China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity

Raffles City Chongqing, China, by CapitalLand Group is a super scale development comprising a shopping mall and eight towers of Luxury Residences, Grade A Offices, Service Apartments and Hotel uses offering exclusive waterfront living. Located at the heart of the city, it is the biggiest single investment by a Singapore company in China

By Xiao Wu, EDITOR

Introduction of China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity:

China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (Connectivity Project) is the third China-Singapore government-to-government cooperation project. The Connectivity Project, with its operation site located in Chongqing, on the subject of “Modern Connectivity and Modern Service Economy”, is part of The Belt and Road Initiative, Western Development Strategy and Yangtze River Economic Belt Strategy, and will become a key innovative demonstration project of solid foundation and high level.

The Principle of the Connectivity Project

The Connectivity Project will be carried out under the principle of “Mutual Benefit, Realizable Business, Sustainable Development, Replicable Model”

The Connectivity Project in the Four Areas

Mainly in forms of service and trade, the Connectivity Project aims to promote the connectivity in the areas of financial services, aviation, transport & logistics and information & communications technology (“Four Areas”). “Connectivity” can be interpreted as “sustaining + increasing” “tangible + intangible” and “Chongqing + the World”. By starting the projects layout within Chongqing Liangjiang New Area, the connectivity will be reflected by intensive cooperation and drive the development of western China.

The Management Structure

A top-down and three-layer management structure (The layers being the Joint Steering Council, the Joint Working Committee; and the Joint Implementation Committee, respectively) is established to implement China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity.

According to the Implementation Agreement on China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity, “The Management Committee on China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity” has been officially established with four sub-committees dedicated to financial services, aviation, transport & logistics and information & communications technology (“Four Areas”). 

The Implementation of the Connectivity Project

Relying on the basic conditions of the core area of the China-Singapore Demonstration Initiative on Strategic Connectivity, Chongqing Liangjiang New Area has pushed forward the implementation of innovative measures and projects in all areas of the Connectivity Project.

Inauguration of the “1+1” Multimodal Transportation and Logistics Demonstration Project on August ,2017

In the area of transport and logistics, projects such as the China-Singapore “1+1” Multimodal Transport and Logistics Demonstration Project are based on Connectivity. Singapore Freight Links Group multimodal transport logistics port have been carried out smoothly, as light and heavy asset companies have been in operation with the channels, products, construction of logistics parks in steady development.

In the area of aviation, Chongqing Institute of Aeronautics under the China-Singapore cooperation has sped up its construction. A breakthrough has been achieved on the bonded aircraft leasing business as 2 airplanes worth 1000 million USD have been introduced from abroad, FOR THE FIRST TIME, under the cooperation with Spring Airlines through SPV. It makes Chongqing the first one among the third batch of Free Trade Zones to involve in bonded aircraft leasing business.

In the area of information & communications technology, the projects on China-Singapore International Data Channel and the Internet International Cooperation Integrated Pilot Area are in the phase of evaluation. The ST (Singapore Technology) Electronics project has been set up in the Internet Industrial Park. The cooperation on Smart City has witnessed the intial result.

Global Logistic Properties Financial Holdings

In the area of financial services, Global Logistic Properties Financial Holdings has settled in the Liangjiang New Area. The business of petty loans, factoring, financial leasing is fully developed. As overseas funding channel is open, companies in the zone have made breakthroughs to get listed in Singapore, which indicates growing connectivity in finance between two countires.

In Other related areas, Raffles Hospital, which is wholly foreign owned, has been introduced. The China-Singapore (Chongqing) International Joint Research Institute and Yuelai Smart City projects have made new progress. On the whole, the cooperation between Singapore and the Liangjiang New Area has already delivered the initial results with bright prospects for the future.

The Innovative Measures

Based on the list of “11+7” innovation measures, the number of innovative measures of the Connectivity Project in the Liangjiang New Area has reached 57, with support of the National Development and Reform Commission, the Ministry of Industry and Information Technology, the People’s Bank of China, the General Administration of Customs and other national ministries and commissions. This forms a base for the policy guarantee for the China-Singapore cooperation in “4+N”areas (“4 Areas + other areas”).

In the financial services area, the pilot reform of foreign debt management and three pilot projects of cross-border RMB innovative business (Fullerton Financial Holdings) have been carried out. The Singapore Global Logistic Properties Group has been introduced and a series of investment projects such as developing financial holding companies and Internet petty loans have been promoted. Relying on its industrial chain, supply chain financial services have been fully developed and foreign exchange settlements for fund withdrawals from debt issued overseas has been implemented.(Chongqing Liangjiang New Area Development and Investment Group Co.,Ltd has issued 200 million RMB(about 29.44 million USD) foreign bonds and Chongqing Liangjiang Financial Development Co.,Ltd has raised 30 million USD commercial loans in Singapore.)

In the aviation area, the grant of the fifth freedom traffic rights, the sharing of domestic flight codes, and the establishment of inbound duty-free shops have been achieved. The aircraft leasing business has also made a breakthrough.

In the transport & logistics area, the General Administration of Quality Supervision, Inspection and Quarantine of P.R.C has issued 15 groundbreaking implementation insights. Additionally, The Custom has approved 14 facilitation measures. The China-Singapore “1+1” multimodal transport project has achieved periodical results.

Official Website:  http://www.cci.gov.cn/