WORLD INVESTORS MAGAINE JULY 2010 6 DEEP CONCERN Southern Actions Guide the Future of Beijing Staff Reporter Jiang Jianhua In November 2009, Beijing issued the "Plans for Improving the Development of the Southern Region" (hereinafter referred to as "Southern Plan") planning to invest 290 billion Yuan to help the southern region to escape the cycle of slow economic growth. I n November 2009, Beijing issued the "Plans for Improving the Development of the Southern Region" (hereinafter referred to as "Southern Plan") planning to invest 290 billion Yuan to help the southern region to escape the cycle of slow economic growth. Actions Stimulated Investment The unbalanced pattern of economic development of Beijing, like an unbalance scale, has intensified and is likely to be capsized. The southern region of Beijing had missed key development programs such as CBD, Financial Street and Beijing Olympic Village... However, similar programs will soon break ground in the southern region. Zhao Hong, director of Economic Research Institute of Beijing Academy of Social Sciences believed that: "The most important thing for the development of a city is balance. The unbalanced development of different regions will ultimately affect the development of the city." Economic development of southern Beijing has been far behind the development of northern Beijing for a long time. According to the statistics of 2008, total area of southern region in the "Southern Plan" accounted for 20.5% of the city. However, the GDP of those regions only accounted for 13.4% of the city and was equal to 70% of Hai Dian District. The gap existed since the founding of the country. After 1990s the result of several changes in the financial system had increased the imbalance of economic development in Beijing. Economic value of Southern Beijing cannot be used effectively. The introduction of "Southern Plan" opened the gate for Southern Beijing to economic development. Wang Haiping, deputy director of Beijing Development and Reform Commission said: "After the Olympic Games, Beijing has entered a new stage of development looking for new space. Southern Beijing fits such trends and is now in a great time for its development." "Southern Plan" is now levering the future investment pattern of Beijing. The plan showed that the investment to Southern Beijing by the government of the city and the district levels will be more than 50 billion Yuan. Plus the social investment led by the official, the total investment will reach 290 billion Yuan. All funds will invest in the construction of infrastructure of the traffic and environment, which could significantly improve the environment of investment. Southern region is the gateway of the regional cooperation of Beijing, Tianjin and Hebei. In the face of the limited and expensive land in northern Beijing, the space in that southern region can bear the industrial function could be the scarcest resources for future development. "South Plan" is to build "one axis, one region and many zones" industrial structure for southern region, speed up the promotion of the reform and upgrade of industrial restructure and innovation & development form, which will continuously optimize the economic investment potential of southern region. With continuous development, Southern Beijing will be the highlight of economic growth of Beijing in the future. Construction of Infrastructure Relieved the Worries of the Enterprises "Construction of the road brings fortune" is a well-known saying, which also reflects the embarrassing situation of the development of southern region. The development of infrastructure of southern region had been lagging behind in a long period, which made many investors away. Beijing, "in the next three years, will coordinate the implementation of a number of programs in transport, environment, water resources and energy to effectively improve the capability of infrastructure in the southern region." The plan is to promote the construction of a number of major transport facilities, build rapid transport system. "Southern Plan" is to create a new traffic pattern of southern region. The traffic condition of southern region will be greatly improved. The traffic congestion will be no longer the shackles of the economic development of southern region. From 2010 to 2014, there will be seven rail travels solving the traffic difficulties for citizens; the construction of 11 inter-district traffic channels will completely eliminate the traffic barrier among the counties of southern region. The goal to realize the non-barrier situation for the traffic of south of southern region will be achieved.