Songjiang’s import and export volume in the first half of this year amounted to 132.61 billion yuan (US$19 billion), up 3.3 percent year on year, and ranking the second among Shanghai’s 16 districts, according to statistics released by the Songjiang Economic Committee.
Meanwhile, its import volume reached 44.27 billion yuan in the first half, rising 17.8 percent year on year.
“Songjiang’s foreign trade mainly depends on foreign-funded firms. By guiding foreign-funded enterprises to add investment, enlarge capacity and advance technologies, we have spurred the district’s import and export volume growth,” a Songjiang Economic Committee official said.
Since the beginning of this year key foreign-invested companies in the suburban district, including NTN, Toppan, OmniVision, Foxsemicon and Simitomo, have decided to increase their investment. And companies like PepsiCo, Nestle, Wafer Works and Iriso have restructured or enlarged their factories to fit the expanding capacities and also made technology advancements.
OmniVision, one of the world’s top three image sensor manufacturers, injected investment in the first half of this year to double its image sensor testing capacity in its subsidiary in the Songjiang Comprehensive Bonded Zone. The company did its first capital hike in 2019. Its exports increased by 107.2 percent and 77.6 percent, respectively, in 2019 and the first half of 2020.
In addition the ratio of general trade to the district’s total foreign trade in the first half rose by 1.1 percentage points year on year. Domestic companies that have independent technologies and brands, including Chint Power and Dasheng Sanitation Products Co, achieved double-digit growth in exports to Belt and Road Initiative countries.
“The import and export volume growth was hard won,” said the official. “The sudden outbreak of the COVID-19 pandemic caused quite a few foreign trade companies to halt their production and export. And the companies faced extreme pressure.”
To help the companies cope with the difficulties and resume work, the district government offered financial services, including negotiating with trade credit insurers, credit financing companies and various domestic and foreign trade platforms.