Integration to propel capital belt's economy
By Hua Hua (China Daily)
Updated: 2004-03-03 14:47

When the neighbouring Beijing and Tianjin municipalities and Hebei Province reached a consensus recently to undertake co-ordinated development, those following the situation sensed an acceleration of the steps toward regional economic integration and predicted that the rise of the region - known as the third polar of economic growth after the Yangtze River and Pearl River deltas - was near.

According to the agreement, the areas will set out as soon as possible to craft a joint general development plan and special arrangements for key projects. They have pledged co-ordinated steps in infrastructure construction, industrial structuring, resource exploration and environmental protection. A regular consultation system is also proposed.

After years of discussion and anticipation, the three areas have at last resolved to take the initial step for closer economic links. The new development mode, if carried out smoothly, is sure to boost the regional economy spectacularly.

Though ranked among the pioneering areas in the country's reform and opening up drive, together with the Yangtze River Delta with Shanghai at its centre and the Pearl River Delta with Shenzhen and Guangzhou, the Beijing-Tianjin-Hebei economic belt has been far less competitive. Loose economic links are cited as a key hindrance.

Among the local industries in the three areas, which are the country's political centre and traditional industrial bases, State enterprises - for a long time - have constituted a share above the national average. That is to say each of the local governments there retained a strong control over resources.

Nevertheless, this has failed to become a shared advantage to the entire region as strict lines of administrative jurisdiction prevents the areas from forging closer economic links.

Instead, they have more often found themselves in vicious competition, which has not only caused a great waste but also hurt the regional economy as a whole. They have, fortunately, wakened in time.

While competition is becoming more fierce in the two economic bases in the nation's south, more investors are casting their eyes on the third base in the north, the home of enormous potential.

The 2008 Olympic Games in Beijing will serve as a powerful engine for the economic development in the whole region. The total investment for the Games is estimated at 280 billion yuan (US$33.8 billion), which is tempting businesses from home and abroad. Eager to grab a share of the cake, neighbouring Tianjin and Hebei are more willing than before to forge closer links with the national capital.

Beijing and Tianjin have jointly built a logistics centre. A second expressway linking the two cities is reportedly under consideration.

It is expected that the newly forged agreement will herald more practical efforts toward integrated development.

Co-operation between Beijing, Tianjin and Hebei is only the first step. The third economic base is expected to be gradually extended to the whole region along Bohai Bay, including peninsulas in Shandong Province and in eastern Liaoning Province.

Integrated regional development within a country is in line with the trend of economic globalization, which explains the partnership's increased importance. According to the National Development and Reform Commission, which is doing much of the groundwork before the creation of the country's 11th Five-Year Development Plan (2006-11), integrated development in the three economic centres will be included for the first time in the national development strategy, and will be featured prominently.

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