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Xinhua Development Index Report (2013)

Xinhua (Qingdao) International Ocean Information Center State Financial Information Center Index Research Institute

November 2013

Xinhua Ocean Development Index Report(2013)

Text Catalog

Kernel Points ...... - 1 - 1. The Significance of China’s Maritime Power Strategy and Strategic Moves ...... - 5 - 1.1 The Development Course of China‟s Maritime Power Strategy ...... - 5 - 1.2 Marine Power Strategy Spiritual- Depth Excavation ...... - 7 - 2. Explanation for the Basic Situation of Xinhua Ocean Development Index ...... - 11 - 2.1 Index Functional Significance ...... - 11 - 2.2 Index Guiding Ideology ...... - 12 - 2.3 Index Defined Connotation ...... - 13 - 2.4 Index System Framework ...... - 13 - 3. Evaluation of Xinhua Ocean Development Index ...... - 16 - 3.1 Comprehensive Evaluation of Ocean Development Index ...... - 16 - 3.1.1 Analysis of the Index‟s Intrinsic Traits ...... - 16 - 3.1.2 Index Growth Analysis ...... - 18 - 3.1.3 Index and Comprehensive Analysis of National Economy ...... - 19 - 3.2 Analysis of Sub-index Evaluation Results ...... - 22 - 3.2.1 The Evaluation Results Analysis of Marine Economic Development Index .... - 22 - 3.2.2 Analysis of the Marine Science and Technology Innovation Index Evaluation Results ...... - 30 - 3.2.3 Analysis of Marine Environmental Resources Index Evaluation Results ...... - 39 - 3.2.4 Analysis of Marine Comprehensive Management Index Evaluation Results ... - 48 - 4. Evaluation of Marine Development at Home and Abroad ...... - 54 - 4.1 International Marine Development Appraisal ...... - 54 - 4.1.1 North America: United States Florida and Canada Eastern Scotian case - 54 - 4.1.2 Oceania :Australia's great barrier reef marine park cases ...... - 57 - 4.1.3 EU: Britain German Dutch Wadden Sea and waters cases ...... - 59 - 4.2 Marine Development Appraisal at Home ...... - 65 - 4.2.1 North Sea Economic Circle ...... - 65 - 4.2.2 Eastern Sea Economic Circle ...... - 66 - 4.2.3 Southern Marine Economic Circle ...... - 68 - 5. Evaluation of China's Five Regional Marine Economy Pilot Development...... - 70 - 5.1 Shandong Peninsula Blue Economic Zone ...... - 72 - 5.2 Zhejiang Marine Economic Development Demonstration Zone...... - 73 - 5.3 Guangdong Marine Economic Comprehensive Experimentation Zone ...... - 74 - 5.4 The Strait of Fujian Blue Economy Experimentation area...... - 75 - 5.5 Tianjin Marine Economic Development Pilot ...... - 76 - Appendix:The Explanation of the Research Methods for Xinhua Ocean Development Index ...... - 77 - 1. The Overall Research Thoughts ...... - 77 - 2. The Design of Index System ...... - 78 - 2.1 Principle of Index Selection ...... - 78 - 2.2 Structure of Indicator System ...... - 80 - 3. Data Acquisition and Processing ...... - 83 - 4. Index Mathematical Model Calculation ...... - 85 - 4.1 The Establishment of Weight System ...... - 85 - 4.2 Index Calculation Model ...... - 86 -

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Xinhua Ocean Development Index Report(2013)

Figure Catalog Figure 1 Xinhua Ocean Development Index system framework ...... - 15 - Figure 2 2006-2011 Xinhua Ocean Development Index and its change trends ...... - 16 - Figure 3 2006-2011 Xinhua Ocean Development Index Annual Growth Rate ...... - 19 - Figure 4 2007-2011Comparison between Xinhua Ocean development Index Annual Growth rate and GDP Annual Growth Rate ...... - 21 - Figure 5 The indicators system of the marine economic development index ...... - 22 - Figure 6 2006-2011Marine Economic Development Index and its growth rate change trends . - 23 - Figure 7 2006-2011The change trends of the 2nd-level indicators of marine economic development index ...... - 24 - Figure 8 2006-2011GOP accounts for the proportion of GDP and the growth rate (standardized value) ...... - 25 - Figure 9 2006-2011 Standard value of Maine High-Tech Industry's Growth accounts for the Marine GDP ...... - 29 - Figure 10 The indicators system of Marine Science and Technology Innovation Index ...... - 30 - Figure 11 2006-2011 Marine Science and Technology Innovation Index and its growth rate ... - 33 - Figure 12 2006-2011Marine Science and technology input and sub index changes ...... - 34 - Figure 13 2006-2011The marine science and technology input and output index and change trends of the input-output ratio ...... - 37 - Figure 14 Marine Environmental Resources Index ...... - 39 - Figure 15 2006-2011 The change trends of the sub indicators of the Marine resources endowment - 42 - Figure 16 2006-2011Different level pollution area accounts for the proportion of total pollution area ...... - 44 - Figure 17 2006-2011 The level of , pollution control index and the ratio between them ...... - 45 - Figure 18 2006-2011The change trend of marine disaster protection index ...... - 46 - Figure 19 Marine comprehensive management index ...... - 48 - Figure 20 2006-2011 Marine comprehensive management index and the change trends of its 2nd-level indicators ...... - 49 - Figure 21 2006-2011 The change trends of the declaratory sea area and royalties for using sea areas ...... - 51 - Figure 22 2006-2011The change trends of the inspection frequency of marine law enforcement and the number of the illegal violations found in marine law enforcement,...... - 53 - Figure 23 Florida Keys Marine Sanctuary spatial planning diagram ...... - 55 - Figure 24 Canada Eastern Scotian Shelf integrated management area ...... - 56 - Figure 25 Canada ESSIM government management model ...... - 57 - Figure 26 Australia's great barrier reef marine reserve partition map ...... - 58 - Figure 27 Australia's Great Barrier Reef Marine Park marine plansMarine park blueprint ...... - 59 - Figure 28 Ireland sea area planning ...... - 60 - Figure 29 International-national-regional level cooperation: United Kingdom Ireland marine planning framework ...... - 60 - Figure 30 Germany's exclusive economic zone in the North Sea Marine Planning ...... - 62 - Figure 31 Netherlands marine planning ...... - 63 - Figure 32 Wadden Sea coast map of the Netherlands-Denmark-Germany cooperation exploitation and protection ...... - 64 - Figure 33 trilateral cooperation structures in Wadden Sea waters planning ...... - 64 - Figure 34 The research progress of Xinhua Ocean Development Index ...... - 78 - Figure 35 The principle of the selection of Xinhua ocean development index and indicators .. - 80 -

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Xinhua Ocean Development Index Report(2013)

Table Catalog

Table 1 Since the nineteen eighties China Ocean Development Strategy Evolution ...... - 6 - Table 2 2007-2011Xinhua Ocean development Index Annual Growth rate and GDP Annual Growth Rate and the difference ...... - 21 - Table 3 2006-2011The main marine industry development index and the average value ...... - 27 - Table 4 Canada marine development strategy ...... - 56 - Table 5 Australia marine development strategy ...... - 58 - Table 6 China five marine economy pilot area statistics ...... - 70 - Table 7 The indicators in each layer of Xinhua Ocean Development Index ...... - 81 -

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Xinhua Ocean Development Index Report(2013)

Kernel Points Strategic Research Background:In 2012, China stepped up

"maritime power" strategy as a national strategy and bring forth an explicit proposal to enhance the capability of marine resources exploitation, develop marine economy, protect marine ecological environment, and resolutely safeguard its maritime rights and interests, which provides scientific, systematic and strategic guidance for China's marine exploitation.

Development Orientation : This report is designed to assess marine development situation, scrutinize marine development trends, provide an objective, systematic, succinct and timely information guidance and services for the governments, enterprises and the public at home and abroad so that they may have a better understanding of marine career development and coordinate efforts to advance the construction of maritime power.

Comprehensive Result Appraisal:Despite an adverse impact of the financial crisis in 2008 on marine industry and the fact that its economic output has declined, the overall situation is still for the better.

With the scale of sea-related enterprises steadily expanding, Xinhua marine development situation as a whole is favorable. Between

2006-20111,Xinhua Ocean Development Index has been rising from 100

1 Considering about the authoritative, scientific and available data, the data in this report by the end of 2011。 - 1 -

Xinhua Ocean Development Index Report(2013) to 275.37. The index annual average growth rate is 23.18%,much higher than the GDP annual average growth rate of the same period at 10.52%.

And the years 2009-2011 is the period during which China's marine industry entered a rapid development phase, with more prominent effect of policy factors.

Industry Development Appraisal : The structure of China‟s marine industry is improved; the growth rate of offshore oil and gas industry, marine engineering construction, marine tourism and marine emerging industries (including the big three industries such as marine biological pharmaceutical industry, marine power industry, seawater utilization industry) overtakes the traditional marine fisheries, marine transportation, with the proportion of marine high-tech industry‟s added value within the GOP steadily mounting, which indicates that China's marine industry is transforming itself in the direction of high-class.

Science and Technology Innovation Appraisal: The marine science and technology innovation index presents a rapid growth trend since 2008, with marine science and technology output - input ratio steadily increasing. Exclusive of the 2-3 year time lag between the two, the output efficiency of inputs in science and technology from China's marine industry has been somewhat improved.

