New economy business becomes a growing driver of city development

Authors: ChinaDaily


A number of new economy companies are springing up in the city of Chengdu, helping to drive economic development in western China.
HitGen, a local biopharmaceutical company, was listed on the science and technology innovation board at the Shanghai Stock Exchange in mid-April, and is the first company in southwestern China to appear on the board.
The company, founded in 2012, provides research services for the early stages of drug discovery using its core DNA encoded compound library technology. It has established partnerships with multinational drug and biomedicine companies such as Pfizer, Johnson & Johnson, MSD and Sanofi.
Li Jin, chairman and general manager of HitGen, said it will expand investment into DNA encoded compound library technology and business, to promote research and development of drugs.
After floating on the stock market, it plans to raise funds up to 498 million yuan ($70.5 million) in DNA encoded compound library development and application, and 162 million yuan in a new drug R&D center.
"Chengdu has a rich pool of professionals and supportive policies. I learned that since I founded the company," Li said, adding that the biopharmaceutical industry, a part of new economy, is receiving support from the local government.
New economy-related companies have been springing up in the city since 2017 when it decided to promote transformation by developing the new economy and cultivating a new growth engine. The number of unicorns-startups valued at more than $1 billion-went from zero in 2017 to six as of now, with new economy companies growing from 180,000 to 360,000. The revenue of the new economy has surpassed 400 billion yuan in Chengdu.
The COVID-19 pandemic has posed a significant challenge to traditional manufacturing and labor-intensive industries in Chengdu. However, the new economy-including digital, intelligent, green, creative, online traffic and shared economy-has shown strong growth potential. More locally made new economy products have been created, with traditional companies moving toward digitalization.
Chengdu-based company Maipu provides a free telephone conference service. The Chengdu branch of tech company Shishitongyun has helped restaurants adopt intelligent ordering, billing, delivery, finance, marketing and supply-chain systems to improve efficiency.
Chengdu new economy
In late March, Chengdu staged its first release conference for the new economy this year. A total of 55 local new economy companies displayed some 100 new products, such as a nucleic acid testing kit that can give results within 90 minutes, a garbage sorting and recycling system, and 5G unmanned aerial vehicles.
At the event, Chengdu said that it will release 1,000 new products to stimulate market demand, provide more opportunities for companies and enrich people's lives in its bid to upgrade consumption.
The city also said it will promote companies with the city's public resources, to expand the application of innovative products and services.
On April 29, a second news conference on new economy was held to target a green, intelligent, healthy, fashionable and beautiful lifestyle. Local companies signed agreements with companies from home and abroad, with a total contract value of 5 billion yuan.
Companies and institutions from Japan, the United States, France and New Zealand will participate in cultural creativity, sports, landscape design and ecological restoration sectors in the city.
"More consensuses were reached and more professionals were attracted to the city to fuel the development of new economy in Chengdu, which has drawn attention from more aspects and become a name card for its high-quality development," said Huang Haosen, senior economist and assistant to the dean of the Chengdu Economic Development Research Institute.
Huang added since the Chinese market tends to welcome new infrastructure construction supported by policies, new economy companies will become the main force for Chengdu's economic growth.

Chengdu fair hotbed for entrepreneurial ideas

Chengdu is one of the favored destinations for entrepreneurship, thanks to the city's range of preferential policies. Statistics show 41,000 companies operated in the new economy sectors in Chengdu last year.

Jun 11, 2019

Digital and smart technologies propelling city to economic vanguard

The first city in China to propose developing the new economy, Chengdu has grown into one of the most suitable investment destinations for the sector in China.

Jun 12, 2019

Tianfu becoming growth hub in western China

The Tianfu New Area in Chengdu is emerging as a key growth zone in western China, as it attaches great importance to the development of the new economy and makes efforts to explore new technologies and business models.

Oct 05, 2019

Chengdu to Launch 100+ New Economy Products

Over 100 new products and services involving new economy application scenarios from 47 Chengdu enterprises will be unveiled at a launch event to be convened here in the city on March 31 afternoon.

Mar 31, 2020

100 new economy products released in Chengdu

A dazzling series of new products from the so-called new economy – the postindustrial world economy based on internet trading and advanced technology -- including wireless smart theaters, 5G network-connected drones and intelligent inspection robots -- were successfully released on March 31 in Chengdu, capital of Southwest China's Sichuan province, local officials said.

Apr 02, 2020

Share to WeChat Close
Scan via WeChat!

About Us | Privacy Policy | Terms of Use | Link to Us | Contact Us

蜀ICP备14024942号-1 Go成都