Ancient and modern: the rise and rise of Chengdu

It’s easier to reach heaven than to take the roads in Sichuan.”

The line, taken from a famous poem written during the Tang Dynasty (AD 618-907), describes the level of transportation in Chengdu, the Sichuan capital, in ancient times.

Despite such poor transportation, Chengdu was an important city thousands of years ago because of its fertile land and elegant products such as the Shu brocade, lacquer and bamboo ware.

With a history of more than 3,000 years, Chengdu was the starting point of the so-called South Silk Road, which predates the ancient Silk Road and crossed Yunnan province into what was then Burma, through to India, and ended in what is now the Middle East. The city also invented the world’s earliest paper currency: the jiaozi.

Today, Chengdu is connected to a broader world by the new “Silk Roads” built of international air routes and intercontinental railways. The cargo transported on the new Silk Roads no longer consists of silk, tea or lacquer, but mainly hi-tech products such as computer chips, laptops and iPads.

The city has become one of China’s major IT bases. It produces half of the world’s laptop chips, two-thirds of the iPads and one-fifth of its laptops. It is also one of China’s fastest growing cities and a magnet for multinationals.

GDP hit 1 trillion yuan (£105 billion) in 2014, 8.9 per cent higher than in 2013, while FDI reached $10 billion (£6.9 billion). Two hundred and sixty-eight Fortune Global 500 companies have a presence in the city.

According to the city’s general goal for its 13th Five-Year Plan (2016-20) set in December, Chengdu plans to become a comprehensive affluent society with high living standards, a core growth hub for western China, and an international regional centre by 2020. Its GDP is expected to triple 2010’s figure, and personal income is expected to double.

A shopping paradise

To further boost the city’s economic development and regain its historical status as one of the country’s most prosperous commercial hubs, Chengdu wants to transform itself into an international shopping paradise in the next 15 years.

Under the city’s plan, the added value of Chengdu’s service sector will reach 900 billion yuan in 2020 and the annual retail sales of consumer goods in the city are forecast to reach 850 billion yuan. It foresees half the city’s population being mobile payment users, and income generated by tourists accounting for 30 per cent of total tourism revenue.

City officials also expect Chengdu to introduce more international brands, cultivate local brands and upgrade its time-honoured brands.

The city has been introducing high-end shopping and tourism projects, as well as international brands from home and abroad. With a proposed investment of 55 billion yuan, construction on the Wanda Cultural Tourism City in Dujiangyan, Chengdu started in September. The project will be able to host 30 million visitors and generate revenue of 5 billion yuan annually when it opens for business in 2018.

Large commercial complexes, such as Chengdu IFS and Sino-Ocean Taikoo Li Chengdu, have opened in the downtown area.

The city’s central business district has gathered more than 400 international first- and second-tier brands and nearly 600 regional flagship stores, ranking first in China’s central and western regions, according to official data. In addition, Chengdu will promote the development of the logistics, tourism, finance, culture, exhibition, catering and health-care sectors to complement and provide services for the shopping boom, city officials said.

From 1 Jan 2016, visitors from foreign countries as well as Hong Kong, Macao and Taiwan who have lived in the mainland for no more than 183 days can receive an 11-per cent rebate on consumer goods purchased at 33 designated stores in Chengdu.

Chengdu is the first city in western China to adopt the policy, which is vital in helping it become a world-class tourist destination and shopping paradise.