Technology becoming new economic engine of Chengdu

"We are also providing high-tech companies in incubators with access to public research facilities, helping them explore the market and offering them help in human resources as well as financing. Office space, dormitories and apartments for their employees can also be arranged," said He.

To build an efficient public service platform for more than 20,000 high-tech companies in the city, different government divisions such as the finance bureau and science and technology bureau have formulated subsidies and stimulus policies to encourage innovative activities.

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Sun Ming, chairwoman of the Chengdu Federation of Industry and Commerce, said another component driving development is the central government's intention to promote urbanization and narrow the gap between the more industrial coastal cities and the underdeveloped interior and western frontier regions.

"Because the future of Chengdu's economy will be decided by innovative breakthroughs in high-tech industries, local universities and vocational colleges have been quick to adjust their curricula to follow trends in the city's changing job market and produce talented people with practical skills to fit into the teams in various small and medium-sized companies," said Sun.

"This new economic shift has already made an impressive change, helping Chengdu's high-tech companies reach more new marketplaces. They have managed well to ship their products to international and domestic destinations through well-developed international rail freight systems and air routes, as well as highways, in recent years," Sun said.

China Bluestar Chengrand Chemical Co Ltd, which makes chemical materials for civilian and military use, is one of many Chengdu companies that reflect this trend. It expects to raise production capacity of para-aramid fiber by 10,000 metric tons next year.

The company now produces 1,000 tons of the strong, heat-resistant fiber annually. It is widely used in the aerospace industry - particularly to produce ballistic-rated body armor - bicycle tires, asbestos substitutes and disaster rescue equipment.