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Analysis of the
Development of Beijing
(2018)

Edited by Beijing Academy of Social Sciences

Analysis of the Development of Beijing (2018)
Beijing Academy of Social Sciences
Editor

Analysis of the
Development of
Beijing (2018)
Editor
Beijing Academy of Social Sciences
Beijing, China

ISBN 978-981-13-6751-9    ISBN 978-981-13-6752-6 (eBook)

https://doi.org/10.1007/978-981-13-6752-6

Based on a translation from the Chinese language edition: 北京发展报告, Copyright ©

Social Sciences Academic Press, 2018. All Rights Reserved.
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer
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 Contents

Part I General Report   1

1 China’s Regional Economies in 2017 and Outlook for

2018  3
Regional Economy Research Group, Beijing Academy of
Social Sciences

2 Beijing’s Economic Development in 2017 and Outlook

for 2018  61
Economic Analysis and Forecast Group, Beijing Academy of
Social Sciences

3 Beijing’s Public Services at a New Stage of Quality

Improvement 95
Research Group on Beijing’s Public Service Innovation and
Development and Institute of Management Studies, Beijing
Academy of Social Sciences

4 Beijing’s Social Governance in 2017: Overview,

Challenges, and Suggestions121
Li Huibin

v
vi Contents

5 Building a National Cultural Center in the Context of the

New Beijing Urban Master Plan143
Li Jiansheng

Part II Special Report 187

6 Overall Evaluation of Public Service Performance of 16

Districts in Beijing189
Institute of Management Studies, Beijing Academy of Social
Sciences

7 Specialized Social Work Organizations in the Operation of

Community Service Agencies: A Comparative Study on
Six Pilot Service Stations of Five Neighborhoods in
Xicheng District of Beijing213
Yuan Zhenlong

8 Incentive Effects and Influencing Factors of Government

Funding on Corporate R&D Investment: A Case Study of
Beijing231
Luo Zhi

Part III Beijing-Tianjin-Hebei Region 245

9 A Study on Space Optimization and Economic

Development of Beijing Against the Backdrop of
Coordinated Development of the Beijing-Tianjin-Hebei
Region247
Yang Weifeng
 Contents  vii

10 Coordinated Industrial Development of the Beijing-­

Tianjin-­Hebei Region: An Analysis Based on Enterprise
Big Data261
Ye Tanglin and Mao Ruochong

11 Coordinated Cultural Development in Beijing, Tianjin

and Hebei in 2017: Reality, Features, Challenges and
Policy Recommendations281
An Jing and Ma Liuting

Index313
 List of Figures

Fig. 1.1 GDP growth rates across China 9

Fig. 1.2 GDP of the Four Major Regions as a share of China’s GDP 10
Fig. 2.1 GDP growth rates for Beijing and China, 2001–2017 65
Fig. 2.2 Increase in fixed-asset investment in Beijing, 2001–2017 66
Fig. 2.3 The Smiling Curve and the Musashi Curve 80
Fig. 3.1 Daily PM2.5 levels, 2013–2017. Source: Weibo account of the
Beijing Municipal Environmental Protection Bureau 116
Fig. 3.2 Air pollutants, 2016–2017. Source: Weibo account of the Beijing
Municipal Environmental Protection Bureau 117
Fig. 5.1 Top 25 of global cities index 2017. Source: Global cities index
2017 issued by Global management consulting firm A.T. Kearney
in June 2017 167
Fig. 6.1 Nondimensionalization results of basic education indicators by
district, 2016193
Fig. 6.2 Nondimensionalization results of basic education indicators by
district, 2016 195
Fig. 6.3 Nondimensionalization results of health-care indicators by
district, 2016 198
Fig. 6.4 Nondimensionalization results of cultural and sports service
indicators by district, 2016 200
Fig. 6.5 Nondimensionalization results of cultural and sports service
indicators by district, 2016 202
Fig. 6.6 Nondimensionalization results of public safety indicators by
district, 2016 204
Fig. 6.7 Public service performance rankings of Beijing’s districts, 2016 210

ix
x List of Figures

Fig. 10.1 Cumulative investment from Beijing to Tianjin by industry,

2014–2016. Source: Long Credit Institute Inc 271
Fig. 10.2 Cumulative investment from Beijing to Hebei by industry,
2014–2016. Source: Long Credit Institute Inc 272
Fig. 10.3 Cumulative investment from Tianjin to Beijing by industry,
2014–2016. Source: Long Credit Institute Inc 273
Fig. 10.4 Cumulative investment from Tianjin to Hebei by industry,
2014–2016. Source: Long Credit Institute Inc 274
Fig. 10.5 Cumulative investment from Hebei to Beijing by industry,
2014–2016. Source: Long Credit Institute Inc 275
Fig. 10.6 Cumulative investment from Hebei to Tianjin by industry,
2014–2016. Source: Long Credit Institute Inc 276
Fig. 10.7 Number of joint patent applications, 2012 to October 2016.
Source: Long Credit Institute Inc 277
Fig. 10.8 Number of patents jointly granted, 2012 to October 2016.
Source: Long Credit Institute Inc 278
 List of Tables

