Gordon Kee

China's Special Economic Zones at 30

Three Hong Kong-based geographers assess retrospectively the performance of special economic zones (SEZs) in China on the eve of the 30th anniversary of their founding. After exploring the general rationale and historical context for the launching of the SEZ concept, they devote considerable attention to the divergent development paths and outcomes of the five SEZs established in China during the 1980s. Of particular importance has been the differing specific roles assigned to the SEZs based on their internal characteristics as well as location relative to (and interactions with) areas of intense commercial activity (Hong Kong and Macao) subsequently coming under Chinese sovereignty. The paper concludes by viewing the past performance of the SEZs within the context of the gathering momentum of globalization that afforded entry for their export-oriented manufacturing activities into world markets, and explores some implications of the current worldwide financial crisis for their future. Journal of Economic Literature, Classification Numbers: O180, O200, P200, R120. 1 figure, 3 tables, 56 references.

Shanghai: Urban Development and Regional Integration Through Mega Projects

The development goal of Shanghai is to regain the world city status and the specific targets are to become international finance center, trading center, shipping center, and economic center by 2020. The city plans to achieve these targets through the bold strategies in urban and regional development including mega projects. The chapter examines how the goal and targets are being realized by analyzing the frantic enthusiasm of the local government in conducting mega projects. Six mega projects including Hongqiao Comprehensive Transportation Hub and the 2010 World Expo and their possible impacts to Shanghai at local, regional, and global levels are examined. These mega projects not only build a modernized and brand new urban landscape for Shanghai, but also intangibly raise the image of Shanghai in the global platform. Regionally, they are the milestones and catalysts to facilitate better flows of people and production factors, and enhance closer socio-economic integration in the YRD region. Nevertheless, there are shortcomings and lessons in the development in Shanghai which are discussed in the chapter.

MACAO IN A GLOBALISING WORLD: THE CHALLENGES AHEAD

Abstract Macao, a quaint and tiny city with a history of more than 400 years, has been experiencing unprecedented economic growth and urban development, an outcome which has been facilitated by the opening up of its once monopolised gaming industry and preferential policies from the central government since its return to China in 1999. During the process of internationalisation, however, many challenges and problems have surfaced as barriers to social cohesion never occurred before. In order to sustain and further Macaos growth, the fledgling Macao SAR government needs to draw up new development strategies and policies with a long-term vision. With the dedication and whole-hearted cooperation between the government and its people, a refreshingly new and sustainable Macao can be anticipated.

Fuzhou: Re-energizing Regional Economic Development and the Changing Urban Functions

Urban and regional development is an outcome of complex interactions of political, economic, social, and cultural development. This chapter applies the political economic concept of time-space envelopes to investigate the functional changes in urban and regional development of Fuzhou. The twenty-first century sees a new condition for Fuzhou to revitalize its development by building on the new geoeconomic and geopolitical circumstances. Through analyzing the national and domestic development plans, this chapter reveals how Fuzhou is developing its economy in the expanding growth triangle. Fuzhou’s three major functions—the destination for industrial relocation, bridgehead to Taiwan, and leader of regional development are evolving in the 2010s. Fuzhou needs to settle the regional relationship with PRD (Guangdong and Hong Kong), Taiwan, YRD (Shanghai) and its hinterland on the one hand, and with Xiamen and Quanzhou on the other hand in order to play the leading role in the Taiwan Strait West Economic Zone.

Prospect of China’s Coastal Cities

The concluding chapter explores the prospect of coastal cities in China. Economic advancement is no doubt the most crucial dimension of development. The chapter suggests that both locational factor and nonlocational factors matter in future development. Many Chinese cities are now undergoing economic and industrial transition and restructuring, by ways of technology advancement and innovation. One crucial task is that Chinese cities must avoid using highly similar policies and plans, and duplication of facilities. In addition, it is necessary to increase the urban, social, regional and institutional capacity of cities in order to strengthen the spatial and nonspatial advantages to complement the economic advancement strategy. Finally, this study argues that it is not appropriate to apply the same set of urban competitiveness indicators to all cities, which have different backgrounds and positioning. It is more meaningful to explore appropriate measurement to measure the comprehensive performance of cities. For the administrative condition in China, this study agrees that innovation in regional institutional arrangement and regional governance is important and worth in-depth study.

