The China (Chongqing) Pilot Free Trade Zone (Chongqing FTZ) is part of China’s third batch of pilot free trade zones, officially launched on 1 April 2017. As the first such zone in the western region, the Chongqing FTZ covers 119.98 square kilometres and includes three key areas: Liangjiang, Xiyong, and Guoyuan Port. In line with directives from the Central Committee of the Communist Party of China and the State Council, the Chongqing FTZ plays a central role in the country’s western development strategy. Positioned as a vital link in both the Belt and Road Initiative and the Yangtze River Economic Belt, it aims to boost the city’s openness, drive regional development, and establish a comprehensive inland hub for economic expansion.
Comprehensive Policy Framework
The Chongqing FTZ operates under a comprehensive "2+4+N" open policy framework. The "2" represents two foundational documents: the Overall Plan of China (Chongqing) Pilot Free Trade Zone and the Regulations of China (Chongqing) Pilot Free Trade Zone. The "4" refers to four key documents, including the 14th Five-Year Plan for the zone, measures to deepen reform and innovation, initiatives to facilitate trade and investment, and a five-year action plan for upgrading the FTZ. The "N" encompasses a range of specialized policies in areas such as investment, trade, finance, intellectual property, and rule of law. Additionally, the Chongqing FTZ is further supported by policies from national-level new areas, high-tech development zones, and comprehensive bonded zones.
Remarkable Development Achievements
The Chongqing FTZ has actively aligned itself with key national strategies, including the Belt and Road Initiative, the Chengdu-Chongqing Economic Circle, and the New Western Land-sea Corridor. It has continuously advanced reform and integrated development across the entire industry chain. Since its establishment, the Chongqing FTZ has successfully completed all 151 reform tasks outlined in its overall plan and driven 156 significant institutional innovations, eight of which have been adopted nationwide. Key achievements include pioneering land trade regulations based on railway bills of lading, introducing the 'Single Document System' for multimodal transport, and establishing China’s first comprehensive FTZ court. Despite occupying just 1.46‰ of the city’s land area, the Chongqing FTZ makes a substantial contribution to the local economy, accounting for 10% of new business registrations, over 60% of foreign trade, and 50% of foreign capital utilized.
Leading Industries
As the only FTZ in China that integrates port, land, air, production, services, and trade into a central inland hub for international logistics, the Chongqing FTZ stands as a cutting-edge pilot zone for digital economy innovation, a model area for modern bonded economy growth, a pioneering space for open development in the service sector, and a thriving cluster for advanced manufacturing innovation. Notably, it is gaining emerging advantages in the next-generation electronic information and smart connected new energy vehicle (NEV) industries.
Smart Connected New Energy Vehicles
Committed to Building a World-Class Smart Connected New Energy Vehicle Industry Cluster
Leading Nationwide in Production and Sales, Chongqing has taken the top position in automobile production in China this year. The production of new energy vehicles (NEVs) has surged, increasing by 1.5 times year-on-year, making Chongqing the fastest-growing region among the top ten provinces and municipalities in the automotive sector. High-end models, such as the SERES AITO M9, have made a significant impact in the luxury market, ranking first in the segment of vehicles priced over 500,000 yuan.
Leading in Green Research and Development, Chongqing's investment in R&D far exceeds industry averages. The region has pioneered the first standard battery cells and developed the only vehicle platform compatible with three types of new energy powertrains: extended range, all-electric, and plug-in hybrid. For example, Changan Auto has accumulated over 200 core technologies related to smart connected vehicles, with its number of patents in the field leading the industry.
Pioneering Digital and Intelligent Production, Chongqing has established 340 digital workshops, 50 smart factories, and 11 innovative demonstration factories, alongside 12 5G-connected factories utilizing industrial internet applications. Key components produced in the region, including batteries from FinDreams, electric drives from Qingshan, electric steering from Longrun, hydrogen power systems from Bosch, and intelligent cabins from BiCV, exemplify leading technological standards in China.
Advancing Connectivity Applications, Chongqing is among the first cities selected for smart connected vehicle pilot programs, integrating "vehicle-road-cloud" applications. It is also one of the first nine cities approved for smart connected vehicle access and road testing trials. The city has introduced the world’s first autonomous "Cloud Bus" and launched a global pilot for self-driving buses.
Leading in Supply Chain and Industrial Ecosystem, Chongqing's smart connected new energy vehicle component industry thrives within a clustered development model. The city's vehicle and component testing and inspection services generate annual revenues that account for one-third of China's market for automotive and motorcycle inspections. Chongqing hosts prominent enterprises such as the China Merchants Testing Vehicle Technology Research Institute and the China Automotive Technology & Research Center. Additionally, the city is collaborating with the Ministry of Industry and Information Technology to establish an international center for new energy vehicle brands, as well as build bases for testing, certification, and import/export trading.