Environmental Resources Appraisal:The situation of marine

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Xinhua Ocean Development Index Report(2013) environmental resources has improved, although pollution situation is still grim. From 2006-2011, China's marine environment and resources index has been gradually increasing after experiencing trough 2008-2009.

Resource endowments are basically stable, with oil reserves in a steady rise, marine disaster losses in a gradual fall; however, the heavily polluted waters in relation to the total proportion of marine pollution are in a substantial increase, resulting in the limited effect of pollution treatment, healthy waters continually declining. In short, the marine environmental situation is far from optimistic.

Marine Management Appraisal: China‟s marine comprehensive management has been gradually perfecting, maritime law enforcement capacity enhancing. Between 2006-2011, China‟s right-confirmed sea area (project-harnessed sea area) has been declining while the growth rate of sea area reserve use has been increasing remarkably, which indicates that at present China's sea use activities are focused on central sea areas and high-quality sea-based areas while exploitation activities are concentrated on higher level waters, with land reclamation as the main development approach. On the part of marine law enforcement, there is a significant increase in the number of law enforcement inspections, but no significant decline in the number of found violations, which embodies

China‟s determination and arduous mission to enhance marine management, and to resolutely safeguard national marine rights and

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Xinhua Ocean Development Index Report(2013) interests.

International Marine Space Appraisal:The world marine powers represented by the United States of America and the United Kingdom have already formed the ecosystem-based marine management system, and established a series of perfect implementation frameworks and methods for marine management while constructing the theoretical basics of the marine management system. By perfecting the system of laws and regulations, coordinating the corporation mechanism between the departments and between the regions, and conducting accurate sea area zonation, they have made gigantic progress in their marine development. Domestic Sea Area Appraisal : Although China‟s marine economic development has made some achievements, there still exists some gap compared with the international sea area development situation, which is mainly reflected in the following aspects: excessive concern about economic development while ignoring the protection of ecosystems; the imbalance of regional development level, imperfect marine management system and unsound system of laws and regulations and the need to enhance the development of new strategic emerging industries. Five -Province Pilots Appraisal: The establishment of China‟s five marine economic pilots effectively perfected the nation‟s strategic pattern of marine development, safeguarded the nation‟s sea rights and interests, and realized the of marine industries. But the Industrial structure needs to be improved, the management system needs to be perfected, other problems such as the discordance between inputs and outputs of science and technology need to be resolved.

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Xinhua Ocean Development Index Report(2013)

1. The Significance of China’s Maritime Power

Strategy and Strategic Moves

1.1 The Development Course of China’s Maritime Power Strategy

During the second decade of the early 21st century, the world's major powers and regions are committed to pursuing economic restructuring and expanding space for development, with the enhancement of sustainable development and competitiveness through the implementation of marine development and protection as the strategic alternative in national and regional development. Thus ocean exploitation has gradually become a global concern and continued focus.

China, as a developing country endowed with both land and sea, has the natural foundation and huge potential necessary for the development of marine economy. Accordingly, the position of coastal development and foreign economic exchanges is mounting in China's economic development. Since the mid- 1980s, China has successively developed a series of maritime development plan and development strategy related to the sea, with the result that a group of special economic zones and coastal open cities developed rapidly, thus drastically promoting the coastal economy and overseas trade and providing a good social and economic

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Xinhua Ocean Development Index Report(2013) condition for China's maritime development. In the 21st century, in the global macroeconomic backdrop that large-scale development and utilization of the ocean are conducted world-wide, China's awareness of maritime power building and marine economic development strategies continue to be strengthened, with marine development as an important strategic option for maintaining sustainable development and the track and trend of marine development gradually a national focus. In 2012, in the face of increasingly fierce competition in the international arena of ocean development power, China enhanced "sea power" strategic goal to an unprecedented height, put out an explicit proposal to "enhance the ability of marine resources development, develop marine economy, protect the marine ecological environment, and resolutely safeguard the marine right and interest, building up maritime power." However, marine development has a long way to go.

Table 1 Since the nineteen eighties China Ocean Development Strategy Evolution

Time Memorabilia of nation’s marine development strategy

Mid-1980s in20th Century Marine exploration and marine economic development strategy began brewing

Special economic zones and coastal open city have established 1990s in 20th Century and were in rapid development

The State Council issued the "national marine economic 2003 development plan", put forward the strategic objective of building a powerful ocean for the first time.

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Xinhua Ocean Development Index Report(2013)

"Eleven five" plan further proposed "strengthen ocean consciousness, maintain marine rights and interests, protect the 2006 marine environment, explore the marine resources, act on the implementation of comprehensive marine management, promote the development of marine economy".

2010 The party's seventeen Plenary Session proposed the marine economic development strategy in detail.

"Twelfth Five Year Plan" set up a special chapter of "promoting 2011 the development of marine economy ", and made specific deploy to the marine economic development of China's future.

The party's eighteen big further pointed out the strategic guideline of "enhance the development of marine resources, 2012 develop the marine economy, protect the marine ecological environment, and resolutely safeguard marine rights and interests, build a marine powerful nation".

The Political Bureau of the CPC Central Committee made the eighth collective study on construction of maritime-powerful 2013 nation, and stressed again the strategic significance of marine -powerful nation.

1.2 Marine Power Strategy Spiritual- Depth Excavation

From the evolution of China's marine development strategy, we can see that in the 21st century, especially since 2010, with China's rising status of marine development strategy, maritime power strategy has become an important guideline for national development in the new era, which is not only of vital importance to promoting sustained healthy development of national economy, safeguarding national sovereignty, security and interests development, but also of important guiding value for the realization of the development model characterized by the rich by

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Xinhua Ocean Development Index Report(2013) the sea, the power by the sea, harmony with the sea, cooperation and win-win:

1) Building maritime power provides a good carrier for China to melt into the world economy with open and inclusive attitude. Marine economy is an open economy; marine culture carries an inclusive, win-win fine national traditions. The historical experience of thriving by the sea requires that China must attach strategic importance to marine and overseas exchanges and cooperation, learn from the development experience accumulated by the world's marine powers, focusing on marine power strategic guidance and top-level design, and continuously explore the road to the formation of marine power with Chinese characteristics.

2) To construct maritime power, China must base its development on improving the capability of marine resources exploitation, pushing marine economy transformed into quality & efficiency-oriented economy, coordinating the relationship between traditional marine industry, emerging marine industry and prospective marine industry, striving to cultivate marine strategic emerging industries, making efforts to address problems such as the shortage of marine industry high-end talents, technology lag, capital deficiency etc., improving the overall marine exploitation ability and marine harnessing efficiency so as to realize the transformation of marine economy.

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Xinhua Ocean Development Index Report(2013)

3) To construct maritime power, China must promote the transformation of marine science and technology into the leading innovation -based type. International historical experience shows that the development of marine science and technology is the fundamental guarantee to promote the realization of maritime power; through the vigorous development of marine science and technology, building national marine laboratories, strengthening marine basic research and marine team talent building, establishing and promoting the national marine innovation system are to the indispensable requirements and strategic options for the realization of sea power.

4) To construct maritime power, China must focus efforts on the construction of marine ecological civilization; promote the transformation of marine development approach into recycling type. Marine ecological protection should be focused on land and sea linkage, from a comprehensive understanding of marine ecological civilization, to coordinate the efforts of marine environment protection through land and sea collaborative governance. We must focus on establishing sea circulation land and sea environment management industry chain, combine the marine pollution control with land real estate complexity construction, and translate the idea of marine environmental governance into action, that is, multiple "Blue investment" with ecological, economic and social benefits.

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Xinhua Ocean Development Index Report(2013)

5) To construct maritime power, China must take sea power champion as the first premise to pursue win-win cooperation with its neighboring sea-related countries and regions. Marine issues intertwined with complicated contradictions, even political conflicts between diverse interests bulks have become a stumbling block in the path of China's current marine development. We should objectively and calmly cope with the intricate relationship between sea-related interests, learn to use and transform conflicts, press marine rights capacity building coordinated with regional cooperation, and strive to share opportunities in sea-related career development under the premise of peace and security guarantee.

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Xinhua Ocean Development Index Report(2013)

2. Explanation for the Basic Situation of Xinhua

Ocean Development Index

2.1 Index Functional Significance

In order to implement the “12th Five-Year Plan” of National

Oceanic Development in China”, the "12th Five-Year National Oceanic

Economic Development," and other important documents as well as the spirit of the maritime power strategy, it is necessary to establish a national marine development comprehensive evaluation system so as to have a good review of Chinese marine developments from a strategic height and international vision , and provide decision support for economic society in all aspects.

 The comprehensive evaluation helps national and local governments to handle problems that may arise during the progress in the implementation of marine development strategy and provide basic information for further measures.

 It also helps the domestic and foreign public to understand the progress, achievements, trends and existing problems of China‟s oceanic career.

 It also helps businesses and investors to consider and judge the

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Xinhua Ocean Development Index Report(2013) opportunities and risks existing in China‟s marine field.

 It also provides rich indexation format information to the scholars and the organizations specializing in marine field research.

2.2 Index Guiding Ideology

To achieve these objectives, Xinhua Ocean Development Index shall contain at least the following guiding principles:

 To reflect the concept of marine sustainable development, China should consider not only economic development and the sustainability of environmental resources, but also the technological innovation support and integrated management and maintenance and other indicators, while paying attention to the time course of the index display.

 To reflect the system integration and top design, the index has to cover many aspects of marine industry, and consider the logical structure and realistic association between indicators. The corresponding index weight and structure should be associated with the gist of the maritime power strategic construction.

