SUPPORTING REPORT 2 2 35 CHONGQING A Regional Strategy to Increase Connectivity and Economic Integration Photo: 4045. © 2019 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, inter- pretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judg- ment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Citation Please cite the report as follows: World Bank. 2019. Chongqing 2035: A Regional Strategy to Increase Connectivity and Economic Integration. Supporting Report 2. Washington, DC: World Bank. Acknowledgments The Lead Authors of the Overview and four supporting reports are Serge Salat, Xueman Wang, and Zhou Linjun. Cover photo: Pengpeng. Design: Ultra Designs, Inc. Table of Contents 1. Introduction 2 FIGURES Figure 1. Benchmark of Expressway and 2. Current Trends and Key Issues 3 High-Speed Rail Length in Chongqing against Global Economies 7 3. Benchmarking and Lessons from Figure 2. Benchmark of Air Passenger Traffic Global Cities 7 in Chongqing against Global Cities 8 Figure 3. Benchmark of Digital Connectivity in China against Global National and Urban 4. Recommendations: Chongqing’s Economies 8 Connectivity Transformation 11 Figure 4. Broadband Adoption Compared Connectivity transformation I to Global National and Urban Economies 8 Building a major logistic hub supported by Figure 5. Interventions to Enable Chongqing integrated transportation networks of land, to Develop as an Integrated Multimodal air, and water 11 Logistics Hub 11 Connectivity transformation II Promote regional economic integration, including through the Chengdu-Chongqing MAPS corridor 12 Map 1. Chongqing-Xinjiang-Europe Railway 4 Connectivity transformation III Strengthen Chongqing’s digital infrastructure 12 Map 2. The Chengdu-Chongqing Corridor 6 Map 3. Broadband Adoption Worldwide 8 References 13 MAPS Endnotes 15 Box 1. Regional Strategy Key Messages 2 Box 2. Road and Rail Infrastructure in Chongqing 4 Box 3. Constraints of Yangtze River Logistics 5 Box 4. Alibaba’s Cooperation with Chongqing in Delivering Smart Services 5 Photo: onlyyouqj. 1. Introduction Cities can increase economic growth and participate quality jobs. Connectivity integration also helps a in global economic flows by acting as hubs or city accumulate knowledge and has positive spillover gateways to regional corridors, that are supported effects for the broader economy. by three dimensions of connectivity: physical Chongqing stands out for its well-developed (infrastructure) connectivity, digital connectivity, and infrastructure and digital connectivity, but it has economic integration. Integrating these dimensions yet to leverage these assets to promote regional increases economic output and generates more high- economic integration. BOX 1 Regional Strategy Key Messages Current trends and key issues: or Republic of Korea. However, its airport ■■ By combining road, river, rail, subway, and air connectivity and share of international air traffic transport links, Chongqing has developed a are low compared to global cities. world-class transportation system that will ■■ Chongqing has room to improve on its digital be further strengthened once the Southern connectivity, particularly in connection speed Transport Corridor rail link to Singapore is and the adoption of 10- and 15-Mbps broadband. completed. ■■ The experience of international cities suggests ■■ Digital infrastructure is also strong, with 70 that ranking highly in all dimensions of percent of households having broadband connectivity and being part of a cluster of cities Internet. boosts economic growth. ■■ However, Chongqing’s physical and digital Recommendations: connectivity have yet to translate into regional economic integration. From an integrated ■■ Leverage existing transport infrastructure and regional development point of view, the fierce supplement it with better integration between competition between Chongqing and Chengdu land, air, and water transport to build a major to become the logistics hub and gateway for logistics hub. China’s southwest region could potentially result ■■ Strengthen cooperation with Chengdu, Sichuan, in suboptimal outcomes. and other regional partners to promote regional Benchmarking global cities: economic integration. ■■ Chongqing’s transportation network has almost ■■ Improve digital infrastructure with faster reached global city standards and is on par with Internet connection speeds and promote the entire countries such as the United Kingdom wider adoption of digitization of services. SUPPORTING REPORT ➊ CHONGQING 2035 / 3 2. Current