The State Council Issues the Master Plan for China (Chongqing) Pilot Free Trade Zone

The State Council of People’s Republic of China, China’s cabinet, has issued the Master Plan for China (Chongqing) Pilot Free Trade Zone on March 15, 2017.

The notification says that he establishment of China (Chongqing) Pilot Free Trade Zone (hereinafter refer as FTZ) is a major decision made by CPC Central Committee and the State Council and a major initiative on deepening comprehensive reform and opening up, advancing the “Belt and Road” Initiative, implementing Yangtze River Economic Belt Strategy and Western Development Strategy.

The total area of FTZ is 119.98 km2, including three regions, namely 66.29 km2 for Liangjiang Area (including 8.37 km2 of Lianglu Cuntan Bonded Zone), 22.81 km2 for Xiyong Area (including 8.8 km2 of Chongqing Xiyong Comprehensive Bonded Zone and 0.15 km2 of Chongqing Rail Bonded Logistic Center [Type B]) and 30.88 km2 for Guoyuan Port Area.

Liangjiang Area will focus on high-end industries and factors, mainly developing premium equipment, core electric components, cloud computing, biomedicine and other emerging industries, headquarters trade, trade in service, e-commerce, logistics and distribution, professional service, financing and leasing, research and design and other modern services. We shall open up and innovate financial industry, accelerate development through innovation and enhance the attraction and influence of logistics, technology, assets, talents and other factor resources.

Chongqing Software Park in Liangjiang Area, Chongqing, China

Xiyong Area will underscore transforming and upgrading processing trade with a focus on manufacturing industry like electronic information, smart devices and bonded logistics and distribution service and improving the development model for processing business.


Chongqing Xiyong Comprehensive Bonded Zone in Xiyong Area

Guoyuan Port Area will emphasize on establishing a multi-model transport and logistics and distribution center by focusing on services like international container transit, break bulk and consolidation, and distribution and advanced manufacturing innovation.


Freight yard of Guoyuan Port Area in China (Chongqing) Pilot Free Trade Zone

DOWNLOAD: The Master Plan for China (Chongqing) Pilot Free Trade Zone

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/

China (Chongqing) Free Trade Zone Shows Impressive Innovation

China Railway Express to Europe is put into operation.

By Yuling Chen, EDITOR

The State Council, China’s cabinet, has approved seven Free Trade Zones (FTZs) in Chongqing Municipality as well as the provinces of Liaoning, Zhejiang, Henan, Hubei, Sichuan and Shaanxi, according to an official statement in 2017.

Compared with the six others, Chongqing FTZ has shown impressive achievements in innovation.

Chongqing has taken the initiative to produce some innovative results that can be replicated and spread nationwide by tapping the potential of China’s reform and opening up.

The ripples of reform brought about by the establishment of these trade zones are being felt all over China. Moreover, Chongqing is reaping these benefits in sectors such as trade, port, shipping logistics, real estate and finance.

Reform and Opening-up

This year marks the 40th anniversary of China’s reform and opening-up. Chongqing FTZ is tasked with further opening-up and reversed pressure transmission from a higher-level opening-up to institutional reform.

Since its unveiling ceremony, Chongqing FTZ serves as a pivot in Western Development Strategy and the intersection of the Belt & Road Initiative and the Yangtze River Economic Belt Strategy.

The Reform Dividend

Chongqing FTZ goes hand in hand with China’s extensive opening-up and the Belt and Road Initiative.

The rapid development of high-end manufacturing and modern services in central and western China has laid a solid foundation for an industrial upgrade in this region and promoted local economic development. More investment opportunities that have resulted from the institutional innovation of “negative list” can be found in high-end manufacturing and modern services.

Innovation Cases

As for innovative cases related with China Railway Express to Europe, Chongqing has explored the new and efficient model of multi-modal transport operation and the new model of intelligent customs clearance for mail transportation through international railway, has optimized the supervision method for the domestic route of China Railway Express, and has innovated containerization transportation of commercial vehicles as well as new logistics technology.

In financial area, Chongqing FTZ has explored and implemented a new finance model through knowledge, value and credit and record accessing for financial institutions and senior executives.

International Industrial Cooperation Parks in Chongqing

By Yuling Chen, EDITOR

China-German (Chongqing) Industrial Cooperation Park

China-German (Chongqing) Industrial Cooperation Park, located in Chongqing, China, consists of two sections: Section A – Shuitu Smart Manufacturing Park (located in China [Chongqing] Pilot Free Trade Zone), and Section B – Longsheng High-end Manufacturing Park.