Table 1.1 GDP growth in China’s “Four Major Regions” (unit: %) 7
Table 1.2 GDP of the Four Major Regions as a share of China’s GDP
(units: RMB100 million, %) 11
Table 1.3 First pilot metropolitan rail projects 42
Table 2.1 Forecasts by major economic indicators for Beijing, 2018
(unit: %) 94
Table 5.1 Cultural and creative enterprises in Beijing above designated
size, January–November 2017 160
Table 5.2 Global cities index, 2016–2017 168
Table 5.3 Global Power City Index 2017 169
Table 5.4 Ranking of Chinese cities by overall competitiveness, brand
development, environment for innovation and entrepreneurship
and creativity 171
Table 5.5 Ranking of Chinese cities BY CBDI and five level-1 indicators 174
Table 5.6 Ranking of cities by cultural competitiveness, cultural influence,
cultural soft power, public cultural service, cultural industry
and public satisfaction in 2017 175
Table 6.1 Evaluation indicator system of public service performance in
Beijing190
Table 6.2 Raw data of basic education indicators, 2016 192
Table 6.3 Raw data of social security indicators, 2016 194
Table 6.4 Raw data of health-care indicators, 2016 197
Table 6.5 Raw data of cultural and sports service indicators, 2016 199
Table 6.6 Raw data of environmental protection indicators, 2016 201
Table 6.7 Raw data of public safety indicators, 2016 203
Table 6.8 Weights of overall evaluation indicators 205

xi
xii List of Tables

Table 6.9 Overall evaluation of public service performance by district,

2016208
Table 7.1 Basic situation of the pilot service stations 217
Table 7.2 Staff composition and target groups of the pilot service
stations219
Table 7.3 Relationship between pilot service stations and relevant
institutions222
Table 8.1 Results of panel-data unit-root tests 237
Table 8.2 Distribution characteristics of threshold variables 238
Table 8.3 Threshold effect test results of corporate R&D investment 239
Table 8.4 Threshold regression estimation results of corporate R&D
investment240
Table 10.1 LQ by industry, 2015 264
Table 10.2 Coefficients of industrial structure similarity between Beijing,
Tianjin and Hebei, 2013–2015 266
Table 10.3 Cumulative investment between Beijing, Tianjin and Hebei,
2014–2016268
Table 10.4 Cumulative investment between Beijing and Hebei, 2014–
2016269
Table 10.5 Cumulative investment between Tianjin and Hebei, 2014–
2016270
Table 10.6 Number of joint patent applications and patents granted by
industry, 2012 to October 2016 277
Table 11.1 Policies related to Beijing-Tianjin-Hebei coordinated
development introduced in 2017 284
Table 11.2 Culture-related policies introduced by Beijing, Tianjin and
Hebei in 2017 285
Table 11.3 Opera performances staged in Beijing, Tianjin and Hebei in
2017288
Table 11.4 Folk shows staged in Beijing, Tianjin and Hebei in 2017 291
Table 11.5 Modern culture performances staged in Beijing, Tianjin and
Hebei in 2017 296
Table 11.6 Modern culture exhibitions staged in Beijing, Tianjin and
Hebei in 2017 299
 PART I

General Report
 CHAPTER 1

China’s Regional Economies in 2017

and Outlook for 2018

Regional Economy Research Group, Beijing Academy of

Social Sciences

Abstract In 2017, with the implementation of its overall strategy for the
development of its regional economies, China gradually achieved stronger
coordination of such development. Five major trends have been observed
with regional economic development. The Report to the 19th National

Head of the research group:

Zhao Hong, PhD in Economics, Researcher, Deputy Director of Beijing
Academy of Social Sciences. Research areas include economics, specifically,
regional economy and industrial economy.
Members of the research group:
Yang Weifeng, Wang Deli, and Deng Lishu are Associate Researcher at the
Research Institute of Economics, Beijing Academy of Social Sciences. The main
research area is regional economy.
Sun Li, Fang Fang, and He Yan are Assistant Researcher at the Research Institute
of Economics, Beijing Academy of Social Sciences. The main research area is
regional economy.

Regional Economy Research Group, Beijing Academy of Social Sciences (*)

Research Institute of Economics, Beijing Academy of Social Sciences,
Beijing, China

© The Author(s) 2019 3

Beijing Academy of Social Sciences (ed.), Analysis of the
Development of Beijing (2018),
https://doi.org/10.1007/978-981-13-6752-6_1
4 REGIONAL ECONOMY RESEARCH GROUP, BEIJING ACADEMY OF SOCIAL…

Congress of the Communist Party of China has laid out the general plan
for the development of China’s regional economies. In the year 2018,
four major development trends are expected in the development of China’s
regional economies. In this paper, we make some policy recommendations
for the promotion of coordinated regional development.

Keywords Regional economy • Coordinated development •

Environmental governance

In 2017, with the implementation of its overall strategy for the develop-
ment of its regional economies, China gradually achieved stronger coordi-
nation of such development. Positive results have been seen in the areas of
the Belt and Road Initiative, in efforts to ensure the coordinated develop-
ment of the Beijing-Tianjin-Hebei region, and in the development of the
Yangtze River Economic Belt; the Regional Innovation System is being
improved over time, with the growth of regional economies becoming
more reliant on innovation; the management of the environment by
regional players has been strong, and governance in this respect continues
to improve; efforts to alleviate poverty in various regions have taken on
diverse forms, and decisive progress has been made in the fight against
poverty; and change in multiple dimensions has occurred within the devel-
opment of various regional economies. According to the Report delivered
at the 19th National Congress of the Communist Party of China (CPC),
at present China is still in an important period of development where stra-
tegic opportunities are present, and is also in a critical period in terms of
its efforts to transform its developmental path, optimize its economic
structure, and shift to other growth engines. After a long period of hard
work, we have entered a new era with regard to socialism with Chinese
characteristics. The main contradiction in our society has been trans-
formed into the contradiction between the people’s ever-growing needs
for a better life and unbalanced and inadequate development.1 Tackling
unbalanced and inadequate development among regional economies is
the main task in the new stage of regional economic development. The
Report to the 19th CPC National Congress has laid out the general plan

