SCO platform facilitates over $4b in outbound investment

The Trade and Economic Multifunctional Platform for SCO Countries (SCO TEMP) has facilitated an outbound investment of nearly 30 billion yuan ($4.2 billion) since 2022. Mining, processing and manufacturing, and commodities sectors are involved in most of these projects.

SCO TEMP is a trading-focused non-profit platform for international exchange that was co-founded by the SCO Business Council and Chongqing's Liangjiang New Area. The platform provides supply chain integration services for SCO countries and promotes project-driven cooperation in trade, education, agriculture, and sci-tech innovation.

The SCO TEMP office is located in Liangjiang New Area, Chongqing. [Photo provided to english.liangjiang.gov.cn]

Project-Driven Cooperation to Maximize Comparative Advantages

The platform has established 19 industry working committees with over 1,000 member units from more than 10 sectors, such as new material, finance, intelligent manufacturing, new infrastructure, and cross-border supply chain.

Based on the unique strengths of SCO countries, for instance, the manufacturing capability and digital economy of China and the ecological resources of other SCO countries, the working committees coordinate an optimized labor division to maximize the comparative advantages and deepen the cooperation on industrial chains and supply chains. Eventually, we seek to establish an open industrial ecosystem for coordinated international innovation, where Chongqing serves as a global hub, said Hu Kaiqiang, Director General of SCO TEMP.

A recycled aluminium project led by the SCO TEMP aluminum working committee recently started trial operation in Chongqing and Pakistan. Member units of the committee established an entity in the Chongqing Lianglu-Guoyuan Port Comprehensive Bonded Zone (Chongqing CBZ) and set up an overseas industrial park in Pakistan. The industrial park processes raw materials purchased from the global market. The processed materials are either sold to the international market or imported back to the Chongqing CBZ. The Chongqing entity will leverage its local manufacturing prowess to refine the imported materials into high-value-added products and sell them in the global market.

The committee invested into Pakistan thanks to the solid foundation laid by the China-Pakistan Economic Corridor (CPEC), coupled with the local industrial base, preferential policies, port and logistics services, and relatively low costs, according to Hu. The project, with an estimated investment value of 5.5 billion yuan, will establish an advanced manufacturing system, create job opportunities, collect tax revenue, and boost international trade for Pakistan.

The aluminum working committee is seeking to apply this cooperation model to other recycled metals and build the Chongqing CBZ into a global trading center for recycled metal.

To Form a Hub of Global Industrial Chains

Geographic convenience and industrial foundation are the primary advantages of Chongqing as it cooperates with SCO countries, according to Hu.

Chongqing sits at the juncture of the Belt and Road and the Yangtze River Economic Belt, with an international logistics network comprising railways, airways, waterways, and highways. The China-Europe Railway Express (Chongqing-Xinjiang-Europe) connects 12 SCO countries and sees a cargo delivery value that is approaching 60 billion yuan.

Guoyuan Port, located in Liangjiang New Area, is the largest port on the upper reaches of the Yangtze River with a multi-mode transportation network. [Photo provided to english.liangjiang.gov.cn]

Industry-wise, Chongqing has long served as one of China's key manufacturing hubs and is a major smart manufacturing base in western China. Its manufacturing prowess is enhanced under the national strategy of the Chengdu-Chongqing Economic Circle and the municipal-level blueprint for a modern industrial system.

“If we combine Chongqing's competitive manufacturing capabilities with the enriched resources of SCO countries, we stand a chance of building an international innovation ecosystem for the industrial chain,” said Hu. To gain the upper hand in forming a hub of global industrial chains, Hu recommends that Chongqing should further optimize its opening-up platforms and upgrade relevant services, including customs, logistics, and finance.