Chongqing

Background of Chongqing

Chongqing covers a large area crisscrossed by rivers and mountains. The Daba Mountains stand in the north, the Wushan Mountains in the east, the Wuling Mountains in the southeast and the Dalou Mountains in the south. The whole area slopes down from north and south towards the Yangtze valley, with sharp rises and falls. The area is featured by mountain and hills, with large sloping areas at different heights. Typical karst landscape is common in this area, and stone forests, forests of peaks, limestone caves and valleys can be found in many places. The Yangtze River runs through the whole area from west to east, covering a course of 665 kilometers, cutting through the Wushan Mountains at three places and forming the well-known Three Gorges: the Qutang, the Wuxia and the Xiling gorges. Coming from northwest and running through "the Jialing Lesser Three Gorges" of Libi, Wentang and Guanyin, the Jialing River joins the Yangtze in Chongqing.

Chongqing now has a brand new strategy for regional development; the "One-hour Economic Circle" and the Two Wings, Northeast Chongqing and Southeast Chongqing.

Chongqing has a series of strategies for economic development since the establishment of the municipality: first, the three zones of Metropolitan Advanced Economic Sphere, Southeast Chongqing, and the Three Gorges Reservoir Area, and later the four blocks of the City Proper, West Chongqing, the Three Gorges Reservoir Area, and Southeast Chongqing.

This change of policy aims at making Chongqing the key driving force in West China and the economic center at the upper reaches of the Yangtze.

The One-Hour Economic Circle will be centered at the city proper of Chongqing, a super metropolis, and covers 23 of Chongqing's 40 districts and counties, at one hour's driving distance. In 2006, the GDP of the One-Hour Economic Circle reached RMB 271 billion, 78% of Chongqing's total GDP. This is Chongqing's economic and industrial heart.

Northeast Chongqing covers 11 districts and counties, centered at Wangzhou District, comprising most the Three Gorges Reservoirs Area, Chongqing part.

Southeast Chongqing, as the residents are mostly ethic minorities, has six districts and counties, centered at Qianjiang.

According to the plan, Chongqing will realize the overall well-being in the One-Hour Economic Circle in 2015,5 years earlier than the plan of the central government, to drive the realization of well-being in West China three years earlier than the central government plan. Chongqing plans to triplicate GDP of the One-Hour Economic Circle in 2020,over that in 2005, and make the GDP per capita exceed USD 8,000. In 2020, the permanent residents will reach 22 million; the rate of urbanization will reach 80%; and major indicators of economic and social development will reach the average level of East China.

In the One-Hour Economic Circle, we will focus on industrial development and accelerate the development of industrial bases and industrial clusters, especially for modern manufacturing, service, and agriculture. In addition, we will expedite to make the metropolis of the city proper, more influential to surrounding regions.

Chongqing's stress on the development of One-Hour Economic Circle backs the development of the Two Wings. When the One-Hour Economic Circle is developed, the financial supports to the less developed areas, the Two Wings, will be strengthened. The One-Hour Economic Circle will offer employment opportunities for the redundant labors from the Two Wings, which will accelerate the urbanization of farmers. By 2020, the One-Hour Economic Circle is expected to offer as many as 4 million employment opportunities to the Two Wings.

The aims of Chongqing to develop service outsourcing industry are integrate industries structure, speed up domestic economic development. To gain the purpose in 2010: To invite 10 famous multinational enterprises to transfer their service outsourcing business to China; cultivate 20 large and medium-sized service outsourcing enterprises with international qualifications; create advantageous conditions to fully undertake international (offshore) service outsourcing business, and continue to enhance service value, thus to promote Chongqing's service outsourcing export to US$ 800 million by 2010.

To accelerate the development of service outsourcing industry, Chongqing Municipal Government has issued various preferential policies, including Measures for Certifying and Managing Chongqing's Software and Information Service Outsourcing Enterprises (Trial), Temporary Regulations on Accelerating the Development of Chongqing's Software and Information Service Outsourcing Industry, and Notice of Chongqing Municipal Government on Issuing the Preferential Policies for Inviting Medium and Senior Software Talents etc. Besides preferential tax policies, the municipal government also offers maximum RMB one million as incentives to enterprises that have passed MOFCOM service outsourcing grading and with annual export of over US$ 500,000.