1
Xi Jinping. Secure a Decisive Victory in Building a Moderately Prosperous Society in All
Respects and Strive for the Great Success of Socialism with Chinese Characteristics for a New
Era. People’s Daily, October 28, 2017.
 1 CHINA’S REGIONAL ECONOMIES IN 2017 AND OUTLOOK FOR 2018 5

for the development of China’s regional economies, proposing the imple-

mentation of coordinated regional development strategy, innovation-­
driven development strategy, rural revitalization strategies and sustainable
development strategy with adherence to the goal of poverty alleviation
and the building of a moderately prosperous society by the year 2020.
2018 is a critical year in China’s efforts to build a moderately prosperous
society on all fronts. In 2018, change in multiple dimensions will continue
to be seen among China’s regional economies, with changes in terms of
the economic growth rate and contribution to national production
between the various parts of China, and multiple growth centers will lead
to more coordinated development between various regions. The building
and operation of high-speed railways have made urban agglomerations an
important pillar of support for the development of regional economies,
and policies to promote regional development will be further strength-
ened, with even more potential for regional growth released. For the fur-
ther promotion of coordinated development between regional economies,
it is necessary to closely follow the changes in the main contradictions in
Chinese society and take the appropriate measures while promoting such
coordination. Efforts should be made to: further optimize regional poli-
cies and to focus more on the guiding principles on spatial classifications;
to develop Chinese urban agglomerations according to specific grading
systems so that they may adapt to the “new normal” in development, and
to help urban agglomerations become new engines for the optimization of
coordination between regional economies; to create environments ame-
nable for innovation and to kick start and power regional development
and economic transformation through technological innovation; to con-
tinue to strengthen the building of an ecological conservation system and
to implement the regional integration of environmental governance; and
to create a new landscape of full openness to further promote coordinated
development between regions.

1   Development of China’s Regional Economies

in 2017

In 2017, we have seen change along multiple dimensions among China’s

regional economies, with changes in terms of the economic growth rate
and contribution to national production between the various parts of
China (faster economic growth in western China, and a rising share of the
national output for southern China, for instance). The Belt and Road
6 REGIONAL ECONOMY RESEARCH GROUP, BEIJING ACADEMY OF SOCIAL…

Initiative has continued to advance, and a good start has been achieved
with efforts at ensuring the coordinated development of the Beijing-­
Tianjin-­Hebei region; efforts towards the building of the Yangtze River
Economic Belt have also achieved positive results. There have been sus-
tained efforts at establishing and building high-tech industrial develop-
ment zones at the national level, as well as national independent innovation
demonstration zones. Regional economic growth is becoming more reli-
ant on innovation. The government has made major decisions in the area
of environmental governance, and various local authorities appear to have
become more aware of the need for, and proactive in, implementing the
concept of green development. Various regions have also adopted a diverse
array of approaches to targeted poverty alleviation and achieved results to
a certain degree.

1.1  
Change During the Development of Regional Economies

1.1.1  rend of Comparatively Faster Economic Growth in Western

T
China, and a Rising Share of the National Output
for Southern China Continues
A sustained recovery of the global economy has led to the growing pros-
perity of both the domestic and international markets, and a stream of
regional economic development policies has been drawn up, with various
regions also working continuously to further enhance reform and innova-
tion efforts to stimulate regional development. The transformation of eco-
nomic structures and the shift towards new engines of growth are gradually
accelerating in pace, and the operation of the national economy is being
maintained within a reasonable range. The Chinese economy is becoming
increasingly stable and is also becoming better. In the first half of 2017,
China’s economy generally ran smoothly (up by 6.9%), with the economic
growth rates in the eastern, central, western and northeastern regions
standing at 7.5%, 8.0%, 8.3%, and 4.1%, respectively. In the eastern region
during this period, the economic growth rate stabilized slightly and was
also adjusted; in central China, the growth generally accelerated, and the
momentum for economic development was strong. Western China still led
the country in terms of the development of the “Four Major Regions”,
though the degree of difference was great; although the rate of economic
growth in northeast China was relatively low, internally there were signs of
 1 CHINA’S REGIONAL ECONOMIES IN 2017 AND OUTLOOK FOR 2018 7

recovery. In addition, economic growth in China has gradually broken

free of the “Four Major Regions” structure with differences emerging
between the north and the south. Economic growth in certain southwest-
ern and southeastern provinces has been generally better than in north-
western and northeastern China, and has also been faster in the south than
the north. The proportion of total economic output from the south is also
substantially rising (see Table 1.1).
While the scale of the eastern China economy is large, its growth rate
has dropped slightly. In the first half of 2017, the economic growth rate of
the eastern region decreased by 0.09 percentage points compared to the
same period of the previous year, and compared to 2016, the rate had
decreased by 0.1 percentage points. At the same time, internally within
the region economic growth rates have also diverged: the economic
growth rates of Fujian, Hainan, and Zhejiang Provinces are all above 8%,
while the economic growth rates of Guangdong, Shandong, and Jiangsu
Provinces have also reached 7.8%, 7.7%, and 7.2%, respectively. In the first
half of 2017, Tianjin’s economic growth rate was 6.9%, a significant drop
from rates seen in the preceding years. In addition, the growth rates of
Beijing (6.8%) and Shanghai (6.9%) are also among the lowest in the
country. This has been due to the fact that the eastern China economy is
mainly export-oriented, and thus the growth rate has decreased slightly
due to the downturn in the global economy.