 To reflect scientific and objective reality thinking, China should minimize the artificial synthetic indicators, and use the basic indicators which are detectable and accessible, and calculate with the index weights which are appreciable and correctable so as to avoid exponential gray,

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Xinhua Ocean Development Index Report(2013) fuzziness and non-retroactivity.

2.3 Index Defined Connotation

According to the advice synthesized by domestic and foreign experts through marine research and the comprehensive analysis of the index research achievements at home and abroad, we preliminary defined the

China Oceanic Development Index and its sub-index as the basic:

Xinhua Ocean Development Index refers to a standardized format data that measures the overall development of marine industry level in a certain period or a certain point in time .The index is based on a specific date (the report in 2006, for example, the base index is set to 100).Thus by doing systematic research in the relationship between China‟s marine industry-related fields development indicators in relation to primitive data base during the base period, we obtained the

China marine industry changes value during the reviewing period. This standardized format data is Xinhua Ocean Development Index during the reviewing period.

2.4 Index System Framework

Xinhua Ocean Development Index consists of terminal indicator, controllable factor-level indicators and basic data-level indicators, among which, the top-level indicators denote the main content of national

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Xinhua Ocean Development Index Report(2013) maritime power strategy; the middle-level indicators concern the internal structure and functional properties of marine career development; grassroots indicators concern the authenticity and comprehensiveness of ocean activities and the availability of data, which is composed step by step after the weighting of the indicators between different levels.

Chinese maritime development index system includes Xinhua Ocean

Development Index (Composite Index) and four sub-indexes, which include four first-level indicators, namely four sub-indexes, 11 secondary-level indicators and 51 third-level indicators. The following table presents the framework of China National Offshore Development

Index System.

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Xinhua Ocean Development Index Report(2013)

Xinhua Ocean Development Index Marine Economic Marine Science and Marine environmental Marine Comprehensive Development Index technology innovation index resources index management index

s cience s cience L aw E conomic I ndustrial R esource p ollution pollution D isaster ecological S ea area & technology & technology enforcement G rowth Development e ndowment l evel c ontrol prevention protection m anagement i nput o utput m anagement

Marine GOP(Gross Oceanographic The sea Coastline The area Coastal The Marine declarat inspect high-tech Ocean graduates related patent Length index of area affected natural ory sea ion industry Product) scale index authorization sea comprehe population reserve area frequen structure number pollution of storm area cy of Island Area nsive surge index marine GOP Marine utilizat accounts Marine The sea ion of disasters law graduates The total The area royalti for the fishery related patent industri in coastal enforce structure than area of sea index of Ecosyste es for proportio authorization al solid areas ment the red m health using n of GDP Ocean number waste Marine tide index in sea shipping accounts for Coastal volume professional disaster The crops key sea areas the the proportion aquaculture index of disaster areas number GOP’s scale index Offshore of the total area area of the Annual Marine- oil and gas number of illegal Growth The marine dumping Marine- patents Costal salt violati Rate scientific wastes(dr dumping The loss pan area research edged wastes of the ons Marine personnel Number of material) manageme ship found engineering accounted for marine recoverable index nt index in constructio the proportion scientific reserves of Marine marine n of employment research offshore oil law Marine The agricultur in the sea accumulated enforce petroleum number al Results into proven ment Marine exploitat of disaster application technology chemical Marine ion marine area and technology and salt scientific pollution environm services geographical research funds emissions ent The direct together region's per Marine bio observat economic accounted for capita water pharmaceuti Marine ories loss the proportion resources cal scientific of the total research number of The number institutions the ratio of Marine scientific of coastal senior staff the wetland observator power and research area in seawater size ies in region to costal utilization the total Number of area area of the marine Marine region scientific tourism research institutions

Figure 1 Xinhua Ocean Development Index system framework

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Xinhua Ocean Development Index Report(2013)

3. Evaluation of Xinhua Ocean Development Index

3.1 Comprehensive Evaluation of Ocean Development Index

3.1.1 Analysis of the Index’s Intrinsic Traits

After the questionnaire surveys conducted on nearly 20 industry experts from the State Oceanic Administration, National Marine

Information Center, Ocean University of China, the State Council

Development Research Center, Beijing Jiaotong University, China

Research Center of Industrial Security, Shandong Academy of Social

Sciences Institute of Marine Economy and other institutions as well as scientific and systematic data calculations, the project panel acquired the results and the change trends of China‟s marine development index between 2006 - 2011.

300 275.37 250 230.58 200 172.78 150 133.16 132.67 100 100.00

50

0 2006 2007 2008 2009 2010 2011

Xinhua Ocean Development Index

Figure 2 2006-2011 Xinhua Ocean Development Index and its change trends

Between 2006-2011, Xinhua Ocean Development Index mainly exhibits the following traits: - 16 -

Xinhua Ocean Development Index Report(2013)

Firstly, the growth trend is remarkable. We set the year 2006 index data as the base period (100), during these five years, marine development index value has been on the upswing. In the year 2010,

China National Marine Development Index value exceeded 200, successfully doubled within four years, indicating that China's marine career development has enormous potential and a strong momentum.

Secondly, the periodic differences are obvious. Based on the change trends of China‟s marine career development index, between 2006-2011

China‟s marine career development index can be divided into three periods: The first period, from 2006-2007, is the slow growth phase of the marine career with a steadily gentle rise, at a modest growth rate; the second period, from 2007-2008, it declined slightly, which is attributed to the restructuring of China‟s marine industry; the third period, from

2008-2011, is the rapid growth phase of the marine career, with a soaring index rise and dramatic growth rate.

It‟s true that a doubled Marine Development Index does not mean a doubled growth in marine exploitation scale and marine economic output, which can be understood by the index compiling method, but to a certain extent the steadily surging marine development index reflects a significant improvement in China‟s comprehensive capability of exploiting the and harnessing the oceans; especially since 2008 despite the adverse impact of the world economic recession on the world - 17 -

Xinhua Ocean Development Index Report(2013) economies, the marine development index can still maintain a sustained and rapid growth, exhibiting the powerful self-driving force and the impact-resistance ability of China's marine career development. Of course, the role policy factors played in the marine development should not be overlooked. In 2009, the proposal of "Blue Economy" concept played a huge part in the marine development index and "policy flexibility" became a remarkable characteristic of marine career development.

3.1.2 Index Growth Analysis

According to the measurement and calculation of Xinhua Ocean

Development Index‟s growth rate, the marine development index growth rates during the remaining years, except for the year 2008, are all above

20%, among which the years 2007、2009、2010 are the significant periods of the leaps and bounds in China‟s marine career development; in 2008,

China‟s Marine Development Index presented a slightly negative growth.

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Xinhua Ocean Development Index Report(2013)

33.16% 33.45% 30.23%

19.42%

-0.36%

2007 2008 2009 2010 2011

Xinhua Ocean Development Index Annual Growth Rate

Figure 3 2006-2011 Xinhua Ocean Development Index Annual Growth Rate

3.1.3 Index and Comprehensive Analysis of National Economy

Oceans provide a wealth of material resources and space vector for national economy. Macroeconomic condition and marine resources exploitation are interrelated. On the one hand, marine exploitation inevitably needs the specific marine industry as the basis, because a good macroeconomic situation is favorable for marine industry to expand its scale, optimize the structure, increase the output; on the other hand, the favorable macroeconomic condition can provide more adequate financial security for marine science and technology research and development so as to enhance marine resources utilization efficiency and improve the overall level of marine development.

Comparing and analyzing China National Marine Development

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Xinhua Ocean Development Index Report(2013)

Index annual growth rate2 with the GDP growth rate over the same period between 2007-2011,except for the year 2008 in which the Marine

Development Index growth rate was much lower than the GDP growth rate, we may find that the Marine Development Index growth rate during the rest of the years is faster than GDP growth over the same period. The growth rate differences between the five-year period 2007-2011 in Figure

3-1 also show that the average annual growth rate of marine development index is higher than the annual GDP growth rate for 12.66 percent, indicating that the overall situation of China's marine development is in upswing ahead of the pace of the national economy development.

In fact, from the perspective of the history of the land and sea development process, we can see under the guidance of the traditional thinking which prioritizes land over sea, China‟s marine resource harness is immensely insufficient; marine economy did not get enough attention, thus resulting in a big gap with land economy. Since the new era, with the growing emphasis of the government on marine exploitation, long-term accumulated marine productivity has been given a considerable play, leading to the situation that maritime development index growth rate in the years 2007, 2009 and 2010 were much higher than the growth rate of

GDP. However, with the marine development getting deeper and deeper,

2 2007 - 2011 GDP annual growth rate data is from "China Statistical Yearbook 2012" (2006 to 100). - 20 -

Xinhua Ocean Development Index Report(2013) land and sea economic differentials are gradually narrowed and the potential productivity in the continuously releasing process becomes saturated, and the technical bottlenecks of marine development appeared.

As a result, in 2011, the gap between the two differentials was narrowed down to 10.12 %. Behind the narrowing gap in the differentials, we must not only see the positive effects of the integrated exploitation of land and sea and coordinated development, but also recognize the crying need for enhancing the technical level of marine exploitation, optimizing industrial structure and realize the shift from quantity-orientation to quality-orientation.