Leading in International Expansion, Changan Auto has built a global R&D network spanning six countries and ten regions, spearheading the development of several international standards for smart connected vehicles. SERES products are now exported to over 70 countries and regions, while companies like Changan are establishing manufacturing facilities abroad. In the first half of 2024, Chongqing's automobile exports increased by 34.9%.
Advanced Materials
Advanced materials are one of Chongqing’s three trillion-yuan industrial clusters, steadily integrating into the supply chains of leading enterprises in the automotive, electronics, and equipment sectors, fostering a mutually beneficial and coordinated development ecosystem.
Rapid Industry Growth. In 2023, Chongqing's advanced materials industry cluster saw a 12.3% increase in added value, representing nearly a quarter of the city's industrial output. In the first half of 2024, the cluster continued its strong performance with a growth rate of 6.2%.
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Concentration of Leading Enterprises. Chongqing hosts major enterprises valued at over 10 billion yuan, including Chongqing Iron and Steel, Chinalco Advanced Manufacturing, Southwest Aluminium, BOSAI Group, Wanda Steel Strip, Panhua, Huafon Chemical, and Wankai New Materials. Additionally, numerous companies worth 5 billion yuan are based here, such as Jinlong Group, East Hope, Zuhang Vanadium Titanium Steel, QI NENG Aluminium, Huafon Aluminium, Shunbo Aluminum, SVW Chemical, and BASF Polyurethanes (Chongqing). The city is also home to rapidly growing industry leaders like Polycomp International Corporation, Jiantao Aluminum, Hailiang Copper, and Yixiang Chemical.
Technological Leadership in Niche Fields. The region excels in producing various advanced materials, holding national leadership in aerospace aluminum, high-precision aluminum sheets, temperature measurement materials, precision copper tubing, magnesium alloy precision casting, brown fused alumina, high-performance fiberglass, specialty glass, EVOH thermoplastic high-barrier resins, and adipic acid. Several of these products have reached world-class standards and are widely used in cutting-edge industries such as aerospace, military systems, and rail transportation. Notably, key high-precision aluminum alloys from Chongqing are extensively used in the "Shenzhou" spacecraft, "Chang'e" satellites, and "Long March" rockets
Development of Industry Cluster Platforms. Chongqing has established national-level bases for advanced materials, including aluminum alloys, magnesium alloys, functional materials, and graphene. The city has also fostered key innovation platforms and technology centers, such as Chongqing Iron and Steel, Chongqing Materials Research Institute, Chongqing University, Southwest Aluminium, Jinlong Group, Polycomp International Corporation, and Zisun Technology. With the completion of significant national industrial bases for light alloys, fiberglass and composite materials, and synthetic materials, Chongqing has positioned itself as a distinctive and influential hub for advanced materials in China.
Next-Generation Electronic Information
Chongqing is swiftly advancing its "352" development framework, focusing on the expansion of three core industries: smart terminals, new displays, and power semiconductors & integrated circuits. The framework also prioritizes the growth of five high-potential industries: photovoltaics & energy storage, AI & robotics, servers, smart home technologies, and sensors & instrumentation. Additionally, Chongqing is planning for the development of two future-forward industries: satellite internet and the metaverse.
Solid Industrial Foundation. In 2023, the next-generation electronic information manufacturing cluster in Chongqing reached an output value of CNY 716.5 billion, securing its position as the sixth-largest in China. For ten consecutive years, Chongqing has maintained its status as the world's leading producer of laptops and a key hub for smartphone manufacturing. The city's advancements in integrated circuits and cutting-edge display technologies have integrated it into the nation’s strategic productivity framework. Its power semiconductor production capacity ranks among the top three in China, while its expertise in flexible displays places it within the top five.
Gathering of Leading Enterprises. Chongqing is home to over 800 manufacturing enterprises above the designated size, with major domestic and international players in the integrated circuit sector, including China Resources, China Electronics Technology Group, STMicroelectronics, and SK Hynix. In the smart terminal industry, the city hosts 331 large-scale companies, attracting more than 10 globally recognized brands such as Apple, Huawei, Lenovo, OPPO, Vivo, and Transsion. Additionally, Chongqing is a base for six major original design manufacturers (ODMs), including Quanta, Inventec, and Compal.
Concentration of Innovation Resources. Chongqing is home to several national-level innovation zones, including the first digital economy development pilot area and the national AI innovation zone. The city also hosts key institutions such as the National and Local Joint Silicon-Based Hybrid Integration Innovation Center, the Konka Broadcasting Technology Research Institute, and the China Electronics Technology Group Chip Research Institute. With its numerous universities and a wealth of innovative talent, Chongqing is well-positioned to lead technological advancements. For instance, Chongqing University of Posts and Telecommunications holds over 100 patents in the field of large-scale AI models.
Chinese Article and Photos Source:
Chongqing Municipal Commerce Commission