Chengdu–Chongqing Reunited: China’s Western Twin-Cities Top 10 Trillion Yuan and Redraw Regional Balance

Sichuan and Chongqing together have surpassed 10 trillion yuan in GDP, underscoring the re-emergence of the Chengdu–Chongqing twin-city economic corridor as China’s largest western growth pole. The milestone reflects not just fiscal transfers and infrastructure spending but the maturation of industrial clusters in electronics, advanced manufacturing and new energy.

Shadowy market passageway with people in Terengganu, Malaysia.

Key Takeaways

  • 1Sichuan (6.77 trillion yuan) and Chongqing (3.37 trillion yuan) now combine to exceed 10 trillion yuan in GDP, with the Chengdu–Chongqing economic circle near 9 trillion.
  • 2The achievement marks a symbolic reunification of the old Sichuan–Chongqing economic space after Chongqing’s 1997 administrative split.
  • 3Sustained growth is driven by large industrial clusters — electronics, equipment manufacturing, advanced materials and consumer products — and by new-energy, photovoltaic and battery production.
  • 4Fiscal transfers and western-development incentives aided expansion, but local industry formation and firm-level innovation underpin long-term competitiveness.
  • 5The rise of the Chengdu–Chongqing axis strengthens western China as an alternative growth pole, reshaping regional balance and supply-chain geography.

Editor's
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Strategic Analysis

This milestone matters because it signals a structural rebalancing in China’s geography of growth. The Chengdu–Chongqing axis is not merely absorbing displaced coastal factories; it is building higher-value clusters that can anchor national supply chains and technological depth. For Beijing, a stronger interior reduces reliance on coastal megacities and offers resilience in strategic sectors such as semiconductors, batteries and aerospace. For investors and policymakers, the critical question is whether local firms can internalize innovation and move up the value chain once fiscal incentives fade. If they do, the Chengdu–Chongqing region will become a durable counterweight in China’s polycentric development; if not, its current momentum may prove cyclical.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

China’s regional economic map just gained a new landmark. Provincial data and official disclosures show Sichuan’s 2025 GDP at 6.77 trillion yuan and Chongqing’s at 3.37 trillion, meaning the two jurisdictions together now exceed 10 trillion yuan and the ChengduChongqing twin-city economic circle approaches 9 trillion.

The milestone matters less as an arithmetic curiosity than as the culmination of a long-running structural shift. Chongqing was carved out of Sichuan and elevated in 1997; for decades the two operated as separate administrative units even as their economies and transport links remained intertwined. Today they are deliberately being reintegrated as a national-level growth pole under the “Chengdu–Chongqing” development strategy.

Growth has several tangible drivers. Large-scale fiscal transfers and preferential central investment into western infrastructure have helped — the two jurisdictions together receive more than 800 billion yuan in transfer payments — and tax incentives for inland development have encouraged capital flows. Yet policy alone does not explain persistent outperformance; the region’s rise reflects deeper industrial transformation and cluster formation.

Sichuan and Chongqing have built multiple trillion-yuan sectors: electronic information, advanced equipment manufacturing, new materials and specialty consumer goods. Production of notebooks, tablets, displays, photovoltaics, batteries and new-energy vehicles now ranks among China’s leaders, and five national advanced-manufacturing clusters span electronics, biopharma, energy equipment, aerospace and software-services, with several clusters jointly developed across the two jurisdictions.

That industrial depth owes as much to market forces and firm-level innovation as to central policy. Western relocation of coastal factories, tax breaks, and heavy infrastructure investment created the conditions; local choices — Chongqing’s vertical-integrated approach to EVs and Sichuan’s moves into large aircraft and nuclear components — have delivered the scale and sophistication that sustain growth beyond headline stimulus.

The economic implications are regional and strategic. The Chengdu–Chongqing axis now ranks as the West’s largest growth pole, offering Beijing an alternative counterweight to the wealthy eastern seaboard. It also complicates interprovincial competition: Sichuan has eclipsed Henan as the largest inland economy, while city-level industrial champions across Sichuan and Chongqing are moving from provincial appendages to independent players in national supply chains. The challenge ahead will be sustaining private-sector dynamism and upgrading value chains once preferential policy tailwinds moderate.

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