Devott Insights: Integration of Beijing & Tianjin & Hebei – A Specific Attitude and Positioning are Key
Source: Chnsourcing.com.cn View: 218 Date: 2015-07-17

If taking regional planning of Beijing & Tianjin & Hebei started by National Development and Reform Commission in 2004 as a starting point, the integration of Beijing & Tianjin & Hebei has experienced more than ten years. During this period, the top design & cooperated solution & three-party’s negotiation in integration of Beijing & Tianjin & Hebei have experienced many difficulties and even come to an untimely end, the fundamental reason is difficult to coordinate profit between each party. Indeed, integration of Beijing & Tianjin & Hebei shall be followed the option of market; however, if take the market as a core, it still needs the promotion from government’s top design to form a good, healthy, and win-win cooperation mechanism. Jinping Xi, the general secretary hosted symposium in Beijing in 2004, he topically received the report on coordinated development work in Beijing & Tianjin & Hebei. In the same year, the State of Council had organized leading team and relevant offices for coordinated development in Beijing, Tianjin and Hebei. Keqiang Li, the prime minister indicated in government work reports within continuous two years of 2014 and 2014 to promote coordinated development in Beijing, Tianjin and Hebei. This is an actively information without hesitation that the clear attitude from this leadership time for integration of Beijing & Tianjin & Hebei will promote the practical development in three places.

Throughout three cities (provinces), Beijing is the core in Beijing-Tianjin-Hebei circle gathering huge amount of resources from economy, education, medical and talent via the capital its inherent advantages; however, because of gradually serious problems in transportation, population, ecosystem environment, prices of commodities, regional function suit, Beijing has to redesign and transfer part of functions and industries. For the development of Beijing, Mr. Xi indicated when he investigated Beijing that Beijing shall clarify city strategic position; stick to and strengthen central functions as the capital of China such as political center, culture center, international communication center, and science & technology innovation center; shall adjust and reduce the non-central functions in the capital; optimize the first, the secondary and the third industrial structures. In this position, the concept of “economic center” is obviously diminished. In the July of this year, Beijing passed “The Schedule Outline of Coordinated Development in Beijing-Tianjin-Hebei” that clarified the city layout and key measures of Beijing in future. It is also said that Beijing will set up Tongzhou district as vice center of administrative management. In cooperation aspects, Beijing has signed many agreement contracts with Tianjin and Hebei, and perhaps planned the first list of enterprises those will transfer from Beijing. This is always a great development. However, for promoting integration of Beijing & Tianjin & Hebei, Beijing must have to do more as the center of this circle. In the future process, Beijing shall more clarify cooperation attitude, greatly reform, and form cooperation mechanism in transportation, telecommunication, ecosystem, and people’s livelihood. In industrial transfer, to research and make standard of industrial transfer according to city position and actual bearing capacity of Beijing; to clarify which can be reserved or transferred in Beijing. To build conversation and communication mechanism with Tianjin & Hebei that regularly organizes communication and coordination.

Tianjin positioned as economic center in the North, international port city and eco-city, is no double that the only one city with strong ability to hold the position of economic center in the process of Beijing gradually weakening its own function as economic center. Tianjin Free Trade Pilot Area recently organized has been positioned as the platform of Beijing-Tianjin-Hebei coordinated development opening to the outside with high level in this construction schedule. Some districts and towns such as Wuqing, Baodi as well as Binhai New District also actively undertake industries transferred from Beijing, including financial service, high-end manufacturing, high-tech industry and partly modern service industry. Tianjin firstly promotes to develop inter-city trail; Wuqing, Baodi and Binhai New District also actively cooperate withBeijing to co-build parks and sign agreement contracts with Beijing and Hebei for financial integration. Tianjin is at the secondary level in process of Beijing-Tianjin-Hebei integration, also has active and clear attitude; however, in undertaking industrial transfer, it also needs make detailed action planning and outline for specifically focusing on which areas in Beijing, which segmentations can be undertaken, how to undertake. Because of them, Tianjin can hold opportunity and march with high efficiency.

Hebei has inherent advantages in location. Langfang, Baoding, Tangshan, Zhangjiakou and other neighboring cities actively undertake functional and industrial transfers from Beijing. For example, Langfang positioned to undertake partly of the capital’s functions such as education, culture, medical as well as partly commerce (meeting and conference). Baoding the city possibly may be vice center of Beijing in recent in hottest hype recently, as important nodal city rounding the capital economic circle, it can undertake and reduce partly functions from Beijing such as administrative institutions, colleges and universities, science and technology research institutions and medical pension via local advantages. Tangshan based on its own resource advantages undertakes Beijing’s enterprises with excess capacity, for example the transferring of ShouGang Group. Zhangjiakou has signed “The Cooperation Agreement to Co-Build New Emerging Industrial System between Beijing and Zhangjiakou” with Beijing that attracts many enterprises, projects and talents from Beijing to locate in Zhangjiakou. Besides that, Shijiazhuang, Qinhuangdao, Chengde and other cities also want to take a piece of cake. However, although dream is beauty, the reality will be cruelty. Although Hebei has greatest sincerity to communicate with Beijing and Tianjin, it is still at passive position in integration of Beijing-Tianjin-Hebei because of its differences in political position and economic development. Although rapid development of integration of Beijing-Tianjin-Hebei, each city of Hebei still have their own positions, no projects; therefore, intentioned types of industry have high energy consumption and low added-value. In process of Beijing-Tianjin-Hebei integration, Hehei shall make efforts to improve its local advantages before cooperation although it can’t actively build conversation and communication mechanism. Hebei shall know what can be undertaken in process of undertaking transfer, according to features and problems from each city in Hebei province, complying with the principles integrated with ecosystem and economy to clarify position; shall also explore a way to continually develop. Meanwhile, Hebei province shall more greatly play subjective initiative to actively explore cooperation ways with Beijing-Tianjin in education, economy, medical as well as transportation.

This post is a personal or group view of Research and Advisory members and don't necessarily represent Devott's positions, strategies or opinions.

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