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Chinese Geopolitical History and Urban
Context (Eastern China)
Urban development strategies in an era of global-local interaction




presenter: Dr. Yawei Chen RE&H, Faculty of Architecture, Delft University of Technology

Urbanism, the Sichuan Summer School

20/04/2010

                                                                                          1




Vermelding onderdeel organisatie
Real estate and Housing, Faculty of Architecture
Content


I: China’s development path and urban
  transformation;
II: Urban development and the
  development of urban mega project:
  Pudong as an example;
III: Conclusion.

20-04-2010                              2
China’d Development Path


• Catalyst factor of globalisation;
• Neoliberalisation of Chinese politics with Chinese
  characteristics;
• Space accommodate urban revolution: from state-led
  industrialisation to urban-based accumulation.




20-04-2010                                             3
China’s Development Path




                                       Tokyo
                               Seoul
                              Shanghai

                                Taipei

                            Hong Kong



                Singapore
20-04-2010                                4
Implication for Chinese Urban
Development Process

•    Economic development as central theme;
•    Public sector as initiator;
•    Network strategy and coalition with the market;
•    Selective intervention.




20-04-2010                                             5
China’s Development Path



                                  Beijing-Bohai
                                  Beijing-
                                   Bay Region




                                    Yangtze River
                                     Delta Region
                Chengdu-
                Chengdu-
             Chongqing region




                         Pearl Delta
                         River Region
20-04-2010                                          6
Consequence of China’s Development
Path

• Dynamic, energetic, with diversified economic, social,
  and cultural activities;
• Great social, economic, and spatial differentiation and
  inequalities;
• Loosened registration system and unprecedented
  massive rural-urban migration;
• Impact of foreign and domestic investment on urban
  economic production and consumption;
• New pattern of housing development and urban
  community formation.
20-04-2010                                              7
II. Shanghai Pudong Development
Pudong before 1990




20-04-2010                        8
Shanghai Pudong Development



Pudong 1900




Pudong 1990: 35000 ha
20-04-2010                                 9
Shanghai Pudong Development 2009

      What development strategies are
   adopted in Shanghai Pudong New Area
     to transform a large-scale harbour
      industrial area into the economic
    powerhouse of Shanghai so rapidly?




Pudong 2009: 121041 ha
  20-04-2010                              10
SWOT Analysis


• Strength: market potential; high-rate economic growth;
  national economic engine; well-educated population;
• Weakness: lack of investment; lack of advanced
  knowledge and know-how; urban decay and spatial
  deterioration; lack of accessibility and mobility;
• Potential: political and social support; Chinese global
  business network; accessibility to global finance,
  information and know-how;
• Threat: institutional barriers; interest conflicts.

20-04-2010                                            11
20-04-2010   12
Vision


• Change in initiatives:
   • Reducing the density of overcrowded Puxi;
   • Readjusting urban structure;
   • “Dragon head” of Yangtze Delta and Yangtze River Valley;
• Goal:
   • Pudong: “reshape Shanghai as economic centre and
     international metropolitan” ; “Build an international-
     standard, multi-functional new district with open and
     modern image”. (Master Plan of Pudong 1992).
 20-04-2010                                            13
Developmental Goal
                          Waigaoqiao Free-
                          trade Zone(10 km2)




                         Jinqiao Export Processing
                         Zone (24 km2)



                         Zhangjiang High-tech
                         Park (10 km2)
Lujiazui Financial and
Trade Zone (28 km2)

    20-04-2010                                       14
Actor Synergy


•    Pudong as a Special Economic Zone:
      • Focus on service sector and high tech;
      • Preferential policies to attract FDI;
      • SEZ prestige status: more autonomy at local level;
      • Priority zones with priority functions.
•    Local state as an initiator, promoter, mediator and later an
     enabler;
•    Central state as facilitator and coordinator: force collaboration
     between different levels of governments for national interest;
•    Chinese global business network, global investors and FDI;
•    Multinational organisations, foreign governments;
•    Global architect firms and international design competition.

