Chengdu Economic & Technological Development Zone

Located in the east of Chengdu, Chengdu Economic & Technological Development Zone (“CETDZ”) was established in 1990, and approved as a national economic and technological development zone in February 2000, as abuilder ofnational automobile industry new industrialization demonstration base by the Ministry of Industry and Information Technology in October 2010, and as a builder of national eco-industry demonstration park by the Ministry of Environmental Protection, the Ministry of Science and Technology and the Ministry of Commerce in 2014. CETDZ acts as the major carrier for the transnational cooperation parks——Chengdu Sino-French Ecological Park and Sino-German Auto & IM Park, and has been recognized by Sichuan government and Chengdu government as an advanced manufacturing base primarily engaged in manufacturing of vehicles and key auto parts. In addition, CETDZ is the functional zone for high-end manufacturing in Longquanyi, Sichuan Tianfu New Area, and being cultivated as a “special growth-type industrial park with an output value of RMB100 billion” by the province, as priority.

In order to achieve the goal of being a “world-class auto industry city and internationalized life quality city” and “big car city”, CETDZ vigorously develops the modern auto industry with focus on finished automobiles, auto parts and engineering machinery, in line with the industrial structure of “one focus per zone”.

In recent years, with a view to the central government’s “Four Comprehensive” strategic layout and “FiveDevelopment Concepts”, CETDZ has actively seized major development opportunities arising from theBelt and Road Initiative, Sichuan Tianfu New Area Building and “Chengdu-Europe Express+”,to fit in with the “new normal”,continuously tap its development potential, vigorously promot quality and efficiency improvement, and keep stable development of local economy. In 2015, CETDZ achieved a GDP of RMB 100.21 billion, increasing by 5% on a year-on-year basis. In detail, the output value of industrial enterprises above designated scaleincreased by 2.6%; the fixed assets investment increased by 19%, up to RMB 48.3 billion; the industrial investment increased by 51.5%, up to RMB 14.49 billion. In the same year, CETDZ output 920,000 finished automobiles (machines), and achieved a business income of RMB 121.9 billion by selling finished automobiles. In particular, the development zone was commended by the municipal government for outstanding performance in major project investment, industrial investment, service investment and promotion of innovation and business startup, and has been ranked 1st among the “top 10 counties” of Sichuan consecutively for 3 years, in local comprehensive economic strength.

(I) Large-scale development of finished automobile manufacturing: In order to achieve the goal of being a “China’s first-class, world-renowned” international automobile city of Chengdu, CETDZ has attracted11 finished automobile manufacturers (e.g. FAW-Volkswagen, FAW Toyota, Dongfen-Citroen, Volvo, Geely) to settle andbuildup a platform that outputs 1.55 million finished automobiles every year, which makes it West China’s second largest finished automobile base. In 2015, the development zone output more than 920,000 finished automobiles, increasing by 1.7% on a year-on-year basis and sharing about 87% in the provincial output, and achieved an income of RMB 121.9 billion by selling finished automobiles (machines). The finished automobile output is expected to exceed 1 million in 2016, increasing by 11.4%.
(II) Continuous perfection of finished automobile brand system: So far, CETDZ has attracted11 finished automobile manufacturers (e.g. FAW-Volkswagen, FAW Toyota, Dongfen-Citroen, Volvo, Geely) to settle, unprecedentedly gathering three of national top 10 auto groups. These manufacturers mainlyoutput cars, SUVs and commercial vehicles. NCS, New Jetta and Volvo S60L are the major cars output in the development zone. The production of Volvo S60 Inscription, the first model to be exported from China to the US, was successfully launched in May 2015, initiating the way of exporting “Made in Chengdu” cars to developed countries. Toyota PRADO, Volvo XC60, Dongfeng Peugeot-Citroën 4008 and Gleagle GX7 are the major SUV models output in the development zone. In the future, Dongfeng Peugeot-Citroën’s Chengdu base will also produce a high-end SUV model. Toyota Coaster, Dayun Truck and FAW Coach are the major commercial vehicles output in the development zone. Among them, Toyota Coaster, being abenchmark model of commercial vehicle, is very popular.

(III) Extension of automotive supporting industry chain: In recent years, adhering to the concept of building a complete international automobile industry chain, CETDZ vigorously develops core auto parts systems and has preliminarily established a supporting system centered on “the 5 assemblies” based on major finished automobile manufacturers (e.g. FAW Toyota, Geely, Volvo) and independent auto parts suppliers in the global supply system (e.g. Bosch, Delphi, Magna). Attributed to major main engine projects (e.g. FAW-Volkswagen’s 600,000 sets/a EA211 engine project, Geely’s powertrain system project, Bosch’s chassis system project) and more than 200 key parts projects of different manufacturers (e.g. Johnson Controls, Magna, Plastic Omnium, Sumitomo, Henkel), the local self-support rate of assembly and key parts (e.g. transmission, chassis control system) is as high as 30%. In 2015, the auto parts manufacturers in CETDZ achieved a prime operating revenue of RMB 23.74 billion, laying a firm foundation for building an auto parts industry cluster with output value of RMB100 billion.

