Exports are one of the three driving forces behind economic growth. In 2023, Chongqing's exports exceeded 470 billion CNY, with general exports reaching nearly 200 billion CNY, a year-on-year increase of 7.5%. This made a great contribution to Chongqing's GDP which exceeded 3 trillion CNY in 2023. However, the current international situation is complex, and Chongqing's foreign trade is also facing certain downward pressures. The "three-new" of Chongqing's foreign trade will be the key to whether exports can break through the encirclement and further advance.
There is still a lot of room in the export of new energy vehicles
Chongqing is a national automobile hub, and "Chongqing-made" automobiles are key to Chongqing's exports.
In 2023, China exported nearly five million vehicles, becoming the world's largest exporter of automobiles. Chongqing-made automobiles exceeded 33 billion CNY, a year-on-year increase of 51.9%, with passenger car exports exceeding 25 billion CNY, a year-on-year increase of over 79.2%.
How can Chongqing stabilize the upward trend in automobile exports in 2024? The answer is new energy vehicles.
Liu Kan, Director of the Foreign Trade Promotion Department of Chongqing Municipal Commerce Commission, said that Chongqing's overall automobile exports last year were still mainly traditional fuel vehicles, meaning there is still room for Chongqing in the export of new energy vehicles.
Firstly, new energy vehicles were one of the "three new types" of growth in China's exports sector in 2023. It is anticipated that the foreseeable future, new energy vehicles will be the main products for China's export trade.
Secondly, this is in line with the development plan for Chongqing's automotive industry. Last year, Chongqing launched the "33618" plan, a modern manufacturing system, which clearly stated that Chongqing aims to build a trillion CNY industry of intelligent connected new energy vehicles, laying the foundation for Chongqing's new energy vehicle exports.
Chongqing's two major automotive companies, Chang'an Auto and Seres, are transforming and upgrading intelligent connected new energy vehicles, improving product quality and breaking new ground in the market.
In January 2024, the three major Chongqing-made new energy vehicle brands, AITO, Deepal, and AVATR, were among the top 10 in monthly domestic sales. AITO became the monthly sales leader for the first time with nearly 33,000 vehicles.
However, the 2024 Chongqing Municipal Government Work Report stated that the Chongqing-Made Automobiles Overseas action plan will continue to be implemented, and the export of "new three types" products will be promoted, so as to promote Chongqing's export trade.
The "Chongqing Made Automobiles to Overseas" action plan proposes that Chongqing should accelerate the construction of a national leading intelligent network new energy vehicle export base, and progress from product exports to brand and technology exports and other high-end links of the value chain. By 2027, Chongqing's intelligent network new energy vehicle industry will have a strong international reach, with an annual export amount of over 120 billion CNY.
New Business Format
Chongqing is one of central and western China's leading cities for cross-border e-commerce
The Central Economic Work Conference, held in December 2023, proposed stimulating foreign trade and consolidating the fundamentals of foreign trade and investment, and expanding the service trade, digital trade, and cross-border e-commerce exports, and expanding high-level opening up.
"Cross-border e-commerce is the main component of digital trade, and it is also the 'must-win' for the future digital trade, and it is also a 'metre' to measure the digital trade of a region," said Li Guotian, the director of the Foreign Trade Administration Division of Chongqing Municipal Commerce Commission. Chongqing is one of the first cities in China to be selected as the national pilot city for cross-border e-commerce. It is in the forefront in many aspects, and has also explored many positive results.
As an example, Xiyong Micro-electronics Industrial Park in the Western (Chongqing) Science City, because it is adjacent to the central station of Tuanjie Village, is one of the earliest areas for the development of cross-border e-commerce in Chongqing. At present, it has attracted more than 200 merchants from 32 platforms such as Taobao, Tmall International, and eBay, and more than 7,000 types of goods have been warehoused, reaching the markets of more than 100 countries and regions.
