Transcript PowerPoint - Centre for China Urban and Regional Studies

International Conference on China’s Urban Land and Housing in the 21st Century, HKBU
A Transitional City:
the Case Study of Shenzhen, China
1980-2005
Liou XIE 謝里歐
Supervisor: Prof. Victor F.S. Sit
The University of Hong Kong
December 2007
Contents
I.
Introduction
II.
Review of China’s Post-reform Development
III.
Methodology and Data
IV.
Transitional Drivers and their Impacts on
Shenzhen's Post-transition Development
V.
Transformations of Land Use Pattern
VI.
Conclusion
2
I. Introduction
Transitional City:
Cities in countries that were formally under socialist
ideology, but have then abolished state-Socialism or
launched reforms to loosen the one party control and
have started to rely more on market mechanisms.
3
I. Introduction
Research Questions:

What are the key drivers of Shenzhen’s transitional development?
What are their impacts on Shenzhen’s urban growth?

How has the urban economy of Shenzhen been growing in the
transitional era? How has urban land use been expanding over
the past twenty five years?

What are the characteristics of Shenzhen’s urban structure? What
are the differences between this structure and that of cities in
socialist China before the transition?

Are there any differences between Shenzhen and the
contemporary transitional cities in Eastern Europe, as well as
Western capitalist cities?
4
II. Review of China’s Post-reform
Development

Decentralization of power

Stability of political environment

Reforms of land, housing and household
registration system

Foreign Direct Investment: Global forces

Market mechanisms
5
III. Methodology and Data
Government Reforms
Not Completed/Full Market
Land Reforms
Housing Reforms
Changes
of Urban
Economy
Urban
Land Use
Structure
FDI Changes
Population Changes
Urban Spatial Pattern
6
IV. Transitional Drivers and their Impacts

Institutional and Policy Innovations:
–
–
–
Start: a copy of the highly centralized and unified
management model of the socialist administrative
system of China since the 1950s
Seven rounds of government reforms: 1981-1982,
1983-1985, 1986-1987, 1988, 1991-1993, 2001 and
2003-2004.
key characteristics:



The first six rounds: streamlining government organizations
and staff
renovations of government function and relationship between
the government and enterprises
The seventh round in 2003: transformation from an
administrative government to a service one
7
IV. Transitional Drivers and their Impacts

Policies and Changes of Land Market:
–
–
–
In 1988, Regulations of the Shenzhen Special Economic Zone on
Land Management : from allocation by the government, without
conditions and free of charge to paid usage of land.
In 2001, the Provisions on Land Trading Market of Shenzhen : a
tangible land market is established and all transactions in land
use right must take place publicly in the land market
Channels of land acquirement:
 mutual agreement
 invited competitive bidding
 public auction
 listing (started from 2004)
8
IV. Transitional Drivers and their Impacts
Areas of Allocated Land in Shenzhen, divided by allocation methods,
1994-2004
20
18
16
14
12
km 2

10
8
6
4
2
0
1994
1995
1996
via agreement
1997
1998
1999
2000
via competitive bidding
2001
2002
2003
via public auction
2004
9
IV. Transitional Drivers and their Impacts

Policies and Changes in Housing:
–
–
Focus: to change the form of allocation of housing
from a physical allocation system to a monetarilized
system.
Key events:




In 1988, the Reform Scheme for housing in Shenzhen Special
Economic Zone : to achieve commercialization of housing
In 1989, the Shenzhen Housing Trading Center was
established
A system of Housing Provident Fund was also established in
1992
In 1999, the Several Provisions on the Form of Housing
System for Government and Public Institutions in Shenzhen
10
IV. Transitional Drivers and their Impacts
–
Generally, there are three types of houses now in Shenzhen:
Policy-oriented housing: affordable housing ( 经 济 适 用 房 ),
comfortable housing (安居房) and low rent housing (廉租房).
 Commodity-oriented housing: market commodity houses
constructed by real estate developers and supplied for the whole
society
 Others: Self-constructed houses

–
–
The per capita gross living space in Shenzhen had improved
from 6.6 m2 in 1980 to 18.3 m2 in 2005.
In 2005, the total construction floor area was 245.4 million m2:
10%: capital construction, technical updates and transformation
(including policy-oriented housing)
 25.5%: real estate developers
 64.5%: other ways (including rural collective units, villagers’ own
houses and other self-funded construction)