(IV) Accelerated gathering of high-end factors of auto industry: CETDZ (Longquanyi District) has been titled “National TechnologyProgress Zone” upon examination for 4 years consecutively, and successfully identified as Sichuan’s IPR demonstration park and Chengdu’s innovation-driven development pilot zone. In 2015, an overall R & D investment of RMB 2.7 billion was made in the development zone. With focus on 6 finished NEV projects (e.g. Volvo, Geely Plateau), CETDZ vigorously develops NEVs, and has established an NEV production capacity of 20,000 sets/a. In 2015, 1,454 NEVs were output in the development zone, increasing by 12.8 times on a year-on-year basis. Furthermore, CETDZ accelerates auto research and design. The settlement of R & D and testing projects, including Harman International, German Auto Creative Center, Chengdu Rehot EV Testing Center, Ningbo Kapeiyi Electric Control R & D Center, KH Automotive Technologies and China Automotive Engineering Research Institute, has improved CETDZ’s capability of automotive ingenious innovation.

(V) Prosperity of auto service: Auto trade and expo are rapidly developing in CETDZ. Led by Chengdu International Auto Expo City, a few major auto trade and expo projects, such as CSGC Wanyou Auto Expo Center, Geely Auto Supermarket Complex and Jiufeng International Auto Expo City, are being implemented faster, and an auto trade cluster with output value of RMB100 billion is being formed. The auto culture & entertainment projects like Global Automotive Forum, China Super Truck Racing, Sichuan Touring Car Elite and Shuangliu Auto Culture Festival have improved the popularity and reputation of Chengdu International Auto Expo City. In the meantime, auto logistics is being impelled faster. On the whole,the arterial road network of CETDZ has been effectively connected to expressway networks, Luzhou Port, Chongqing Port and freight depots; Kerry Logistics and Sinotrans have been established and put into operation; the project “Chengdu Highway Port” has been implemented; a customs office and an entry-exit inspection and quarantine administration have entered Longquan Logistics Center to engage in business; Kanghua International and Vailog’s project are being implemented faster; the project“Bonded Logistics Center (Type B)” has been started, and active efforts are being made to include this project in the application of Chengdu FTZ.

(IV) Accelerated perfection of supporting functions: Strategically positioned to be a satellite city of Chengdu, CETDZ adheres to the concept “integration of form, trade, culture and ecology”, and makes continuous efforts to faster bring out an urban spatial form that features “south-north interaction, joint development of 2 wings” and “1 heart + 2 wings + 2 belts”. In recent years, the development zone has totally invested RMB 36.25 billion in infrastructure construction, and built up an arterial road network as long as 173km. In particular, the “4 roads” were rated as a pilot project by the Ministry of Construction. Also, 13 different types of substations (110-500KV) have been built up to bring the local power supply capacity up to 4,400MVA; 5 gas distribution stations have been built up to bring the local gas distribution capacity up to 3.1 million m3/a; the logistics projects like Minsheng Logistics and FAW Logistics have been completed and put into operation. In the wake of increasing perfection of many urban living facilities (large malls, hotels, educational, hygienic, cultural and athletic facilities), a 45km2livingservice area is faster taking shape with priority given to 3 housing estates--Tianehu, Huangguanhu and Dongshanguoji. Attributed to these, CETDZ’s capability of supporting the industry-city interaction is continuously improving.

Next, under the guidance of the philosophy “scientific development, leading development”, CETDZ will firmly develop and put into practice the “5 development concepts”, vigorously conduct partnering for “Made in China 2025” and the provincial and municipal action plans, and actively seize the significant opportunities arising from the Belt and Road Initiative and the building of the Yangtze River Delta Economic Zone. Also, the development zone will fully implement the central government’s “4Four Comprehensive” strategic layout, the provincial Party committee’s “FiveDevelopment Concepts” and the municipal Party committee’s “5 market promotion strategies”, execute the provincial auto industry development plan called “1 belt + 1 zone + 7 parks” in depth, and actively fit in Chengdu’s “3+N” industrial development layout. In order to achieve the goal of being a “world-class auto industry city and internationalized high-quality life city” and “big car city”, CETDZ will be focused on improving quality and benefits of economic development,vigorously strengthening the foundation and improving the quality of the auto industry in the direction of structural reform, and actively develop emerging high-end industries like equipment manufacturing, aerospace, energy conservation and environmental protection. Furthermore, the “1 main business + 5 new businesses” development pattern where the main business is highlighted and diversified industries are simultaneously vitalized will be formed faster, so as to bring CETDZ to the first echelon of the national auto industry. Based on these actions, CETDZ will make contributions to building Chengdu as “the core economic growth pole of west China” and an internationalmetropolis.

——It is expected that by 2020, with a local finished automobile production capacity of 2.47 million sets/a, CETDZ will be a new passenger car base of China, enter the tier 1 of China’s auto industry cluster, and become an important support for building Chengdu as “the core economic growth pole of west China”.

——It is expected that by 2025, with a local finished automobile production capacity of 2.60 million sets/a, CETDZ will be the largest passenger car base of central and west China and a leading automotive electronics base, new-type NEV base and auto service base with extensive influence, and enter the world’s auto cluster system as “China’s first-class, world-renowned” international auto city of Chengdu.

Addr:Management Committee of Chengdu Economic & Technological Development Zone, 18, Xingguang Middle Road, Longquanyi District, Chengdu