Shuitu Smart Manufacturing Park is positioned as China-Germany International Industrial Cooperation Demonstration Zone for Smart Manufacturing, mainly connecting with Germany industry 4.0 and developing smart equipment, smart production lines, and the electronic information and medical industries.

Longsheng High-end Manufacturing Park is positioned as Demonstration Base for Made in China 2025, International Industrial Cooperation Demonstration Zone for New Material and High Technology, connecting with Germany industry 4.0 and developing high-end equipment, transportation equipment, electronic information industry and automobile and spare parts.

China-German (Chongqing) Industrial Cooperation Park is located in Liangjiang New Area, Chongqing, China.

China-Italy (Chongqing) Industrial Cooperation Park

Industrial Positioning: mainly automobile, biomedicine, aviation, finance, commerce, logistics, technological innovation, environmental protection and fashion.

It plans to take 1,500 m2 office at StarFest Building in Yubei District as the investment and promotion center and the initial working area for Italian enterprises located in Liangjiang New Area.

China-Italy (Chongqing) Industrial Cooperation Park is located in Liangjiang New Area, Chongqing, China.

China-Switzerland (Chongqing) Industrial Cooperation Park

China-Switzerland (Chongqing) Industrial Cooperation Park located in Chongqing, China, consists of two sections: Section A inside of Green Industrial Park prioritizes to develop smart manufacturing, information technology, healthcare, education consulting and energy；Section B at the west side of Longsheng Green Headquarters Base will establish research and development center, factory buildings and hotels.

China-Switzerland (Chongqing) Industrial Cooperation Park is combined with the area for headquarters research and development as well as the area for production and manufacturing. The Park provides six platforms covering manufacturing, research and development, capital, information, logistics and service. And the park will conclude 10 industries, namely manufacturing and processing of precision machinery, medicines and medical equipment, artificial intelligence and robotics, new energy and new energy vehicles, aviation, science and technology service, industrial design, finance, education and tourism.

China-Switzerland (Chongqing) Industrial Cooperation Park is located in Liangjiang New Area, Chongqing, China.

Chongqing FTZ Helps Foreign Talents Get Chinese \”Green Cards\”

Mr. Chen Peiliang and his wife  have become Chinese permanent residents as they get the Chinese “green cards”on August 1, 2018.

By Yuling Chen, EDITOR

Mr. Chen Peiliang and his wife, a Chinese Singaporean couple, have become Chinese permanent residents as they get the Chinese “green cards”, or People’s Republic of China Foreigner’s permanent residence cards, on August 1, according to Exit-Entry Administration Division Chongqing Municipal Public Security Bureau.

They are the first case recommend by China (Chongqing) Pilot Free Trade Zone (FTZ for short) to obtain Chinese green cards since the unveiling ceremony of State Immigration Administration on April 2, 2018.

“I have been working in Chongqing for four years. I could not enjoy the treatment as a permanent resident because of ineligibility, though having been accredited as a high-level foreign talent in Chongqing.” Mr. Chen, a senior executive at West Air, said.

In July, 2017, Exit-Entry Administration Division Chongqing Municipal Public Security Bureau has issued Service Guide of 14 Supportive Exit-Entry Policies and Measures for Building Chongqing into an Inland Opening-up Highland of China. It specifies the application and criteria for permanent residence of high-level foreign talents working in Chongqing FTZ and their spouses and children under the age of 18.

This year, Mr. Chen met relevant requirements and applied for the green card together with his wife. Having been recommended by relevant department of FTZ, they just waited for less than half a year to get the permanent residence. The Chinese green card can be used not only as identity card or long-time visa, but also for the determination of staff titles and social insurance. Obtaining it saves more energy and time for his work and family.

Source: Chongqing Daily

Chongqing Releases New Provisions on Administration of Free Trade Zone

It is expected Guoyuan Port will go totally automatic by 2019.

By Keqiao Cheng, EDITOR

China’s western municipality of Chongqing released Provisions for Trial Implementation on the Administration of China (Chongqing) Pilot Free Trade Zone (hereinafter referred to as Provisions) October 8.

The new Provisions have made clear which areas and industries in Chongqing are included in the Free Trade Zone (hereinafter referred to as FTZ), and what types of trade or business are supported.

According to the Provision, Chongqing will aim at building the FTZ into an international logistics hub and trade-financial center in inland China. Meanwhile, the Provisions have shown Chongqing’s ambition to convert the FTZ into a service industry center and modern manufacturing base.

