Chongqing has earmarked up to US$8 billion for buying overseas assets in an unprecedented attempt by a Chinese municipality to expand abroad.
In an attempt to hone its competitiveness, Chongqing - one of the four municipalities under the central government's direct administration - wanted to capitalise on falling asset prices during the global financial crisis, according to executive vice-mayor Huang Qifan.
High on the shopping list are the acquisition of more than 333,000 hectares (5 million mu) of farmland, an iron ore mine and machinery equipment, and high-tech equipment.
'Assets valued at 10 yuan previously are worth 2 yuan now,' Mr Huang said in a seminar over the weekend. 'It will be foolish not to buy anything right now. However, it will be even more foolish to buy assets which do not help profitability.'
Chongqing is the first municipality to follow the state's 'go abroad' policy. The country's big corporations are usually in the vanguard of any overseas expansion.
Headed by former commerce minister Bo Xilai, Chongqing is keen to buy farmland, which runs counter to a recent Ministry of Agriculture statement denying speculation that the mainland was contemplating amassing agricultural land globally to ensure security of food supply.