Latest News:  
Beijing   Cloudy/Overcast    23 / 13   City Forecast

People's Daily Online>>China Business

Chengdu seeks to boost consumption

By Cong Mu (Global Times)

08:11, April 20, 2012

Global investors and financial professionals gathered yesterday in Chengdu, capital of Sichuan Province, to discuss local consumption-driven opportunities, despite difficulties posed by less developed infrastructure.

"We like the Chinese companies that focus on China's domestic demand, so that we can introduce advanced overseas expertise into such companies and turn them into ones that have internationalized management and operations," Mao Mao, senior vice president at Lunar Capital Management, told the Global Times on the sidelines of Chengdu Global Investment Summit yesterday.

"This is what China really needs now for economic transition. We will build our own (Chinese) quality companies," Mao said.

The Shanghai-based firm, a private equity firm focused on mid-western China, paid $30 million last month for a 60 percent stake in walnut powder maker Sichuan Zhiqiang Food Co, Mao said.

As well as a lack of high-caliber managers, forum participants said that the western region, and Chengdu in particular, needs to overcome multiple development hurdles, such as accounting and legal practices that are not in line with international standards, a lack of regulation transparency and corporate governance issues.

Meanwhile, "there are still many constraints on consumption, such as inadequate pensions, the biggest problem in China, as well as the problems of paying for healthcare and education. They are a great concern for every family in the country," Lei Wei, Chengdu-based senior investment officer at International Finance Corp, a private investment arm of the World Bank Group, told the forum.

Consumption makes up a major part of Chengdu's GDP. Total consumer goods retail sales in Chengdu reached 286 billion yuan ($45.4 billion) in 2011, or 42 percent of the local GDP.

The year-on-year consumption growth rate in Chengdu was 18.4 percent last year, whereas in Beijing it was 10.8 percent, according to the local statistics bureau.

Social security issues need to be solved by the local governments before they can boost consumption, Lei said. He further noted that "unfair income distribution" also makes it harder to increase people's buying power, citing the wealth-gap lessons from Latin America.

Chengdu will create more well-paid jobs by attracting more advanced manufacturing companies to the city, Chen Fu, vice director at Chengdu Investment Promotion Commission under the city government, told the Global Times.

The city produced goods worth 104 billion yuan for export in 2011, up 122 percent year-on-year, many of which were made for companies like Hon Hai Precision Industry Co, Taiwan-based manufacturer of iPads and iPhones, Chen said.

"Two-thirds of the iPads are made in Chengdu," Chen told the investors at the forum.

Email|Print|Comments(Editor:厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Cherry blossom festival in Chengdu

  2. Beauty of Fujian Tulou

  3. Wedding Banquet in Hainan lick your chops

  4. Temple ruins of Yungang Grottoes edges into new archaeological discoveries of 2011

Most Popular

Opinions

  1. Criminal case is not political struggle
  2. Bo's probe praised for its transparency, resolution
  3. Keeping reins on easing vital for China's economy
  4. Bo investigation warns officials of power abuse
  5. Restart Six-Party Talks
  6. Most Americans see benefits of close U.S.-China ties
  7. Reform will not impair public institutions: ministries
  8. Blasts spell bleak future for Afghan stability
  9. Security cooperation is SCO's shining point
  10. Syria ceasefire is not negotiable

What's happening in China

First TCM medicine OK'd for EU market

  1. Ex-Olympic champion under fire for second child
  2. Coca-Cola cleared of contamination in China
  3. Chinese fishermen detained in Palau arrive home
  4. China detains 9 more in drug capsule scandal
  5. Harbin ban on big dogs stirs up howls of protest

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai