• Aftermath of the earthquake
Nearly 70,000 are confirmed dead and over 18,000 are still unaccounted for, after the devastating earthquake that struck Sichuan on 12th May. The earthquake destroyed large areas of the counties of Wenchuan, Beichuan and Qing-chuan, and upwards of four million homes. Sophie Bao, manager of CBBC’s Chengdu office, reports.

Nearly 70,000 are confirmed dead and over 18,000 are still unaccounted for, after the devastating earthquake that struck Sichuan on 12th May. The earthquake destroyed large areas of the counties of Wenchuan, Beichuan and Qing-chuan, and upwards of four million homes. Apart from the huge human cost, economic losses are also serious: by July 1 they had reached Yn1 trillion (US$146bn) said Sichuan vice-governor Huang Xiaoxiang. More than 14,000 industrial enterprises were damaged, with an overall loss of US$29bn, mostly in the cities of Mianyang and Deyang. Infrastructure and medical care facilities in the quake-hit areas have been seriously damaged, and tourism was also seriously affected. About one-quarter of Sichuan’s famous sights, including Dujiang-yan Irrigation System and Wolong Panda Breeding Centre, were badly damaged and will require several years to reconstruct. After the earthquake, the State Administration of Tourism ordered the closure of all tourist spots in Sichuan and kept tourists away. Since mid-June, however, there has been a gradual opening of unaffected spots. The Sichuan Tourism Bureau estimates that losses will top US$8.6m.

Chengdu escapes serious damage
Sichuan's capital, Chengdu, is only 90km from the epicentre in Wenchuan County. Though the earthquake was felt strongly here, only three cities in Chengdu’s 12,000 sq km administrative area were seriously struck, with the loss of 4,000 lives. Other areas of Chengdu were not badly affected. Many companies reopened their buildings after safety inspections. Although there are superficial cracks in most buildings, and precision equipment in some factories has been damaged, the buildings have escaped structural damage. Through the joint efforts of local government, companies and citizens, people conquered their fears not long after the quake, and life and work have now returned to normal.

It is true that the earthquake has had a negative impact on Chengdu’s business environment. Believing Chengdu to be badly affected, some outsiders have delayed or cancelled planned visits. Proof of this is the sharp drop in the number of hotel guests in Chengdu in May. By mid-June, however, a sales manager of the Sheraton Chengdu Lido Hotel was saying that their business was recovering. More and more business people are arriving in Chengdu now, and they are looking forward to the reopening of Sichuan to tourist groups.

Reconstruction
The enormous task of post-earthquake reconstruction is expected to take several years, with the cost estimated by the chief economist of Deutsche Bank to be around Yn500bn (£45bn), accounting for half of Sichuan’s GDP in 2007. The immediate need is for the building of schools and homes, roads and other infrastructure. information about the first reconstruction projects is expected by the end of July.

There will be business opportunities for service providers like designers and architects, and manufacturers of building materials, iron and steel, machinery, power equipment, and telecommunications equipment. The central government will assist with the reconstruction, allocating funds and introducing measures relating to finance, tax, land, employment and agriculture. The Chengdu government will introduce preferential regulations and policies to assist the reconstruction effort. The government has earmarked US$10bn for rebuilding, and money coming in from the private sector and individuals is also at an unprecedented high.

Just 10 days after the earthquake, a number of far-sighted strategic entrepreneurs signed investment or reinvestment deals in Chengdu or decided to continue their investment plans. These included Toyota, Chinese telecom company Tencent and Industrial Bank. A number of overseas investors such as Intel and Carrefour have expressed their confidence in investing in Chengdu and Sichuan after visiting in person and finding the city unchanged.

Many analysts and business owners believe investment will continue to flow in to Chengdu because of its undiminished advantages, the new opportunities in recon-struction, and (ironically) better awareness of the city because of the earthquake.

CBBC Chengdu will continue to find out more information and projects related to the post-quake reconstruction.

Donations to the earthquake appeal can be made at the Chinese Embassy or sent to the Bank of China (UK), made payable to the Sichuan Earthquake Donation Account. For more information, see www.Chinese-embassy.org.uk