Trends and Key Issues Chongqing has developed a world-class Chongqing’s ports have room to grow. Chongqing’s transportation system with five forms of ports have the potential to contribute more to its connectivity: highway, subway, rail, port, and air. economic growth, but this depends on efforts to This has enabled the city to become a major gateway improve the efficiency of the maritime logistics chain and transport hub for inland China (box 2). It is between the city and Shanghai.2 The completion of also a pivotal node on the Belt and Road Initiative, the second stage of the Three Gorges project and connecting the growing economies of South Asia the first stage of the Jiulong and Cuntan ports are and Southeast Asia with the rest of China (National stimulating the development of the upper reaches of Development and Reform Commission 2015). The the Yangtze River’s container transportation. Cuntan Southern Transport Corridor, a new trade route Port connects the Chongqing metropolitan region to between western China and Southeast Asia, is one of domestic and international markets through inland the most important projects within the Chongqing waterway shipping along the Yangtze River and to Connectivity Initiative, initiated by Chongqing and Europe by rail. Located in Liangjiang New Area, the Singapore. Once completed, it will connect the third “national development and opening area” in Belt—the overland Silk Road—and the Road—the China after the Shanghai-Pudong and Tianjin-Binhai 21st-century maritime Silk Road. Providing major New Area, Cuntan is the largest operational inland connectivity improvements, the Southern Transport port in China; it is 1,316 meters long and has nine Corridor will boost trade between Western China and piers, seven of which can be operated simultaneously. Southeast Asia via Chongqing and Singapore, and Despite handling only 46,000 containers in 2006, its it will act as a major link between the six economic first year, Cuntan Port handled 650,000 containers in corridors of the Belt and Road. 2014 (Chreod Ltd. 2014). Chongqing is on the way to becoming an Multimodal linkage with rail connections to Europe, international aviation hub. Chongqing has rather than the traditional maritime route through continuously increased the number of its Shanghai, is the optimal way to develop Chongqing’s international and domestic air routes, which has ports (box 3). The new Guoyuan Port will stretch for brought about stronger connections between the 2,800 meters and have 16 piers. Its direct connection city and major Yangtze River Economic Belt cities. to the Chongqing-Xinjiang-Europe railway will In 2016, the city had direct flights to 158 cities allow container traffic between Chongqing and and connections to 258 cities, and it also started downstream towns along the Yangtze River as well direct flights to London, Dubai, Tokyo, and other as shipping by barge to Chongqing and Europe, and international destinations.1 By 2020, it is forecasted reduce the transit time to Shanghai, which at 47–48 that about 100 international airlines will operate at days, is currently inefficient (Seo, Chen, and Roh Chongqing Airport, with an annual international 2017).3 passenger traffic reaching more than 5 million, or over 10 percent of the total passenger traffic. (Chongqing Municipal Government 2017). 4 / Spatial and Economic Transformation for a Global City BOX 2 Road and Rail Infrastructure in Chongqing In 2016, the city’s total length of roads—142,921 established in 2010 and has brought Chongqing kilometers, which includes 2,828 kilometers of to the forefront of China’s trade with Central expressways—was ranked 10th in China and 1st in Asia and Europe (map 1). The 11,179-kilometer the country’s western region. overland journey from Chongqing to Duisberg takes about 14 days compared to 34 days by The total length of railways in Chongqing was 2,231 sea, and it is also safer and cheaper. Most goods kilometers, and the pace of railway construction transported using this route are from multinational has accelerated with the construction of the mi computer companies in Chongqing. One of them (米) high-speed railway, which will allow any part is technology giant Foxconn, a major supplier of Chongqing to be reached within two hours. of Hewlett-Packard, Acer, and Apple. By August This network will also allow commuters to reach 2016, over 2,100 trains were dispatched via this rail the capitals of surrounding provinces in less than route, which provides regular rail services to more three hours and