–
The SEZ had made a big stride in its transition from plan to
market in housing provision.
11
IV. Transitional Drivers and their Impacts

Policies and Changes of FDI
–
–
–
–
–
–
Forms and industries of investment
Favorable taxes
Use of land
Sales of products
Foreign exchange control
Other preferential policies
12
IV. Transitional Drivers and their Impacts
Total FDI and Contribution of FDI to GDP in Shenzhen, 1980-2005
4000
35
3500
30
3000
25
20
%
million USD
2500
2000
15
1500
10
1000
500
5
0
0
1980
1985
1990
FDI
1995
2000
2005
FDI/GDP
13
IV. Transitional Drivers and their Impacts
Industrial Structure of FDI in Shenzhen, 1986-2005
100%
Farming, Forestry, Animal Husbandry
and Fishery
Industry
Geoglogical Prospecting
80%
Construction
60%
40%
Transportation, Postal and
Telecommunications Services
Commerce, Catering Services, Materials
Supply, Marketing and Storage
Real Estate Management and Social
Services
Health Care, Sports and social Welfare
Education, Culture and Arts, Radio, Film
and Television
20%
19
8
19 6
8
19 7
8
19 8
8
19 9
9
19 0
9
19 1
9
19 2
9
19 3
9
19 4
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
0
20 2
0
20 3
0
20 4
05
0%
Scientific Research and Polytechnical
Services
Banking and Insurance
Government Agencies, Party Agencies
and Social Organizations
Others
14
IV. Transitional Drivers and their Impacts
Policies and Changes of Population

“Floating City”: in 2005, 78% of the total
residents in Shenzhen were holding
temporary residence cards.
Phases of population policy:
–
–



–
1980-1986: phase of no control
1987-2001: phase of planned control
2002-present: phase of innovative reforms
Talents: mass and cheap labor high-tech
talents  management personnel
15
IV. Transitional Drivers and their Impacts
Distribution of Employment in Shenzhen by Sector, in selected years.
100%
80%
60%
40%
20%
0%
1990
1995
2000
2005
Tertiary Sector
24.16
32.21
41.77
41.83
Secondary Sector
69.76
66.01
56.97
57.72
Primary Sector
6.07
1.78
1.26
0.45
16
IV. Transitional Drivers and their Impacts
Phase I



Phase II
Phase III
Phase I Preparation: 1980-1985
Phase II Taking-off: 1986-1995
Phase III Steady growth: 1996-2005
17
V. Transformations of Land Use Pattern

The settlements were small
in size and laid out along the
railway and main roads,
concentrated in the Luohu
area.

The total population was
only 0.31 million, with a total
GDP of 196.38 million RMB.

139,500 of people were with
employment, 68% of which
were laborers of town and
village.
18
V. Transformations of Land Use Pattern
19
Industrial
Land Use:
20
Industrial
Land Use:
21
Residential
Land Use:
22
Residential
Land Use:
23
Commercial
Land Use:
24
Commercial
Land Use:
25
Current Urban Structure of Shenzhen
26
VI. Conclusion

The decentralization of power has given the local government more
decision-making authority and stimulated the growth of a proactive
government keen on improving its development conditions and
dealing with problems encountered.

The land reform brought a large amount of revenue for the local
government which enabled them to improve the urban
infrastructure for future and better development. At the same time,
it activated the real estate industry.

The reform of household registration system allowed people to
move from rural areas of China to the city of Shenzhen. While the
reform of housing broke the connection of employers with their
work-units and allowed them to move to wherever they like within
the city.
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VI. Conclusion

As the key impetus of Shenzhen’s post-reform development, FDI
brought with it the world’s advanced technologies and management
skills as well as new viewpoints and lifestyles. However, As the
transitional urban economy of Shenzhen gradually matures, the
significance of FDI and its contribution to GDP has also declined.

The rise of CBD in the city center. Office and service function is
increasing in CBD. Production activities are decentralized to the
outer ring, i.e. guanwai.