The FTZ in Chongqing consists of three parts, namely Liangjiang, Xiyong, and Guoyuan Port. Specifically, it covers the central districts of Chongqing, including Yuzhong, Jiangbei, Shapingba, Jiulongpo, Nan’an, Beibei, Yubei, and parts of Liangjiang New Area and Xiyong Comprehensive Bonded Zone.

The mentioned components of the FTZ now have a clear division. For instance, Liangjiang Zone will focus on high-end industries, and Xiyong Zone will convert itself into a demonstration zone for transformation and upgrading of processing trade, while in Guoyuan Port it will build a transport and logistics center.

Besides this, the FTZ will support and encourage new types of business and new business models, such as auction or trade of bonded artworks, cross-border e-commerce, bonded automobile warehousing, international logistic service, etc.

At the same time, Chongqing welcomes both domestic and international enterprises to settle its headquarters in the FTZ, and encourages them to establish operations center for trade, logistics and accounting.

Source: CQCB

For detailed information about investing in Chongqing, please contact:

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The Chongqing-ASEAN Highway Regular Lorry Service Expected to Increase

East, Middle & West Routes of Chongqing-ASEAN Lorries Realizing Regular Operations

By Peng Li, Chief Editor

According to the logistics authority, the operation of the Chongqing-ASEAN Highway Regular Lorry service has been developed since its start two years ago. At present, the operations of the east, middle and west routes are regular, and it is expected that there will be 500 departures this year, 8 times the number of last year.

East, Middle & West Routes of Chongqing-ASEAN Lorries Realizing Regular Operations  

On October 16, a lorry filled with three-wheel motorcycles “made in Chongqing” completed the customs declaration formalities at Nanpeng Highway Bonded Logistics Center, Chongqing, and would run all the way to Rangoon, the former capital of Myanmar, along with the west route of the Chongqing-ASEAN Highway Regular Lorry service. This route was open this April and has been operating on a regular basis now. “As the platform lorries are used, the loading efficiency has been substantially improved when compared to traditional containers,” said Zeng Yi, Operation Director of Chongqing ASEAN International Logistics Co., Ltd. (CAIL). 

“Some of these goods, which had arrived not long ago, would be sold in mainland China and the rest would be transported to Europe by China Railway Express,” Yi Lingjiang, Corporate Development Director of CAIL, told the reporter. Nowadays NanpengHighway Bonded Logistics Center serves as an overseas distribution hub not only for Southeast Asian countries but also for some European enterprises.

There are already 300 departures of regular lorries from CAIL this year

In order to attract goods from Europe and other neighboring provinces of China, the Chongqing-ASEAN Highway Regular Lorry service has offered the consolidation option, i.e. LCL (Less than Container Load) model. That is to say, the goods that couldn’t fill up a container would be consolidated with other LCL goods before shipped to Southeast Asia. At present, 60% of the goods transported by these regular lorries come from other cities. Aiming to increase the turnover efficiency of goods, Chongqing Customs has provided the 7*24 import & export customs clearance service. With this, bonded goods could be transported in and out at any time via customs clearance appointment, saving their waiting time.

There are already 300 departures of regular lorries from CAIL this year

According to Zeng Yi, up to now this year, there are already 300 departures of regular lorries from CAIL, and it is projected to achieve the goal of 500 departures by the end of this year. The value of goods transported would be about RMB 800 million.

Source: The First Sight – CBG

61 Financial Projects Settled through Sino-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity

Economic data panel

By Xiao Wu, EDITOR

According to Chongqing Daily, the Financial Summit of  Sino-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (abbreviated as Connectivity Project) will be held on November 2, 2018, in Chongqing. The organizing committee gave an introduction to the development of the Connectivity Project in the financial area.

Up to now, 61 projects in the area of financial services have settled in Chongqing through Connectivity, at a value of over USD 5 billion.

International Business Operation Center of CITIC Bank provides Chongqing with the international settlement, financing, and innovative financial services. It assists enterprises related to Belt and Road and Connectivity Project to invest and develop in Chongqing. The center has started trial operation since August 2017. At present, it has taken over documentation business of 24 branch banks, including branches of  Chongqing, Chengdu, Xiamen, Dalian, and Fuzhou, etc. By August this year, the center has carried out the international settlement and financing services at the worth of nearly USD 10.5 billion.

SASSEUR(Chongqing) Real Estate Investment Trust, namely, SASSEUR(Chongqing) REIT, was successfully listed in the Singapore Exchange Limited on March 28 this year with excellent market performance. By the second quarter of this year, its annualized rate of return has reached 7.6%. The main business income and distributable profits exceeded the budget.

       Four features are shown from 61 projects of financial area 

The source from Connectivity Project Management Bureau said that the 61 projects of the financial area currently are operating well and shows four features.

