I. Brief Introduction to the Development of the Tianjin New Coastal District

Actively implementing the strategic arrangement of the Central Committee of the CPC and the State Council for reform and opening-up, the Tianjin Municipal Committee of the CPC and the Tianjin Municipal People's Government made the strategic decision of developing and constructing the Tianjin New Coastal District (abbreviated as TNCD and also known as Binhai New Area) in line with the conditions of Tianjin, with an aim to serve the economic development of the circum-Bohai region and China's north. Through ten-odd years of hard work, Tianjin has embraced a significant historic opportunity. The proposals on the Eleventh Five-Year Plan and the Outline of the Eleventh Five-Year Plan approved at the Fifth Plenary Session of the Sixteenth Central Committee of the CPC and the Fourth Plenary Session of the Tenth National People's Congress explicitly pointed out that efforts would be made to "promote the development and opening-up of the TNCD" and include the TNCD into the national development strategy. The State Council issued the Suggestion of the State Council of the People's Republic of China on the Related Issues of Promoting the Development and Opening-up of the Tianjin New Coastal District (No.[2006]20 of the State Council). The Tianjin Municipal Committee of the CPC held the Eighth Plenary Session of the Eighth Tianjin Municipal Committee of the CPC and made all-around arrangement accordingly. Both mark that the TNCD has officially been granted a state-level status.

Located in the eastern coast of Tianjin, the TNCD comprises such three administrative regions as Tanggu District, Hangu District and Dagang District and such three functional zones as Tianjin Economic-Technological Development Area (TEDA), Tianjin Port Free Trade Zone (TPFTZ) and Tianjin Port as well as parts of Dongli District and Jinnan District. The TNCD boasts a planning area of 2,270 km2, coastline of 153 km and a permanent population of 1.4 million.

After over a decade of development and construction, the TNCD has made remarkable achievements. Its GDP has increased from 11.2 billion yuan in 1993 to 160.863 billion yuan in 2005, with an annual average growth rate of 20.6%, and its per capita GDP has reached US$ 14,200. Its financial revenue has risen from 2.36 billion yuan to 31.72 billion yuan, up by 12.4 times. Its foreign trade export value has surged from US$ 500 million to US$ 18.5 billion, up by 36 times. Its accumulatively actually utilized overseas investment has totaled US$ 15.9 billion. Over 70 multinational corporations from Fortune Global 500 have set up 152 companies in the TNCD. Therefore, the TNCD has become one of the districts with the highest profit margin for overseas investors in China.

After many years of development and construction, the TNCD has fostered comparative advantages in many aspects, which are of great strategic significance for promoting balanced economic development across the country.

1) Geographic Advantages

The TNCD lies in the center of the circum-Bohai region, sharing similar strategic importance with Shenzhen in the Pearl River Delta and Pudong of Shanghai in the Yangtze River Delta. Acting as the gateway to the three northern regions (China's northeast, central north and northwest), with the support from Beijing, Tianjin and Hebei Province, facing Northeast Asia, especially Japan and South Korea across the sea, the TNCD is the eastern terminus of the Eurasian Continental Bridge in the north of China, providing access to such neighboring inland countries as the Republic of Mongolia and Kazakhstan to the sea. As the gateway to a vast hinterland covering 12 provinces, cities and autonomous regions in the north, the TNCD boasts outstanding geographic advantages. The development and opening-up of the TNCD will be helpful for China's eastern regions to take the lead in attaining modernization so as to give impetus to the development of central and western regions, the three northern areas in particular, forming a coordinated regional development pattern in which the eastern, central and western regions can better interact, complement and support each other, and develop together.

