• Home
• Listings
  • Chengdu
• Classifieds
  • Announcements
  • Jobs
  • Buy & Sell
  • Personals
  • Property
• Forums
  • Food & Drink
  • Living In Chengdu
  • Study
  • Travel Sichuan
• Links

Chengdu Business

General introduction
One of China's most economically dynamic second-tier cities, Chengdu is Sichuan province's political, commercial, transport and education center and is poised for significant growth in the coming years.

Located within the fertile Sichuan Basin, Chengdu's economy has historically focused on agriculture and textiles – one of its nicknames is the 'Brocade City'. Today, the city's economy has tilted toward higher-value light industrial sectors including IT and medicine in addition to food processing.

As far as international trade is concerned, Chengdu has spent the majority of its existence in relative isolation compared to other Chinese cities of similar size, primarily due to its location deep in the country's west and its lack of a port.

Chengdu's main domestic rival for investment is Chongqing, which boasts a larger population, a robust manufacturing sector and a containerized port on the Yangtze.

Chengdu's short- to mid-term economic development is expected to focus on high-tech manufacturing, pharmaceuticals and other industries involving intensive research and development.

Over the coming years, Chengdu is expected to win the battle with Chongqing for foreign and domestic investment, bolstered by its better-educated labor pool, excellent R&D support, a more appealing living and working environment and a highly accessible local government.

Foreign investment flocking to investment parks
Chengdu's investment parks have been the city's star performers in terms of attracting investment and raising the city's domestic and international profile. Well-managed and already home to a growing number of top global and domestic companies, these parks will continue to drive the city's economic expansion.

Chengdu Economic and Technological Development Zone is focused on light industry, food processing and pharmaceuticals and is home to more than 500 companies including Volkswagen, BHP, DuPont and Pepsi.

Chengdu High-Tech Zone features state-of-the-art facilities and efficient infrastructure inspired by similar developments in Western countries. Only five kilometers from downtown Chengdu, the park is home to high profile clients including Intel, Sony, Motorola, Corning, Siemens, Canon, IBM and Lenovo.

Chengdu has long been the main financial hub for western China – in 1023 it was the first city in the world to issue paper currency. Today it is home to the southwest China headquarters of People's Bank of China, the country's central bank. Chengdu has also attracted foreign banks including HSBC, Citigroup, Standard Chartered, ABN AMRO, BNP Paribas and others.

Transport a key issue
From a business vantage point, Chengdu's biggest challenge is overcoming its relatively poor connectivity with the rest of China. To address current and future supply chain bottlenecks, the city is aggressively expanding its logistics network, with several logistics parks recently completed, under construction or on the drawing board. Among these parks are Chengdu Airport Logistics Park, Chengdu International Container Logistics Park, Chengdu Qingbaijiang Logistics Park, Chengdu Bonded Logistics Centre and more.

Despite its challenges, Chengdu has been able to develop a fairly balanced and diverse industrial base and leverage its position as capital, commercial and education center of Sichuan – home to 100 million people – into a dynamic local market with consumers who are known throughout China for their love of leisure and shopping.

Chengdu's relative isolation is becoming less of a business liability as its links to the rest of China and the outside world improve. In addition to direct flights to East and Southeast Asian countries, Chengdu also has direct flights to Amsterdam. Chengdu and Chongqing are connected by a relatively new highway, but access to the Yangtze will be even smoother once port upgrades at Yibin and Luzhou are completed.

Chengdu is currently building a containerized rail terminal and is expected to have a double-decker containerized rail line to Shanghai by 2020. A bullet train to Shanghai that will reduce travel time between the two cities to 10 hours is also in the works. Within Chengdu itself, the city is currently building the first of seven subway lines.