First, the financing cost is “low”. Chongqing enterprises have completed a variety of cross-border financing projects, such as overseas bond issuance and commercial loans, with a total amount of nearly USD 5 billion, effectively reducing the financing costs of enterprises. Financial innovation cases have been edited and published, with financing models promoted. The enterprises in western provinces such as Sichuan, Shaanxi, and Qinghai raised more than USD 2 billion from Singapore. 

Second, financial products are “new”. SASSEUR(Chongqing) REIT successfully issued real estate investment trust in Singapore Exchange Limited. It becomes the first real estate investment trust listed in Singapore in the central and western regions. It opens up a new channel for cross-border equity financing of enterprises in the western region. Chongqing takes the lead in the country to carry out a number of financial innovation products. This effectively enlarges the financing sources for small and medium-sized export enterprises. 11 units including the Chongqing Management Department of the People’s Bank of China jointly issued Supportive Opinions for promoting the financing of transportation orders. It effectively alleviates the financing problems of logistics enterprises.

Third, the scope of cooperation is “wide”. The cooperation between China and Singapore in the fields of financial technology, logistics, and finance has got deepened. For example, the Chongqing Municipal Government and the Monetary Authority of Singapore reached a consensus on jointly building a Sino-Singapore financial technology cooperation demonstration zone. The Sino-Singapore (Chongqing) cross-border payment business cooperation project was signed. Chongqing enterprises have been successfully established branches in Singapore and applied for remittance licenses, carried out payment business. 

Fourth, the number of established organizations is “huge”. Regional and national financing settlement centers and inclusive financial enterprises have accelerated their settlement, which further enriches Chongqing’s financial system. The investment of Connectivity Project Equity Investment Fund in transportation, information technology, education, and other fields increased by RMB 4.76 billion (USD 687 million), and the fund management scale reached RMB 7.76 billion (USD 1.12 billion). A number of inclusive financial institutions such as Yiming Investment, Global Logistic Properties Financial Leasing, and Wei Shi Microfinance have settled in Chongqing, effectively serving the development of small and medium-sized enterprises.

Financial Summit of Sino-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity is high on agenda

It is reported that the theme of the Financial Summit of  Sino-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity is “Open· Innovative· Connective· Share”. It advocates strengthening financial connectivity to serve the Belt and Road. The summit will be jointly held by the Ministry of Commerce of the People’s Republic of China, the People’s Bank of China, the Bank of China Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, the Trade and Industry  Ministry of Singapore, the Monetary Authority of Singapore and the Chongqing Municipal Government.

Source: Chongqing Daily

China (Chongqing) Pilot Free Trade Zone Arbitration Center Founded

On the morning of October 27, 2018, China (Chongqing) Pilot Free Trade Zone Arbitration Center Founding Meeting and the First Session of Chongqing Pilot Free Trade Zone Arbitration Forum was held in Chongqing, China

By Yuling Chen, EDITOR

On the morning of October 27, 2018, China (Chongqing) Pilot Free Trade Zone Arbitration Center Founding Meeting, and the First Session of Chongqing Pilot Free Trade Zone Arbitration Forum was held in Chongqing, China.

Liu Guiping, Deputy Mayor of Chongqing Municipality, Wang Kuiwan, Deputy Secretary-General of Chongqing Municipal People’s Government, Zhang Dekuan, Director of Chongqing Justice Bureau, Zhang Zhikui, Director of Chongqing Municipal Commission of Commerce, Chen Bin, Vice President of the Chongqing High People’s Court and other leaders, have attended the meeting.

This event has brought more than 200 guests together. They are from domestic and international arbitration institutions, over 50 enterprises, including Alibaba, in Chongqing FTZ, 50 law offices and the China Chongqing Arbitration Commission.

At this event, the Chongqing Arbitration Commission has signed long-time cooperation agreements with China-ASEAN (Macao) Arbitration Association, the Chongqing Municipal Commission of Commerce, China Council for the Promotion of International Trade Chongqing Committee ,as well as Chongqing Lawyers Association respectively. These agreements have laid solid foundation for the Chongqing Arbitration Center, to provide quality legal services in Chongqing FTZ and for international arbitration cooperation.

The Chongqing Arbitration Commission has signed long-time cooperation agreements with China-ASEAN (Macao) Arbitration Association, the Chongqing Municipal Commission of Commerce, China Council for the Promotion of International Trade Chongqing Committee as well as Chongqing Lawyers Association respectively.

After the founding meeting, Vice Mayor Liu Guiping and Director Zhang Dekuan presented the unveiling ceremony of the arbitration center.