2) Functional Advantages

The TNCD integrates the functions of a port, an economic-technological development area, high-tech industrial parks, an export processing zone and a free trade zone. It is an important window for China to participate in economic globalization and regional economic integration. The Tianjin Port, the largest international trade port, has its cargo handling capacity listed in the world's top ten and has trade relations with more than 300 ports of over 170 countries and regions. In 2005 it handled 241 million tons of cargo and 4.8 million TEUs. Over 70% of imported and exported cargo in the port comes from Beijing, Hebei Province, Shanxi Province, Inner Mongolian Autonomous Region, etc, and over 60% of containers in the port are from the three northern regions. In 2005 its import and export value totaled US$ 81.93 billion, of which 55% come from Beijing, Hebei Province and northwestern regions. The major economic indicators of TEDA have retained leading positions for many continuous years. The TPFTZ has become the largest bonded zone serving the North China, northwestern regions and the Central North China. Over 60% of total import and export value in the TPFTZ are generated by other provinces and cities. Upon the approval of the State, it has become a trial area for the interactive development of free trade zones and ports. As a result, the development and opening-up of the TNCD may effectively improve the level of opening-up in Beijing, Tianjin, Hebei Province and the circum-Bohai region and facilitate their integration with the international economy.

3) Industrial Advantages

The TNCD has fostered such seven leading industries as electronics and information, petroleum exploration and processing, marine chemical, modern metallurgy, automobile and equipment manufacturing, food and beverage processing, and biopharmaceuticals. It has equipped itself with solid industrial bases and developed high-tech industrial groups. With the wide applications of advanced scientific and technological achievements, these industries have long industrial chains and strong capacity to give impetus to other industries. Currently the TNCD has become an important large-scale petrochemical base and metallurgical base of China. Its IT-related manufacturing industry also tops the list of the country. Its output of oil sleeve pipes is among the world's top four. And over 1,000 enterprises in China provide accessories to the TNCD. Its overall strength continues improving. Following the Shenzhen Special Economic Zone and the Pudong New Area, the TNCD has become another new growth engine of the country.

4) Scientific & Technical Advantages

The TNCD has developed a multi-layer scientific and technical innovation system, and initially formed a base for scientific and technical talents to start businesses. At present there are 42 state-level and municipal-level scientific research institutions, over 50 large-scale enterprise R&D centers and 44 postdoctoral workstations as well as a large number of senior talents who possess internationally advanced technologies and modern management experience.

5) Advantages in Land and Resources

With 1,214 km2 of deserted salt pans, the TNCD has some highly saline alkaline land which is inappropriate for farming but enjoy great potential for ecological conservation and construction. This is rare to see in large and medium cities in the world. Other resources in the TNCD are also quite abundant. It has ascertained total reserves of oil resources of 9.8 billion tons in the Bohai Sea, that of natural gas of 193.7 billion m3, an annual output of exploitable geothermal resources of 20 million m3, and an annual output of crude salt of over 2.4 million tons. Besides, the TNCD has a large wetland natural reserve and a plain reservoir, and enjoys good conditions of an eco-environment. Fully utilizing these advantages and adopting new ideas and development patterns to promote the development and opening-up of the TNCD will be beneficial to implementing the scientific outlook on development, realizing the harmonious coexistence between man and nature and blazing a new trail for sustainable development.

II. Guidelines and Plans for Promoting the Development and Opening-up of the TNCD

    The guidelines for promoting the development and opening-up of the TNCD are as follows. With the guidance of the Deng Xiaoping Theory and the important thought of the Three Represents, the TNCD should fully adopt the scientific outlook on development, further liberate people's mind, promote reform and opening-up, and exert competitive edge. With a high starting-point and a broad vision, priorities should be laid on science and technology innovation, self-innovation, and highlighting the special characteristics of the TNCD and improving its development environment. The TNCD should adopt new ideas, new institutional systems, and new mechanisms to steadily strengthen its comprehensive competitiveness, innovation ability, service ability, and international competitiveness so that it will play greater roles in propelling the development of Tianjin, the economic revitalization of Beijing,Tianjin and Hebei Province as well as the circum-Bohai region, the interaction between China's east, west and central regions so as to  achieve balance in the economic growth of the different regions of China.