33.16% 33.45% 30.23%

19.42% 14.20% 9.60% 9.20% 10.40% 9.30%

-0.36%

2007 2008 2009 2010 2011 Xinhua Ocean development Index Annual Growth GDP Annual Growth Rate

Figure 4 2007-2011Comparison between Xinhua Ocean development Index Annual Growth rate and GDP Annual Growth Rate Table 2 2007-2011Xinhua Ocean development Index Annual Growth rate and GDP Annual Growth Rate and the difference

2007 2008 2009 2010 2011 Average

Xinhua Ocean Development Index 33.16% -0.36% 30.23% 33.45% 19.42% 23.18% Annual Growth Rate GDP Annual Growth 14.20% 9.60% 9.20% 10.40% 9.30% 10.52% Rate Differences 18.96% -9.96% 21.03% 23.05% 10.12% 12.66%

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Xinhua Ocean Development Index Report(2013)

3.2 Analysis of Sub-index Evaluation Results

3.2.1 The Evaluation Results Analysis of Marine Economic Development Index

Marine economic development index is an important indicator which characterizes the overall operation of marine economy in China and shares the two highest weight sub-indicators with the marine science and technology innovation index in the measurement of Xinhua Ocean

Development Index. Marine economic development index consists of two secondary-level indicators, including economic growth and industrial development.

Marine Economic Development Index

Economic Growth Industrial Development

GOP(Gross Ocean Product) Marine high-tech industry structure

GOP accounts for the Marine fishery proportion of GDP Ocean shipping

GOP’s Annual Growth Rate Offshore oil and gas

Marine engineering construction

Marine chemical and salt

Marine bio pharmaceutical

Marine power and seawater utilization

Marine tourism

Figure 5 The indicators system of the marine economic development index

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Xinhua Ocean Development Index Report(2013)

According to the expert summary scores, we gave the indicators a comprehensive analysis and calculation and obtained the evaluation results of the Marine Economic Development Index between 2006-2011:

23.32% 159.78 144.29

111.06 117.00 100.00 105.91 10.74%

5.91% 4.86% 5.36%

2006 2006 2006 2006 2006 2006

Marine Economic Development Index Marine Economic Development Index Annual Growth Rate

Figure 6 2006-2011Marine Economic Development Index and its growth rate change trends

On the whole, from 2006-2011, China's marine economic development level rose smoothly from 100 in the base year 2006 up to

159.78 in the year 2011. After the financial crises in 2008, China‟s marine economic development index has stepped into a relatively rapid growth phase.

From the perspective of the marine economic development, the financial crisis in 2008 impacted the output of marine industry, if measured by monetary value, and battered the sea-related enterprises, which led to a fall in the marine economic development index .

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Xinhua Ocean Development Index Report(2013)

250

200

150

100

50

0 2006 2007 2008 2009 2010 2011

Economic Growth Industrial Development

Figure 7 2006-2011The change trends of the 2nd-level indicators of marine economic development index

In addition, from the perspective of the changes in growth rate, unlike the plunge of the annual growth rate of Xinhua Ocean

Development Index to an all-time through in 2008, the marine economic development index bottomed out in 2009 and took a strong rebound in

2010 and reached peak.

In comparison with the overall rising trend of China Marine

Economic Development Index, industrial development indicators presented significant heterogeneity change characteristics, among which, the industrial development indicator increased smoothly; the economic growth indicator assumed a strong volatility and after the trough in

2008-2009 displayed a downhill trend in 2010-2011.

3.2.1.1 Economic Growth

From the constitution of the three-level indicators of the economic growth indicator, we can interpret its macro change trend of decline in

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Xinhua Ocean Development Index Report(2013) fluctuations. The economic growth indicator consists of three same weight -indicators including the GOP、the proportion of GOP within the

GDP and GOP growth rate. Among them, the GOP reflects the total scale of marine economy, the proportion of GOP within the GDP reflects the contribution of marine economy to national macro-economy; GOP growth rate is used to reflect the pace of marine economic development.

55.00 2011 96.39

81.67 2010 98.80

51.11 2009 94.89

55.00 2008 94.79

82.22 2007 96.59

100.00 2006 100.00 Marine GDP Growth Rate Marine GDP account for GDP

Figure 8 2006-2011GOP accounts for the proportion of GDP and the growth rate (standardized value)

After we normalized the actual data with 2006 as the base year, we find that over the six years between 2006- 2011, the proportion of China's

GOP to the GDP presented an obvious downhill trend. Besides, according to the raw data, in 2006 the proportion of the GOP to the GDP accounted for 9.98%; in 2011 this proportion dropped to 9.62%, which is attributed to the fact that the growth of overall scale of China's economy is constantly expanding and the land industrial output is improving steadily.

From the perspective of the GOP growth rate indicator value, between

2006 -2011 there existed remarkable fluctuations in the indicator value

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Xinhua Ocean Development Index Report(2013) and in the year 2008, 2009 and 2011 the indicator value did not exceed

55%, which formed a large gap with that in the base year 2006.

Compared with land economy, marine economy has typical characteristics of resource-intensive and technology-intensive. High

-strength marine exploitation is bound to exceed the environment carrying capacity of the inherent marine resources. If we fail to continuously update the marine exploitation technology and promote the steady enhancement of production efficiency, the maritime GDP growth will inevitably face many bottlenecks. Hence the volatility decline of the

GOP correlates with marine ecosystems and the self- recovery cycle of material means of production; meanwhile, it illustrates the importance and necessity of high-tech in marine exploitation.

3.2.1.2 Industry Development

Marine industry is a vector and the specific manifestation of marine economic development and an important vehicle to realize the economic value of marine resources. Based on the marine industry classification in the "China Marine Statistical Yearbook", this report makes a systematic study of the development situations of eight-category marine industries, including marine fisheries, marine shipping industry, offshore oil and gas industry and so on. Given the fact that some marine industry data are hard to come by, the report gives a comprehensive consideration to the added

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Xinhua Ocean Development Index Report(2013)

value of marine industry and the number of the employed, and set the

composite index as the corresponding index characterize different

situations in marine industry development.

Table 3 2006-2011The main marine industry development index and the average value

Averag Industry 2006 2007 2008 2009 2010 2011 e

Marine Fishery 100.00 110.40 121.13 128.36 142.00 153.77 125.94

Marine Shipping 100.00 130.78 163.88 200.67 235.80 257.10 181.37

Ocean 100.00 113.40 123.62 117.57 131.53 141.32 121.24 transportation

Marine oil and 100.00 103.01 130.59 101.08 153.95 186.31 129.16 gas industry

Marine engineering 100.00 112.38 95.56 134.77 159.88 186.26 131.47 construction industry

Chemical industry and the salt 100.00 110.67 102.81 108.81 127.91 138.96 114.86 industry

Marine Tourism 100.00 114.99 126.41 138.46 157.97 177.08 135.82

Marine biological 100.00 121.48 137.57 131.11 182.90 279.17 158.70 pharmaceutical

Marine power and seawater 100.00 108.85 152.40 203.96 299.79 417.50 213.75 utilization industry

Note:1、The background are the traditional marine industries established before the 60s of the 20th century, the background are the marine industries established in the end of 20th century,the background are the marine industries established since the 21st century,or - 27 -

Xinhua Ocean Development Index Report(2013) named as future marine industries from the research3。

The results show that between 2006- 2011, most of China's eight major marine industry development indexes were in the upward trend.

From the perspective of the average value of industrial development index, marine shipping industry and marine bio-pharmaceutical industry , marine power industry and seawater utilization industry had relatively fastest growth rate.

In 2010, China topped as the world's largest country, providing superb supports of technology and equipment for marine exploitation and defense construction. The steady growth of burgeoning marine industries represented by marine bio-pharmaceutical industry, the marine power industry and seawater utilization industry suggests that

China relies more and more heavily on high-tech in marine exploitation and that the technology-intensive industries are gradually taking over the traditional resource-dependent industries as the main force in the future marine economic development.

3 Among the eight marine industries in this report, marine emerging industry refers to three big industries including the marine bio pharmaceutical industry, marine electric power industry, seawater utilization industry but most of the studies classified them into the future marine industry, then, in order to distinguish them from the marine oil and gas industry, marine industry, marine chemical industry and marine tourism and the other new industries, in accordance with the time of its development they are divided into the end of the twentieth Century and twenty-first Century since the industry new marine emerging industry (the so-called future marine industry). In addition, there is the general thought that the sea salt industry belongs to the traditional marine industry, but in case of the marine chemical industry as an industry to study, it will be incorporated into the end of the twentieth Century emerging marine industries.. - 28 -

Xinhua Ocean Development Index Report(2013)

Whatever the main force is, whether the offshore oil and gas industry, marine engineering construction industry, marine chemical industry and marine tourism since the 1960s, or the latest rising marine industries such as marine pharmaceutical industry, marine power industry, seawater utilization industry in the 21st century, and the requirements for the technological level of marine exploitation keep upgrading all the time.

Since 2006, the proportion of marine high-tech industry‟s added value within the GOP has been steadily rising, indicating a upswing of resource harnessing technology and utilization efficiency in the process of China's marine industry development.