China (Chongqing) Pilot Free Trade Zone Arbitration Center works as a special body, set by the Chongqing Arbitration Commission in the Chongqing FTZ.

The arbitration center provides enterprises in the Chongqing FTZ with arbitration law publicity, training and consulting services. Moreover, it conducts arbitration and mediation in a professional and international way, and resolves business disagreements with the FTZ according to relevant law.

Person in charge of the arbitration center said that its establishment promotes a diversified disagreement resolution mechanism, provides legal guarantee for enterprises in the FTZ and creates a law-based, internationalized and facilitated business environment.

China is a party of Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958), also referred to as the “New York Convention”. As of now, there are 156 parties, almost covering countries with businesses activities.

Verdicts made by China (Chongqing) Pilot Free Trade Zone Arbitration Center, can be recognized by and executed in aforementioned convention parties.

Chongqing Municipal People’s Government attaches great importance to and supports arbitration development, and the Chongqing Arbitration Commission has been set up in 1996. During the past 22 years, the Commission have deal with more than 50,000 business cases with a total target amount of RMB 70 billion.

Arbitration Rules of the United Nations Commission on International Trade Law is applicable for the Chongqing Arbitration Commission, which sets a case-filing fee at RMB 5,000 and it will not be returned under any circumstance.

Source: ifeng.com

The Eastbound China Railway Express to Europe Arrives in Chongqing

China Railway Express (Chongqing) from Germany Mannheim Harbor arrives at the Chongqing Guoyuan Port on November 18, 2018. (Photo by Fu Siying)

By Yuling Chen, EDITOR

The eastbound China Railway Express to Europe from Germany Mannheim Harbor arrived at the Chongqing Guoyuan Port in Liangjiang New Area at 15:55, November 18, local time, after a journey of about 11,000 kilometers.

The train departed from Mannheim Harbor at 10:00 of October 25, local time. With the cargo mainly including auto parts, the train entered China from Khorgos, via Poland, Belarus, Russia, and Kazakhstan. After arriving at the port, imported products were distributed there.

The Chongqing Customs Port Office introduced that, in order to ensure the smooth clearance of cargo, the Office has optimized the clearance process, with the implementation of 24/7 service for appointed customs clearance and inspection upon arriving. Artificial regulation is conducted in the place where no personnel are sent to supervise the railway line.

 Centered on the departure from Guoyuan Port and the realization of regular operation of the China Railway Express to Europe, Chongqing Customs will further strengthen the supervision. In addition, it will also improve on-site operation, to promote the efficiency of customs clearance, reduce the shipment and delivery cost, and provide effective guarantee for boosting local economic development.

Mannheim, the second key hub of the China Railway Express to Europe, will be turned into an important regular starting point in Germany. Thanks to the successful operation of the train, Guoyuan Port has begun the interactive development with Mannheim Harbor.

Furthermore, the economic and trade cooperation has been enhanced between the upper reaches of the Yangtze River (Liangjiang New Area) and the Upper Rhine (Mannheim). This can also facilitate the cooperation of Liangjiang New Area with Germany in the aspects of logistics, trade and intelligent manufacturing.

Source: CQCB

Chongqing Cuntan Bonded Port Receives 10-Year Approval, Ranking the Top Three in China

Chongqing Lianglu-Cuntan Free Trade Port

By Rui Hu, EDITOR

In the morning of November 11, Chongqing Cuntan Bonded Port (hereinafter referred to as the Free Trade Zone) was still be ablaze with lights. The employees of cross-border e-commerce and logistics companies were cooperating with the officials of Chongqing Customs District P. R. China. They packed pieces of overseas commodities through the customs, and then delivered them to other places across China.

With the opening of the First China International Import Expo, an increasing number of imported goods offer new choices for Chinese consumers. 32 cross-border e-commerce enterprises have settled down in the Free Trade Zone, providing over 30,000 kinds of foreign goods. The Free Trade Port Zone has facilitated the overseas selling of “Made in Chongqing”, and it also supports customers in Chongqing and even surrounding areas to buy the commodities worldwide.

Overall Development Ascends into China’s Top Three    

With the introduction of nearly 2,000 enterprises in recent years, besides, its export and import trade has been up to RMB 87 billion, and the value of the goods under customs supervision has reached USD 30 billion. Relying on its excellent economic development indicators, the Free Trade Port Area has been included into China’s top three in the overall development.

Chongqing’s Free Trade Zone is the only one situated in inland China among the 14 free trade port areas (the other 13 are in coastal regions). It is a miracle for Chongqing to develop a top-three free trade port area by relying on the Yangtze River and an airport.