20-04-2010                                                               15
Organisational & Administrative
Efficiency

•    Development companies:
      • Main players; business oriented;
      • Subsidiaries handle different phases of land and infrastructure
         development: increase efficiency;
•    Institutional adaptation:
      • Revision of approval procedures: one stop system;
      • Legal adaptation: establish market-facilitating laws, regulation
         and policies;
      • Formal/informal communication channels;
•    Human resources: mobilize talented and expertise globally;
•    Gradual approach but result-oriented: test what work.

20-04-2010                                                           16
Active Land Policy


•    Land as income generator:
      • Land owned by the state;
      • Land use right commercialized;
•    Development companies as organisational agency: e.g. :
     Shanghai Lujiazui FTZ Development (Group) Company Ltd (SLDC);
•    Land development:
      • Joint venture with private sector;
      • Bank loan with land as deposit;
      • Sell land use right to smaller developers;
      • Listing in securities;
      • Land banking.

20-04-2010                                                     17
Accessibility Upgrading


• Increase investment in infrastructure sector;
• Development strategy:
   • Improve Pudong-Puxi connection;
   • Improve fast transportation networks within and
     beyond metropolitan region;
   • Improve linkage to the outside world;
• Organisation structure.



20-04-2010                                             18
Transportation system




20-04-2010              19
Multi-channel Financial Mechanism


Sources of investment in fixed asset in Pudong (1990-2004)
    1000
     900
     800
                                             Other sources
     700
                                             Fund-raising
     600
                                             Foreign investment
     500
     400                                     Domestic loans

     300                                     State budgetary fund

     200
     100
        0
                     92

                     93

                     94

                     95

                     96

                     97

                     98

                     99

                     00

                     01

                     02

                     03

                     04
       90

              91
                   19

                   19

                   19

                   19

                   19

                   19

                   19

                   19

                   20

                   20

                   20

                   20

                   20
     19

            19




 20-04-2010                                                       20
PPP/ Complex Global-local Connection
              Chinese global business network :                Multinational
                                                               organizations:
              Hong Kong, Taiwan, Singapore, etc.
                                                               ADB, World Bank,
                                                               UNDP, etc.
•Decision-making;
                                                     Ministries
•Land;                                  Shanghai
•Infrastructure;              Pudong

•Real estate;          Region               LG            CG
                                 District    Local                  Global
•Finance.
                                                     China

   International developer: Capitaland, Kerry;                 Foreign
   Chiatai Group; Morri Building; etc.                         governments:
                                                               France, Japan,
   MNC: Hutchison Whampoa; Philips, GE, JVC;                   Germany, etc.
   Volvo; GM; Toyota; ABN-AMRO; etc.
 20-04-2010                                                                  21
From Development to Urban Quality

State Level Date        Plann   Devel-    Invested in    No of   Contract investment
Developme open          ed      oped area fixed assets   proje   (US$ millions)
nt Zones                area    (sq. km)  (million       cts     Foreign   Non -       Shanghai
                        (sq.              yuan)                            Shanghai
                        km)
Lujiazui
                 1990    28       14.50      1718.51      106     30.10      21.81       52.51

Jinqiao
                 1990    20       23.72       623.27      620    114.13      7.52        6.87

Waigaoqia
                 1990    10       8.50        263.74     8064     85.75
o
Zhangjian
                 1992    25       17.00       587.26      938     78.76      8.50        13.98
g
Total                   83        63.72      3192.78     9728    435.73      37.83       73.36

    20-04-2010                                                                            22



Key Development Zones in Pudong (1990-2004)
From Development to Urban Quality
Emerging Strategy

                                  GDP grow th in Shanghai and sector division (1978-2008)

             10 0 m i l l i o n Yu a n

                14 000,00
                12 000,00
                10 000,00
                   8 000,00
                                                                                            Tertiary industry
                   6 000,00
                                                                                            Secondary industry
                   4 000,00
                                                                                            Primary industry
                   2 000,00
                          0,00
                              1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008
                                                            Year




20-04-2010                                                                                                      23
20-04-2010   24
World Expo 2010, Shanghai




20-04-2010                  25
Pudong’s Urban Strategy


•    Urban strategies:
      • Developmental goal;
      • Actor synergy;
      • Organizational and administrative efficiency;
      • Active land policy;
      • Multi-channel financial mechanism;
      • Local-global articulation: information and financial flow
      • Selective strategy;
      • Strategies in transition: bold and creative!
•    Local-global articulation:
      • information flow;
      • financial flow.

