China’s Chengdu-Chongqing master plan crucial to ‘accelerating growth’ in nation’s underdeveloped west

Beijing has released a master plan for the Chengdu-Chongqing economic circle to boost development in China’s west

Analysts say it could create a world-class manufacturing cluster in industries including car manufacturing, IT and electronics

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Beijing hopes a twin-city project linking Chengdu (pictured) with Chongqing will be a driver of development in China’s west. Photo: Shutterstock

Published: 6:30pm, 22 Oct 2021Updated: 10:49pm, 22 Oct 2021

China’s development master plan for the Chengdu-Chongqing economic circle will accelerate growth in the country’s west and has the potential to create world-class industries in areas ranging from electronics to car manufacturing, analysts say.

Beijing released its ambitious economic blueprint for the twin-city project linking Chengdu and Chongqing earlier this week, and said on Thursday the city cluster in Sichuan province would become “an important economic centre”, as well as a gateway to emerging markets in the west and south.

“It’s a vital strategy to coordinate regional development, facilitate the dual-circulation strategy, and help form an important growth driver in the western region,” China’s State Council said on Thursday.

“It will be positioned as a strategic highland to herald the opening of inland provinces and participate in international competition.”

Chen Qi, a macro analyst with Chengdu-based Chuancai Securities, said establishment of a world-class manufacturing cluster will boost local industries, including information technology, car manufacturing and electronics.

“It will help accelerate the growth of western regions, and marks a roll-out of economic stabilisation measures,” he wrote in a research note.

The government hopes the project will tackle infrastructure shortages that have created an “obvious bottleneck” in western regions and level development with prosperous coastal provinces in the east.