to reach Beijing, Shanghai, and than 16 Chinese cities and 12 European cities. Guangzhou in less than six hours. In addition, the Southern Rail Corridor that links In 2016, the length of high-speed railways in Chongqing to Guangxi in southeast China is operation totaled 356 kilometers, with 184 expected to provide a shorter, more direct trade kilometers under construction. However, based route between China and Southeast Asia. It will on the city’s railway development plan, the reduce the time needed to transport containers total length of the railway network will increase from Chongqing to Singapore to one week, to 5,800 kilometers by 2030, which includes compared to three weeks today, making it a cost- 2,032 kilometers of high-speed railways. When effective option for Southeast Asian companies to completed, Chongqing will become an important access western China, Central Asia, and Europe. transport hub, connecting Europe and Asia with Source: Chongqing Municipal Government 2017; HKTDC 2016; other parts of China. Chong 2017. The Chongqing-Xinjiang-Europe Railway, a direct rail route from Chongqing to Germany, was MAP 1 Chongqing-Xinjiang-Europe Railway Rapid Expansion: China–Europe Freight Train Service Jan – Aug 2016 2011 – Aug 2015 Sep – Dec 2015 More than 900 trains More than 900 trains About 400 trains (annual growth rate: +130%) Source: China Railway Corporation. SUPPORTING REPORT ➋ CHONGQING 2035 / 5 Chongqing, like the rest of China, has a population financial subsidiary, Ant Financial, to test services in with high levels of access to fixed line telephones, cloud computing and big data; the goal is to alleviate mobile phones, and the Internet. Broadband Internet poverty through rural financing and the Rural penetration in Chongqing now stands at 51.6 percent, Taobao project, and to enhance productivity through while 93 percent of the population have mobile smart cities, online health services and hospitals phones. Internet penetration has grown steadily networking, and smart logistics (box 4) (Sun 2017). since 2000 at a faster pace than urbanization. Today, Such connectivity builds a foundation for regional 70 percent of all households, both rural and urban, economic integration. However, physical and digital have broadband Internet connections. This figure connectivity have yet to translate to economic represents a higher number than the total number of integration. A good example of efforts to change this urban households. (CNNIC 2017). situation is the Chengdu-Chongqing corridor (map Chongqing is leveraging its developed digital 2). In 2014, as part of its new urbanization plan, the infrastructure to attract e-commerce. Chongqing Chinese government began developing city clusters Municipality has partnered with Alibaba and its with the objective of breaking administrative barriers BOX 3 Constraints of Yangtze River Logistics Despite the rapid economic growth in the Yangtze economic agglomeration along the Yangtze River, River Delta region, the Yangtze River logistics container flows are also concentrated downstream. chain lags in terms of the ratio of container volume In addition, a cost analysis of alternative routes to total merchandise volume. Transport on the shows that shipping routes via inland waterways Yangtze River is hindered by three major physical and seaways do not meet the shortest time conditions—insufficient depth, height of bridges, required for products such as computers and and locks. The port capacity is uneven, with larger laptops. ports located downstream. Because of uneven Sources: IFPRI 2017; Chen, et al. 2016; Pan 2012. BOX 4 Alibaba’s Cooperation with Chongqing in Delivering Smart Services Chinese e-commerce giant Alibaba and retail giant that by 2020, the GDP of Liangjiang Digital Suning are investing RMB 1 billion in e-commerce Economy Industrial Park will exceed RMB 40 billion in Chongqing. The joint project will serve as a pilot (US$6.17 billion), with more than 3,000 companies. for Alibaba to explore new ways to contribute Alibaba plans also to combat poverty in China to the development of urban digital services in using e-commerce. Chongqing will work with Ant Chongqing and western China. Financial to reduce poverty in rural areas through At the same time, Alibaba and Chongqing a creative model of financial services and Rural Municipality is planning a cloud computing and Taobao, an ambitious Alibaba project to turn big data center in western China known as the China’s 600 million rural residents into online Alibaba Innovation Center, which will provide a comprehensive service platform for start-ups buyers and sellers. Alibaba will provide Internet and entrepreneurs in western China and drive connections in rural areas of Chongqing, as well as innovation. In particular, Alibaba will develop purchasing and delivery services to help locals sell Liangjiang New Area into “smart Lianjiang,” with a their agricultural products. major focus on the digital economy. It is expected Source: Fan and Meng 2016; Sun 2017; China Daily 2018. 