Table 1.1 GDP growth in China’s “Four Major Regions” (unit: %)

Year Eastern China Central China Western China Northeast China

2006 16.9 16.2 18.4 15.2

2007 19.2 21.8 21.9 19.0
2008 17.1 20.9 22.9 20.6
2009 9.0 10.2 10.8 9.4
2010 17.9 22.0 21.6 20.6
2011 16.9 21.3 23.1 21.0
2012 9.0 11.3 13.6 11.2
2013 9.7 10.0 11.5 8.4
2014 8.1 8.4 8.8 5.0
2015 8.0 8.2 8.6 4.5
2016 7.6 7.7 8.6 3.5
H1 2017 7.5 8.0 8.3 4.1

Source: Websites of the respective provincial/autonomous region/municipal bureaus of statistics

8 REGIONAL ECONOMY RESEARCH GROUP, BEIJING ACADEMY OF SOCIAL…

Economic growth in central China has generally accelerated, and the

growth rate is strong. Prior to 2014, the economic growth rate of the
central region had been consistently a double-digit figure. In 2014, the
rate dropped to 8.4%, and in the first half of 2017, it fell to 8.0%. There
are also significant differences in the economic growth rates of various
central Chinese provinces. Jiangxi leads the central region with a growth
rate of 9% (fifth highest in the country), followed by Anhui (8.7%), Henan
(8.2%), and Hubei (7.8%), which are ranked 6th, 8th, and 13th in the
country, respectively. The economic growth rate in Hunan (7.6%) is also
higher than the national average. Although Shanxi (6.9%) had the lowest
economic growth rate among the provinces in the central region, the rate
was still higher compared to the first quarter. Central China has been able
to turn in a strong economic performance due to China’s implementation
of the strategy of the rise of Central China. Compared to eastern China,
the central region has undertaken many industrial transfers in recent years.
At the same time, it has received support from the central government in
the form of the relevant policies. Numerous factors have contributed to
the rapid economic development in the central region, which has been
faster than that in the eastern region for many years.
The economic growth rate in the western region is still at the top of the
“Four Major Regions”, though differences between different parts of the
region are significant. Judging from the economic growth rates of the 31
provinces, the economic growth rate in the western region leads the coun-
try. In addition, five western provinces are also among the top ten in the
country. In the first half of 2017, Tibet’s economic growth rate was the
fastest at 10.8%; it was followed by Chongqing, Guizhou, and Yunnan at
10.5%, 10.4%, and 9.5%, respectively, ranking them second, third, and
fourth in the country. They were then followed by Ningxia, Sichuan, and
Shaanxi, with economic growth rates of 8.6%, 8.2%, and 8.2%, respec-
tively. Inner Mongolia and Gansu had the lowest economic growth rates
of 6.6% and 5.0%, respectively. The above analysis shows that there is a mix
of accelerating, declining, and stable economic growth in western China.
Since efforts have been made across the country to eliminate excess pro-
duction capacity and inventory and to accelerate economic transforma-
tion, despite the support of national policies in the western region,
resource-based provinces still face greater development pressure. In the
future, more targeted policies2 should be introduced to create conditions
for the long-term sustainable development of the region.
2
http://finance.ifeng.com/a/20170108/15129744_0.shtml.
 1 CHINA’S REGIONAL ECONOMIES IN 2017 AND OUTLOOK FOR 2018 9

Fig. 1.1 GDP growth rates across China

While the economic growth in northeast China is comparatively slow,

there have been signs of recovery. The GDP growth rate in this region was
4.1%, showing a clear sign of steady recovery. In the first half of 2017, the
economic growth of Jilin and Heilongjiang accelerated as compared with
the first quarter. Liaoning moved from a negative economic growth in
2016 to a positive growth rate of 2.1% in the first half of 2017. The H1
GDP data for the three northeastern provinces also show signs of eco-
nomic recovery. This is mainly due to the fact that in the past few years,
due to the sluggish economy in the northeast region, a series of measures
targeted at various economic weaknesses have been launched. The effects
of these measures can already be seen (see Fig. 1.1).

1.1.2 T
 he Shares of the Eastern and Northeastern Regions in Total
National Output Decline Slightly, While the Shares
of the Central and Western Regions Continue to Rise
According to data from 2005 to the first half of 2017, total GDP of east-
ern China increased from RMB10,315.36 billion in 2005 to
RMB40,373.37 billion in 2016, registering RMB20,877.47 billion in H1
2017; the region’s share of the country’s total GDP began to decline in
2007, though the trend reversed in 2015, reaching 52.3% in 2016 and
then further increasing to 54.2% in the first half of 2017. In central China,
10 REGIONAL ECONOMY RESEARCH GROUP, BEIJING ACADEMY OF SOCIAL…

Fig. 1.2 GDP of the Four Major Regions as a share of China’s GDP

a steady upward trend has been seen in GDP, that rose from RMB3491.12
billion in 2005 to RMB15,911.32 billion in 2016, with a H1 2017 per-
formance of RMB7963.91 billion. The region’s share of the national
economy has also shown a steady upward trend. In 2005, the region
accounted for 18.8% of the national total, with the figure rising to 20.6%
in 2016 and then to 20.7% in the first half of 2017. In the western region,
a decline occurred in the first half of 2017 following sustained growth of
GDP for many years, with a rate that was one percentage point lower than
the 2016 figure. Since 2015, the northeast region’s share of the country’s
total GDP has declined, from 8.6% in 2005 to 8.0% in 2015, and then
further to 6.8% in 2016 and 5.9% in the first half of 2017. The economic
downturn in the northeast region is still very obvious, and its share of the
national GDP has shrunk year by year (see Fig. 1.2 and Table 1.2).
Among the various provinces, in the first half of 2017, the eastern prov-
inces had the greatest economic weight, ranking top in the nation in terms
of GDP. Guangdong, Jiangsu, Shandong, and Zhejiang were the top four
provinces in China, and H1 GDP in both Guangdong and Jiangsu
Provinces exceeded RMB4 trillion. Six of the top ten provinces by GDP in
the country were in eastern China.3 The top ten rankings by GDP in the
first half of 2017 did not change much. The top six were Guangdong,
Jiangsu, Shandong, Zhejiang, Henan, and Hebei. The biggest changes

3
https://wallstreetcn.com/articles/3022931.
Table 1.2 GDP of the Four Major Regions as a share of China’s GDP (units: RMB100 million, %)
Year Eastern China Central China Western China Northeast China

