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The road to smart transformation of Liangjiang New Area

By Kenny Dong | ICHONGQING | Updated: 2021-08-18 13:37
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Chang'an Auto is the auto industry leader of Chongqing, whose muscle, to say the least, shoulders the auto industry of this city. [Photo by Yin Jun]

Pioneer of smart transformation in Chongqing

To understand Liangjiang New Area, you need to know about Chongqing's industry. As a metropolis of inland China, Chongqing's industrial development began in World War II when the enemy captured the coast areas, followed by numerous enterprises moving inland. In the Third Front Movement of the 1960s, the heavy industry of vehicles, weapons, and steel was confirmed as the main industry of this city. Chang'an Automobile, Jianshe Motorcycle, and Hongyan Truck were the auto enterprises founded in that period, which still exist today in Chongqing. The auto industry gradually became the mainstay of the city.

Chongqing would not need to transform its industry if everything stayed unchanged. However, traditional heavy industry was hit by emerging industries in recent years, in which the trend showed as the quantity of both the production and selling dropped. In 2019, the production value of the Chongqing auto industry dropped by 17.3%. Other traditional manufacturing was also suffered similarly. In that year, Chongqing's GDP increasing rate was lower than the national average, unlike the last couple of years when it always took the lead nationwide.

An auto industrial analyst said that the direct reason for the unsatisfied outcome of Chongqing's auto business was the readjustment of purchase tax in that year, but the deeper reason was the fierce external competence. If Chongqing auto enterprises want to regain the advantage, they must open their eyes and seek a new way.

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