 The development orientation of the TNCD is that with the support of Beijing, Tianjin and Hebei Province, serving the circum-Bohai region, radiating its influence to the three northern regions, meeting the demands of Northeast Asia, the TNCD will work hard to develop itself into a gateway for the opening-up of the north, an advanced base for modern manufacturing industry, R&D and transfer of high-tech achievements, an international shipping center and logistics center in the north, and gradually become an inhabitant-friendly and eco-friendly urban area featured by economic prosperity, social harmony, and beautiful environment.

 During the period of the Eleventh Five-Year Plan, the development objectives of the TNCD are as follows: in 2010 its total industrial output value will reach 320 billion yuan, with an annual growth rate of 17%, its industrial value-added will be 200 billion yuan, its regional financial revenue will exceed 50 billion yuan, with an annual increase of 20%, its urbanization rate will be 90%, and its energy consumption per 10,000 yuan GDP will decrease over 20%. The TNCD will develop its social undertakings in an all-around way, well reserve its eco-environment, improve its overall functions remarkably, keep strengthening its capacity for sustainable development, and make new progress in building a harmonious urban area.

 To achieve the above-mentioned objectives, such three strategies should be implemented, namely the strategy of radiating its influence through opening-up, which is beneficial to improving the competitiveness of Beijing, Tianjin, Hebei Province and the circum-Bohai region, the strategy of radiating its influence by acting as an growth engine, which is good for nationwide regional development, and the strategy of radiating its influence through innovation, which is helpful for exploring new regional development patterns in the new period.

 The layout of the TNCD for economic development contains "one axis", "one belt", "three urban areas," and "seven industrial zones." The High-tech Industry Axis will be located along the Beijing-Tianjin-Tanggu Expressway and the lower reaches of the Haihe River, the Marine Economy Belt will be situated along the coastline and Haibin Expressway, and three urban areas and seven industrial zones will be built amid the T-shaped structure of the intersectant Axis and Belt.

As to the three urban areas, it refers to such three eco-urban areas as Tanggu, Hangu, and Dagang.

The TNCD possesses the following seven functional zones. 1) The Advanced Manufacturing Zone, with a planning area of 97 km2, will focus on the development of such high-tech industries as the electronics and information industry and the modern metallurgical industry, and the processing and manufacturing industry. 2) The Coastal High-tech Industrial Zone, with a planning area of 36 km2, will highlight the R&D and training related to independent intellectual property right and the transfer of high-tech achievements in line with China's long-term scientific and technological planning. 3) The Coastal Chemical Zone, with a planning area of 80 km2, will emphasize the development of petrochemical, marine chemical and fine chemical. 4) The Costal CBD, with a planning area of over 10 km2, will concentrate on the development of financial insurance, commerce & trade, culture & entertainment, and exhibitions & tourism. 5) The Seaport Logistics Zone, with a planning area of 100 km2, will mainly develop marine transportation, international trade, modern logistics, bonded storage, distribution and related intermediary services. 6) The Airport Industrial Zone, with a planning area of 102 km2, will be engaged in the development of air transport, processing and logistics, scientific education of civil aviation, R&D and industrialization, manufacturing and maintenance of aviation equipment, etc. 7) The Coastal Leisure & Tourism Zone, with a planning area of 75 km2, will specialize in the development of coastal tourism, services for leisure and vacation, and eco-tourism in wetland. Meanwhile, on the basis of sufficient demonstration, the TNCD will formulate plans, expand its port through land reclamation and construct the Port-based Industrial Zone. It will also build several eco-agricultural bases to develop coastal metropolitan agriculture with distinct features.

III. Current Priorities in the Opening-up and Development of the TNCD

1. We will strive to build the TNCD into a base of modern manufacturing, R&D and incubation and stick to the Neo-industrialization path.
While continuing to cement and expand IT & electronics, petro-chemistry, auto & equipment manufacturing, modern metallurgy and bio-medicine, we will make more innovations in aviation and aerospace sectors and accelerate our efforts to shape this region into a state-level advanced manufacturing & processing base. By 2010, local industrial value added is expected to hit 200 billion yuan and total export value will be well over 35 billion dollars.