140.75 130.18

107.58 106.63 100.00 99.79

2006 2007 2008 2009 2010 2011

Standard value of Maine High-Tech Industry's Growth accounts for the Marine GDP

Figure 9 2006-2011 Standard value of Maine High-Tech Industry's Growth accounts for the Marine GDP

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Xinhua Ocean Development Index Report(2013)

3.2.2 Analysis of the Marine Science and Technology Innovation Index Evaluation Results

Marine Science and technology innovation index

science &technology input science &technology output

Oceanographic graduates scale The sea related patent index authorization number

The sea related patent Marine graduates structure than authorization number accounts for the proportion of the total number Marine professional scale index of patents

The marine scientific research Number of marine scientific personnel accounted for the research proportion of employment in the sea Results into application and Marine scientific research funds technology services together accounted for the proportion of Marine scientific research the total number of scientific institutions senior staff size research

Number of marine scientific research institutions

Figure 10 The indicators system of Marine Science and Technology Innovation Index

Marine science and technology innovation index is not only an important indicator to characterize the science and technology level of sea-related industry and the dimensions of marine exploitation, but also the fundamental driving force of marine career development in the new era. Nowadays, with the increasing intensity of marine exploitation, a spectrum of problems concerning the scarcity of marine resources, marine environmental degradation etc. looms large. The traditional resource-intensive-featured marine industry is transforming itself to technology-intensive-based industry. In this sense, technology level - 30 -

Xinhua Ocean Development Index Report(2013) becomes the most crucial factor determining a country's marine exploitation level.

Compared with foreign marine science and technology level, China's marine science and technology innovation activities started up quite late, have a long way to go. To a large extent, this wide gap inhibits the enhancement of total-factor productivity in the sea-related production activities and confines the scope of the marine space exploitation and utilization, which is not conducive to profound exploitation and utilization of marine resources. Therefore, increasing inputs in marine science and technology innovation and improving the transforming efficiency of scientific research fruits become the key issues to be resolved in the process of marine industry development.

The marine science and technology innovation index and its growth rate during 2006-2011 are derived from a comprehensive analysis of the country‟s input and output indicators. The findings show that during these six years, the exponential growth of marine science and technology innovation index can be broadly divided into two periods. Take the year

2008 as the boundary. Before 2008, the rising trend of marine science and technology innovation was not obvious, with an annual growth rate of around 4.5%, in the low- growth phase; after 2008, marine science and technology innovation index rose rapidly and reached 241.76 in 2011.

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Xinhua Ocean Development Index Report(2013)

Viewing from the change trend of the growth, the year 2009 is the fastest growing year of China‟s marine science and technology innovation, striking a sharp contrast with the aforementioned annual growth rate of

China Marine Economic Development Index plunging to the trough in

2009. This accounts for the reason why under the negative impact of the financial crisis, Xinhua Ocean Development Index actually increased in

2009 instead of a decline. The very reason is that although the macroeconomic situation made a strong impact on the sea-related businesses, unfavorable to the increment of the monetary value-measured marine industry‟s output, those enterprises shaped technology- level-improved, industrial structure more rationalized and more scientific sea-related economic formation by encouraging technological innovation, enhancing science and technology level, actively seeking for transformation, and conducting the survival of the fittest within the industry. As a result, under the powerful external environment that the negative impact of the financial crisis subsided gradually and the macroeconomic situation recovered, Xinhua Ocean Development Index rose rapidly during 2009- 2011 .

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Xinhua Ocean Development Index Report(2013)

Marine Tech-Innovation In 241.76 dex 62.23% Marine Tech-Innovation In 211.47 dex Annual Grwoth Rate 177.30

109.29 100.00 104.65

19.27% 14.32%

4.65% 4.44%

2006 2007 2008 2009 2010 2011

Figure 11 2006-2011 Marine Science and Technology Innovation Index and its growth rate

Meanwhile, although the negative economic impact of the external environment will affect inputs in the innovation activities around marine science and technology, not favorable to enhance the level of marine scientific and technological innovation activities; however, just because of a certain time lag effect between inputs and outputs of the marine scientific and technological innovation activities, between 2008 -2009, chances were that marine science and technology innovation inputs might decline. Nevertheless, there was every possibility that the productive outputs injected as the initial inputs might achieve peak performance in

2009. In addition, the adverse selection mechanism of the market might also become another important drive for pushing marine science and technology innovation index to reach a peak in 2009.

3.2.2.1 Science and Technology Inputs

As the material basis generated by marine science and technology innovation activities, there is a significant positive correlation between

- 33 -

Xinhua Ocean Development Index Report(2013) the input quantum of marine science and technology and the output number of technological achievements. After considering staff input, research funding and institution-building, and many other factors, the change trends of marine science and technology investment index are as follows:

Technology Inputs 500 Number of marine scientific research institutions Maine Tech-Salary Inputs Index 450 Marine scientific research institutions senior staff size index 400

350

300

250

200

150

100

50

0 2006 2007 2008 2009 2010 2011

Figure 12 2006-2011Marine Science and technology input and sub index changes4

During 2006-2011, China marine science and technology input index rose steadily; especially after the year 2008, the index surged dramatically, and exceeded 200 points in 2010. From the perspective of the change trends of the big three important sub-indicators, including the index of the senior staff size of marine scientific research institutions, the index of marine research funding inputs and the number of marine

4 In the calculation of investment in science and technology index, sub-indexes include seven sub indicators such as marine graduates scale index, marine graduates structure than index, marine major scale index, marine scientific research personnel accounted for the proportion of employment related to the sea, marine scientific research funds index, senior staff scale index and marine scientific research institutions in marine scientific research institutions number , only three of them focus on industry representative。 - 34 -

Xinhua Ocean Development Index Report(2013) research institutions, we can see that the marine research funding inputs becomes the biggest indicator of volatility; especially in 2009, the index value had a sharp decline, consistent with the earlier analysis of the research into the impact of the financial crisis on science and technology inputs. Since then, research funding index rose rapidly as the main force bringing forth a stimulating rise in science and technology inputs in 2010 and 2011. In contrast, the change trends of the index of the senior staff scale of marine scientific research institutions and the number of marine research institutions are basically in consistency, both increased significantly after 2008, and the former with more prominent growth rate , indicating that the marine research institutions have absorbed more marine scientific research talents, which was conducive to the accumulation of marine science and technology innovation and the play of scale economy effect.

3.2.2.2 Scientific and Technological Outputs

Science and technology output index is calculated on the number of sea-related authorized patents, the proportion of the number of sea-related authorized patents within the number of the country's total patents, the number of marine scientific research subjects, the proportion of the application of input fruits as well as scientific and technological services combined within the total number of scientific subjects. This index not only reflects the output effect of scientific and technological - 35 -

Xinhua Ocean Development Index Report(2013) achievements, but also gives an overall consideration to transformation and application.

The research results shows that 2008-2009 is the year in which the level of scientific and technological outputs in China had a rapid promotion, before and after, the scientific and technological output index showed a smooth growth. Sub-indicator data shows that the number of sea-related authorized patents was soaring from 2008 and its index value was much higher than the value of other indicators, and becomes the dominant force to promote the rise of marine scientific output. In contrast, the number of scientific research subjects changed smoothly.

In addition, although the number of sea-related authorized patents increased significantly, in 2007 and 2008, its proportion within the country's total number of patents fell to 0.13%, indicating that during this period the number of non-sea-related patents rose steeply, while the number of sea-related patents grew slowly, but since 2009, the value has been stable at 0.2% for three years or more. In addition, as for the proportion indicator of the application of input fruits as well as scientific and technological services combined within the total number of scientific subjects did not show significant growth in the rest of the other years, except for 2009, indicating that the conversion rate of our sea-related scientific and technological achievements needs to be improved.

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Xinhua Ocean Development Index Report(2013)

3.2.2.3 Comparative Analysis of Research Input-output Ratio

In these six years, science and technology input-output index presented an alternating leading trend, in which fluctuation curves of science and technology input index were quite smooth, while jump points of the science and technology output index fluctuation curves occurred in

2008, 2009 and 2010, indicating that the change of annual rate for input index was more equal, while the output index was little changed in some years and fluctuated wildly in other years, which corresponds with the actual situation . In reality, input data can be artificially controlled in advance; the country‟s inputs in sea-related scientific research largely follow first-phase plans, and it is difficult to lead to large-scale fluctuations, while the output data are volatile, with different input – output cycles for different research projects, which is an important cause for the volatility of research output index.

300.00 1.4

1.2 250.00

1 200.00

0.8 150.00 0.6

100.00 0.4

50.00 science and technology input 0.2 science and technology output input-output ratio 0.00 0 2006 2007 2008 2009 2010 2011

Figure 13 2006-2011The marine science and technology input and output index and change trends of the input-output ratio - 37 -

Xinhua Ocean Development Index Report(2013)

From the change trends of output-input index ratio, its value is in a basic fluctuation around 1, indicating that China's marine research inputs and outputs are in basic agreement, but there exist strong cyclical fluctuations. Take the study period 2006-2011 as an example. In 2006-

2009, the curve experienced a "peak - trough – peak” cycle, and similar changes occurred during 2009- 2011. In view that the study period is short, we can hardly get accurate fluctuation cycles of marine research input-output ratio; in spite of that, we can roughly determine the cycles of marine research input --output ratio as about 2 to 3 years based on the results shown on the graph.

