FORMULATING FOREIGN ENCLAVES IN SHANGHAI: State Action in Globalization

Dr. Salie Jun WANG, University of Hong KongEmail: junwang@hkucc.hku.hk

INTERNATIONAL CONFERENCE on CHINA’S URBAN LAND AND HOUSING IN THE 21ST CENTURY

Center for China Urban and Regional Studies, Baptist University, Lam Woo International Conference Center,Hong Kong, China, 13-15 Dec, 2007

Acknowledgement :

An earlier version is under press in the Journal of Housing and the Built Environment

Formulating foreign enclaves – state action in globalization

OUTLINE

INTRODUCTION

BACKGROUND: Globalizing Shanghai and the Pulling-in of Elite Group

CASE OF GUBEI NEW DISTRICT

DISCUSSION AND CONCLUDING COMMENTS: State in planning and implementation

Formulating foreign enclaves – state action in globalization

INTRODUCTION

Street lingo − residents of the areas within the inner circle speak English…

while those residing outside the outer circle speak the Shanghai dialect

Foreign enclaves: luxury estate on privileged land occupied by foreigners

Reshaping of urban spaces in global reorganization of labor and industry

Literature Actors: local – global

− Actors and their varying power and control in the spectrum of geographic scales

Market-centered system vs. State-centered system − Entrepreneurial city

Formulating foreign enclaves – state action in globalization

INTRODUCTION

The problem of this study

−The role of the state in the formulation of foreign enclaves at the initial stage of foreign enclave development,

−how they conceive of the meaning behind the development of foreign enclaves and then

−how they design and implement corresponding strategies as one means towards structural competitiveness of the city of Shanghai,

−using the case of Gubei New District in Shanghai.

Formulating foreign enclaves – state action in globalization

BACKGROUND: Globalizing Shanghai and the Pulling-in of Elite Group Economy, especially economic efficiency being given the

priority Globalization being an opportunity to

Boost economic development Accelerate industrial restructuring

From Foreign Direct Investment (FDI) to Foreigner Professional Labor (FPL) Shift in structure of FDI and Foreign-invested enterprises

Formulating foreign enclaves – state action in globalization

BACKGROUND: Globalizing Shanghai and the Pulling-in of Elite Group Economy, especially economic efficiency being given the

priority Globalization being an opportunity to

Boost economic development Accelerate industrial restructuring

From Foreign Direct Investment (FDI) to Foreigner Professional Labor (FPL) Shift in structure of FDI and Foreign-invested enterprises

0%

20%

40%

60%

80%

100%

1990 2001

Public Administration

social services & others

cultural industry, sceintific research,amenitiesReal Estate

Finance

Retail and Wholesale, Hoteling andCateriesInformation Transmission, ComputerServcie and Software IndustriesTransportation, Warehousing and Post

construction

manufactury

Primary Industry

Formulating foreign enclaves – state action in globalization

BACKGROUND: Globalizing Shanghai and the Pulling-in of Elite Group Economy, especially economic efficiency being given the

priority Globalization being an opportunity to

Boost economic development Accelerate industrial restructuring

From Foreign Direct Investment (FDI) to Foreigner Professional Labor (FPL) Shift in structure of FDI and Foreign-invested enterprises Pulling-in of Foreign Professional Labor

−Wave one: Mainly Foreign expatriates −Wave Two: Talent immigration scheme

Preferential policies:−Article 88: ---- Article

88, revised−Building the Talents Highland of Shanghai ----

Article 122−The Highland of International Talents

Formulating foreign enclaves – state action in globalization

BACKGROUND: Globalizing Shanghai and the Pulling-in of Elite Group

0

20,000

40,000

60,000

80,000

100,000

120,000

2000 2003 2004 2005

0.0%

20.0%

40.0%

60.0%

80.0%

Pacific region North America & Europe Others Total

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

100.0%

foreigners taiwanese talentimmigrantscheme

returnedstudents

with bacherlor degree orabove

managerial position andabove

chief representatives

Formulating foreign enclaves – state action in globalization

CASE OF GUBEI NEW DISTRICT

Gubei New District Origin:

− housing foreigners in the bourgeoning and limited housing market

Set up:− “Builidng Gubei New District” as a subsequnt step following

“Developing Hongqiao ETDZ” in 1984− Set up the Gubei United Steering Committee

Location: − South side of the Hongqiao ETDZ

Size: − 136 acres, 24 blocks, − gross floor space – 3 000 000 sq.m

Residents: − About 20 000 households, From more than 30 countries and

regions

Formulating foreign enclaves – state action in globalizationCASE OF GUBEI NEW DISTRICT

Structural relationship between Gubei United Development Company and the Local governments

Gubei United Development Gubei United Development CompanyCompany

China Enterprise

s

New Changning Ltd.

Pujiang Constructi

on & Developm

ent Company

Construction Department of

Changning District

Shanghai Architectural Design

& Research Institute

Shanghai Municipal

Commission of Construction

& Administration

Joint-ventures as developers

• Gubei Donghai Property Compnay

• Baocheng Property Compny

• Baixin Propoerty Company

• …Gubei Property Management Company

Changning District

Government

Shanghai Municipal

Housing, Land & Recourse

Administrative Bureau

Oversea counterpar

ts

Municipal LevelDistrict LevelD

ep

artm

en

tal

secto

rs

Responsibilities:• Relocate original

residents

• Master plan & infrastructure

planning/construction

• Land parcel leasing

• The one and only channel for cooperation

• etc

Formulating foreign enclaves – state action in globalization

For mobile population segments Locational advantage

−on the path linking Hongqiao Airport and city core

CASE OF GUBEI NEW DISTRICT _Preparation and Planning

Formulating foreign enclaves – state action in globalization

For mobile population segments Locational advantage

−on the path linking Hongqiao Airport and city core For foreigners

Continental European Classic Style & Palace Style English speaking service

− International schools −Special Street office

Oversea marketing

CASE OF GUBEI NEW DISTRICT _Preparation and Planning

Formulating foreign enclaves – state action in globalizationCASE OF GUBEI NEW DISTRICT _Preparation and Planning

For foreigners

Formulating foreign enclaves – state action in globalization

For mobile population segments Locational advantage

−on the path linking Hongqiao Airport and city core For foreigners

Continental European Classic Style & Palace Style English speaking service

− International schools −Special Street office

Oversea marketing For affluent class

Locational advantage−decent place, close to upper quarter

Higher standard in architectural design −Apartment/house design, material, car park space,

electronic appliances Services

CASE OF GUBEI NEW DISTRICT _Preparation and Planning

Formulating foreign enclaves – state action in globalization

STATE IN PLANNING & IMPLEMENTATION

Identifying interest of the city Vision: a financial and trading center of the Asian and

Pacific Region Identical interest of interest groups: city, advanced service

industry, professional labors Action plan for the interest – acting to enhance structural

competiveness Unified and strategic manner :

Cooperation of a variety of branches of the government through the entity of Gubei United Development Company

Collective contribution by preferential policy for talents and concentration of urban resources to residential enclaves

Accelerating transformation of labor structure to facilitate industrial restructuring

Period-specific strategies and the Adjustments:− A more complete market system− Shift in recognized benefit brought about by development of

foreign enclaves (form a means to attract and root foreigners to an industry sector of real estate with promising profit, as well as place making)

Formulating foreign enclaves – state action in globalization

STATE IN PLANNING & IMPLEMENTATION

Reciprocal relationship of actors with identical interest While interest of local working class sacrificed for

the moment Replacement of population segments

Repeated investment on already privileged areas Widened contrast of foreign (high end) enclaves

and ordinary residence