There has been a system for ground handling services to process 1 million packages a day. Four of China’s top five cross-border e-commerce enterprises have located in here, including Alibaba, Netease, Vipshop and Xiaohongshu (RED). As of this October, it has brought in 32 cross-border e-commerce enterprises. Since 2015, its average annual transaction volume has increased by 80%.

Exploration of “Smart Port”

The Free Trade Zone will also apply big data, the Internet of Things, and artificial intelligence, to establish the “1+4+6+N” smart urban construction system (referring to one vision, four construction principles, six development tasks and numerous implemented projects). It will also build a new ubiquitous and advanced information infrastructure system, and comprehensively plan “Metro Optical Network”, a wireless network with deep perception. Based on the cloud data center, it will bring forward the planning of the cloud service capability for the future regional operation management and enterprises’ settlement.

Source: Chongqing Daily

China (Chongqing) Pilot Free Trade Zone Has Achieved Remarkable Results

Chongqing Yangtze River Bridge (Photo by Ju Zhiqin)

By Yuling Chen, EDITOR

What remarkable results have China (Pilot) Free Trade Zone, hereinafter referred to as CFTZ, achieved?

China (Pilot) Free Trade Zone remarkable results

On November 16, the Chongqing Municipal Commission of Commerce held a press conference to inform the construction of the CFTZ. Overall, it has achieved remarkable results, with 122 items of 151 reform pilot tasks implemented and the rest 29 items being actively promoted. By the end of October 2018, 1,605 projects had been introduced into CFTZ, with a total amount of contracts (agreements) of RMB 484.814 billion.

According to the relevant principle of the Chongqing Municipal Commission of Commerce, in terms of institutional innovation, at present, there are 34 supporting documents and more than 500 supporting measures in CFTZ. It has nurtured and formed 13 typical innovative cases, 34 institutionally innovative results, including 6 nationally pioneer cases, and 11 nationally pioneer innovative results.

Chongqing’s efforts toward business environment

Chongqing continues to insist on optimizing the business environment in CFTZ. Currently, 33 municipal-level economic management authorities have been decentralized to sub-districts, business entities registration has been well received by enterprises.

In addition, Chongqing actively promotes the pilot reform of “integration of multiple certificates into one” and “separation of business license and business certificate”, and makes efforts in market access.

Financial openness and innovation is also an important field for CFTZ to achieve practical results. It takes the lead in launching the logistics finance innovative pilot and rolling out the new products of supply chain financing for international overland trade in the country.

Through optimizing cross-border revenue and expenditure management, and improving cross-border settlement efficiency, the costs of enterprise manpower and capital are saved by more than 70%. In the expanded cross-border investment and financing sector, the corporate foreign debt inflows have maintained a historically high level, with average financing cost falling by 0.5%.

China (Chongqing) Pilot Free Trade Zone with initial industrial agglomeration effect

Through a series of measures, the China (Chongqing) Pilot Free Trade Zone has also initially shown the industrial agglomeration effect.

In the field of intelligent industry, SenseTime Technology Artificial Intelligence and other landmark projects have been landed. The Singapore Raffles Medical Group wholly-owned hospital is settled as a breakthrough in the medical field. In the gradually growing aviation industry, the United States AAR, Singapore STARCO, Guangzhou GAMECO, and other vehicle maintenance and repair enterprises are settled here. In terms of gradually expanded finance and education fields, it has not only established the first Sino-foreign joint venture securities company and joint venture medical insurance institution but also introduced overseas educational institutions such as the Stony Brook School in the United States.

Source: Chongqing Municipal Commission of Commerce

China (Chongqing) Pilot Free Trade Zone Facilitate Chongqing to Attract Foreign Investment

With the complex and volatile environment, the economy of Chongqing keeps stable, keeping attracting foreign investment

By Xinyi Li, EDITOR  On November 25, Chongqing Productivity Promotion Center, cooperating with Chongqing Institute of Comprehensive Economic Research, issued the Chongqing Economic Prosperity Report 2018. From the report, Chongqing, since 2018, kept a generally stable economy with complex and volatile international and domestic environment. Meanwhile, Chongqing increased downward pressure of the domestic economy. The main economic indicators are basically steady but are still under pressure. Chongqing is accelerating the construction of China (Chongqing) Pilot Free Trade Zone and the China-Singapore (Chongqing) Demonstrative Initiative on Strategic Connectivity (CCI). Moreover, it focuses on keeping improvement of the business environment and increasing its ability to attract foreign investment.