- 38 -

Xinhua Ocean Development Index Report(2013)

3.2.3 Analysis of Marine Environmental Resources Index Evaluation Results

Marine environmental resources index

Resource pollution Disaster ecological pollution level endowment control prevention protection

Coastline Length The area Coastal area The affected Marine index of sea comprehensive population of natural Island Area pollution utilization storm surge reserve area of industrial disasters in index The total area of The area solid waste coastal areas sea index of the volume index Ecosystem red tide of The crops health index Coastal disaster disaster area in key sea aquaculture area Marine- areas Marine- dumping The loss of the Costal salt pan dumping wastes ship area wastes(dredge management d material) index Marine recoverable index agricultural reserves of disaster area offshore oil Marine The number of accumulated petroleum marine proven technology exploitation environment The direct pollution observatories economic loss geographical emissions region's per The number of capita water coastal resources observatories in costal area the ratio of the wetland area in region to the total area of the region

Figure 14 Marine Environmental Resources Index

Good environmental status of marine ecology and rich marine resources stocks are the basis and premise of marine exploitation and utilization. Compared with terrestrial environmental resources, the marine environment resource situation is more complex, with limited carrying capacity of ecological environment, the highlighted vulnerability of the ecosystems. Unscientific and irrational behavior of marine exploitation is prone to damage the vulnerable marine environment severely, and part of the damage cannot be restored, which poses a devastating threat to the

- 39 -

Xinhua Ocean Development Index Report(2013) marine ecological environment.

But with an ever-growing increase in the scale and intensity of , China‟s marine environment is going from bad to worse.

Water quality of coastal sea is not optimistic, and shallow water fisheries resources are in severe recession; marine pollution accidents and marine catastrophes recur frequently, all of which are not conducive to a sustained and healthy development of marine economy. In pairs of weigh calculation to the indicators including resource endowments, pollution levels, pollution control, disaster prevention and ecological protection and other indicators, we obtained the change trends of marine environmental resources index during 2006-2011.

During 2006-2011, the marine environmental resources index showed significant fluctuations; in 2007-2010 it fell first and then rose, with a dramatic growth since 2009. Viewing from change trends of this index‟s secondary -level indicators , it can be seen that there were slight changes with the big three indicators, including resource endowments, pollution levels and pollution control, which were hovering around the change in base period of 2006, and the trends presented remarkable consistency. In contrast, the range of fluctuations in disaster protection and ecological protection was substantial, which became the dominant force to promote the rise and fall of marine environmental resources index. Among them, with the disaster protection indicator, except in - 40 -

Xinhua Ocean Development Index Report(2013)

08-09 years and the base period of 2006, the indicator values were above

500 on average in the year of 2007,2010 and 2011, and became the fastest growing, the most volatile secondary-level indicator. Environmental indicator skyrocketed in 2010, which had an exponential growth on the whole during the study period. This can be attributed to the fact that

China's relevant departments have promptly recognized the seriousness of the problem on deterioration of the marine environment, and have taken a wide range of and a diversity of marine ecological protection measures.

3.2.3.1 Resource Endowments

Marine resources endowment is the material base to determine the level of marine economic development, including eight sub-indicators such as the length of coastline, islands area, the total area of sea, coastal aquaculture area, recoverable reserves of offshore oil accumulated proven technology, and geographical region's per capita water resources, the ratio of the wetland area in region to the total area of the region.

These indicators fall into two categories according to whether the quantum of its resources is variable. The first category is the fixed quantum resource endowment indicators, such as shoreline length, total sea area and the ratio of the wetland area in region to the total area of this region. Resource endowments of this category are decided by natural conditions which are difficult to change artificially; and the resources of

- 41 -

Xinhua Ocean Development Index Report(2013) this category are also called the non-initiative marine resources, of which index value is always maintained at 100 in the base year ; the second category is the non-fixed quantum resource endowment indicators, such as aquaculture area, recoverable reserves of offshore oil accumulated proven technology and the remaining five indicators, of which the indicator value changes with the enhancement level of the marine resources exploration or the type of the technology used in marine exploitation.

160 2006 2007 2008 2009 2010 2011 140 120 100 80 60 40 20 0 Mariculture area Yantian total area Recoverable oil reserves water resources amount/C

Figure 15 2006-2011 The change trends of the sub indicators of the Marine resources endowment5

In March 2010, "PRC Island Protection Law" was promulgated, and later in April the State Oceanic Administration started the National Sea island names census. The census work conducted systematic complements and amendments to the data of island resources established from the first nationwide comprehensive survey in 1980s. Data shows that in 2011 China's island area reached 80,000 square kilometers,

5 Because the coastline, three index includes the sea area of wetland area and area proportion of the area have been fixed for 100, trend chart will not be displayed in the marine resources sub index.

- 42 -

Xinhua Ocean Development Index Report(2013) compared with the previous 38,700 square kilometers6, the increase was up to 106.72 percent. In comparison with the overall stabilization of the total area of salty field, the aquaculture area continued to increase since

2007, which is attributed to the reduction in marine fishery resources, the fall of the scale and the output in fishing industry. Recoverable reserves of offshore oil accumulated proven technology has been in a significant upward trend within these six years, indicating that the mining capacity of

China's offshore oil and gas resources is in a steady growth. In contrast, the region's water resources per capita declined in the fluctuation, and fell to 1730.4 cubic meters / person in 2011 , less than 30% of the world average level, indicating that the situation of China‟s water resources is not optimistic.

3.2.3.2 Pollution and Treatment

Marine pollution is the primary cause for the deterioration of marine ecological environment. The marine pollution factors include shipping pollution, maritime accidents, marine dumping and construction and other types. At present, the situation of China's marine pollution is grim, with some coastal ecological environments severely damaged, marine ecology disasters recurring occasionally.

Between 2006-2011, the proportion of China's heavily polluted sea

6 2006-2010 island size statistics don't include Hong Kong, the Macao Special Administrative Region and Taiwan province - 43 -

Xinhua Ocean Development Index Report(2013) area within the total area of polluted sea area continued to rise, and reached 45.44 percent in 2011, of which a large part of the heavily polluted waters was too difficult to recover, or simply impossible to be recovered, thus resulting in irreversible damages. In addition, excerpt that outside emissions of pollutants of the oil exploration and exploitation decreased, the declines for industrial wastewater discharges and the amount of waste volume dumping to ocean were not obvious, which is the important cause for frequent recurrences of red tide and other marine pollution disasters since 2009 .

2011 35.58% 18.98% 45.44%

2010 33.74% 21.53% 44.73%

2009 33.51% 27.46% 39.03%

2008 40.28% 24.34% 35.38%

2007 50.53% 17.87% 31.60%

2006 53.22% 17.77% 29.01% The proportion of slightly polluted sea area Moderately polluted sea area proportion Severe pollution of the sea by the proportion of area

Figure 16 2006-2011Different level pollution area accounts for the proportion of total pollution area

Faced with complex and grave marine pollution situation, national marine management departments concerned have taken a series of measures, including speeding up the construction of coastal solid waste, waste water treatment projects, strict Ocean Dumping management, construction of marine environmental observation stations, etc, but yielded limited results, and these measures are undermined in recent

- 44 -

Xinhua Ocean Development Index Report(2013) years.

Contrasting marine pollution level index with pollution prevention index, it can be seen that the marine pollution index increased dramatically between 2008-2009, then gradually decreased year by year, while there came an upward trend in marine pollution index, indicating that in terms of the marine pollution behavior itself, its quantum declined, while viewing from the pollution control effect, it had no significant improvements, or even declined, instead. Therefore, to step up the control of marine pollution and to improve the effectiveness and efficiency of marine pollution control are the inexorable requirements for protecting marine ecological environment and alleviating marine pollution.

180 Pollution Level Pollution Control 170 160 150 140 130 120 110 100 90 80 2006 2007 2008 2009 2010 2011

Figure 17 2006-2011 The level of marine pollution, pollution control index and the ratio between them

3.2.3.3 Disaster Prevention

Marine disasters include storm surges, tsunamis, catastrophic waves, tide and other types, especially with the storm surges, waves and tide disaster as the most common. The harm of these disasters is devastating.

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Xinhua Ocean Development Index Report(2013)

Many of the affected areas are coastal developed provinces with dense population, and these disasters often cause severe damage and pose a serious threat to the life and property safety of the people in the region.

China has attached great importance to the work of marine disaster prevention so as to minimize the damages of marine disasters through a series of measures such as cementing coastal engineering, constructing observation sites, perfecting disaster alarming mechanism; as a result, marine disaster prevention work has produced impressive effects. Take direct economic losses caused by marine disasters as an example. In 2006 the direct economic losses reached ¥21.711 billion, and by 2011, the value dropped to ¥4.881 billion. In addition, the storm surge affected population, crops affected area, aquaculture affected area as well as the number of damaged vessels all dropped significantly in coastal regions, especially since 2009, marine disaster prevention index has been enhanced significantly.

900 Disaster Protection Index 800 700 600 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011

Figure 18 2006-2011The change trend of marine disaster protection index

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Xinhua Ocean Development Index Report(2013)

3.2.3.4 Ecological Protection

Compared with terrestrial ecosystems, the ecological types of the marine ecosystems are relatively unitary, and the community structure is relatively simple, but the ecosystem types are diverse, and the differences between different ecosystems are noticeable, with high instability. Once destroyed, it is usually hard to restore.

At present, China's marine development activities caused devastating damage to marine environment; as a result, healthy waters proportion continued to decline, which created an urgent need to take a series of ecological restoration measures. During 2010-2011, under the huge pressure of marine ecosystem protection, China's marine natural reserve area reached an unprecedented area of 462,611 square kilometers, but up to now, the marine ecological environment situation is still not optimistic. The ecological protection task is arduous.