6 / Spatial and Economic Transformation for a Global City MAP 2 The Chengdu-Chongqing Corridor Source: Chongqing Daily, http://district.ce.cn. and integrating economic and social activities of large government entities. This tends to encourage regions. The Chongqing-Chengdu corridor is one of competition among local governments for most promising integration projects and will connect resources as well as among cities (World Bank and 31 districts and counties, and 15 cities in Chongqing Development Research Center of the State Council, Municipality and Sichuan Province. While improved P. R. China 2014). While such competition has driven transport infrastructure, such as highways and high- growth, the downside is that local governments tend speed rail, has provided better connections between to protect local companies. the two cities, economic integration is proving more The integrated development of the Yangtze River challenging to realize. In reality, Chongqing and Economic Zone is still facing a number of challenges, Chengdu are fiercely competing to become a logistics such as the unbalanced development among hub and gateway for China’s southwest region. For regions along the Yangtze River, with a decrease in example, Chengdu opened its own Chengdu-Europe economic agglomeration when moving upstream, Express Rail with a freight train in 2016, which directly homogeneous industrial competition rather than competes with the Chongqing-Europe railway. The complementarity, low efficiency in the waterway efficiency of these investments could be more optimal transport, competition from new direct rail links if they were undertaken with integrated regional to Europe, and environmental risks. Moreover, development in mind. challenges are exacerbated by the competition The lack of integration is partly because of between local governments and by institutional China’s governance structure, which encourages barriers, resulting in market segmentation (Yang the decentralization of decision making to local 2000). SUPPORTING REPORT ➋ CHONGQING 2035 / 7 3. Benchmarking and Lessons from Global Cities Global cities are hubs and gateways of the world In addition, seamless and convenient transfers economy. Their economic might can be better between various modes of local transport (rail, air, understood in terms of their position in global subway, bus, taxi, etc.) would enhance passenger networks. Global cities do not grow in isolation, but connectivity, helping the city in its bid to become instead thrive by being part of transnational networks an aviation hub, especially for business travel and of cities. tourism. Most global cities have integrated transport infrastructure and local transport hubs that facilitate Chongqing’s transportation network has almost intermodal transfer and promote the use of public reached the standard of global cities and is on par transport. Japanese cities are good examples with that of entire countries (figure 1). to follow, as they have policies to ensure urban However, Chongqing’s airport connectivity and its transport hubs provide a smooth transfer between share of international traffic are low compared to different modes of transport. For instance, the those of global cities (figure 2). number of passengers at Kokura Station increased FIGURE 1 Benchmark of Expressway and High-Speed Rail Length in Chongqing against Global Economies Length of expressways (km) in Chongqing and in global Length of high-speed rail (km) in Chongqing, once the mi (米) economies. railway is completed, and in global economies. 10,000 9,855 3,200 3,083 9,000 2,800 2,765 2,647 8,000 Length ofhigh-speed rail (km) Length of expressways (km) 2,400 7,000 7,085 2,000 2,032 6,000 5,000 4,939 1,600 1,377 4,000 1,200 1,048 3,000 2,818 800 2,000 400 1,000 0 0 ng er an . ) y an ce m . ep ep 0 an do iv 03 an p p qi ,R ,R m R Ja Ja ng g Fr (2 a a er ze in re re ho G ng K gt Ko Ko C d n qi te Ya ng ni ho U C Source: Produced by the Urban Morphology and Complex Systems Institute for this report, based on Chongqing Municipal Bureau of Statistics and NBS Survey Office in Chongqing 2016; Chongqing Municipal Government 2017; Chreod Ltd. 2014; Migiro 2018; Japanese Ministry of Land, Infrastructure and Transport; and Korean Ministry of Land, Infrastructure and Transport. 