GDP As a percentage GDP As a percentage of GDP As a percentage GDP As a

of the national the national total of the national percentage
total total of the
national
total

2005 103,153.6 55.5 34,911.2 18.8 31,806.8 17.1 16,024.2 8.6

2006 120,799.4 55.5 40,636.5 18.7 37,719.9 17.3 18,500.8 8.5
2007 147,571.5 55.1 50,762.9 18.9 47,117.8 17.6 22,567.2 8.4
2008 171,457.7 54.0 60,848.0 19.2 57,458.8 18.1 26,987.2 8.5
2009 186,086.8 53.8 66,775.6 19.3 63,353.8 18.3 29,413.0 8.5
2010 217,086.6 53.1 80,553.9 19.7 76,178.6 18.6 35,083.9 8.6
2011 251,937.9 52.1 97,018.4 20.1 93,048.5 19.2 42,118.7 8.7
2012 274,111.9 51.3 107,732.6 20.2 105,542.7 19.7 46,789.2 8.7
2013 301,065.6 51.2 118,544.6 20.2 117,662.6 20.0 50,746.0 8.6
2014 325,448.6 51.2 128,881.7 20.3 128,372.8 20.2 53,435.7 8.4
2015 348,640.0 51.5 137,642.4 20.3 136,086.0 20.1 54,339.7 8.0
2016 403,733.7 52.3 159,113.2 20.6 156,528.5 20.3 52,310.2 6.8
H1 208,774.7 54.2 79,639.1 20.7 74,144.1 19.3 22,529.1 5.9
2017

Source: Websites of the respective provincial/autonomous region/municipal bureaus of statistics

1 CHINA’S REGIONAL ECONOMIES IN 2017 AND OUTLOOK FOR 2018
11
12 REGIONAL ECONOMY RESEARCH GROUP, BEIJING ACADEMY OF SOCIAL…

occurred in the provinces outside of the top ten rankings. The GDP of
Anhui for H1 2017 exceeded that of Beijing, making it the 12th largest
province in the country. Shaanxi’s GDP exceeded Tianjin’s (RMB938.687
billion), placing the province in 15th place overall. The GDPs of
Guangdong and Jiangsu both exceed RMB4 trillion, while that of
Shandong is more than RMB3 trillion. In the RMB2-trillion club are
Zhejiang and Henan, and the top 14 provinces (including Hebei and
Sichuan) have a GDP of over RMB1 trillion each.4

1.2  In-Depth Implementation of, and Positive Results from,

the Belt and Road Initiative Alongside the Beijing-Tianjin-Hebei
Coordinated Development Strategy and the Yangtze River
Economic Belt Development Strategy
In 2017, the Belt and Road Initiative has been implemented in an in-­
depth manner in coordination with the Beijing-Tianjin-Hebei Coordinated
Development Strategy and the Yangtze River Economic Belt Development
Strategy. Efforts at poverty alleviation have achieved remarkable results,
and new progress has been made in the areas of environmental protection
and management.

1.2.1 The Sustained Advancement of the Belt and Road Initiative

It has been four years since the Belt and Road Initiative was proposed.
China has established extensive partnerships with the regions along the
Belt and Road, and has built 56 economic and trade cooperation zones in
more than 20 countries alongside. In China, the Belt and Road Initiative
is deeply integrated with efforts at deepening reform across the board, and
has played an important role in the building of a new regional economic
structure and promoting balanced regional development in China. China’s
four major regions are working to support the Belt and Road Initiative in
such areas as infrastructure connectivity, energy supply, storage and pro-
cessing, multi-faceted trade cooperation, and cultural exchange and to
partner countries along the Belt and Road. In general, progress has been
relatively smooth. Specifically, first, the eastern region has been utilizing
its geographical and port advantages in such endeavors, and rapid progress
has been made in such areas as foreign trade and transportation. Jiangsu
has established an innovative multi-channel cooperation model, with

4
http://www.stcn.com/2017/0801/13528683.shtml.
 1 CHINA’S REGIONAL ECONOMIES IN 2017 AND OUTLOOK FOR 2018 13

investments in industry parks in Cambodia, Ethiopia, and other countries

and the integration of coastal ports along the Yangtze River. In Zhejiang,
there has been remarkable progress made in the building of the Zhejiang
Jianghai Intermodal Service Center, a cross-border e-commerce experi-
mental zone and overseas cooperation zones. Fujian Province has invested
in the development of offshore fishing and stone processing industries in
Southeast Asian and African countries, and actively promoted the “going
out” of Fujian’s specialty industries such as ceramics, clothing, and furni-
ture industries. The Shanghai, Zhejiang, and Fujian Pilot Free Trade
Zones continue to explore new modes of inter-regional cooperation in
order to become an important engine for China’s efforts at opening up on
all fronts. Second, the combination of location and resources in the west-
ern border and the northeast border regions has led to remarkable achieve-
ments in capacity export, trade cooperation, cultural exchanges, and
infrastructure. For example, China, Mongolia, and Russia have cooper-
ated smoothly in the areas of transportation, ecology, and port construc-
tion. Construction has started on economic cooperation zones, the
Manzhouli Comprehensive Bonded Zone, Ceke Port Cross-Border
Railway, the Moscow-Kazan High-Speed Railway, and other projects, and
some projects have officially begun operations. The China-Central Asia-­
Western Asia Economic is under construction, and bilateral cooperation
agreements have been signed with countries along the route. Work on
certain natural gas pipelines, tunnels, thermal power plants, and high-­
speed rail projects have begun, and some of these are already in operation.
As for the construction of the China-Pakistan Economic Corridor, proj-
ects such as those for coal-fired power stations, highways, ports, hydro-
power stations, nuclear power plants are progressing steadily. As for the
Bangladesh-China-India-Myanmar Economic Corridor, oil and gas pipe-
lines, construction has begun on industrial park and deep-water port proj-
ects. Third, the central region has taken the lead in infrastructure
development and promoted the integration of transportation networks by
improving railway, water, and aviation channels, thus providing greater
convenience in foreign trade between the central region and the countries
along the Belt and Road. This has in turn driven the economic growth of
the central region to a certain extent.

