Overview of Beijing-Tianjin-Hebei Region (Jing-Jin-Ji) 1 Agenda Overview of Jing-Jin-Ji area Overview of Beijing’s economy Overview of Beijing’s startup ecosystems Overview of Beijing’s banking industry 2 Agenda Overview of Jing-Jin-Ji area Overview of Beijing’s economy Overview of Beijing’s startup ecosystems Overview of Beijing’s banking industry 3 Beijing-Tianjin-Hebei (Jing-Jin-Ji) Integration Plan • The Beijing-Tianjin-Hebei (Jing-Jin-Ji) Integration Plan is an important national strategy mapped out by the Chinese government in February 2014. • The integration plan aims to address Beijing's urbanization problems and rebalance the economic development of the northern region, as well as promote the development of the Bohai-Rim Economic Zone. • To achieve the goal, Beijing, Tianjin and Hebei are determined to redefine their existing functions, industrial division, urban layouts, supporting facilities and comprehensive communication networks. • According to the plan, by 2030, Beijing-Tianjin-Hebei region will become China‟s new engine of innovation- driven economy and an important region with international competitiveness and influence. 4 Beijing-Tianjin-Hebei Region is positioned as a world-class city cluster with Beijing as its core. Beijing-Tianjin-Hebei Region‟s combined GDP accounts for approximately 9% of China‟s total GDP and the region has a total of 113 million residents, or 8% of China‟s population. Hebei: Beijing: Positioning: Commercial and logistics Positioning: National center of politics, base, pilot zone for industrial culture, international communication and transformation and upgrading & new scientific and technological innovation. urbanization, and supporting area for the Beijing-Tianjin-Hebei ecology Area: 16,410.5 Km2 Area: 187,700 Km2 Population: 21.5 million Population: 75.9 million Total GDP: RMB 3,537.1 billion Total GDP: RMB 3,510.5 billion GDP per Capita: RMB 164,220 GDP per Capita: RMB 46,348 Tianjin Positioning: Advanced manufacturing R&D base, international shipping center, financial innovation-operation- demonstration zone, reform and opening up pilot zone. Area: 11,946 Km2 Total GDP: RMB 1,410.4 billion 5 Population: 15.6 million GDP per Capita: RMB 90,370 Source: CEIC Beijing-Tianjin-Hebei Region adopts a spatial structure of "One Core, Two Cities, Three Axes, Four Areas and Multiple Nodes" for the coordinated development of functional areas within the region… . Designated cities and towns in the region are clustered into distinct functional areas (Three Axes and Four Areas) based on their specific advantages and strategic positioning, surrounding the core areas, i.e. Beijing and Tianjin, in multiple circles. Each functional area will focus on strengthening the cooperation within the area, to enhance its overall strength and achieve its own development goals. All functional areas will coordinate and complement each other's advantages in a mutually beneficial manner, which will help push forward the economic and industrial development of Beijing- Tianjin-Hebei region. While the node cities in suburban areas will play an important role in connecting Beijing-Tianjin-Hebei region with major cities and manufacturing bases in neighboring provinces, which will help expand the economic and industrial development to neighboring provinces and promote the overall development of the Bohai-Rim Economic Zone. 6 Source: www.exploringtianjin.com The government investment of over RMB 1.5 trillion in transportation networks liking cities within the Beijing-Tianjin-Hebei region to other areas outside the region will help boost travel, economic and investment activities and bring huge business opportunities in the future . A highway network consisting of more than 800 roads and expressways in the Beijing-Tianjin-Hebei region has been completed. More than 40 inter-provincial bus lines have been in operation between Beijing and 17 neighboring areas in Hebei, carrying 400,000 passengers every day. 24 intercity railway lines, covering the major cities, key towns and main industrial zones in Beijing-Tianjin-Hebei region, will be complete by 2050, cutting travel time between the major cities in the region to around one to two hour. More than 10 high-speed train lines which are expected to cover a distance of 1,900 km, connecting Beijing with neighboring cities. Beijing Daxing International Airport, designed to become an international aviation hub and a comprehensive transport hub in Beijing-Tianjin-Hebei region, started operation in September 2019. The airport will have a capacity to handle 75 million passengers by 7 2025. Example of the implementation of industrial relocation in Beijing- Tianjin-Hebei region . Tianjin Binhai New Area is one of the significant area for the implementation of industrial