8 / Spatial and Economic Transformation for a Global City significantly when a local monorail and a pedestrian In terms of digital connectivity, Chongqing, like deck were extended into the rail station building the rest of China, lags global national and urban (Ministry of Land, Infrastructure, Transport and economies in terms of connection speed, broadband Tourism of Japan 2012). adoption (map 3), and and in the adoption of 10 Mbps and 15 Mbps broadband (figure 3 and figure 4). FIGURE 2 Benchmark of Air Passenger Traffic in Chongqing against Global Cities Air passenger traffic in Chongqing (red) and in global cities. Projected international air passenger traffic in Chongqing in 2020 compared to that in global cities today. 120 105 International air passengers traffic (million) 105 90 Air passenger traffic (million) 90 75 75 60 60 45 45 39 30 30 15 15 104 124 124 110 5 112 60 96 70 70 62 62 63 85 58 25 32 32 74 73 57 0 0 on g al l l a g on ork s l R ng ris e l ng al R m G e l ita K ng ta ta ta ou ou e or or nt n jin JF SA SA D ot t da el Pa to to to to ar qi qi do Se Se C tla ap ap ei t ew ng er ng ng N rk ng g Sh yo ai n Pu B is A ng n st do Yo A o r gh ho ho Ko Ko k Pa nd ky m Y Si Si ai s To n an C C ew Lo A gh To Lo Lo g g on N an N H H Sh Source: Produced by the Urban Morphology and Complex Systems Institute for this report, based on data from Chongqing Planning Bureau and ACI 2018. FIGURE 3 Benchmark of Digital Connectivity in China against Global National and Urban Economies Average connection speed compared to global national and Peak connection speed (IPv4) compared to global national urban economies. and urban economies. 28.6 28 200 184.5 180 24 Average connection speed (IPv4) 22 160 Peak connection speed (IPv4) 21.9 20.3 20 20.3 140 129.5 120 121.0 16 100 94.5 98 12 80 8 60 7.6 45.9 40 4 20 0 0 na . R e om k na . R e om k ep ep or r or r SA SA Yo Yo hi hi ,R ,R gd gd ap ap C C g g ew ew a a ng ng in in n n re re Ko Ko K K N N Si Si Ko Ko d d g g te te on on ni ni H H U U Source: Produced by the Urban Morphology and Complex Systems Institute for this report, based on Akamai 2017. SUPPORTING REPORT ➋ CHONGQING 2035 / 9 MAP 3 Broadband Adoption Worldwide Source: Akamai 2017. FIGURE 4 Broadband Adoption Compared to Global National and Urban Economies Chongqing 4 Mbps broadband adoption (IPv4) compared to China 10 Mbps broadband adoption (IPv4) compared to global national and urban economies. global national and urban economies. 100 98 100 98 94 94 93 93 90 90 4Mbps broadband adoption (IPv4) (%) 10Mbps broadband adoption (IPv4) (%) 85 80 81 80 70 71 72 73 70 70 60 60 50 50 40 40 30 30 20 20 20 10 10 0 0 ng na . R om n ) na . R e n k ep ep te or r pa pa SA SA Yo hi hi qi ta ,R ,R gd ap Ja Ja C C ng (S g g ew a a ng in n n re re ho rk Ko Ko K N Si Ko Ko Yo C d g g te on on ew ni H H U N Source: Produced by the Urban Morphology and Complex Systems Institute for this report, based on Akamai 2017. 10 / Spatial and Economic Transformation for a Global City The review and benchmarking of international International experience, particularly from cities suggest those that consistently rank highly in megacity regions in Europe, reveals the importance all dimensions of connectivity are part of clusters of city clusters in enhancing cities’ global of cities, an arrangement that boosts economic competitiveness (Hall and Pain 2006). growth. In European knowledge-based urban economies, Singapore and Hong Kong SAR, China, rank highly information flows continuously within and between in all dimensions of connectivity. The combined enterprises. The most connected cities or city financial flow value of Singapore and Hong Kong clusters, regionally and globally, eventually become SAR is equal to that of Japan and represents about global cities. An interesting example of a successful half that of the United States and mainland China (47 global cluster is the Randstad in the Netherlands, percent and 51.4 percent respectively). Singapore is which consists of the country’s four largest cities— a small country, but it punches well above its weight Amsterdam, Utrecht, Rotterdam, and The Hague (the in world trade, mainly by mediating flows between country’s cultural, industrial, financial, and political other countries. Singapore ranks 11th in cross-border centers