Chengdu: Focus switches to software and innovation

Authors: China Daily

2014-09-18

To date, a total of 255 Fortune Global 500 companies have settled in Chengdu, and two-thirds of the iPads and half of Intel mobile chips produced worldwide are manufactured in the city, according to Chengdu government officials.
Already an automotive hub, Chengdu is now looking to attract more high-tech industries
To date, a total of 255 Fortune Global 500 companies have settled in Chengdu, and two-thirds of the iPads and half of Intel mobile chips produced worldwide are manufactured in the city, according to Chengdu government officials.
Years of efforts by the local government have helped the city develop competitive automobile, software, and logistics industries.
The State-level Chengdu Economic and Technological Development Zone has been named a demonstration facility for new auto industrialization by the Ministry of Industry and Information Technology.
With a planned area of 56.34 square kilometers, the zone has become an advanced facility for motor vehicles and key components manufacturing in Sichuan.
In 2013, the zone witnessed robust growth in vehicle output. A total of 732,000 vehicles were produced, up 95.1 percent year-on-year, accounting for 89.6 percent of all the vehicles produced in Sichuan, according to government officials.
The income of the auto industry in the zone hit 109.3 billion yuan ($17.83 billion), up 60.1 percent year-on-year. The auto industry contributed 25.68 billion yuan in tax, up 60.7 percent last year.
The auto industry continued its strong momentum in the first quarter of this year. FAW Volkswagen Chengdu produced 144,500 vehicles, up 60.9 percent year-on-year, and realized 12.07 billion yuan in output value, up 33.1 percent; FAW Toyota Chengdu put out 35,700 vehicles, up 62 percent, and realized 7.39 billion yuan in output value, up 65.1 percent; Dayun Auto rolled out 9,600 vehicles, up 60.5 percent, and realized 1.4 billion yuan, up 67 percent, according to government statistics.
The zone aims to build five pillar industries, including auto manufacturing, trade and engineering machinery by 2020, said a Chengdu government official.
Software industry
The software industry has also enjoyed great development in Chengdu.
As China's biggest specialized software park, the city's Tianfu Software Park has attracted more than 400 famous companies, including 33 Fortune Global 500 companies, such as IBM, Philips, Siemens and Huawei since its official operation.
At present, the park has formed well-developed industrial clusters featuring software outsourcing services, software R&D, communication technology and digital entertainment.
In addition, the park's business incubator is focusing on the mobile Internet and helping start-up companies get funding for their innovation efforts. It has been named one of China's top innovation incubators by the technology business magazine CEO&CIO.
Chengdu has also joined hands with Singapore to build a high-tech innovation park that covers an area of approximately 10.34 square kilometers, according to the local government.
The park will feature intelligent infrastructure, including smart power grids, central heating and cooling systems, as well as green transportation. It will develop a sound urban ecology network that is conducive to business growth and creates quality living environment, said a government official.
Priority will be given to the development of such industries as information technology, biomedicine, advanced equipment manufacturing, energy conservation and producer services.
Construction on the park began on May 8, 2012 and it is expected to be completed in 2020.
Chengdu has become the biggest inland air transportation hub in China, and it has 74 international air routes, including services to Paris, Frankfurt, London, Tokyo, San Francisco and Melbourne.
Export goods from Chengdu can reach Poland within 14 days by the Chengdu-Europe express railway, and then any European city in one to three days via rail or highway. An express train from Europe to Chengdu is expected to be up and running this year, according to government officials.
Covering 12,400 square kilometers, the city was named a benchmark city for investment, one of the top 10 economically dynamic cities, and the best commercial city in the Chinese mainland, according to the local government.
Chengdu ranked first in terms of competitiveness in central and western China in a survey of the world's most competitive cities, jointly conducted by the UK-based Economist magazine and the US-based Citigroup Inc in March 2012.
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