www.taidemedia.comWORLD INVESTORS MAGAINE JULY 20106 7

DEEP CONCERN

www.taidemedia.comWORLD INVESTORS MAGAINE JULY 20106 7

Southern Actions Guide the Future of Beijing

Staff Reporter Jiang Jianhua

In November 2009, Beijing issued the "Plans for Improving the Development of the Southern Region" (hereinafter referred to as "Southern Plan") planning to invest 290 billion Yuan to help the southern region to escape the cycle of slow economic growth.

In November 2009, Beijing issued the "Plans for Improving the Development

of the Southern Region" (hereinafter referred to as "Southern Plan") planning to invest 290 billion Yuan to help the southern region to escape the cycle of slow economic growth.

Actions Stimulated InvestmentThe unbalanced pattern of economic development of Beijing, like an unbalance scale, has intensified and is likely to be capsized. The southern region of Beijing had missed key development programs such as CBD, Financial Street and Beijing Olympic Village... However, similar programs will soon break ground in the southern region.Zhao Hong, director of Economic Research Institute of Beijing Academy of Social Sciences believed that: "The most important thing for the development of a city is balance. The unbalanced development of different regions will ultimately affect the development of the city." Economic development of southern Beijing has been far behind the development of northern Beijing for a long time. According to the statistics of 2008, total area of southern region in the "Southern Plan" accounted for 20.5% of the city. However, the GDP of those regions only accounted for 13.4% of the city and was equal to 70% of Hai Dian District.The gap existed since the founding of the country. After 1990s the result of several changes in the financial system had

increased the imbalance of economic development in Beijing. Economic value of Southern Beijing cannot be used effectively. The introduction of "Southern Plan" opened the gate for Southern Beijing to economic development. Wang Haiping, deputy director of Beijing Development and Reform Commission said: "After the Olympic Games, Beijing has entered a new stage of development looking for new space. Southern Beijing fits such trends and is now in a great time for its development.""Southern Plan" is now levering the future investment pattern of Beijing. The plan showed that the investment to Southern Beijing by the government of the city and the district levels will be more than 50 billion Yuan. Plus the social investment led by the official, the total investment will reach 290 billion Yuan. All funds will invest in the construction of infrastructure of the traffic and environment, which could significantly improve the environment of investment.Southern region is the gateway of the regional cooperation of Beijing, Tianjin and Hebei. In the face of the limited and expensive land in northern Beijing, the space in that southern region can bear the industrial function could be the scarcest resources for future development. "South Plan" is to build "one axis, one region and many zones" industrial structure for southern region, speed up the promotion of the reform and upgrade of industrial restructure and innovation & development form, which will continuously optimize the

economic investment potential of southern region. With continuous development, Southern Beijing will be the highlight of economic growth of Beijing in the future.

Construction of Infrastructure Relieved the Worries of the Enterprises"Construction of the road brings fortune" is a well-known saying, which also reflects the embarrassing situation of the development of southern region. The development of infrastructure of southern region had been lagging behind in a long period, which made many investors away. Beijing, "in the next three years, will coordinate the implementation of a number of programs in transport, environment, water resources and energy to effectively improve the capability of infrastructure in the southern region."The plan is to promote the construction of a number of major transport facilities, build rapid transport system. "Southern Plan" is to create a new traffic pattern of southern region. The traffic condition of southern region will be greatly improved. The traffic congestion will be no longer the shackles of the economic development of southern region. From 2010 to 2014, there will be seven rail travels solving the traffic difficulties for citizens; the construction of 11 inter-district traffic channels will completely eliminate the traffic barrier among the counties of southern region. The goal to realize the non-barrier situation for the traffic of south of southern region will be achieved.

www.taidemedia.comWORLD INVESTORS MAGAINE JULY 20106 7www.taidemedia.comWORLD INVESTORS MAGAINE JULY 20106 7

With the implementation of "Southern Plan", Dashilan, the traditional business districts are to be revitalized.

The plan is to strongly support the construction for water resources and energy to enhance the capacity of water resources and energy. The construction of Beijing section of the South to North water transportation program will be accelerated to provide protection to water supplying; the plan is to build a number of water plants for overall improvement in water supply conditions; the plan is to build 13 transformer substations to relieve the urban power bottleneck in southern region. The construction of infrastructure facilities in southern region will achieve geometric growth in capacity.The plan is to implement a number of environmental quality programs to improve the face of local environment, as soon as possible. The construction of the Riverside Forest Park will be accelerated to enhance environmental quality, improve the leisure environment for the citizens and enhance the quality of life in the southern region; the plan is to focus on the management of river water, dig the potential function of the water system and speed up to the restoration of ecological functions of the water system. With the improvement of the environment of southern region, the value of the property in southern region will exceed the one in northern region and become a new livable place.

Opportunities Revealed a Bright FutureDevelopment of southern region had three "lack" -lack of big policy, lack of big construction of infrastructure and lack of big programs, which affected the overall development of the southern region. “Southern Plan” will make the finance, the programs and the policies concentrate on the southern region. The development of southern region will end the period of three “lack” and obtain new opportunities for development.The people’s livelihood program is to create livable environment. "Southern Plan" will begin from the construction of infrastructure. The people’s livelihood program will be an impo rtant factor. With the smooth implementation of "Southern Plan" the medical and educational resources will gain great opportunities for growth; New programs such as the new campus of Beijing Institute of Construction and Engineering and the Kefeng Campus for Beijing 12th High School will collect high-end elements; Rebuilding of old housing will change the living condition in southern region promoting the prosperity and development of real estate industry in southern region.The Yongding River Economic Zone will form the green economic area. With the

proceeding of environmental governance of the Yongding River, both coastal areas will gradually become a waterfront economic zone with beautiful environment and fine economic development trend. In the future, the Yongding River is to become a healthy ecosystem stream connected by Streams - Lakes – Marsh forming a distinctive natural landscape, urban landscape and the rural landscape and becoming a new economic growth area for tourism and ecomnomy.Industrial functional areas will bear economic vitality. "Southern Plan" will release economic enthusiasm of southern region. The multi-zone industrial pattern shows the future vitality of economic activity of southern region. "Southern Plan" will, according to the characteristics of southern region, make tailor-made industrial zones to improve the capability of southern region to carry high-end industry and play a more important role in the function of leading high-end industry. The Fangshan Liangxiang Higher Educational Area will become the future educational base of Beijing; Longtan Lake Zone will be the center of the sports industry of Beijing..."Southern Plan" will make the economic development of Beijing to enter a new era. The imbalances in the economic pattern of Beijing will no longer exist in the near future. With the balanced economic development, Beijing's goal to become an international metropolis is no longer distant.