respectively), as well as two of the country’s Internet traffic, which grew by 67 percent annually main gateways, the Port of Rotterdam and Schiphol between 2005 and 2013, compared to the global Airport. These assets are not located in a single city average of 46 percent. Singapore also has one of the like London or Paris; they are spread over a number highest Internet penetration rates in the world at 88 of historically distinct cities in the western part of the percent, more than the average of 82 percent among country. None of these cities is big, but the intensity developed economies. Singapore ranks second in of the links between them has created a powerful flows of goods, third in services, fourth in finance, business cluster, highlighting the importance of and fifth in data and communication, with flow values intercity cooperation to gain scale and efficiency for of US$1,198 billion, equivalent to the total value of achieving global status. Russian flows (Manyika, et al. 2014). Today, Singapore is a strategic gateway to the maritime belt route of the Belt and Road Initiative, a strategic partner of Chongqing in the Chongqing Connectivity Initiative, as well as a key investor in Belt and Road projects (PwC 2017). SUPPORTING REPORT ➋ CHONGQING 2035 / 11 4. Recommendations: Chongqing’s Connectivity Transformation Chongqing’s massive investment in its Connectivity transformation I transportation network has strengthened the city’s strategic position as a gateway for inland China. Build a major logistic hub supported by To transition from being a waypoint for China integrated transportation networks of and become an international hub and a base for land, air, and water the ASEAN region, Chongqing needs to further This transformation consists of a series of develop its connectivity and better leverage interventions that enable Chongqing to develop as its transport network to promote economic an integrated multimodal logistics hub (figure 5). integration. A strategy that prepares Chongqing to become a global hub will require three connectivity Chongqing should work to better integrate its transformations. port to a multimodal logistics chain within its existing transport network. The inland waterway is a unique feature of Chongqing’s freight transport. Despite the constraints of shipping goods using the Yangtze River, Chongqing should focus on the intermodal capacity of its port as a transshipment FIGURE 5 Interventions That Enable Chongqing to Develop as an Integrated Multimodal Logistics Hub. An important logistics and An international flight A national-level multimode trade center along Belt and transfer hub on the Eurasia transportation hub in the Road routes continent ASEAN region Consolidating Chongqing- Extending international Developing a multimode Xinjiang-Europe Corridor, air routes and making transportation hub in China-Russia Corridor, and adequate use of fifth western China, a number China-Central Asia Corridor freedom rights to create one transport interchange and other resources; and a regional international air in southwestern China, and building an international transport hub a key terminal for China- hub targeting Europe and Europe trains Asia along the Belt and Road routes 12 / Spatial and Economic Transformation for a Global City center, and as an inland link to the major downstream automobile manufacturing, and to become a major ocean ports. By combining river and sea modes, supplier for Chongqing’s leading industry (World this route has the lowest total cost of transportation Bank 2015). among all multimodal routes. To fully reap this cost advantage, interregional cooperation along C. Strengthen governmental coordination the Yangtze River is needed to improve efficiency throughout the Chongqing-Shanghai waterway, To allow for more a coordinated development including increasing the efficiency of the current policy, it is important to strengthen high-level service networks and the handling capacity in some coordination between Chongqing, Sichuan, and intermediate ports. Moreover, linking Chongqing’s Chengdu. Experience shows that economic ports to the rail route to Europe will strengthen its activities and resources within the corridor should role as a hub for container traffic from the region to not be consolidated without coordination between Europe, as well as to downstream towns along the Chengdu/Sichuan and Chongqing. Therefore, a Yangtze River. high-level joint forum should be set to coordinate policies and decisions for major issues, which would include a