1.2.2  Good Start in Efforts Towards Coordinated Development

A
in the Beijing-Tianjin-Hebei Region
Efforts towards the coordinated development of the Beijing-Tianjin-­
Hebei region have accelerated following the introduction of the Beijing-­
14 REGIONAL ECONOMY RESEARCH GROUP, BEIJING ACADEMY OF SOCIAL…

Tianjin-­Hebei Coordinated Development Plan in June 2015. Over the

three years, the pace of integration in key areas and for non-capital city
functions and public services has accelerated. A strong start has been
achieved, and breakthroughs have been made in certain areas. Specifically,
first, rapid progress has been made in the three key areas of transportation,
ecology, and industry. In the past three years, the pace of transportation
integration in Beijing, Tianjin, and Hebei has accelerated, and the
800 kilometers of non-through roads have been opened. It is now possible
to travel between Beijing and Tianjin within one hour, and the same trans-
portation card can be used in all prefecture-level cities in the Beijing-­
Tianjin-­Hebei region. The Tianjin-Hebei Protected Forest has expanded
by 100,000 mu, and 335 general manufacturing and polluting enterprises
have been shut down in the Beijing-Tianjin area. New innovations con-
tinue to come online with regard to environmental governance in the
Beijing-Tianjin-Hebei region, and environmental protection standards are
constantly being integrated. The Standard for Volatile Organic Compound
Levels in Architectural Coatings and Adhesives, the first standard for the
region, has been established. Innovative new mechanisms for environmen-
tal monitoring and interfacing with law enforcement are also constantly
being put in place. The number of Beijing-based enterprises moving out
of the city and the number of industrial transfers from Beijing and Tianjin
to Hebei have been on the rise. In 2016, Beijing’s enterprises invested a
total of RMB170 billion in Tianjin, with Hebei’s enterprises investing
another RMB29.4 billion. Hebei has received RMB382.5 billion in invest-
ment from Beijing and Hebei, and completed 103 key tasks for the
Beijing-Tianjin-Hebei region. Second, significant progress has been made
in the area of relieving Beijing of non-capital functions. Construction
work on the Beijing “sub-center” has been accelerated, and the construc-
tion of the first phase of the administrative office zone has been more or
less completed. The zone is able to accommodate Beijing’s municipal
organs and certain administrative agencies which are set to relocate in end-­
2017. Since 2014, 433 commodity trading markets have been dismantled,
and 3 major wholesale markets (the Beijing Zoo Wholesale Market, the
Dahongmen Wholesale Market, and the Tianyi Wholesale Market) have
also moved out. Third, planning and construction work for the
­establishment of the Xiong’an New Area has advanced steadily. On April
1, 2017, the CPC Central Committee with Comrade Xi Jinping as the core
decided to set up a national-level new area, the Xiong’an New Area, in an
area that includes Xiong County, Rongcheng, and Anxin in Hebei Province.
 1 CHINA’S REGIONAL ECONOMIES IN 2017 AND OUTLOOK FOR 2018 15

Xiong’an is to serve as an important vehicle for efforts to relieve Beijing of

functions non-essential to its role as the capital city of China and urban
population transfers. It has been strategically positioned as a green and
livable new urban area that is innovation-driven and served by open devel-
opment. The establishment of the New Area is a key part of China’s
attempts to promote coordinated regional development, to optimize the
urban structure of the Beijing-Tianjin-Hebei region, and to establish an
innovation-driven development model. To date, approval has been granted
for the establishment of the Xiong’an New Area Working Committee of
the CPC and the Xiong’an New Area Management Committee, and the
urban master plan is also being developed. Fourth, the Beijing-Tianjin-­
Hebei region is working to explore new modes of cooperation, and the
integration of public services in the fields of healthcare, education, and
poverty alleviation is occurring at a quicker pace. For instance, two-way
healthcare referrals and a collaborative development model are now in
place in the region. Through key cooperation projects in healthcare,
Beijing has sent more than 1000 doctors and has received patients on
more than 70,000 instances. Beijing and Hebei have also taken the lead in
realizing the direct cross-settlement of medical insurance claims. Efforts to
link the education systems of the Beijing-Tianjin-Hebei region are also
progressing smoothly. Beijing has signed 21 educational cooperation
agreements involving around 30 projects with Tianjin and Hebei, achiev-
ing the sharing of educational resources and information exchange. Beijing
and Tianjin continue to strengthen their support for severely impover-
ished areas in northern Hebei and have established assistance mechanisms.

1.2.3 Positive Developments with the Yangtze River Economic Belt

The building of the Yangtze River Economic Belt is an important measure
for China as it seeks to promote coordinated regional development and to
create a new economic growth belt. Broadly speaking, relatively smooth
progress has been made with the Yangtze River Economic Belt strategy.
There has been faster economic growth in the 11 provinces and munici-
pality along the Yangtze River, and the quality of economic development
continues to improve. Breakthroughs have been made in the areas of eco-
logical conservation, the building of transportation corridors, and the
­promotion of openness and inter-regional cooperation. Specifically, first,
the provinces and municipality involved have worked actively to promote
environmental governance along the Yangtze River, and the environment
of the Yangtze River Basin has improved significantly. Hunan, Hubei,
16 REGIONAL ECONOMY RESEARCH GROUP, BEIJING ACADEMY OF SOCIAL…