20-04-2010                                                          26
China amazes you!
              Enjoy your trip…




20-04-2010                       27

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P01 l01 a-yawei_cheng_-_chinese_geopolitical_history_and_urban_context_(eastern_china)

  • 1. Chinese Geopolitical History and Urban Context (Eastern China) Urban development strategies in an era of global-local interaction presenter: Dr. Yawei Chen RE&H, Faculty of Architecture, Delft University of Technology Urbanism, the Sichuan Summer School 20/04/2010 1 Vermelding onderdeel organisatie Real estate and Housing, Faculty of Architecture
  • 2. Content I: China’s development path and urban transformation; II: Urban development and the development of urban mega project: Pudong as an example; III: Conclusion. 20-04-2010 2
  • 3. China’d Development Path • Catalyst factor of globalisation; • Neoliberalisation of Chinese politics with Chinese characteristics; • Space accommodate urban revolution: from state-led industrialisation to urban-based accumulation. 20-04-2010 3
  • 4. China’s Development Path Tokyo Seoul Shanghai Taipei Hong Kong Singapore 20-04-2010 4
  • 5. Implication for Chinese Urban Development Process • Economic development as central theme; • Public sector as initiator; • Network strategy and coalition with the market; • Selective intervention. 20-04-2010 5
  • 6. China’s Development Path Beijing-Bohai Beijing- Bay Region Yangtze River Delta Region Chengdu- Chengdu- Chongqing region Pearl Delta River Region 20-04-2010 6
  • 7. Consequence of China’s Development Path • Dynamic, energetic, with diversified economic, social, and cultural activities; • Great social, economic, and spatial differentiation and inequalities; • Loosened registration system and unprecedented massive rural-urban migration; • Impact of foreign and domestic investment on urban economic production and consumption; • New pattern of housing development and urban community formation. 20-04-2010 7
  • 8. II. Shanghai Pudong Development Pudong before 1990 20-04-2010 8
  • 9. Shanghai Pudong Development Pudong 1900 Pudong 1990: 35000 ha 20-04-2010 9
  • 10. Shanghai Pudong Development 2009 What development strategies are adopted in Shanghai Pudong New Area to transform a large-scale harbour industrial area into the economic powerhouse of Shanghai so rapidly? Pudong 2009: 121041 ha 20-04-2010 10
  • 11. SWOT Analysis • Strength: market potential; high-rate economic growth; national economic engine; well-educated population; • Weakness: lack of investment; lack of advanced knowledge and know-how; urban decay and spatial deterioration; lack of accessibility and mobility; • Potential: political and social support; Chinese global business network; accessibility to global finance, information and know-how; • Threat: institutional barriers; interest conflicts. 20-04-2010 11
  • 13. Vision • Change in initiatives: • Reducing the density of overcrowded Puxi; • Readjusting urban structure; • “Dragon head” of Yangtze Delta and Yangtze River Valley; • Goal: • Pudong: “reshape Shanghai as economic centre and international metropolitan” ; “Build an international- standard, multi-functional new district with open and modern image”. (Master Plan of Pudong 1992). 20-04-2010 13
  • 14. Developmental Goal Waigaoqiao Free- trade Zone(10 km2) Jinqiao Export Processing Zone (24 km2) Zhangjiang High-tech Park (10 km2) Lujiazui Financial and Trade Zone (28 km2) 20-04-2010 14
  • 15. Actor Synergy • Pudong as a Special Economic Zone: • Focus on service sector and high tech; • Preferential policies to attract FDI; • SEZ prestige status: more autonomy at local level; • Priority zones with priority functions. • Local state as an initiator, promoter, mediator and later an enabler; • Central state as facilitator and coordinator: force collaboration between different levels of governments for national interest; • Chinese global business network, global investors and FDI; • Multinational organisations, foreign governments; • Global architect firms and international design competition. 20-04-2010 15
