China’s EU firms want a say in the policymaking behind Chengdu-Chongqing economic cluster
- EU Chamber of Commerce in China publishes third stand-alone paper focusing on economic development of region in and around Sichuan province
- Local municipal authorities are implored to establish a task force, address labour-supply problems and be more open and transparent
“Realising this ambitious development goal will require the involvement of all stakeholders – including foreign businesses – early in the policymaking process,” wrote Massimo Bagnasco, a vice-president with the European Union Chamber of Commerce in China, in a new position paper from the group.
The document, published on Wednesday, is the chamber’s third stand-alone paper focusing on the region. The last one came in 2018.
It has suggested several measures for both Chengdu and Chongqing to consider as they create their economic centre.
These include engaging foreign businesses in policymaking; establishing a task force involving businesses and policymakers from both cities; and having an open and transparent public procurement mechanism.
‘Vital’ Chengdu-Chongqing master plan takes aim at regional disparities
The Chengdu-Chongqing economic circle was announced in 2019, and details of the master plan were unveiled in October last year.
Authorities hope that the city cluster in and around Sichuan province will grow into an important gateway for emerging markets in the nation’s west and south.
They are confident the Chengdu-Chongqing economic belt – which has a bigger population than Germany and an economy roughly the size of the Netherlands’ – will help boost China’s consumer market and technological innovations.
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High hopes for China’s Greater Bay Area, but integrating 11 cities will pose challenges
China has pinned its hopes of driving future economic growth on city clusters. They include the Greater Bay Area that comprises Hong Kong, Macau and Guangdong province; the Yangtze River Delta revolving around Shanghai; and the Beijing-Tianjin-Hebei region.
Beyond the twin-city project, the position paper also raised the issue of communication between European businesses and local governments. It recommended the introduction of regular meetings between the respective cities’ mayors and the chamber’s chapter in southwest China.
The paper also called for more accurate and updated English-language information, as well as better access to information in both cities.
Indeed, access to English-language information and access to information online were among the top five areas in need of improvement for Chongqing and Chengdu, according to their 2021 Business Confidence Survey.
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Attracting and retaining talent in both cities was also an issue. In particular, European businesses said it was difficult to hire senior staff in both Chongqing and Chengdu.
The paper also added that China’s Covid-19 travel restrictions have compounded the struggles of China-based EU firms in attracting foreign talent, with the issue becoming the biggest challenge in attracting international talent for European companies in the region, according to the Chamber’s 2021 business confidence survey.
The move has wreaked havoc on the city’s businesses, from small corner stores to multinational companies. Local authorities imposed a five-day standstill order, which ends on Wednesday, to further clamp down on the risk of infection.
