GPD: 1217.02 billion RMB (year 2016)
GDP growth: up 7.7% compare with 2015
- An essential economic centre of Western China
- A national renowned city for innovation and venture with 31 national-level maker spaces for innovation and venture
- Set up the city cooperation parks with South Korea, Germany, France, Cuba, and Singapore.
- At present, a total of 278 Fortune Global 500 companies have built presence in the city.
- Listed as one of the Best Emerging Cities for Business by Fortune
- Named the Benchmark City for Investment Environment in Inland China by the World Bank
- Food Processing
- Automotive, Aerospace, Metallurgy
The city’s service sector already accounts for 50% of the economy and is predicted to grow to 60% within the next 10 years. Tourism is growing particularly quickly, as Chengdu was named a CED (World Centre of Excellence for Destinations) city in 2010[see Time off? for more info]. It has enjoyed visits from top ranking officials such as David Cameron, Angela Merkel and Michelle Obama in the last five years.
- Shuangliu County, in the centre of Tianfu New Zone, announced in April 2013 that a new service outsourcing focused industrial park will be established there to achieve better economies of scale.
- Tianfu Software Park has helped create a favourable "ecological environment" for local high-tech companies, which recorded offshore outsourcing contracts worth 44.5 billion yuan ($7.15 billion) in 2012.
- AAXIS Commerce Delivery Centre in Chengdu have signed a short-term contract with a multinational company from the UK with a presence in Shanghai, and a multi-year project contract for a large project with another multinational company in Suzhou. After the success of these projects, AAXIS Commerce is planning to increase their staff by 20% this year, and move to a larger in Tianfu Software Park in order to increase their capacity.
- Chengdu is a key part of the Chinese Government’s “One Belt, One Road” plan aimed at resurrecting traditional trade routes over water and land. It forms one of the transportation hubs on the land route between China and Europe. Xi Jinping announced a fund of USD 40 billion in November 2014, which is designated for investment in businesses contributing to the initiative.
- Chengdu is also one of the targets of “Go West”, a strategy aimed at raising the economic strength and living standards of Western China to match those of the Eastern coastal cities. One of the projects is a joint Chengdu-Chongqing Economic Zone – this will link Chengdu to Chongqing, one of the fastest growing cities in the world
- Chengdu housing market has not suffered the same fall in prices as other areas in China, and remains competitive. The average house price is a third of house prices in Shanghai and Beijing, and is predicted to rise sustainably in 2015
- Chengdu’s retail sector is expected to expand in 2015, with Shopping Plazas such as Taikooli, Joy City, Shinkong Mitsukoshi opening new premises. Chengdu’s purchasing power is unrivalled in Western China and accounts for 50% of the total in Sichuan Province
- From 2012, the city has been aiming to improve its presence in events and exhibitions. In 2012, there were 456 events, 76 international meetings and 154 exhibitions, of which 38 were international. The city holds over 190,000m2 of exhibition space. The Western China International Exposition Town is under construction; upon completion it will have an exhibition space of 500,000m2 and a conference space of 250,000m2. The Western China International Fair (WCIF) and the China Food & Drink Fair (CFDF) both take place in Chengdu every year and are aimed at attracting investment and trade
- There are plans to boost energy provision through non-fossil fuels (e.g. solar, nuclear, wind) to 30% of the city’s supply
High-tech industries such as integrated circuit design and software development should continue to be attracted by good local R&D and educational facilities. The strengthening of rail and air logistics will strengthen Chengdu’s position as the vanguard of Southwest China. However, most growth will be in the service industries and ICT rather than Chengdu’s more traditional sectors of aerospace and pharmaceuticals.
Chengdu State Council has introduced a number of incentives to:
- Provide financial support to companies in obtaining international standards certifications and engage in brand promotion overseas
- Promote international service outsourcing business
- Afford and arrange tax reductions and exemptions
- Provide financial support to service outsourcing enterprises in talent training
- Provide political and financial support for the global and domestic service outsourcing top 100 enterprises in their rent, taxes, staff training, and land management issues
Chengdu Hi-tech Industrial Development Zone (CDHT) has issued a number of preferential policies, including:
- Development of a financial back-office service centre
- Subsidies for developing building resource economy strategies. Subsidies of up to USD 800,000 are available for owners of speciality office buildings, companies with improved property management and companies with self-sustained business models
- An annual fund of USD 161.3 million for technological innovation. This covers a range of areas, including improving technological innovation services, improving enterprises’ innovation ability, promoting commercialization of research findings, encouraging innovation and start-up and facilitating the construction of a world-class hi-tech park
- Subsidies for Mobile Internet Companies looking to operate inside CDHT. This includes exemption of rent in some cases, and subsidies for management and technical employees
Chengdu Tianfu Software Park also provides tenants and their employees with some preferential policies, including subsidies, tax reductions and exemptions, special support and provision of venture capital. This is aimed at supporting companies to make innovative technology and start new businesses.
Our local Managers top 5 reasons to do business in Chengdu
- Chengdu is China's western centre of logistics, commerce, finance, science and technology. It is also an important hub for transportation, communication, manufacturing and agriculture.
- The total volume of imports and exports of the Chengdu Hi-tech Industrial Development Zone (CHDT) ranked third in the country and first in central and western China. The Chengdu Tianfu Software Park, based in CHDT, is Asia's largest specialized business IT park and one of China's 10 national software industry bases
- The city has a long history of Traditional Chinese Medicine (TCM). Over 6,000 medical equipment and pharmaceutical companies are registered here. Chengdu is one of China's pharmaceutical hubs
- There are over 265 Fortune 500 companies with business in Chengdu. Prominent foreign investors include: Intel, BMW, HP, Sony, Nokia, Canon, IBM, Microsoft, Motorola, Alcatel, Toyota and Unilever. The 12th Fortune Global Forum was held in Chengdu in June 2013.
- Chengdu has an excellent telecommunications infrastructure. As of 2013, there were 3.75 million fixed line users, 21.36 million mobile phone users, and 2.68 million people with broadband access.
- Mount Qingcheng, Famous mountain, a key centre of Taoism
- Sichuan Giant Panda Sanctuaries, home to 30% of the worlds giant pandas
- Wuhou Shrine
- Sichuan Opera (performed at Shu Feng Ya Yun)
- The world famous Chengdu Tea Houses
- Anshun Bridge
- Chengdu is also famous as the centre of Sichuan cuisine. In 2010, UNESCO named it a City of Gastronomy, making it the only city in Asia with this label. Much of the food contains Sichuan peppers, and three of its most famous dishes – Mapo Doufu, Hotpot and Dan Dan Mien – are all very spicy. Other local dishes include Kung Pao Chicken, Tea Smoked Duck and Mapo Tofu.