Sub-centers are formed in major transportation conjunctions,
forming a multi-core system.
28
Contrasting Characteristics of the former Socialist City and Shenzhen, as a Transitional City of China
Socialist Chinese City
Shenzhen, China
- industrialization without urbanization
- strict control over rural-urban migration
- planned and controlled mass migration, such as
- Fast urbanization
- reforms of the household registration
system loosened the strict control of ruralurban migration
- suburbanization
Urban Function
- production
- consumption
Government
Function
- direct control of the development through central
planning
- administrator
- proactive role of the urban governmnet
- indirect supervision
- service provider
Urban
Economy
- Predominance of productive activities
- Depression of non-productive activities, such as
commercial and service sectors, etc.
- No clear division of labor
- a closed and self-sufficient system with high military
concern.
- Growth of the tertiary sector.
- Rise of informal sector
- explosion of consumerism
Urban Spatial
Structure
- Urban planning and urban design, seeking optimum
city size and urban structure (but actually,
agglomeration became a major characteristic)
- Characterized by squares and monumental places at
the centre
- Great uniformities of spatial distribution
- Community based on workplaces
- the old commercial center and the new
CBD form the dual-center of the city.
- a variety of buildings and construction.
Tall buildings change the skyline of the city.
- polycentric
- Community based on residence
Society
/Urbanism
- less urbanism
- the workers are highly dependent on their workplace
- elimination of the bourgeoisie
- Changing from a socialist rank order to an
emergent class-based stratification.
- Reduction of workers’ dependency on the
workplaces
Urbanization
shangshan xiaxiang
29
Contrasting Characteristics of the Western Capitalist City, the Transitional City in the EE and Shenzhen, as a Transitional City of China
Transitional City in the EE
Shenzhen, China
Western Capitalist City
Dynamics
- “Big Bang” approach: abandoning the
socialist ideology overnight
- market regulation
- stable political environment with the
Communist Party remaining at the
center of power
- non-complete market mechanism
- Market Forces
- democratic political system
- advancement in technology
Transformation
-
- land and housing reforms
- emergence of market forces
- loosen control of rural-urban
migration
/
Urban
Economy
- “vacuum period”
- not very much strong draw of foreign
investment
- street trading
-
- predominance of tertiary
sector, particularly producer
services.
Urban Form
- compact, with slightly less homogeneity
- Western style CBD
- a zone of mixed socio-economic clusters
- Subcenters are scattered in strategic
locations
- A large amount of agricultural land in
suburban zone is turned into residential and
commercial uses
- Industrial activities are also decentralized to
the outer zone
- the old commercial center and the
new CBD form the dual-center of the
city.
- a variety of buildings and construction.
Tall buildings change the skyline of the
city.
- polycentric
- decentralization of urban activities and
suburbanization changed agricultural
land use in the outer zone
- CBD, as the hub for
commercial, social, political and
cultural life
- residential segregation
- suburbanization
- polycentric
- Changing from a socialist rank order
to an emergent class-based
stratification.
- Reduction of workers’ dependency on
the workplaces
- personal choices
Society
/Urbanism
fast and complete privatization
unregulated market mechanism
deindustrialization
economic globalization
housing reforms
Growth of the tertiary sector.
Rise of informal sector
explosion of consumerism
street trading
30
Discussions

In this study, the characteristics of Shenzhen as a transitional Chinese city
have been summarized. However, due to the time limitations and research
scope, we have not the opportunity to further investigate social aspects of
Shenzhen as a transitional city.

Comparisons of the transitional city of Shenzhen, Eastern Europe and the
Western capitalist cities shed some light on the differences between these
cities. The analysis is rather superficial due to the lack of availability of data
in the literature and materials. However, this topic is of importance and
requires further investigation in future.

Shenzhen may not be a typical example of the Chinese transitional cities.
However, it serves as an individual case of the contemporary Chinese city.

This is a pioneering study on exploring the characteristics and distinctions of
a specific transitional city in a rapidly-developing China. We have achieved
our purposes as set out in the research plan.

In turn, it shows that similar case studies on other cities in transitional
China are needed. Hopefully, with these additional efforts, we may arrive at
a better understanding of the Chinese contemporary cities as a new type of
city.
31