Sx Zhao

Globalization and the dominance of large cities in contemporary China

Abstract Since the introduction of the economic reforms in late 1978, the Chinese urban system has experienced spectacular growth, accompanied by a rapid rise of urbanization from about 20% to more than 36%. Although restricted by government policy, the development of large cities prevailed in the 1980s, as shown in a previous study ( Zhao and Zhang, 1995 ). This process of predominantly large cities growth appeared to continue in the 1990s, as is shown with further analysis and update on the issue, within the framework of globalization and other economic theories. Based on newly published demographic and economic data, the paper depicts the growth and concentration of population, foreign direct investment and employment availability in the large cities in contemporary China. This paper argues that in this globalization process, in which the fundamental economic rationales of increasing returns, urbanization economies and urbanization agglomeration prevail, large cities will continue to outperform the small cities and so the dominance of large cities will continue.

Reinterpretation of China's under-urbanization: a systemic perspective

Abstract Under-urbanization, defined as the achievement of a high industrial growth without a parallel growth of urban population, can be plausibly viewed as a typical phenomenon of socialist economies and is widely recognized in the special case of China. This paper highlights the characteristics of Chinas under-urbanization and demonstrates system-related elements with specific linkages to the process of urbanization. In contrast to the thrust of the extant literature on urbanization in the context of socialist economies, where industrialization strategies alone are taken as fundamental in explaining the nature of Chinas urbanization, we have focused, rather, on systemic characteristics to interpret Chinas under-urbanization.

Self-help housing strategy for temporary population in Guangzhou, China ☆

Abstract This paper aims to delineate the current situation and settlement strategies of rural–urban immigrants in metropolitan cities of China. The authors have reviewed the development of the housing market in Guangzhou since the 1980s. Based on the analysis of the general housing market in Guangzhou; the spatial residential pattern of the temporary population; and the recent renewal and construction plan of “Urban Village”, the authors recommend a self-help housing strategy for settling the temporary population in Guangzhou. The strategy can be considered as maintaining a balance between the housing supply of and the demand for the targeted population. A brief introduction on the housing experience of the urban poor, Hong Kong and Singapore is provided at the beginning of the paper. The authors feel that the experience and strategic recommendations are relevant and applicable to the formulation of settlement policy for temporary population in China.

Urban Infrastructure Financing in Reform-era China:

Urban infrastructure has been substantially upgraded in reform-era China. This paper explains, contextually and empirically, how Chinese cities finance their infrastructure. It demonstrates that China has succeeded in addressing urban infrastructure backlogs by opening up new venues for financing, but simultaneously, heavily relying on unconventional sources. The paper also argues that urban infrastructure financing has much to do with the country’s transition to a market-oriented economy that fosters the pro-growth role of city governments as well as the redistribution of fiscal power between the levels of the urban hierarchy that produces significant variation of financial capacities among the different administrative ranks of cities.

The sustainability dilemma of China’s township and village enterprises: an analysis from spatial and functional perspectives

Abstract The spectacular development of Chinas township and village enterprises (TVEs) has been highly praised by both Chinese and western scholars. The TVEs and rural non-agricultural sector were widely regarded as the most dynamic sector in the Chinese economy during the reform era. However, such a successful story and optimistic view had changed tone since 1997, seemingly from the robust boom to a deep recession. Evidently, China’s present TVEs development must be confronted by deep-seated problems that created the fundamental sustainability dilemma. To better understand Chinas unusual process of TVEs development, this paper focuses on the sustainability dilemma from the functional and spatial perspectives. It analyses the internal conflicts between TVEs development and agricultural production and explains why the present mode of China’s TVEs development cannot be sustained. Within the rural economy, agricultural production and the TVEs themselves have created severe conflicts that have led to a fundamental sustainability dilemma: further encouragement of TVEs or maintaining a stable agricultural output, especially of food supply. The underlying causes for the sustainability dilemma are diagnosed, primarily based on a consideration of functional and spatial division. The paper argues that the conflict is inevitable due to the dysfunctional nature created by TVEs in the rural sector. That is, farmers simultaneously perform two different functions: agriculture and industry, both of which should be functionally and spatially separated. According to Lewiss Two-sector Structural-change Model, this paper attempts to seek a possible solution that aims at an overall functional clarification between the urban and rural sectors.