Jiangxi, Shanghai, and so on have formulated environmental protection

plans for the Yangtze River Basin and improved ecological compensation
mechanisms for the Basin. Projects related to environmental governance
such as those pertaining to the management of air pollution, forest protec-
tion, vegetation restoration, and urban and rural sewage and domestic
garbage treatment have been initiated, alongside special rectification work
targeted at illegal docks on the trunk Yangtze waterway and illegal sand
mining, and chemical pollution along the River was carried out, and
remarkable results have been achieved. As of 2017, the water quality of the
Yangtze River Basin has continued to improve, and the forest coverage
rate has increased to 41.5%. The efficiency of energy utilization is gradu-
ally being improved, and significant results have been achieved in terms of
new-energy projects. Second, significant results have also been seen from
efforts to building of the Yangtze River “Golden Waterway” and transpor-
tation corridor. Transportation capacity has been steadily improved. For
instance, navigation has begun along the 12.5-meter deep-water channel
downstream of Nanjing, and construction has also begun on the Hanjiang
Pass shipping hub and other projects. The Yangtze River vessel standard-
ization project has realized the cumulative completion of the dismantling
and transformation of 1128 inland navigation vessels. The construction of
modern port areas such as in Chongqing, Wuhan, and Nanjing continues
to advance, and projects including the Shanghai-Kunming high-speed
railway line and the Zhejiang Jiande-to-Kaihua highway have been com-
pleted. Since 2012, fixed-asset investment in the transportation, ware-
housing, and postal industries of the Yangtze River Economic Belt has
continued to grow, with the cumulative amount standing at some RMB900
billion. 40,000 kilometers of railway tracks and around 90,000 kilometers
of inland waterways are in operation, alongside close to 50,000 kilometers
of expressway roads. Third, the five major free trade zones have promoted
the formation of a two-way open structure in the Yangtze River Economic
Belt. The Yangtze River Economic Belt includes five free trade zones in
Shanghai, Zhejiang, Hubei, Chongqing, and Sichuan, and the GDP of the
respective provinces constitutes almost half of the GDP of the entire
Yangtze River Economic Belt. A two-way, east-west open structure has
been established, with the city of Shanghai driving the entire length of the
Yangtze River, the middle reaches of the Yangtze River by Wuhan, and the
upper reaches of the Yangtze River by Chongqing, in order to promote
the coordinated and balanced development of the upper, middle, and
 1 CHINA’S REGIONAL ECONOMIES IN 2017 AND OUTLOOK FOR 2018 17

lower reaches of the Yangtze River Basin. Fourth, an early stage inter-­
provincial cooperation and coordination framework for the Yangtze River
Economic Belt has been established. The provinces and municipality along
the Yangtze River have signed agreements on consultation and coopera-
tion mechanisms between the upper, middle, and lower reaches of the
Yangtze River, thus forming a three-tier, integrated consultation and
cooperation framework. Together, these provinces and municipality work
together in the areas of environmental governance, infrastructure connec-
tivity, and market integration along the Yangtze River Economic Belt. For
example, cooperation agreements have been signed between Sichuan and
Chongqing, Zhejiang and Sichuan, Hubei and Chongqing, and Guizhou
and Hunan. These agreements lay out the key points and specific tasks of
cooperation between the upper-, middle-, and lower-reach provinces and
municipality, hence providing the basis for comprehensive environmental
governance and industrial cooperation between the upper, middle, and
lower reaches of the Yangtze River.

1.3  
Gradual Improvements in the Regional Innovation System
In 2017, with the in-depth implementation of the strategy of innovation-­
driven development, the Regional Innovation System has gradually
improved, and various government-led industrial parks have become
important pillars of this system. The change of growth engines is speeding
up, and regional economic growth has become increasingly driven by
innovation.

1.3.1 Continued Improvements in the Regional Innovation System

Various government-led industrial parks have become important pillars of
the Regional Innovation System. There has been sustained work on
national high-tech industrial development zones, national independent
innovation demonstration zones, national-level new areas, and innovation-­
based cities, and experiments in comprehensive innovation reforms have
been further advanced.
The national high-tech industrial development zones are an important
source of regional innovation in China, and constitute an important part
of both the national and regional innovation systems. As of end-2016, in
China there are a total of 146 national high-tech zones in 30 provinces,
autonomous regions, and municipalities with the exception of Tibet. In
18 REGIONAL ECONOMY RESEARCH GROUP, BEIJING ACADEMY OF SOCIAL…

the “new economic normal”, the national high-tech zones have main-
tained fairly high growth rates and have become the backbone of regional
economic development. Nationwide, the average economic growth rate of
the national high-tech zones was 17.4% during the 12th Five-Year Plan
Period (2012–2017). In 2016, national high-tech zones recorded operat-
ing incomes totaling RMB28.3 trillion, a total production value amount-
ing to 11.8% of the national GDP, and a total export value amounting to
18.6% of the country’s foreign trade exports. Tax revenue from these
zones made up 12.0% of the national total tax revenue. The national high-­
tech zone works actively to create an environment that is conducive to
innovation and entrepreneurship. Increased investment in, and the stimu-
lation of, innovation have made the national high-tech zone the most
active player in innovation (with a variety of innovation outputs) in the
country. In 2016, research and development-related investment by enter-
prises located in national high-tech zones accounted for 44.3% of the
national total. Comparatively speaking, these enterprises spent 2.9 times as
much on R&D as the rest of the country. Technology contracts concluded
accounted for 26.8% of the national total, with a total value of RMB305.17
billion. In addition, 219.3 invention patents were granted per 10,000
employees, 9.6 times the national average.5
The national independent innovation demonstration zones have a focus
on the implementation of innovation-led development strategies. These
zones have led regional economic development with their goals of leading
technology innovation, operations that are at the head of industry, the
economy, society, and in institutional terms. For instance, the main eco-
nomic indicators of the Hunan Changsha-Zhuzhou-Xiangtan, Wuhan
East Lake, and other national independent innovation demonstration
zones have maintained a growth rate of 30% for a number of years, making
these zones a leading force for regional economic transformation and
development. The Zhongguancun National Innovation Demonstration
Zone has played an innovative and leading role. A total of 229 interna-
tional standards have been created, and cutting-edge industries are being
cultivated in the zone. The zone has also given us major technological
breakthroughs, and established linkages between innovation and industry.
An industrial cluster comprising new-generation enterprises in the areas of
information technology, new materials, new energy, energy conservation

