Chongqing Yongchuan Signs MOU with German Firms for Broad Collaboration

Chongqing - On September 6, Chongqing Yongchuan signed a memorandum of understanding with several German companies, including Schwäbische Werkzeugmaschinen GmbH (SW GmbH), Transfact GmbH, and Oskar Kämmer Schule, indicating plans for broad collaboration across various sectors.

The German delegation visited the Sino-German Industrial Park on Sep 5. (Photo/Huxin Luo)

SW GmbH is not entering Yongchuan for the first time but is strengthening its partnership through this latest agreement. Yongchuan is reinforcing its position as a key destination for German businesses, attracting foreign companies due to its openness and the advantages offered by its industrial cluster.

Heiko Martin, Managing Partner of Transfact GmbH, noted that Liebherr and SW GmbH's presence in Yongchuan will further attract other foreign companies, including Transfact.

The Sino-German Industrial Park in Yongchuan District is a key hub for China-German industrial cooperation. It focuses on intelligent equipment and high-end CNC machine tools, attracts companies like Liebherr and EMAG Group, and fosters a growing concentration of advanced manufacturing industries.

Rüdiger Schmidt, Chief Executive Officer of Oskar Kämmer Schule, noted that Yongchuan’s vocational education is akin to the "3+2" model, involving three years of academic study and two years of vocational training. This model aligns with the goal of comprehensive student development and fosters further collaboration in vocational training.

Yongchuan's strong vocational education system produces over 50,000 skilled technicians each year, with 70% staying in the Chengdu-Chongqing region and 15% remaining in Yongchuan. Siemens' recent agreement to promote the dual-system education model, which combines academic learning with hands-on industry experience, highlights the close integration of vocational education with the local manufacturing sector.

Attracted 152 foreign firms and USD 53.08 million in 2023

Strategically situated within the Chongqing-Chengdu city cluster, Yongchuan offers a superior geographical position with a comprehensive transportation network, including highways, railways, waterways, and air transport. It is also closely connected to major trade routes like the China-Europe Railway Express (Chongqing-Xinjiang-Europe) and the New International Land-Sea Trade Corridor (ILSTC).

Chongqing Yongchuan Comprehensive Bonded Zone stands out from other bonded zones in Chongqing due to its closer proximity to the urban center, allowing faster access to the consumer market and shorter circulation times. Yongchuan District has attracted 152 foreign-invested enterprises, including Germany's Liebherr, and utilized USD 53.08 million in foreign capital in 2023.

Liebherr's factory in Chongqing Yongchuan. (Photo/Huxin Luo)

Moreover, Yongchuan, as a key industrial hub in Chongqing, boasts a robust industrial foundation and a comprehensive system. Yongchuan’s industrial strength is evident in its advanced manufacturing and intelligent connected new energy vehicle sectors.

The China Western Autonomous Driving Demonstration and Application Center, nearing completion, will offer essential services for autonomous vehicles and boost Yongchuan’s industrial capabilities. Yongchuan is also the first region in China to launch robotaxi services fully with Baidu Apollo Go.

Great Wall Motor has invested over 10 billion yuan (USD 1.407 billion) in Yongchuan, creating a full industrial chain that includes vehicle production and key components like chassis systems, interiors, engines, and transmissions. During a factory visit, Uwe Fritsch, Managing Director of Uwe Fritsch Strategie & Beratung GmbH, praised Yongchuan’s automotive industry.