In recent years, Chongqing has been constantly improving its cross-border e-commerce platform system, gathering cross-border e-commerce entities through industrial parks, and has established a new cross-border e-commerce industry development system called 1+N. There are five municipal-level cross-border e-commerce demonstration zones, and about 2,500 cross-border e-commerce companies in Chongqing.
In 2023, the import and export volume of Chongqing's cross-border e-commerce reached almost 20 billion CNY. According to Li Guotian, Chongqing is one of the most active cities in the cross-border e-commerce industry in central and western China.
"We will expand the export of cross-border e-commerce to promote steady growth of foreign trade," said Li Liguo. Chongqing has previously issued a plan to accelerate the development of new formats and models of foreign trade, with the goal of building 10 cross-border e-commerce demonstration zones with converging elements, diverse entities, and professional services in Chongqing by 2025. The import and export scale of cross-border e-commerce is expected to exceed 70 billion CNY, and the building of cross-border e-commerce comprehensive pilot zone to rank among the top nationwide.
In terms of specific measures, Chongqing will promote the "cross-border e-commerce + industrial belt" model, and thoroughly implement the "Chongqing's Global Trade, Cross-border E-commerce Empowering" cross-border e-commerce to assist the industrial belt to go overseas. In 2023, Chongqing has carried out more than 10 activities to help more than 350 local companies connect with platforms, service providers and other resources.
New Mode
The pilot market procurement trade mode and agglomeration
At the beginning of the the Year of the Dragon, sellers at Dazu Longshui Hardware Market were busy.
"Now we are exporting more cutting tools." Xiao Wenfang, said the sales manager of Chongqing Xiangfeng Tools Manufacturing. They export about 10 million CNY of goods every year. In the past, they used to ship the products to cities suitable for small-scale trade, but now they are doing foreign trade at home.
This change stems from the pilot programme for market procurement trade mode launched in Chongqing in December 2022.
The market procurement trade mode, different from general trade and processing trade, is a new trade mode. Simply it is to purchase products with a value of no more than 150,000 USD in a specified area and handle export procedures on the spot.
"This mode originated from Yiwu, Zhejiang, and has the advantages of exempting from value-added tax, allowing settlement in CNY, and simplifying customs procedures. It is more suitable for exporting products with multiple varieties, multiple batches, and small batch sizes," said Liu Kan. Chongqing has taken Dazu Longshui Hardware Market as the pilot area for market procurement trade mode, and has achieved remarkable results in just more than a year.
As of December 31, 2023, Chongqing has exported a total of 1,726 invoices worth 174 million USD (equivalent to 1.25 billion CNY) through the market procurement trade mode.
"The pilot of the market procurement trade mode in Dazu will not only help more local sellers engage in export trade and expand the market, but also further expand the radiation scope of Longshui Hardware Market," said Yang Hua, the deputy head of Dazu District. With the improvement of the new foreign trade mode, it is expected to attract more hardware products from other domestic cities to Dazu for export, making Dazu a well-known hardware product export "gathering place" in China.
Liu Kan stated that from the experience of Yiwu, once the pilot market procurement trade mode goes smoothly, not only hardware products but also all products that meet the requirements of "multi-variety, multi-batch and small batch" will be distributed in Chongqing, which will become a new driving force for Chongqing's export trade.
"Although this mode can only export in small quantities, it can effectively increase the number of main export companies in the market, and can match cross-border e-commerce and other forms of business." Liu Kan said that Yiwu's export volume through this mode has exceeded 300 billion CNY a year.
Liu said that the Chongqing Municipal Commerce Commission was striving for the support of other relevant departments, and planned to focus on the main urban area, radiating southeastern and northeastern regions of Chongqing, holding market procurement trade promotion meetings in different areas, guiding companies that are suitable for market procurement trade to actively participate in the promotion, forming a new situation of city-wide linkage, jointly promoting market procurement trade to become bigger and stronger, and increasing the volume and quantity, so as to promote Chongqing's overall export trade.