relocation from Beijing to Tianjin, as it is the intersectional area of the Bohai Sea economic zone and the Beijing-Tianjin-Hebei region, as well as the area combining the port, industrial and free trade zones in Tianjin. Moreover, the area has been positioned by Tianjin's government to be a window of opening-up in northern China, a high-level modern manufacturing and R&D conversion base and international logistics center. The government is accelerating the construction of industrial infrastructure and facilities to support the relocation of manufacturing bases within the region, including: - Beijing-Tianjin-Hebei Big Data Comprehensive Pilot Area - Ninghe Beijing-Tianjin Cooperation Demonstration Area - Wuqing Beijing Tianjin Industrial New Town - Baodi Beijing-Tianjin Zhongguancun Science and Technology Town - TIPark (industrial park) established by Dongli District (Tianjin) and Tsinghua University (Beijing) . At present, industrial parks as well as science and technology parks in the region, especially in Tianjin become ever more attractive to domestic and foreign enterprises: - Jingbin Industrial Park in Wuqing District (Tianjin) has attracted about 40 robot manufacturers and R&D companies. 8 - Tianjin Binhai-Zhongguancun Science Park has attracted up to 900 enterprises and projects. New and relocated industries and services are expected to grow in clusters through the promotion of development zones, which will bolster competition and innovation in Beijing-Tianjin-Hebei region Areas expected to have industry clusters and investment: Hebei Tianjin: - Baoding: Regional public administration facilities, - Wuqing: Hi-tech research public services in healthcare and in IT services, education, solar industry new materials bio- - Cangzhou: Automobile and heavy industrial medicine and machinery production biologics - Handan: Research facilities for pharmaceuticals, -Xiqing: E-commerce, bio-medicine and chemical materials logistics and Wuqing management - Jize: Forging and foundry Xiqing services - Langfang: Hi-tech ICT manufacturing, financial and Yongqing data services - Shijiazhuang: Logistics, customs and other modern Jize services - Yongqing: Garments, wholesale and retail sector Handan 9 Xiong‟an New Area ... new home for Beijing's non-capital functions and relocated population • Xiong‟an New Area, a new area of “national significance” in Hebei province following the Shenzhen Special Economic Zone and Shanghai Pudong New Area, was established in April 2017 to mainly serve as a location for relocating many of Beijing‟s non-capital functions, an innovation demonstration zone and the commercial and economic hub of Beijing- Tianjin-Hebei region. • Major industries to thrive in the area include information technology, biotechnology, genetic engineering, new materials, modern services, and high-end medical equipment. • As of 2019, more than 100 Chinese and foreign hi-tech companies have obtained commerce registration in Xiong‟an, including China's technology giants including Tencent, Alibaba, and Baidu. Source: chinadaily.com.cn • By 2035, Xiong‟an will become a modern and digital city with relatively strong competitiveness, and will be a significant part of the world-class Beijing-Tianjin-Hebei city cluster, effectively performing Beijing's non-capital functions. 10 11 Agenda Overview of Jing-Jin-Ji area Overview of Beijing’s economy Overview of Beijing’s startup ecosystems Overview of Beijing’s banking industry 12 Beijing's economy maintained a stable economic growth rate at over 6.0% for the past 5 years, although growth decelerated in Q1/2020 Beijing’s GDP • The major objective of Beijing‟s economic development is to maintain a relatively fast but steady pace of high-quality economic growth. Its main development strategy is to drive development by innovation. As a result, the city's total expenditure in research and development accounts for 9.5% of its GDP, far beyond that of the nation (2.19% of GDP). • Beijing‟s GDP growth kept pace with that of China. Beijing’s per capita GDP reached USD 23,381, ranking 1st in the country, and reaching the level of developed countries. • However, during the outbreak of COVID-19 in Q1/2020, secondary industries (manufacturing and construction) and service sectors related to private consumption were severely hit during the lockdown. Source: CEIC by KResearch 13 Beijing's economic structure is dominated by the service sector • The share of Beijing‟s service sector in GDP is nearly 30% higher than the Composition of Beijing’s GDP national average (83.5% vs 53.9%), while the share of the industrial sector is lower (16.2% vs 39.0%). Financial • Beijing ’s major economic sectors: Intermediation 18.5% Wholesale and Retail - Financial intermediation Trade 8.1% Secondary Real Estate 7.4%