On May 4th, the reporter learned from the Chengdu Administration for Industry and Commerce that since the unveiling of the Chengdu Pilot Free Trade Zone, the number of newly registered enterprises has reached 24,843, an increase of 54.95% compared with that before the unveiling, 22 percentage points higher than the growth rate of Chengdu (32.94%). The newly added registered capital was RMB 341.889 billion, and the total registered capital has increased by 47.35% compared with that before the unveiling. Among them, the number of domestic-funded enterprises has increased by 55.11%, and that of foreign-invested enterprises by 44.44%, which were 25 percentage points and 29 percentage points higher than that of the whole city (domestic-funded increased by 29.74%, foreign-invested by 15.39%).

As the nodal region and main front of the Sichuan Pilot Free Trade Zone, the economic vitality of the Chengdu Area of China (Sichuan) Pilot Free Trade Zone (hereinafter referred to as the “Chengdu Pilot Free Trade Zone”) comes from the reform drivers, dividends of opening-up and institutional innovation. Since its establishment for more than a year ago, the Chengdu Pilot Free Trade Zone has witnessed a growing number of enterprises and funds pouring into the zone. It has lowered the operating costs and provided more opportunities for enterprises. During its construction, the business environment featuring internationalization, legalization and facilitation has been improving, and the reform dividends have been released rapidly.

The effect of "attracting funds" globally has been prominent

The number of enterprises has totaled 70052 with RMB 147.5 billion newly injected foreign investments

How is the construction process going in the Chengdu Pilot Free Trade Zone? The number of settled enterprises is an intuitive “indicator”. Over the past year, the reform dividend of the Chengdu Pilot Free Trade Zone has been gradually released, attracting a large number of investors. And the number of newly added enterprises in the region has exceeded that of the city average. Up to now, the number of enterprises has totaled 70,052 in the Chengdu Pilot Free Trade Zone.

Striving toward the goal of building a “highland for inland opening-up”, the Chengdu Pilot Free Trade Zone has accelerated the development of a high-level open economy by launching a series of reform policies and service initiatives. According to statistics, after the unveiling of Chengdu Pilot Free Trade Zone, 292 new foreign-invested enterprises were added, representing an increase of 44.44% compared with that before the unveiling, which was 29 percentage points higher than the city average growth rate (15.39%).

The effect of "attracting funds" globally has been prominent. According to statistics, foreign investors have injected RMB 147.5 billion registered capital into domestic-funded enterprises in the Chengdu Pilot Free Trade Zone, accounting for 43.56% of the total added registered capital (RMB 338.671 billion). The number of newly added local investors has reached 12,357 (individual/enterprise), and that of investors outside the city has reached 38,986 (individual/enterprise). The latter has become the main investment forces of the Chengdu-based domestic-funded enterprises.

From the sources of overseas investment, the top five countries and regions include Hong Kong (40 enterprises), South Korea (31 enterprises), Taiwan (30 enterprises), the United States (22 enterprises), and Singapore (9 enterprises). Its influence of attracting foreign investment has been further enhanced.

Accumulating new growth drivers

Newly added enterprises in tertiary industry has accounted for 90.82%

Over the past year, Chengdu has been building policy systems and working mechanisms to drive the new economy, and issued the Guiding Opinions on Supporting and Serving New Economy Development, and finished compiling the Industry Classification Catalogue for Six New Economies (Trial). It has continued to deepen the reform of commercial system, break new ground in supervision systems, and accelerate the construction of the credit system to foster a market environment which is conducive to the development of enterprises in the new economy, and to grow soil which is favorable for the growth of new economy in the Chengdu Pilot Free Trade Zone.

The momentum of new economy has improved within Chengdu Pilot Free Trade Zone. The reporter has learned that the newly registered enterprises and the overall enterprises in the Zone mainly belong to the tertiary industry. The number of newly registered enterprises in the tertiary industry has reached 22,563, accounting for 90.82% of the newly registered total. The number of enterprises in the tertiary industry has totaled 64,494, accounting for 92.06% of the total in the Zone. From the perspective of industry distribution, information transmission, software and information technology services, leasing and business services, wholesale and retailing are the fads for investment.

The Zone has attracted a large number of high-tech industries, among which service industries of information transmission, software and information technology ranked the first in the newly registered enterprises. Over the past year, 6,977 new enterprises have been added, accounting for 28.08% of the newly registered total. The number of new enterprises has amounted to 14,267, accounting for 20.36% of the total enterprises in the region.

Improving business environment

Promoting commercial system reform across the board

“Over the past year, the Chengdu Pilot Free Trade Zone has brought forth new concepts, deepened the reform of ‘streamlining administration, delegating powers, and improving services’, and comprehensively facilitated the construction of an international and legalized business environment,” remarked by the relevant person in charge of the Free Trade Office of Chengdu Administration for Industry and Commerce.

In the Chengdu Pilot Free Trade Zone, the effectiveness of various commercial system reforms has lowered the costs and provided with more opportunities for enterprises.

The reform of e-registration for enterprises and e-business license management has been launched, realizing “zero-errands, paperless, no middleman” services to enable the applicant to receive “a business license behind closed doors through the Internet”. As of April 2018, 485 registration businesses have been handled or submitted through the system.

Starting from the end of May last year, the Qingbaijiang Area has implemented the reform of the declaration and registration system for business operation site across the board, i.e. the applicant can register an enterprise directly by signing the letter of commitment for business operation site without submitting proofs of housing property rights, lease contracts and other sites (business operation premises). By the end of March 2018, 3,783 enterprises in the four reform areas of the Chengdu Pilot Free Trade Zone had applied for business licenses through declaration and registration of business operation sites (business premises).

In order to facilitate “settling in and going out” procedures for enterprises, Chengdu Pilot Free Trade Zone has launched trail reforms of simple registration and simple cancellation of registration. It has implemented simple registration for individually-owned businesses featuring “oral declaration and onsite license delivering”, simplifying the application materials and registration process for individually-owned businesses. As of March 2018, 158 individually-owned businesses in the Chengdu Pilot Free Trade Zone had applied for business licenses through the simple registration model. At the same time, it has lowered the withdrawal costs for unopened enterprises and non-credit and non-debt enterprises, and established a more convenient and efficient withdrawal mechanism for market entities. As of March 2018, a total of 3,989 enterprises had issued simple cancellation notices.