Guang'an, a city in Sichuan province, is breaking down policy barriers with neighboring Chongqing through innovative reforms, driving economic development in a key western China city cluster vital to the nation's automobile industry, according to Wang Ying, a deputy to the 14th National People's Congress.

Strategically located within the Chengdu-Chongqing Economic Circle, Guang'an, the closest city to Chongqing's urban area, is central to a 2021 plan by the Central Committee of the Communist Party of China and State Council. The plan calls for Guang'an's integration into Chongqing's metropolitan area, creating a demonstration zone for Sichuan-Chongqing cooperation.

"Chongqing is home to major automobile manufacturers such as Chang'an and Seres. Guang'an offers a strong industrial base for auto parts production. With lower costs in land use, labor and living, Guang'an is attracting more companies and talent," said Wang, who is also vice-mayor of Guang'an.

The city's auto parts manufacturers have become key suppliers for major car producers in Chongqing. Wang anticipates a surge in battery producers in Guang'an as the new energy vehicle sector expands.

Despite its proximity to Chongqing, Guang'an faced integration challenges due to different policies on investment, social security, tax and other administrative matters.

To address these issues, the Sichuan and Chongqing governments jointly established the Gaozhu New Area in 2020. Comprising parts of Guang'an and Chongqing's Yubei district, the new area pioneers the separation of economic and administrative zones, serving as a front line for cross-provincial integration and reform, Wang said.

"The new area is the first in China to bring together resources, personnel and land from two regions under a unified management framework," she said, noting it merges preferential policies from both regions to create a development zone with excellent services and low costs.

For instance, companies registered in the new area can choose supportive policies offered by Sichuan or Chongqing based on their needs.

Sichuan Xinyue Jinggong Technology, located in the area, obtained a research and development fund of 500,000 yuan ($69,025) from Chongqing and uses electricity from Sichuan to reduce power costs by 20 percent.

Administrative barriers have been dismantled and physical obstacles removed. By April 8 last year, all dead-end highways from Guang'an to Yubei district were opened, reducing travel time between the new area and Chongqing's urban areas from over two hours to 30 minutes.

"It significantly benefits logistics and lowers transportation costs," Wang said, recommending the extension of Chongqing's light rail to the new area to improve travel convenience.

"Many companies from Chongqing have relocated to the new area, where employees benefit from lower rental, dining and other living costs, while still having access to Chongqing's medical, educational and entertainment resources," she said.

In 2020, Sichuan Yuxingyu New Material Technology Co moved from Chongqing to the new area. According to General Manager Ying Guanghua, the company's operating costs significantly decreased due to tax and fee policies that prioritize "lower payment and better policy".

The new area has also established unified service channels for taxation, public security, healthcare and utilities, enabling most matters to be resolved within the area.

"More than 100 reforms have been implemented in the area, providing valuable experiences for cross-regional development nationwide," Wang said.

Currently, the area has 201 companies, with 94 in production. Among them, 58 support key NEV companies in Chongqing such as Chang'an and Seres.

Beyond auto parts, Guang'an is also cooperating with Chongqing in green chemical engineering, healthcare and agriculture.

"As this year marks the fifth anniversary of the Chengdu-Chongqing Economic Circle, the central government has announced it will continue to enhance policy support to help the two regions jointly build a modern industrial system," she said.

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