Power or Market? Location Determinants of Multinational Headquarters in China

Multinational corporations (MNCs) have increasingly been establishing regional headquarters in China. However, no study has systematically examined how MNCs make strategic decisions about where to locate Chinese headquarters (CHQs) in this transition economy. The paper makes the first attempt to investigate the issue by focusing on two questions. First, what are the location-specific factors that determine where MNCs locate their CHQs? Second, how do these factors influence making the decision between Beijing and Shanghai, the two largest cities in China? We integrate existing literature and assess the differential roles of (1) path dependency, (2) institutional support, and (3) proximity to superior information. Data were collected through a large-scale survey of MNC CHQs in mainland China. The empirical analysis supports the three-dimensional framework and the central role of proximity to superior information in the decision-making process. The results advance existing understanding of MNC location decisions in China by revealing the unique interplay between power and market in this transition economy, and between Beijing and Shanghai, the two promising cities toward world city status, in particular.

Command and control cities in global space-economy before and after 2008 geo-economic transition

The global economic downturn caused primarily by the US sub-prime mortgage crisis in 2007 engendered revenue loss of the multinational corporations. Existing studies have yet to depict the detrimental impacts on city’s command and control functions induced by the sub-prime mortgage crisis together with its residual wave of global economic recession on the global spatial economy. Recent and previous studies have produced an ‘instant history’ of the global spatial economy before the global economic downturn undermines the global economy in late 2008. However, the waxes and wanes of major cities’ command and control functions on the global economic arena before and after the outbreak of financial crisis and its associated geo-economic transitions are still poorly understood. This paper attempts to contribute a new set of customized data to update and fill in the gap in the literature with the investigation of the command and control functions of cities around the world from 2005 to 2009. Particular attentions are paid to the time-space relationship of the geo-economic transition that can capture the recent historical images of the command and control situation of different cities in the world.

Industrial structural changes in Hong Kong, China under one country, two systems framework

Hong Kong has undergone substantial economic transformations and developed into a sophisticated business and financial center in the Asia-Pacific region, since the return of sovereignty to China as a Special Administrative Region under the One Country Two Systems (OCTS) in 1997. This paper discusses and analyzes the industrial structural changes of Hong Kong in recent decades as well as its future challenges and opportunities. The data and finding reveal that even though Hong Kong will face fierce competition from the Mainland’s cities as the rise of China, the important role as a bridge between China and the rest of the world will brace Hong Kong itself under the OCTS for developing into a service hub for business and trade in the Asia-Pacific region.

Mapping urban networks through inter-firm service relationships: The case of China

Literature on how cities get connected through networks of firms has been increasing in recent years. In particular, advanced producer service (APS) firms are being widely used to build intra-firm linkages to establish urban networks. In contrast to studies applying intra-firm networks, this study proposes an alternative strategy to build urban networks based on inter-firm service provision relationships during the process of initial public offering (IPO) in which APS firms – including securities, law firms and accounting firms – provide professional services for firms aiming to be publicly listed. Based on service provision connections between APS firms and their clients, this study provides fresh insights on urban networks in China. The results show that Beijing, Shenzhen and Shanghai strategically hold dominant positions within Chinese urban networks and they are the lead command and financial centres within the country. Particularly, Beijing has overwhelmingly more influence over other cities. The urban networks are embedded in China’s unique institutional context where market and state power together have shaped these networks. Since the urban network is built up based on real economic linkages, the findings might have further implications for policy-making and could contribute to ongoing debates regarding financial centres in China. It implies that connections between firms based on real economic activities can be an effective way to construct urban networks in future research.

Playing Games and Leveraging on Land: Unfolding the Beijing Olympics and China’s Mega-event Urbanization Model

Abstract While global commentators hail the unprecedented success of the Beijing Olympic Games, few have commented on the methods employed to promote urban development in China. This article develops a conceptual framework to unfold the Beijing Olympics and China’s mega-event urbanization model, which feature ‘playing games for leveraging land’. Literally, this informally translates to ‘concept creation’ and ‘land and finance leverage paradigm’. Based on a detailed investigation of the way China has dealt with mega-events such as the Olympics and the Asian Games, this article begins with an analysis on the well-known Chinese ‘land and leveraged finance’ model. However, it goes a step further to reveal a much bigger picture and brings to light the deeper underlying logic behind China’s ‘mega-event urbanization model’ as well as its legacy and consequence. It unfolds the intriguing relations between central and local governments; between functional/institutional systems (land, taxation and banking) in regard to territory and space; and between economic and political dynamics (local competition for both economic/GDP growth and individual political aspirations). This development model is unique to China and extraordinarily unconventional on a global scale which is unparalleled by any past experiences in other countries that have hosted the Olympic Games and other similar events. The ramifications of such ambitious and untested strategies could yield negative impacts on China’s long-term development and harm the world economy in the global scale.