlier. That compared with a decrease of 3.8 percent nationally.
For years China's central government has been promoting its Go West policy, to unlock the economic potential of inland areas bypassed in the first waves of foreign investment and modernization.
On December 28, Commerce Minister Chen Deming set the tone for 2013, emphasizing that China will continue policies to encourage foreign investment in central and western China and set environmentally friendly standards in the region.
Chengdu, capital of China's southwestern Sichuan Province, is renowned as being the home of the panda, plus much more besides. This year, the city will host the prestigious Fortune Global Forum, acknowledging Chengdu's growing reputation as a major business center. Much of this success can be attributed to the city's fast growth "can-do" attitude, together with its relaxed lifestyle. It's a combination proving every bit as appealing as Chengdu's cute black and white natives.
Flying to three Chinese metropolitan centers in three days last month, top Chengdu officials secured investment deals worth billions of dollars, clearly building the economic clout of a city already renowned for its tourism.
Led by Chengdu Mayor Ge Honglin, the delegation inked contracts with big-name companies in Beijing, Shanghai and Shenzhen totaling a combined 42.2 billion yuan (US$6.7 billion) for projects in the city in the vanguard of China's Go West development initiative.
Chengdu is selective, seeking investment in environmentally friendly, innovative and sustainable projects and services, and reaching out to companies that have already footprints in the Chinese capital, the Yangtze River Delta and the Pearl River Delta. Officials say they have no intention of turning Sichuan's capital city into another highly polluted, low value-added manufacturing base with cheap labor.
"We ran the tightly scheduled event at year's end to push investment ahead and get corporate feedback on how to make the city more attractive to investors," Mayor Ge said.
In Shanghai, the Chengdu government signed 12.4 billion yuan in deals with advanced manufacturing and service companies for 17 projects. They cover bio-pharmaceuticals, information technology, autos, logistics and organic agriculture.
For instance, Tony's Farm, a major organic vegetable farm, agreed to invest 1 billion yuan in Chengdu to build an organic farm producing, processing and selling organic vegetables. Organic food is increasingly demanded by wealthier Chinese consumers. The 170-hectare farm will also develop a farm sightseeing business, in which city people spend a day or two in the country.
Beijing and Shenzhen
In Beijing, 17 investment deals worth 18.1 billion yuan were signed. In Shenzhen, 16 projects worth 11.7 billion yuan were secured. The three-day investment campaign is the latest example of how Chengdu is luring quality investment to build the economy in a sustainable way.
"In China, the west stands out for investment, and Chengdu stands out in the west," according to a popular saying.
Multinational chipmaker Intel invested in Chengdu nine years ago. Ge Jun, managing director of Intel China, praised the city's business-friendly administration, calling it a growth engine for the central and western regions. Intel believes in the rise of the west and in Chengdu's expanding economic role in China's interior. Intel's investment that started in 2003 expanded in three years to a level that could take a decade anywhere else for the industry, Intel's Ge said.
"We have sensed the benefits in Chengdu since Day One; it's the leader in the west," said Managing Director Ge.
"Though an interior city itself, Chengdu takes China's coastal cities as examples of development," the Chengdu mayor said. "Chengdu's growth will make life better for its people, with rising incomes and social benefits."
Chengdu aims to attract more projects in modern, light manufacturing and other sectors. To date, 229 of the Fortune 500 global companies have planned to invest in the city, compared with 42 in 2002.
Since taking the helm in 2003, Mayer Ge Honglin has run 38 quarterly symposiums with foreign investors to get input on their operations and what they need from the administration. He said he "cherishes" the feedback on how the administration can make the city more business-friendly and attract and retain investment.
Chengdu is courting industries such as information technology, bio-pharmaceuticals, autos and other advanced industries. The city is already relocating highly polluting industries, such as small cement mills that are common in developing cities.
From June 6-8, the city will host the 2013 Fortune Global Forum. The event will be another showcase for the world to see Chengdu's accomplishments.
Chengdu's population includes 2 million registered professionals with special skills and management expertise, ranking the city No. 4 in China and No. 1 in the west region in terms of highly trained professionals. Chengdu also has a low 5 percent labor turnover rate, lower than that in Shanghai and Beijing.
More foreign investors now incorporate Chengdu into their China strategy.
The city is home to IT giants Intel, Dell and Lenovo. Volkswagen, Toyota, Volvo and China National Heavy Duty Truck all manufacture vehicles there.
In the first three quarters, foreign investors channeled US$6.54 billion into Chengdu, up 14.4 percent from a year earlier. That compared with a decrease of 3.8 percent nationally.
For years China's central government has been promoting its Go West policy, to unlock the economic potential of inland areas bypassed in the first waves of foreign investment and modernization.
On December 28, Commerce Minister Chen Deming set the tone for 2013, emphasizing that China will continue policies to encourage foreign investment in central and western China and set environmentally friendly standards in the region.
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