Chongqing more and more open with foreign trade surging

Due to the slow growth of domestic economy, American investors are pressing their government to seek more decent investment destinations. And Chongqing seems to be a good place of that kind.

Five factors of low costs

The continuous opening-up policies and the unique “Five Low Costs Factors” (“Five Lows”) investment environment of Chongqing attracted the investment from transnational enterprises including Hewlett-Packard.

The “Five Lows” refer to relatively low taxes and duties, relatively low land and housing prices, relatively low logistics costs, relatively low and adequate factor costs and relatively low financing costs.

Convenient & fast logistics and rising inland port highland

The import and export of laptops contributed immeasurably to the foreign trade of Chongqing. The total import and export value of laptops amounted to 10.13 billion US dollars in the first half of 2012, up 4.1 times compared with last year.

In order to simplify the export procedure of “made-in-Chongqing” laptops, Chongqing Customs has made effort to create a classified pattern for customs clearance.

Besides, Chongqing also revives the “Silk Road” in order to build a fast and convenient international logistics channel for “made-in-Chongqing” products and help those products seize the market share of European and American markets.

Under the support of global strategic freight channel consisting of railways, seaways and airlines, Chongqing began to work as an inland port highland. In the first half of 2012, Chongqing altogether transported cargos of 39.66 tons, with the volume of transship cargo accounting for about 30%.

Fast and stable development in “going global”

Chongqing aims to attract foreign investment as well as boost export through building inland opening-up highland and developing open economy. Apart from this, Chongqing also encourages its enterprises to go abroad and compete with enterprises around the world to improve their own international competitiveness.

In the first half of 2012, Chongqing signed 26 new foreign investment projects, securing investment of 2.107 billion US dollars. Chongqing’s enterprises are going global at a fast and stable pace.

The “overseas strategy” of Chongqing’s enterprises breaks the traditional “outer circulation” pattern in which enterprises buy factories abroad and then market in the local places and creates “outer and inner circulation” pattern for Chinese enterprises.

Huang Xiqin