  • 16. Organisational & Administrative Efficiency • Development companies: • Main players; business oriented; • Subsidiaries handle different phases of land and infrastructure development: increase efficiency; • Institutional adaptation: • Revision of approval procedures: one stop system; • Legal adaptation: establish market-facilitating laws, regulation and policies; • Formal/informal communication channels; • Human resources: mobilize talented and expertise globally; • Gradual approach but result-oriented: test what work. 20-04-2010 16
  • 17. Active Land Policy • Land as income generator: • Land owned by the state; • Land use right commercialized; • Development companies as organisational agency: e.g. : Shanghai Lujiazui FTZ Development (Group) Company Ltd (SLDC); • Land development: • Joint venture with private sector; • Bank loan with land as deposit; • Sell land use right to smaller developers; • Listing in securities; • Land banking. 20-04-2010 17
  • 18. Accessibility Upgrading • Increase investment in infrastructure sector; • Development strategy: • Improve Pudong-Puxi connection; • Improve fast transportation networks within and beyond metropolitan region; • Improve linkage to the outside world; • Organisation structure. 20-04-2010 18
  • 20. Multi-channel Financial Mechanism Sources of investment in fixed asset in Pudong (1990-2004) 1000 900 800 Other sources 700 Fund-raising 600 Foreign investment 500 400 Domestic loans 300 State budgetary fund 200 100 0 92 93 94 95 96 97 98 99 00 01 02 03 04 90 91 19 19 19 19 19 19 19 19 20 20 20 20 20 19 19 20-04-2010 20
  • 21. PPP/ Complex Global-local Connection Chinese global business network : Multinational organizations: Hong Kong, Taiwan, Singapore, etc. ADB, World Bank, UNDP, etc. •Decision-making; Ministries •Land; Shanghai •Infrastructure; Pudong •Real estate; Region LG CG District Local Global •Finance. China International developer: Capitaland, Kerry; Foreign Chiatai Group; Morri Building; etc. governments: France, Japan, MNC: Hutchison Whampoa; Philips, GE, JVC; Germany, etc. Volvo; GM; Toyota; ABN-AMRO; etc. 20-04-2010 21
  • 22. From Development to Urban Quality State Level Date Plann Devel- Invested in No of Contract investment Developme open ed oped area fixed assets proje (US$ millions) nt Zones area (sq. km) (million cts Foreign Non - Shanghai (sq. yuan) Shanghai km) Lujiazui 1990 28 14.50 1718.51 106 30.10 21.81 52.51 Jinqiao 1990 20 23.72 623.27 620 114.13 7.52 6.87 Waigaoqia 1990 10 8.50 263.74 8064 85.75 o Zhangjian 1992 25 17.00 587.26 938 78.76 8.50 13.98 g Total 83 63.72 3192.78 9728 435.73 37.83 73.36 20-04-2010 22 Key Development Zones in Pudong (1990-2004)
  • 23. From Development to Urban Quality Emerging Strategy GDP grow th in Shanghai and sector division (1978-2008) 10 0 m i l l i o n Yu a n 14 000,00 12 000,00 10 000,00 8 000,00 Tertiary industry 6 000,00 Secondary industry 4 000,00 Primary industry 2 000,00 0,00 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 Year 20-04-2010 23
  • 25. World Expo 2010, Shanghai 20-04-2010 25
  • 26. Pudong’s Urban Strategy • Urban strategies: • Developmental goal; • Actor synergy; • Organizational and administrative efficiency; • Active land policy; • Multi-channel financial mechanism; • Local-global articulation: information and financial flow • Selective strategy; • Strategies in transition: bold and creative! • Local-global articulation: • information flow; • financial flow. 20-04-2010 26
  • 27. China amazes you! Enjoy your trip… 20-04-2010 27