To facilitate the development of hi-tech sectors, we will put independent innovation first and build more R&D and hi-tech incubation centers. The clustering, pioneering and driving role of hi-tech resources will be further highlighted. The capacity of original innovation, integrated innovation and technology digestion should be boosted on a constant basis and the institution for R&D and application of hi-tech achievements should be further consummated so as to upgrade our overall technology level and competitiveness. By 2010, the output value of hi-tech sectors is expected to account for over 50% of the TNCD's total. By that time, there will be 100 national or municipal-level R&D entities and 200 above-municipal-level R&D centers in this region.

2. We will accelerate our efforts to construct the TNCD into an international shipping & logistics center and give more impetus to those modern service sectors with unique TNCD characteristics.

We will make full use of our existing advantages such as geographic location, resources and industrial foundation, gear up infrastructure construction, and continue the expansion and upgrade of airport and seaport through increasing sea/air lines and new functions. These efforts will help to improve enterprise clustering, market vibrancy and supporting services for this international transportation hub. The Dongjiang Port Area, as a key project of the TNCD, is expected to serve as the number one gathering point for international trade (e.g. international transfer, international distribution, international procurement and international entrepot trade) in North China. By 2010, local port will be able to handle over 300 million tons of cargoes and 10 million TEUs. The passenger turnover of local airport will reach 5.6 million person times and its cargo & mail turnover 0.5 million tons. The total imports and exports value will reach 200 billion dollars.

Logistics construction will be expedited so as to create a modernized port-centered sea-land-air logistics system. Six logistics bases will be built to create a multi-level, open and large-scale network, supplemented by sub-centers with more segmented functions such as assembly, transit, storage, processing and distribution. Logistics market will be further expanded and the logistics informatization and standardization work promoted so as to make this region a real-sense logistics hub. By 2010, the value-added of logistics sector will reach 65 billion yuan, accounting for 58% of total value-added of the TNCD¡¯s all service sectors. Natural resources such as river, sea, lake, wetland and terrestrial heat is to be fully utilized to make the TNCD a regional entertainment & tourism destination. In one word, the TNCD is expected to become more competitive and better serve and activate neighboring economies through developing modern service sectors such as port logistics, finance & trade, exhibition tourism, etc.

3. We will accelerate the development of circular economy and make the TNCD more eco-friendly.

We will efficientize the consumption of water, energy, land and materials and encourage the comprehensive use of resources. TEDA and the Dagang Petrochemical Park will be built into eco-industrial parks. Four circular economy industrial chains (i.e. petro-chemistry, auto, metallurgy, and power & seawater desalination) will take shape. The environment admittance requirements will be strictly followed and those enterprises or products with high consumption, high emission, high pollution and low economic returns will be resolutely eliminated from the market. By 2010, the energy consumption per unit GDP will drop by over 20% and the industrial consumption of fresh water will be cut by 30%. The comprehensive utilization rate of industrial solid waste will reach 95%. Two eco conservation areas (with a total area of 500 square kilometers) will be set up and properly taken care of. Five eco-corridors will be set up along side the coast, river and expressways together with several eco sub-zones. Environment protection and disaster reduction & prevention efforts will be intensified. By 2010, the total greening coverage rate of the TNCD is expected to reach 40%.The centralized disposal rate of urban sewage is expected reach 90%. Water quality of the main channels of downstream Haihe River is expected to reach the standard of Grade IV, with the eutrophication tendency in the offshore water body effectively curbed. These comprehensive conservation measures will guarantee the harmonious relationship between residents, resources and environment in the TNCD.

4. We will coordinate urban development with rural development and make concrete progresses in the building of the new socialist countryside.

We will make more vigorous efforts to transform the rural-urban dualistic structure, uplift the urbanization level of the rural area. A unified planning will be worked out to better arrange the infrastructure construction, environment protection, layout of key industries and social undertakings of the rural area. Separate villages and towns will be merged, abolished or relocated in order to minimize administrative redundancies. The rural population is encouraged to converge on urban area, so are enterprises on industrial parks. Rural land resources will be integrated to create a scale effect. In this way, our urbanization will proceed on a healthy and orderly track.

