Tuesday, February 12, 2019

Chongqing’s Strive for “Inland Opening-Up”

By Xinyi Li, EDITOR  Recently, China and Singapore signed the Memorandum of Understanding on Cooperation in the Construction of the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity “New Channel for International Land-Sea Trade”. This connectivity project renames the “Southward Channel” linking central and western China with Southeast Asian countries to “New Channel for International Land-Sea Trade”. In the meantime, it indicates that the project turns more pragmatic and diversified according to relevant analysis.
Many people regarded Chongqing as a city with difficult development because of its position of inland in the past. However, at present, Chongqing takes advantage of connecting the east and the west, communicating the north and south, and linking the river to the sea with another perspective. Chongqing broke through a series of major channels to open to the outside world. Moreover, Chongqing strives to build itself into an inland international logistics hub and an inland port highland.
opening-up-trade
Chongqing achieved an import and export amount of foreign trade of RMB 424.54 billion from January to October this year

Chongqing speeds up trade in order to facilitate the reform and development with the idea of opening-up. From January to October this year, Chongqing achieved an import and export amount of foreign trade of RMB 424.54 billion. Additionally, it is an increase of 17.2%, 5.9 percentage points higher than the national average level.

Create a Major Channel to Address the “Pain Spot” of Traffic Logistics

Towering mountains and broad rivers were once challenging obstacles in the opening-up course of Chongqing. Hence, the traffic and logistics act as a major pain spot for Chongqing’s opening to the outside world. Although Chongqing witnesses the constant growth of the notebook computer industry, it is far away from Europe which is the largest export market for such products. Consequently, it is imperative to open a fast-track logistics channel to Europe.
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Chongqing create a major channel to address the “Pain Spot” of traffic logistics

Through multilateral coordination, the customs of the six countries along the route reached the Chongqing-Xinjiang-Europe Free Trade Customs Agreement. As consequence, this forms a coordinated customs clearance mode involving the information exchange, regulation with mutual recognition and mutual assistance in law enforcement among the customs along the route. Meanwhile, it coordinates the implementation of “five-scheduled” trains covering scheduled sites, routes, trains, time and price. The operation period has gradually decreased from 25 days of the initial one-way trip to about 13 days now.
A new railway for cargo transport gradually shapes, along with the ancient Silk Road. Nowadays, the China Railway Express (Chongqing) has run more than 2,000 trains in total. Chongqing gradually becomes a significant backbone for international logistics and land transport between Asia and Europe.
Soon after the proposal of the construction of the “New Land-Sea Channel”, Chongqing actively cooperated with other provinces. It helps to open and normalize cross-border road transport, railway-sea intermodal transport and international rail intermodal transport.
“This new channel is able to save half of the time compared with river-sea intermodal transport.” Yu Yang is the chairman of Chongqing Foreign Trade and Economic Cooperation (Group) Co., Ltd. It will take 1 month for delivery from Dubai in UAE to the Qinzhou Port of Guangxi Province. It will cross the Strait of Malacca, then they will quickly arrive in Chongqing by rail.

Focus on Large Industries and Refuse to Be a “Passageway” for Opening-up

To avoid becoming a pure channel, Chongqing has proved through practice that it is more than a channel. This is the key to developing industries. Therefore, Chongqing waded out a new way to develop processing trade.
opening-up-new-trade-process
Chongqing waded out a new way to develop processing trade

On the one hand, it requires the industrial chain to extend to realize the localized production of raw materials. At the same time, it also carries out pilot projects for the offshore financial settlement. In this way, Chongqing changed the traditional model of “Smiling Curve”, which both ends of the curve are out. In addition to lower value-added manufacturing, it also introduced the design and sales with higher value-added.On the other hand, develop industrial clusters and form 3 major clusters, namely the industrial chain cluster of parts, raw materials, and upstream & midstream & downstream of the complete machine, the cluster of enterprises of the same kind with the same products as well as the productive service cluster of logistics service, sales settlement, and so on.

Follow the Trend and Share the Developing “Express”

Grasping the opportunity of opening-up, many new business models are emerging in Chongqing.
The large warehouse at Xiyong Comprehensive Bonded Zone is labeled as “Chongqing Yuou Cross E-commerce Co., Ltd.” The establishment of the warehouse has reduced the time for home delivery service of cross-border e-commerce shopping within Chongqing from 30 days to two days. “Before, we are a freelance retail consultant. But now, we have obtained the agency rights of several big brands abroad and we have also opened 1,500 cross-border e-commerce stores in 27 provinces nationwide.” Wei Xin, Chairman of the Company, said.
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Chongqing follows the trend and share the developing “express”

The wave of opening-up has also led to the transformation and development of traditional industries in Chongqing. Through Yumaotong Foreign Trade Service Platform, 1,720 micro, small and medium-sized foreign trade enterprises in Chongqing obtain a one-stop solution for “Going Global”, and bring products “made in Chongqing” to all parts of the world.
“It never occurred to me that a private enterprise in Chongqing would now be able to build factories in Vietnam, India, and Uzbekistan.” According to Zhou Yongzhong, Chairman of Chongqing Sunfeel Industrial Group, silk designs, and products of Chongqing are well-known brands in major traditional silk consumer countries such as India, Nepal, and Bangladesh.
The China (Chongqing) Pilot Free Trade Zone has been established for more than a year, and it steps up its pace again for the development of Chongqing’s opening-up. As of this October, the number of newly registered enterprises in the Pilot Free Trade Zone exceeded 20,000, with a total registered capital of RMB 172.5 billion.









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