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Xinhua Ocean Development Index Report(2013)

3.2.4 Analysis of Marine Comprehensive Management Index Evaluation Results

Marine Comprehensive management index

Sea area management Law enforcement management

declaratory sea inspection frequency area of marine law enforcement royalties for using sea areas the number of the illegal violations found in marine law enforcement

Figure 19 Marine comprehensive management index

Marine comprehensive management refers to the comprehensive, integrated and coordinated regulatory process conducted by state governments at all levels for resources, environment and rights and interests in the sea areas under the jurisdiction of the nation. Safeguarding sea rights is the most fundamental and most important objective of marine comprehensive management, and is also the foundation and prerequisite of China's marine development.

In the face of complex and volatile international environment, among the four of China, except that the Bohai Sea, China's natural inland sea, has no territorial disputes with other countries, the remaining three waters all have maritime delimitation disputes of varying degrees which severely affects the normal marine exploitation and utilization.

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Xinhua Ocean Development Index Report(2013)

After the calculation of two secondary -level indicators, including marine management and law enforcement management, we acquired the results of the marine comprehensive management index in 2006-2011.

500 Comprehensive marine management index Sea area management index Law enforcement management index 400

300

200

100

0 2006 2007 2008 2009 2010 2011

Figure 20 2006-2011 Marine comprehensive management index and the change trends of its 2nd-level indicators

During 2006-2011, China's capability of marine comprehensive management has steadily improved. The Marine Comprehensive

Management Index value has increased from 100 of the base year in 2006 to 394.93 in 2011. Among these two secondary-level indicators, marine management index reveals a logistic curve growth, while law enforcement management index increases step by step and year by year, indicating that the ability and level of China's maritime law enforcement have been greatly improved.

3.2.4.1 Marine Management

Marine Management Index consists of two sub-indicators including the declaratory sea area and royalties for using sea areas, in which the declaratory sea area refers to the project using area with the acquirement

- 49 -

Xinhua Ocean Development Index Report(2013) of sea use right approved by the government, which is used to reflect the situation of coastal waters management by maritime management departments. The royalties for using sea areas is the manifestation of value for the paid marine exploitation and utilization, the amount of the royalties for using sea areas collected directly reflects the intensity and scale of marine exploitation and utilization and the situation of the paid marine management utilization by marine regulators.

During 2006-2011, China‟s declaratory sea area has presented a significant downward trend, and dived to the trough in 2009; compared with the base year in 2006, the declaratory sea area dropped by nearly

20% in 2011, which was closely related to the frequent recurrences of accidents in marine ecological environment, the enhanced protection of key sea areas by government and the reduced project using sea area. In contrast, since 2006, royalties for using sea areas have been on an upward trend from ¥1,574,745,300 in 2006 to ¥9,644,934,700 in 2011, with an increase of up to 512.48 percent. The decrease in the sea using area and the increase in the number of the royalties for using sea areas indicates that with the accordance of the collection standard for the royalties for using sea areas. The current marine utilization activities prioritize key sea areas and high quality sea-based areas, with the exploitation activities concentrated in the higher level sea areas, the development models dominated by high-level type of sea using such as

- 50 -

Xinhua Ocean Development Index Report(2013) the use of marine reclamation land。

107.62 612.48 100.00 99.17 576.20 royalt i es f or usi ng sea areas 499.29 85.24 81.80 78.47

374.04

declaratory sea a rea

187.88

100.00

2006 2007 2008 2009 2010 2011 royalties for using sea areas declaratory sea area

Figure 21 2006-2011 The change trends of the declaratory sea area and royalties for using sea areas7

3.2.4.2 Law Enforcement Management

Law enforcement management is an important indicator which reflects a country's law enforcement of the oceans, including two indicators such as the inspection frequency of marine law enforcement and the number of the illegal violations found in marine law enforcement, of which the former is a positive indicator while the later is a reverse indicator.

During 2006- 2011, inspection frequency of China's marine law enforcement exhibited significant enhancement in 2008 and 2010, especially in 2010 -2011, the inspection frequency of marine law

7 The data used in the chart is standardized. - 51 -

Xinhua Ocean Development Index Report(2013) enforcement surged from 72,233 to 145,598 with an increase of nearly twice as much. This is not only out of the necessity of safeguarding marine rights and interests and defending the homeland security, but also a necessary requirement to tighten sea use supervision and regulate sea use behavior .

With the increasing number of law enforcement since 2008, the number of illegal violations found in marine law enforcement is different in variations. From 2008- 2009 the number of marine law enforcement inspection increased by 109.51% while the number of violations decreased by 36.58% ; in 2010-2011, the inspection frequency of marine law enforcement increased by 101.57 percent but the number of illegal violations found in marine law enforcement rose by 15.09% , indicating that in 2008 - 2009 marine law enforcement inspection produced a strong deterrent effect mainly on the domestic illegal use of waters, while in

2010-2011 most of the subjects of marine law enforcement were foreign ship personnel whose country had territorial disputes with China; accordingly the illegal activities increased, which made the situation of

China's sea rights safeguard more grave.

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Xinhua Ocean Development Index Report(2013)

738.70

100.00

90.58 92.39 the number o f illegal violat i ons found in marine law en forcement 68.14

58.59 59.21 366.48 342.46

inspect i on fr e quency of mar ine law enforc ement 163.46 127.69 100.00

2006 2007 2008 2009 2010 2011 inspection frequency of marine law enforcemen t the number of illegal violations found in mar ine law enforcement

Figure 22 2006-2011The change trends of the inspection frequency of marine law enforcement and the number of the illegal violations found in marine law enforcement,8

8 The data in this figure has been standardized, the number of illegal violations found in marine law enforcement belongs to the reverse indicators, experienced the process of treatment in the calculation of the index, see specific in appendix. - 53 -

Xinhua Ocean Development Index Report(2013)

4. Evaluation of Marine Development at Home and

Abroad

4.1 International Marine Development Appraisal

4.1.1 North America: United States Florida and Canada Eastern Scotian Sea case

(1) United States: In 1990, the United States set up Florida Keys marine protected areas, which cover 25 different types of regions, with a variety of marine spatial planning system resource utilization level requirements 9 .In recent years, through the implementation of ecosystem-based marine spatial planning aimed at Florida's water and land planning, adopting innovative management practices, the United

States unites the public, businesses, and governments at all levels effectively, and meanwhile, strengthens the joint reserve interaction between neighboring States, participatory area development management so as to ensure marine sustainable development.

9 Fanny Douvere. The importance of marine spatial planning in advancing ecosystem-based sea use management. Marine Policy, 2008(32):782-771. - 54 -

Xinhua Ocean Development Index Report(2013)

Figure 23 Florida Keys Marine Sanctuary spatial planning diagram10

Canada is the earliest country in the world to establish marine comprehensive legislation, also the earliest country in the world to enact national planning of action for protecting marine environment, land pollution source activity. Canada‟s marine development system consists of four main aspects including marine environment management system of comprehensive coordination across sectors and regions, mature regulatory system for marine environmental management, marine resources exploitation and the harmonious and sustainable development of environmental protection and constructing unique networks of marine protected areas.11

Such a system can not only improve Canada's own effectiveness of environmental management, effectively form a comprehensive marine management system to achieve the sustainable development of marine resources and environment, but also advance the implementation of

10 Brian D. Keller, Billy D. Causey. Linkages between the Florida Keys National Marine Sanctuary and the South Florida Ecosystem Restoration Initiative. Ocean & , 2005(48):869-900. 11 Kang Liu,Environmental management of ocean in Canada,Ocean development and management,2011(1): 31-36. - 55 -

Xinhua Ocean Development Index Report(2013) national action planning for regional marine protected areas, advancing the construction of representative networks of marine protected areas in the world.

Table 4 Canada marine development strategy12 chronology marine development strategy target Cross-sector "marine environmental Regional marine the mid of 1980s quality" program environmental protection “National action plans for protecting the year1995 marine environment from being polluted Land-sourced pollution control by face-to-face land sources activities” Established the Office in charge of the Coordination and promotion of the year1996 national action plans to combat marine the new coastal watershed pollution from land sources protection planning prevention action plan directed at Arctic reactions to organic the year1998 marine environment land- based activity compounds and heavy metals areas pollution in the Arctic Ocean Canada national action plans for marine Land and sea environmental the year2000 environment land -based activities prevention treatment pollution prevention between 1998— Marine spatial planning for Large ocean management areas 2007 oceans management between 2006— Eastern Scotian shelf integrated Marine spatial planning for 2013 management area oceans management

Figure 24 Canada Eastern Scotian Shelf integrated management area13

12 Fanny Douvere. The importance of marine spatial planning in advancing ecosystem-based sea use management. Marine Policy, 2008(32):782-771 13 R.J. Rutherford, G.J. Herbert, S.S. Coffen-Smout. Integrated ocean management and the collaborative planning - 56 -

Xinhua Ocean Development Index Report(2013)

Multiple stakeholder Government Network Network

working group on Eastern Scotian Marine Regional marine federal-provincial management and management capital planning group committees Marine management

and secretariat of the planning group

Working Panel (question type)

Figure 25 Canada ESSIM government management model

4.1.2 Oceania :Australia's Great Barrier Reef marine park cases

In recent years, Australia has mainly implemented ecosystem-based marine management system. The management system covers biodiversity, interests protection, commercial fishing, leisure and tourism, mining and oil exploration and exploitation, cultural heritage, local residents, and schedule every 5-7 years to assess and revise the system.

