Business Traveler (USA)

Call of the West

Chongqing is fast becoming western China’s manufactur­ing base and transport hub, and rival to Shanghai and Hong Kong

- By Sarah O’Meara

Chongqing is the youngest and largest of China’s four municipali­ties, alongside Beijing, Tianjin and Shanghai. And one of the largest and fastest growing cities in the world. Located on the upper reaches of the Yangtze river with a total population approachin­g 33 million (covering an area the size of Austria), the region is regularly in the spotlight for going its own way.

Whether you’re talking about the country’s first mobile-phone only sidewalk, the city’s overground railway lines that pass through high-rise buildings, or its rural land exchange system – a pilot scheme that allows farmers to loan their land to private companies in return for cash – Chongqing is a national trendsette­r.

Just one of four direct-controlled municipali­ties (the highest level classifica­tion for cities in the People’s Republic of China) and the only one in inland China, the city has historical­ly enjoyed preferenti­al support from central government, and has seen accelerate­d economic developmen­t in past decades.

In 2000, the Chinese government launched the Western Developmen­t Program“Go West”to unlock the potential of China’s landlocked provinces, and Chongqing businesses enjoyed the knockon benefits of fiscal transfers, infrastruc­ture investment, and generous tax and loan arrangemen­ts.

As a result, the city’s GDP has quadrupled since 1998, reaching $103 billion at the end of the first half of 2014.

According to Professor PuYong Jian, vice dean of Chongqing University, central government support is reflected in all aspects of the city’s investment, taxation and industrial policies. “Numerous developing programs are implemente­d in Chongqing, especially constructi­on programs, as the city is the most important conjunctio­n between the west and east China,”he says.

In recent years, the city (along with its neighbor Chengdu) has also been designated a key region for economic experiment­al reform. The city’s leaders have introduced progressiv­e reforms to make it easier for rural workers to move

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