The Continuous Progress of New Growth Drivers Replacing Old Ones

Chongqing has been focusing on “high-quality development, supply-side reform, and intellectualization-led technologies” since 2018. It is developing new economic growth points. Centering on the stabilization in employment, finance, foreign trade, foreign investment, investment, and expectations, Chongqing focuses on economic growth. The overall economic operation is stable but stressful, with a low position in the moderate range. From last 3 quarters, the year-on-year growth of Chongqing’s GDP is6.3%, with the regional GDP of RMB 1.47733 trillion.

From last 3 quarters, the year-on-year growth of Chongqing’s GDP is6.3%, with the regional GDP of RMB 1.47733 trillion

To achieve high-quality economic development, it will continue to transform and upgrade the economy. Meanwhile, it replaces old growth drivers with new ones. Due to the increasingly optimized industrial structure, the strategic emerging industries and new products realized rapid growth. However, the performance of key pillar industries is various. From the previous 3 quarters, the new-generation information technology, biology, high-end equipment manufacturing, and the advanced material industry improved. There was a substantial increase in the operating revenue of enterprises above state designated scale in Internet information services, Internet data services and the Internet of Thing. Furthermore, the digital economy has also remained robust.

A Stable Dynamical Structure of Demands

The investment in Chongqing grew again during the first three quarters. The growth of consumption is slow while the operation of import and export is stable. In addition, the dynamical structure of demands kept stable. Besides, the regional economies all boast the characteristics, with a growing number of highlights in improving quality and efficiency. Chongqing’s main urban area has achieved collaborative promotion between open innovation and the development of emerging industries. West Chongqing focuses on speeding up the transformation, upgrading and intelligent development of traditional industries. The northeast and southeast of Chongqing ushered in the flourishing period of the ecological economy, rural revitalization, folk tourism, and characteristic green industries.

At the same time, Chongqing is further enhancing foreign cooperation, with increasingly active innovation and entrepreneurship. The China (Chongqing) Pilot Free Trade Zone and the China-Singapore (Chongqing) Demonstrative Initiative on Strategic Connectivity (CCI) since 2018 developed rapidly. Under this background, Chongqing continued to constantly improve the business environment and the ability to attract foreign investment. In the first 3 quarters, the direct investment of Chongqing reached USD 2.21 billion, a year-on-year growth of 8.1%. The new contract amount of foreign investment reached USD 2.87 billion, covering regions like automobile manufacturing and information industry.

The Quality of Economic Development Remains to Be Improved

Chongqing’s condition is stable in general, and the main economic indicators kept basically steady with pressure. Several reasons for the pressure appears. First of all, steady growth is not optimistic. The pressure of stable industrial operation is relatively much while the continued momentum for investment-increment is scanty. Additionally, constraints on the growth of consumption are multiple. Then, there is less competition of creating an innovative environment and providing innovation policy guarantee. It felt short of creative talents, innovation platforms for social welfare, and intermediary service platforms.

Moreover, Sino-American economic and trade relations may affect the stable growth of foreign trade and investment. It poses challenges to the stabilization of the supply chain and industrial chain in Chongqing. Furthermore, as enterprises are facing the double pressure of intensifying market competition and increasing factor cost. Their expectations will be influenced by numerous uncertainties.

Source: Chongqing Municipal Commission of Commerce

Breakthrough! China Railway Express Success in Imported Post-Delivery

By Xinyi Li, EDITOR

China Railway Express (Chongqing-Europe) completed a huge success in the first larger-scale post-delivery import test. It realized “breakthrough of zero” in national imported mail by China Railway Express. After customs inspection, distribution and handling and other procedures on this parcel from Germany, it will do post-delivery timely.

Chongqing Customs is doing inspection

Opening of Import Postal Route Brings a New Transportation Mode for International Mails

Most of post from Germany to Chongqing used to transit shipment in Belgium before directly delivered to Chongqing. The success in this import post-delivery test symbolizes another major breakthrough in post-delivery of China Railway Express. Moreover, it will lay a sound foundation for promoting testing and normal operation of import mails by China Railway Express and enhancing mutual connection.

Chongqing Customs is doing inspection through the computer

In January 2016, State Post Bureau of the PRC established a trans-department working mechanism of China Railway Express mail (express) delivery. It achieved the coordination with post, railway, customs and other departments. Meanwhile, in September 2018, China jointly signed a letter of intent on jointly promoting post-delivery by railways under the framework of “Belt and Road Initiative” (BRI) with Universal Postal Union (UPU). UPU Postal Operations Council established the working team of railway post-delivery with approval of UPU meeting proposal in March 2017. As a host state, China took the lead and carried out the work on jointly studying international railway post-delivery regulations and standards with World Customs Organization (WCO), related international railway organizations and countries along the China Railway Express.