We will highlight the coastal metropolitan features in our agricultural production and bolster the capacity of rural economy. We will develop environment-friendly food, green food and organic food, cultivate local specialty agriculture products, and construct and further upgrade agriculture hi-tech parks. We will expand the capacity of local sea ranches and high-sea fishery, and strengthen the deep-processing of seafood. We will also set up a large-scale regional aquatic product fair so as that better satisfy the market needs of North China, Northeast China and Northwest China.

5. We will improve urban construction so as to achieve social harmony.

In response to the robust development trend of the TNCD, we will mend our pace on urban infrastructure construction, which will include 34 major supporting projects of the Tianjin Port (e.g. the 250,000-ton deepwater channel and the 300,000-ton crude oil terminal), the reconstruction and expansion of the Binhai International Airport, the Beijing-Tianjin Inter-city railway, the multi-track of Beijing-Tianjin-Tanggu Expressway, and the Coastal Expressway (or transliterated as Haibindadao). These key transportation projects will further update the traffic of the TNCD. We will also improve energy supply, develop sea water desalination and encourage the direct use of sea water in industrial projects. By 2010, the total installed capacity of local power supply is expected to reach 5.6 million KW and the sea water desalination capacity will be 50 tons/day.

According to the scientific development concept, we will intensify our efforts in education, culture, health, sports and social security. The development of rural and urban development will be coordinated and the social security standard of the rural area will be uplifted so as to shape a more integrated rural-urban public service network and change the rural-urban dualistic structure. We will create more job opportunities and increase residents¡¯ income. We will strengthen the existing channels for democratic participation and set up contradiction solving mechanism so as to achieve social harmony. By 2010, the per capita disposal income of urban residents is expected to reach 25,000 yuan. During the eleventh-five-year plan period, over 300,000 new jobs will be created to ensure the coordinated social and economic development of the TNCD.

IV. We Will Have TNCD Play a Driving and Demonstration Role as a Pilot Farm for China's Comprehensive Reform.

Since the TNCD has been approved by the State Council to be a pilot farm for China's comprehensive reform, we will take this valued opportunity, explore new regional development models and offer a practical example for the development and reform throughout the country. Strictly following the deployment of the CPC Committee and the State Council while taking the practical condition of the TNCD into consideration, we will launch reform initiatives in some key fields within this region, constantly expand our exploration, and ultimately push forward the development and opening-up of the TNCD through comprehensive reform. Our recent objectives include:

Firstly, we will launch reform and innovation in the financial sector. The State Council has clearly provided that China's future financial reform and innovation plans will be first tested in the TNCD. Our trial reform will start with industry investment fund, venture capital investment, the mix-operation of financial sector, multi-ownership financial enterprises, foreign exchange administrative policies, and offshore financing. Currently we are revising the implementation scheme of industry investment fund so as to put it into practice at an early date.

Secondly, we will launch land administration reform. We will optimize the structure of land use and innovate upon land administrative methods. Also, to better facilitate the agriculture industrialization, rural industrialization and rural urbanization in the TNCD, our reform will involve the turnover of rural collectively-owned construction land, the distribution of rural land revenue, and the strengthening of government control over land supply. We have already set up the TNCD Land Consolidation and Reserve Center. Specific implementation roadmaps are under preparation. All in all, we want to have land resources play a more instructive and powerful role in local economic development in the coming era.

Thirdly, we will accelerate our exploration in the supervision institution within special customs zones through setting up the Dongjiang Bonded Port, from which we expect to find a feasible way of transforming a bonded area/port into a free trade zone so as to uplift the opening-up level of the TNCD.

Fourthly, we will fully utilize the supportive fiscal policies granted by the State to the TNCD. We will speed up the renovation, alteration and restructuring of enterprises, give more impetus to hi-tech sector and intensify environment protection.

With the opening-up and development of the TNCD proceeding to further depth, we will also step up the administrative institution reform and try to find an unified, coordinated, streamlined, efficient and corruption-proof operation mechanism which can give full play to the overall advantages of the TNCD and realize common development.