Photo: Sina

By Liu Jinsong (劉金松)
Issue 613, April 1, 2013
Nation, page 12
Translated by Zhu Na
Original article: [Chinese]

Tianjin’s Binhai New Area, earlier established as a state-level comprehensive reform experimental area, hopes to be China’s high-tech center. But some have deemed it China’s biggest property bubble. The Economic Observer interviewed Zong Guoying (宗國(guó)英), deputy mayor of Tianjin and District Governor of the Binhai New Area.

Economic Observer:The development goal announced in Binhai this year was for total GDP in 2015 to break a trillion yuan and for the annual growth rate to stay over 17 percent. How can we ensure the quality and effectiveness of growth during this rapid development?

Zong Guoying: The development of Binhai New Area is part of a national strategy. Although Binhai is rapidly developing, in order for it to achieve its goal of becoming the economic, logistics, and international shipping center of Northern China, it still needs to maintain a certain growth rate.

Of course, quality and effectiveness is more important than GDP. We must develop at least somewhat rapidly, but we must emphasize the importance of strategic, stable projects.

In the past, fixed investment was focused on infrastructure and large projects. Now that the foundation for Chinese infrastructure has been built, investment is pivoting more to social projects such as retirement homes, environmental protection, water treatment plants and garbage disposal.

EO:  Like The Yujiabao (于家堡) Financial Zone, The Binhai New Area must encourage financial institutions to invest. How will Binhai New Area accomplish this?

Zong: Binhai New Area must attract highly skilled workers. To do this, Binhai should ensure the workers’ family members will also be able to find a job there and that their children will receive a quality education. Then it can worry about medical, safety and transportation issues.

We’re addressing these matters by increasing the construction of public facilities in the core city district. Once the Yujiabao High Speed Railway opens in June of next year, it will only take 45 minutes to get from Beijing to Beihai. This will help attract talent to Binhai New Area.

EO: Binhai was established as a comprehensive reform experimental area. As a result, what kind of experience does Binhai have in comprehensive reform?

Zong: Binhai New Area is an experimental area of comprehensive reform. We are leading the country in reforms such as willingness exchange settlements, finance leasing and the construction of shipping centers.

The second most important thing is to transform Dongjiang from a bonded port into a free trade port zone. In addition, Yujiabao Financial Zone needs to become a state-level innovative financial base. We also need to build national level technology engineering base platforms.

Furthermore, we will work on land reform and household registration system reform. We’re already starting on the latter.

EO:  What kind of changes will Binhai face in the drive to promote development?

Zong: Right now the development of Binhai New Area is just beginning. Since we’re still working on infrastructure construction, investment - both private and public - is still the major focus. 

Recently, the government has shifted from investing in infrastructure to investment in public service facilities. This is a huge change that will begin to stimulate consumption in a few years.

EO: How will Binhai promote urbanization?

Zong: To facilitate urbanization, we’ve divided the Binhai area into three categories. The first category includes areas close to the city that we plan to build into the community.

The second category includes seven villages on the outskirts of the area. Though they’re quite far from the city, they’re ready for development. We plan to expand the size of these villages until they’re the size of small towns.

The third category includes areas that are far away from the city and don’t fit the qualifications for urbanization. We hope to turn these areas into tourist getaways by introducing beautification projects.

We predict that the urbanization rate for all of Binhai New Area will reach 93 percent by 2015.

People aren’t short of cities; they’re short of natural villages.