Beijing, Tianjin Plan Economic Integration and Expansion

by Paul Denlinger

Posted May 19, 2004

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Officials from Beijing, Tianjin and Hebei province gathered in Beijing on May 17 to discuss how they could plan economic expansion and attract more businesses to invest in northern China. The officials conceded that there is far more business investment in the Pearl River delta, centered on Guangzhou, and the Yangtze River region, based in Shanghai, than there is in north China.

The talks included representatives from the Hebei cities of Chengde and Langfang, and five other cities. The two major metropolises of Beijing and Tianjin are connected by a major highway. The current plan is to attract new businesses to the area along the Beijing - Tianjin Highway to create a new business axis linking the two cities.

The term business axis is a reference to the ring roads which run around Beijing. As the city has expanded, the city has rapidly added ring roads. In 1985 there was only one ring road; now there are six.

The Beijing representatives spoke of a "3+2" plan. The 3 referred to Beijing, Tianjin and Hebei, and the resources of Inner Mongolia and part of Shandong province. Inner Mongolia and Shandong are strong agricultural producers, particularly in meat and dairy products. The 2 referred to the two supercities of Beijing and Tianjin. Beijing, because of the presence of leading universities, has a strong presence in computer hardware and software development, while Tianjin has modern port facilities. Because of its close geographical proximity, Tianjin has close economic and cultural ties with Japan and South Korea.

Through the meeting, both city and countryside officials emphasized their commitment to developing green, or environmentally friendly, businesses and industries. This stood in contrast to the highly industrialized Shanghai and Guangzhou regions, which have thousands of factories.

In agriculture, the regions emphasized their commitment to developing green industries and organic products. Officials in China's more developed east coast are now encouraging development of environmentally-friendly industries, which has meant that higher pollution, less environmentally industries are now moving inland to the less developed regions of the country. Some officials, when speaking of their cities or regions, even talk about a "green GDP" in which the polluting industries are removed from their GDP calculations.

In recent years, the green movement has affected agriculture. The most prosperous farmers in recent years have been tree farmers, who sell their trees to the government so that deforested areas can be replenished.

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