Hangzhou: Raising the Urban Competitiveness with New Socio-Economic Strategies and Spatial Roles

The chapter uses a perspective that urban competitiveness is more than economic performance and economic-related indicators. Social development level and environmental quality, as well as regional development should also be considered. Hangzhou is not the strongest economic engine in YRD but it has high competitiveness in general. The chapter examines Hangzhou’s new socio-economic strategies and the new spatial roles at local and regional levels and how their implementation can raise its urban competitiveness. The analysis finds that regional inequality and imbalance are key barriers of enhancing the competitiveness although the city has solid economic and environmental bases. The recent strategic plans of Hangzhou strive for better integration and division of labour between old districts (CBD), sub-urban districts and counties to enhance urban and economic development. As the leading city of one of the two wings of YRD, Hangzhou, through these plans, aims to build a metropolitan by working with Shanghai, surrounding cities and the YRD region at different spatial levels. To better implement strategic plans and realize the goals, the chapter suggests that Hangzhou needs to adopt more innovative approaches, emphasize uniqueness, and balance and integrate economic, culture, society, environment and technology in formulating policies and projects.

Guangzhou: The Road to Regaining Its Central City Status

The chapter first reviews the recognized central city status of Guangzhou in economic, social and political aspects. This history-long status, however, has been challenged and replaced by Hong Kong and Shenzhen in the twentieth century. Guangzhou is fighting back. The chapter then analyzes the course of Guangzhou’s recent development in regaining the central city status by studying latest socio-economic, urban and regional development plans. Attention is paid not only to coordination in development among various districts in Guangzhou, but also to the interactions between Guangzhou and other PRD cities, Hong Kong and ASEAN economies. The study reveals the major shifts from direct competition to coordinated intracity and regional development of Guangzhou, reflecting the city government’s changing ideology, approach and strategies in urban and regional development. Finally, by adopting the 3D economic geography model proposed by the World Bank, i.e. density, distance and division, the chapter comments on how these plans can help achieve the goal of central city status, and recommends the direction for future development.

Shenzhen: Innovation and Governments’ Roles in Reform and Development

Shenzhen’s unprecedented pace of development from a small town to a mega city has been highly praised. The contribution of foreign investment has usually been considered the major factor of the successful socio-economic and urban development of the Shenzhen Special Economic Zone. However, if we consider the government’s intangible contribution such as various innovative trials in development approaches and concepts that subsequently transformed the institutional system in China completely, its leading role is very clear. Thus, this chapter’s analytical focus is on the role of both local and central governments in forming the innovative strategies and steering the development. The chapter argues that governments are playing two major roles in Shenzhen’s development. While they are reformers to carry out innovative changes in the urban system, such as the land regime, employment system, and social welfare and security systems, they are also pro-growth governments actively pursuing the economic success of Shenzhen. To maintain Shenzhen’s leadership and success in urban development, the city should continue in innovation. The Shenzhen government can be the pioneer not only in economic reforms but also in social, environmental, public administration, and political reforms.

Nanjing: City Positioning and Development Strategies in the Twenty-First Century

By arguing that distinctive positioning and sound branding are important for a city to raise its competitiveness, this chapter examines the city positioning and development strategies of Nanjing. Rich history and culture, and strong foundation of education and innovation are Nanjing’s outstanding advantages and uniqueness. However, Nanjing did not make good use of these advantages in city positioning and branding in the past. This chapter pinpoints that Nanjing should avoid the common problems of positioning and branding in China, i.e. indefinite, aimlessness, unrealistic, and lack of uniqueness and individuality. Based on the SWOT analysis and the study of the socio-economic and urban development plans of Nanjing, this chapter proposes that “hub of culture and wisdom” can be an appropriate positioning of Nanjing. This positioning can clearly demonstrate Nanjing’s advantages and individuality and fully represent the city. This positioning can also help to formulate good policies and sound plans to achieve spatial and economic goals of development.

Hong Kong: Challenges and Responses of Logistics Industry

After reviewing the trajectory of Hong Kong’s economic development, this chapter argues that the traditional role of Hong Kong in regional economic development can no longer make significant contribution to the local and regional economies, and to different stakeholders as in the 1980s and 1990s. The chapter uses Hong Kong’s port and logistics industry as the case study and studies its evolution as logistics service providers (LSPs) from both a macro perspective and a micro perspective. The transforming external environment and local challenges have forced Hong Kong’s port and logistics industry to change. The analytical result suggests that the evolution of the industry is unavoidable. LSPs need to adapt to the change and expand vertically and horizontally along the value chain, as well as spatial expansion. This can be facilitated by the institutional optimization for better regional integration with both the hinterland (PRD) and the foreland (Southeast Asia), by both the government and business associations. Appropriate domestic and regional strategies can help sustain the whole industry and LSPs, especially those in small and medium scale. This is probably the miniature of the whole Hong Kong economy and regional economic integration and intercoastal cities relationship are important strategies to Hong Kong.