Case Studies, China: Industrial Parks and Industrial Clusters
303
Table 5.7 Comparison of Three Economic Development Zones near Beijing, China Indicator
Beijing
Administrative level National Main industries
Planned area, square kilometers Firms, number
Langfang Provincial
Provincial
Information and Machinery, electronics, communication technology, food, construction biotechnology, automobile, materials, textiles, and machinery medicine 46.8 3,870
Yongle
69.5
Machinery, electronics
4.6
1,491
23
Cumulative investment
Y 166 billion ($24 billion)
Y 30 billion ($4.4 billion)a
Y 0.9 billion ($112 million)
Total industrial sales revenue
Y 378 billion ($55 billion)
Y 33.7 billion ($4.9 billion)b Y 351 million ($51 million)
Sources: BJStats and NBS 2011; Hebei Provincial Bureau of Statistics 2010. a. Investment data refer to stock accumulated from 1992 to 2010 for Beijing and Yongle and from 1992 to 2009 for Langfang. b. Total industrial output.
Origin and Course of Development The Yongle zone was part of the boom in the establishment of economic and technical development zones that followed Deng Xiaoping’s 1992 tour of southern China. It seemed to have bright prospects because of its proximity to major population centers. Early period, 1992–97. During the early period, the Yongle zone was sub-
ordinate to the authority of the Beijing General Company of Agriculture, Industry, and Commerce (formerly, the Beijing Management Bureau for State-Owned Farms). Established in the 1950s, state-owned farms in Beijing focused on agricultural development, including farming, food production, and light industries that relied on agricultural inputs. The intention was to guarantee the capital city a secure food supply. However, under the plan system, the state-owned farms had little incentive to solicit customers outside the state-owned sector. They had few business relations with local farmers or outside investors. The Yongle zone’s initial management achieved little commercial success. Although real estate development is a key task for any new zone, Yongle only managed to attract a single real estate firm during its first six years. Meanwhile, industrial development was moribund.