5
Key National High-tech Zones’ Innovation Capacity Keeps Increasing. Guangming
Daily, October 12, 2017.
 1 CHINA’S REGIONAL ECONOMIES IN 2017 AND OUTLOOK FOR 2018 19

and environmental protection, biology, and so on has gradually formed,

and the agglomeration effect of strategic emerging industries has gradually
emerged. The Zhongguancun National Innovation Demonstration Zone
has further enhanced its role of “playmaker” across the country, based on
strategic partnerships with 72 organizations in 26 provinces, autonomous
regions and municipalities across the country, and 23 jointly developed
scientific and technological commercialization centers. Zhongguancun
enterprises have established more than 12,000 branches outside Beijing.6
New development concepts are in practice with the national-level new
areas, along with the nurturing of new development models. These new
areas have become a new engine for regional economic development. As of
October 2017, 19 national-level new areas have been established nation-
wide. In May 2016, the National Development and Reform Commission
issued the Key Points for Institutional Innovations with National-Level
New Areas in 2017, stipulating the key tasks in deepening institutional
reform and innovation with these new areas. In 2017, the focus with the
national-level new areas has been on institutional innovations, identifying
new sources of growth, and improving the quality and efficiency of devel-
opment. For example, institutional innovation has been implemented in
the Nansha New Area of Guangzhou, and 279 innovations have been
introduced. Its new “Cross-Border E-Commerce Supervision Model” and
“Enterprise-Specific Government Service Website” have been named as
“best practices” by the Ministry of Commerce. The Gui’an New Area in
Guizhou is relying on Big Data and the strategy of maximum openness,
working vigorously to develop the IT industry, modern services industry,
“Big Health”, cultural and tourism industries, and high-end equipment
manufacturing industry with the strategic use of Big Data. The Zhoushan
Archipelago New Area in Zhejiang is making efforts to develop its strengths
in maritime-related industries, and in modern areas including modern
maritime logistics, shipping and offshore equipment, maritime tourism,
green petrochemicals, modern aviation, and maritime IT. On April 1,
2017, the CPC Central Committee and the State Council established the
Xiong’an New Area. This is another new area with national significance in
the footsteps of the Shenzhen Special Economic Zone and the Shanghai
Pudong New Area. The Xiong’an New Area is a key area that is expected
to relieve Beijing of its non-capital city functions. Here, a new-generation

6
Ma, Wenliang. Zhongguancun: New Journey in the New Era. Zhongguancun, November
2017.
Another random document with
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 “The best thing in the world for you, mamma,” said Dick, “and jolly for
us, once in a way, to have you all to ourselves.”
What could mortal woman, being the boys’ mother, say more? I am
afraid she would have considered favourably the idea of going to Nova
Zembla, wherever that may be, under such conditions. And Winks, though
he yawned as he listened, thought well of it too; he liked driving, on the
whole, though too much of it bored him, and he had not at all approved
when his mistress “put down” her carriage. They set off next morning in the
brightness of noon, through the country which had not yet lost any of its
beauty, though here and there the trees had yellow patches on them, and the
parks were all burnt brown with the heat of summer. They were a very
merry party, notwithstanding that the final examination was hanging over
Dick’s head, and the parting which must follow. Winks, for his part, after
two or three hours of it, got bored with the levity of the conversation, and
rustled about so, that he was put out of the carriage to run for the good of
his health. He went along for a mile or two, pleased enough, gathering dust
in clouds about him. But when he intimated a desire to be taken in, the
boys, hard-hearted beings, laughed in the face of Winks.
“A run will do you good, old fellow,” said Dick, with cruel satisfaction.
A short time afterwards, I am sorry to say, a dreadful accident, nature
unknown, happened to Winks. He uttered a heart-rending shriek, and
appeared immediately after making his way towards the carriage, holding
up one feathery paw in demonstrative suffering. The anxious party stopped
immediately, and Winks made his way to them, laboriously limping and
uttering plaintive cries. But when, all a-dust as he was, this hypocrite was
lifted into the carriage, holding up the injured member—and was softly laid
upon the softest cushion to have it examined, words fail me to express the
sardonic grin with which he showed his milk-white teeth. There was no
more the matter with the little villain’s paw, my gentle reader, than with
yours or mine.
Never was there a pleasanter two days’ journey than this which Mrs.
Eastwood made with her boys through the sunshiny autumn country, along
the road, where gold-coloured leaves dropped in her lap as they drove her
along, now one on the box, now another, in their turn; till the High Lodge at
last appeared in sight all covered with white downy clusters of clematis
done flowering, with late roses, and matted network of interlacing leaves.
Innocent rushed to the door, slim and pale in her black dress, her eyes
shining with sudden delight, her soft face inspired.
“You have come to take me home. I am Nelly now!” she cried, throwing
her arms about the common mother. Jenny, whom she had not noticed, leant
back upon the carriage, looking at her with eyes that glowed under his dark
brows. He had always stood by Innocent since the day when he had read
Greek to her in the Lady’s Walk; he had always been sure that “something
would come of her.” “We don’t know half what Innocent will come to!” he
repeated now to himself.

GILBERT AND RIVINGTON, PRINTERS, ST. JOHN’S SQUARE, LONDON.

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