three-layer mechanism for decision making, Connectivity transformation II coordination, and execution. To ensure the strategy Promote regional economic integration, is effective, the top leadership’s motivation for a including through the Chengdu- mutually beneficial outcome is critical. Chongqing corridor Both Chongqing and Chengdu can benefit from Connectivity transformation III their integration into an economic corridor that is supported by an efficient transportation system. A Strengthen Chongqing’s digital well-integrated corridor can create opportunities for infrastructure all by building a much stronger and broader base for Physical connectivity is not enough for cities to the ASEAN region and beyond. The transformation become high-value economies. A major force is the includes the following actions: pervasiveness of Internet connectivity and the spread of digital technologies. The exponential growth of A. Develop a joint development strategy data is transforming every aspect of the economy. It is important for Chongqing to lead a joint Investing in advanced infrastructure such as digital development strategy for the Chongqing-Chengdu platforms and focusing on innovation in the economy corridor that includes economic planning, is crucial for Chongqing to sustain economic investment, spatial strategy, and transport. For growth and job creation in the next two decades. example, to improve the accessibility of the region, The digitization of industrial production will require a joint transport network plan should be developed Chongqing to invest in its digital connectivity. to enhance economic activities, knowledge spillover, Disruptive technologies are also quickly changing and efficiency. cities and their urban economy. Technologies such as autonomous vehicles, drones, big data, B. Encourage spatial agglomeration in the and artificial intelligence will transform how cities corridor are managed and how services are delivered. The establishment of a cluster of satellite cities in Already “data-driven cities” such as Hong Kong the adjacent areas of Sichuan and Chongqing can SAR, Shanghai, Sydney, and New York are promote the spatial agglomeration of industries adopting smart systems for urban management, along the corridor. This will accelerate the flow of such as smart parking, air quality monitoring, goods, population, and information. A good example and energy monitoring in buildings (Jha 2018). is the value chain that is being explored in Guan’an, These technologies have the potential to enhance Sichuan, which is located one hour away from connectivity and productivity for cities. To stay ahead Chongqing. 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REVISEDCompetitive-Cities-for-Jobs-and-Growth. “Multimodal Transportation: The Case of Laptop pdf. from Chongqing in China to Rotterdam in Europe.” Yang, Guishan. 2000. “Major problems of sustainable The Asian Journal of Shipping and Logistics 33 (3): development along the bank area of the Changjiang 155-165. River.” Chinese Geographical Science 10: 97-104. Sun, Hui. 2017. “Alibaba to cooperate with Chongqing on intelligent services.” China Daily. March 6. http:// www.chinadaily.com.cn/regional/chongqing/ liangjiang/2017-03/06/content_28464832.htm. SUPPORTING REPORT ➋ CHONGQING 2035 / 15 Endnotes 1. On March 31, 2017, the first direct flight from 3. The total transit time from Chongqing to Shanghai Chongqing to Los Angeles was launched. for a regular liner is usually 15 days. The distance between Chongqing and Shanghai and the low 2. Ports are strong drivers of economic growth. In the efficiency of river transport across the Yangtze River early 20th century, New York was the main port of make this route the longest to Europe (47–48 days), the United States and the largest one in the world. although it remains cost-competitive compared to Singapore’s investment in its port has made the city routes using road or rail to Shanghai or Shenzhen a waypoint and the first globally connected city for and then sea transportation to Rotterdam, and goods. Moreover, the capacity of ports to handle compared to the air and overland rail route through global container traffic growth between 2010 and Xinjiang (Seo, Chen, and Roh 2017). 2025 needs to grow by more than 2.5 times the 2010 level to meet Srising consumer demand for products across the globe. McKinsey estimates that between 2010 and 2025, China will contribute to 28 percent of container global growth, equal to the total global capacity in 2010 (Dobbs, et al. 2012). 2 35 CHONGQING