By far, China Post Group has successfully held three working team meetings. During the meetings, it has organized and formulated promotion plans and relevant test schemes of railway post-delivery projects. In the meantime, railway post-delivery Work Guideline with guiding significance in international organization dimension. Through these efforts, WCO, international railway organizations and customs, railway and post of related countries have been closely connected, actively promoting the implementation of railway post-delivery work.

Deutsche Post: China Railway Express (Chongqing-Europe) Benefits Enterprises

Thomas Baldry is the Senior Vice President of Deutsche Post DHL Group. According to him, the construction of BRI is a feasible transportation route between China and Europe. Deutsche Post has confidence in its development potential. Except general freight transport and container transportation between China and Europe, railway post is also full of vigor and is another new mode of transportation. Railway transportation is more convenient than sea transportation, as well as cheaper and more environment friendly than air transportation. “China Railway Express can activate Chinese and German cross border e-commerce transaction. Medium-, small- and micro-sized enterprises can also export e-commerce products through this postal transportation channel,” Baldry mentioned.

“The construction of BRI will undoubtedly realize positive transformation of trade between Asia and Europe. Logistics and transportation network along the route has already connected Asia to Europe, Africa and the Middle East. It covers over 65 countries and accounting for one third of global GDP,” stated Thomas Kowitzki, Head of China Rail, Multi-modal Europe, Deutsche Post, DHL Group.

790,000 Small Postal Parcels Have Been Delivered through Railways.

China Railway Express represents the most transparent cooperation carried out by focusing on BRI between China and Europe. At present, with continuous promotion of China Railway Express post-delivery work, it is gradually in transition from test stage to export normal operating stage, with coordination and promotion by government enterprises. Since October 2017, China Post Group delivered a total of 48 postal parcel containers through China Railway Express (Chongqing-Europe), and a total of 790,000 small parcels, with total weight of about 240 tons and value of about USD 11.5 million.

According to relevant principal of China Post Group, it is necessary to provide cross border e-commerce enterprises with international consignment services by making good use of international railway post-delivery channels. At the same time, “storage+dispatching+value-added services+information” technology will be the core. Therefore, it will provide clients with the whole set of cross border e-commerce integrated logistics services. Moreover, it fully creates a complete logistics service system and continuously enhance its competitiveness in international logistics field.

 Smart Supervision Facilitates the Development of China Railway Express Post-Delivery

“The success in return trip post-delivery test further improves smart supervision level of customs logistics,” Dai Wenli, Deputy Director General of Supervision Control and Clearance Department of Chongqing Customs.

Chongqing Customs is recording the result of the inspection

During this import mail test, the safe smart lock is the carrier of customs supervision. Start shipment information, computer inspection images, inspection results and other data of goods are input into the safe smart lock. After the tested containers arriving Tuanjie Village, Chongqing, customs officers can check the inspection results through hand-held reading machine instead of implementing the intrusive-mode inspection, which largely improves clearance efficiency, saves corporate clearance costs, and enhances a sense of gain of enterprises.

According to statistics, from January to October 2018, Chongqing Customs has supervised a total of 241,000 export railway parcels through China Railway Express (Chongqing-Europe) and 21 postal parcel containers, with total value of USD 3.56 million.

Accelerate Normalization of Both way Post-Delivery 

Relevant principal of Port and Logistics Office of the People’s Government of Chongqing states that, China Railway Express (Chongqing-Europe) is the Express with the earliest running time, the highest frequency in running and the strongest driving capability in western China, and ranks top concerning the quantity and quality of freight in China.

Since its opening in 2011, it has operated an accumulative total of 2,779 runs, and becomes the first China Railway Express with over 2,000 runs in China; it has transported a total of more than 160,000 TEUs of goods, with value of over USD 20 billion, and its total import and export value has accounted for 35% of all China Railway Expresses in China.

For how to further facilitate China Railway Express post-delivery to provide better services for the construction of BRI, State Post Bureau of the PRC will grasp the great opportunity of developing cross border e-commerce and constructing State Post Bureau of the PRC, give full play to industrial advantages, deeply integrate into the construction of BRI, focus on building a high-level opening and cooperation platform for the post industry, and further strengthen the force in China Railway Express post-delivery work, so as to realize normal and large-scale operation of bothway post-delivery of China Railway Expresses as soon as possible, and facilitate better development of Chinese cross border e-commerce.

Source: CQNEWS