A "Flying Start" in Export and Import Trade: Driving Engines for Chongqing's Foreign Trade

By Xinyi Li, EDITOR

In 2018, the total import and export value of Chongqing foreign trade was RMB 522.2 billion, with a year-on-year increase of 15.9%. This is the second time for Chongqing to realize an annual export and import value of over RMB 500 billion since 2014. According to statistics from Chongqing Customs, in the first two months of this year, the total import and export value of Chongqing foreign trade was RMB 83.9 billion, with a year-on-year increase of 17.4%, marking a “good start”.

China Railway Express (Chongqing) to Europe in Shapingba District

From the snapback in 2018 to the flying start this year, and what factors have provided the strong driving forces for the development of Chongqing foreign trade?

The stability of pillar products

On March 14, according to the digital workshop of Chongqing Inventec Plant that after intellectualized reconstruction, the workshop had realized mixed-line and flexible production of different machine types, configurations, packaging, and personalized products, greatly improving the production efficiency. In 2018, the output of the Chongqing Inventec Plant increased by 16.6%.

Workers are busy assembling the smartphones at Chongqing COMPAL Smart Electronic device Co., Ltd. in Chongqing Lianglu-Cuntan Free Trade Port Area, photo credit to Zhang Jinhui

According to Chongqing Xiyong Micro-electronics Industrial Park, “Inventec’s IMP data application platform has become one of the pilot projects in Chongqing Industrial Internet (Artificial Intelligence) 2019.” Apart from Inventec, the Quanta Computer, Foxconn and other original equipment manufacturers have also realized the intelligent upgrading.
In the first two months of this year, laptop manufacturing of Chongqing Xiyong Micro-electronics Industrial Park kept growing, with the output value of RMB 19 billion and a year-on-year increase of 17.36%. During the period, the value of laptops exported from Chongqing accounted for about 85% of the city’s total export value and about 25% of the total import and export value. In other words, laptop manufacturing took up a quarter of Chongqing’s foreign trade import and export value.

Powerful support from Chongqing Lianglu-Cuntan Free Trade Port Area

According to the data released by Chongqing Lianglu-Cuntan Free Trade Port Area after Chinese New Year, the attendance of the four key processing trade enterprises in the area was nearly 20,000, and the attendance rate exceeded 90% during the Chinese New Year. For example, 4,000 employees of Chongqing COMPAL Smart Electronic device Co., Ltd. stuck to their posts during Chinese New Year.
The high attendance revealed the increasing orders. These orders were mainly from Europe, the United States, Southeast Asia, etc. This was also the driving force for the remarkable results of the area in the first two months. The total foreign trade value is expected to grow by 10% to RMB 21.5 billion in the first quarter of this year.

Attract more foreign investment

Panasonic Corporation (Japan) has a reputation for being strict when it comes to selecting joint venture partners. But in Chongqing, it has a joint venture, Panasonic Vacuum Energy Saving New Materials (Chongqing) Co., Ltd.
It is the first joint venture between Panasonic Corporation (Japan) and a private enterprise in inland China. Panasonic takes 51% of the shares and Chongqing Zisun Technology Corp., Ltd. holds the rest.
Why did Panasonic choose a private company in Chongqing as its joint venture partner?
For one thing, Chongqing Zisun Technology is the only VIP core material supplier of Panasonic in mainland China, and the supply channel has been sound and effective.
For another, the favorable investment environment in Chongqing attracted Panasonic. According to Panasonic Vacuum Energy Saving New Materials (Chongqing) Co., Ltd., in order to choose the location of investment and construction, they had investigated many places around China for over a year. Chongqing’s investment environment and Yubei’s good faith facilitated them to make the decision at last.
As it turns out, the decision to settle down in Chongqing is correct. The joint venture went into production in 2016 and achieved profits in June 2018. Afterward, it had a record of profitability over the following nine consecutive months. So far, its output value reached RMB 110 million, realizing a threefold increase from its first production.

Source: Chongqing Daily News