In terms of management system, Australia's Great Barrier Reef marine park management system consists of the following three aspects:

(1) sound protection system for versatile partitions. (2) Feasible environmental management fee collection system. (3) unique communications management measures.14

process: the Eastern Scotian Shelf Integrated Management (ESSIM) Initiative. Marine Policy, 2005(29):75-83. 14 Hong Mei. Great Barrier Reef, Ocean Park and the Australian area construction. Wetland - 57 -

Xinhua Ocean Development Index Report(2013)

Table 5 Australia marine development strategy Chronology Marine Development Strategies the Year1975 “The1975 Great Barrier Reef Marine Park Act” the Year 1983 “The 1983 Great Barrier Reef Marine Park regulations” the Year1995 “The 1995 Marine protection and Management Act” “The 199 Environmental protection and biodiversity the Year1999 conservation” the Year2002 the ecosystem-based marine ecological planning

Figure 26 Australia's Great Barrier Reef marine reserve partition map15

science and management, 2012(4):29-31. 15 Debora M. DeFreitas. Spatial substitution strategies of recreational fishers in response to zoning changes in the Great Barrier Reef Marine Park. Marine Policy, 2013(40):145-153. - 58 -

Xinhua Ocean Development Index Report(2013)

Figure 27 Australia's Great Barrier Reef Marine Park marine plans Marine park blueprint16

4.1.3 EU: Britain German Dutch Wadden Sea and waters cases

United Kingdom: In 2005, the United Kingdom formally proposed multipurpose regional planning in the Irish Sea, which was based on the

United Kingdom legislation, and applicable to the management of marine development and utilization activities. In 2009, United Kingdom implemented the marine and coastal access Act, and established an integrated marine management planning system. The system implemented a new decision-making framework and streamlining regulatory enforcement programs, which played an important part in the

16 Silva Larson, Debora M. De Freitas c, Christina C. Hicks. Sense of place as a determinant of people‟s attitudes towards the environment: Implications for natural resources management and planning in the Great Barrier Reef, Australia. Journal of Environmental Management, 2003(117):226-234. - 59 -

Xinhua Ocean Development Index Report(2013)

UK‟s marine development.17

Figure 28 Ireland sea area planning18

International policies Policies and instructions of the UNCLOS)、OSPAR、EU

National policies

The Sustainable Development Strategy and Ocean management proposals

The future of the Marine environment and the strategic target

Monitoring on the Plan and implementation area of Marine Space, the decision maker of targets and instructions

Regional policies

Ireland sea area planning 1. Area policy and target and marine environmental goal; 2. Area policy and target and department goal 3. Area implementation policy- layout(using area and unused area) ; 4. Sub regional planning(rely on demands).

Figure 29 International-national-regional level cooperation: United Kingdom Ireland marine planning framework

17 Marine Spatial Planning Literature Review 18 Sue Kidd.Constructing a ladder of transnational partnership working in support of marine spatial planning: Thoughts from the Irish Sea. Journal of Environmental Management, 2013(126):63-71. - 60 -

Xinhua Ocean Development Index Report(2013)

In 2004, Germany included the exclusive economic zone in the

Federal spatial planning Act, enacted the maritime spatial planning in the

Baltic Sea and North Sea, thus becoming the earliest country laying the legal foundation for the development of maritime spatial planning State.

In 2009, Germany directed its planning at the advantages for offshore wind energy development, and accordingly amended “the North Sea and the Baltic Sea maritime spatial planning”. On the protection of the marine environment, Germany set 31% waters as the planned marine protected areas. In order to alleviate the conflicts or disputes between environmental protection and fisheries, Germany set up a detailed satellite tracking system to comprehend the layout of the entire marine area control.

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Xinhua Ocean Development Index Report(2013)

Figure 30 Germany's exclusive economic zone in the North Sea Marine Planning19

For marine development, Netherlands set up a number of priority development areas, such as the fixed channel, eco-priority development area and military- restricted area. In 2003,with marine spatial planning as the center, Netherlands formulated “the 2015 Netherlands North Sea general management planning.” In 2010, Netherlands revised its national marine planning, extending its coverage to the major maritime wind region so as to reinforce marine management.

19 Antje Gimpel. A spatially explicit risk approach to support marine spatial planning in the German EEZ. Marine Environmental Research, 2013(86): 56-69. - 62 -

Xinhua Ocean Development Index Report(2013)

Figure 31 Netherlands marine planning20

The Wadden Sea is rich in bio-diversity resources. To protect the coastal wetlands in the Wadden Sea, in 1982, three warden Sea States:

Netherlands, Denmark and Germany jointly signed “Netherlands-

Denmark-Germany Joint Declaration” to coordinate efforts in the protection of the Wadden Sea National Park. In 1997, “the Multilateral

Protection Wadden Sea Planning” was adopted. Up to now, Wadden Sea became a model of multilateral protection of coastal wetlands in

Europe.21

20 Fanny Douvere. Initial findings from European experience with marine spatial planning. Journal of Environmental Management. 2009(90):77-88. 21 http://www.waddensea-worldheritage.org/taxonomy/term/23 - 63 -

Xinhua Ocean Development Index Report(2013)

Figure 32 Wadden Sea coast map of the Netherlands-Denmark-Germany cooperation exploitation and protection

Three States Government meeting

Senior Officials Meeting

Set Up a Working Group of Three States

Execution Monitoring Implement Closed-off Implement Management Plan Wadden Sea Plan

Monitoring and Estimating Closed-off Experts Wadden Sea Plan Group of Three States Group of Three States Engineering

Data Processing Group of Three Experts Group States Figure 33 trilateral cooperation structures in Wadden Sea waters planning

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Xinhua Ocean Development Index Report(2013)

4.2 Marine Development Appraisal at Home

4.2.1 North Sea Economic Circle

In the marine industry, the marine industry in North Sea economic circle as a whole developed well, with a steady increase of the proportion within the national GOP. The added value of marine industry and related industries in Shandong peninsula takes the lead; however, the added value of marine industry and related industries in Liaodong Peninsula, Tianjin,

Hebei are left behind other marine and related industries compared with the developed regions, which reflects the in-equilibrium in the pace of economic development of marine industries in all regions in the North.

In the aspect of marine science and technology, the science and technology input and output in the Northern economic circles vary.

Specifically, in terms of the level of input in science and technology the regions in the northern economic circle vary. Shandong peninsula‟s input in science and technology is much higher than that of other regions.

Nevertheless, relatively speaking, all regions are in an equilibrium in terms of science and technology output.

In terms of marine environment, the marine environment in the

Northern economic circle on the whole is quite good. The environment of marine functional area basically satisfies the requirements of sea area use; however, the pollution damages caused by oil spills on the adjacent

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Xinhua Ocean Development Index Report(2013) ecological environment still exist. In addition, the seawater pollution in the coastal areas around the big three Bays, namely Liaodong Bay, Bohai

Bay, laizhou Bay and coastal areas around Yellow Sea Liaodong

Peninsula remains severe.

In terms of integrated ocean management, the proportion of sea area use fee of the Northern economic circle is higher within the total national maritime space use fee, among which the maritime space use fee of Hebei,

Liaoning sea area takes the highest proportion. In terms of sea area use, sea-related areas around Liaoning peninsula are mainly focused on business lines of projects, with Shandong peninsula using relatively more public welfare.

4.2.2 Eastern Sea Economic Circle

In terms of marine industry, the speed of economic development in the Eastern marine economic circle is slower than that of last year. In the country's regional marine economic layout, the Eastern marine economic circle accounts for about 30% of the national GOP, second only to the northern economic circle. In addition, the marine industry isomorphism and low-level, redundant construction, cut-throat competition still prevail.

In terms of marine science and technology, the Eastern marine economic circle developed better as a whole, with Shanghai and Jiangsu ranked top at national marine input in science and technology; in spite of

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Xinhua Ocean Development Index Report(2013) that, there still exist a lot of problems. First, the fund for marine scientific research and development projects is insufficient. Second, the science and technology resources are too scattered, with less integration. Finally, the capability for marine scientific and technological self-innovation is weak, lacking core competitiveness.22

In terms of the marine environment, the overall environmental quality of sea water in the Eastern marine economic zone is better, with the vast majority of monitoring indicators in line with the first type of sediment quality criteria, the number of species and biodiversity index from North to South are in an increasing trend. The environmental conditions in the marine protected areas are generally better; basically, its protection subjects remain stable,Offshore oil and gas exploration caused no apparent effect on the ecological environment in adjacent waters. But sea-related projects such as reclamation, coastal power plants, , waterways and cross-sea bridges impact the marine life to a certain extent.

In terms of integrated ocean management, the levied maritime space use fee of the Eastern marine economic circle accounts for 22.88% of the national total in 2012 projects used maritime space fee, with, Zhejiang in the highest proportion. In terms of sea area use, Jiangsu‟s sea area use is much higher than that of Zhejiang and Shanghai.

22 Xiaoli Zhang Jian Zhou.Research of the problems of harmonious development of marine economy in Yangtze River Delta[J]. Marine Economy, 2012(2):43-49. - 67 -

Xinhua Ocean Development Index Report(2013)

4.2.3 Southern Marine Economic Circle

In the terms of marine industry, the GOP of the Southern marine economic circle is rising annually, which indicates that the overall strength of marine economy in the Southern marine economic circle is steadily growing, but the GOP of this marine economic circle only accounts for 20% of the total, much weaker that of the Northern and

Eastern marine economic circles, largely due to the fact that its industrial promotion drive did not give a full play, which is particularly reflected in the following aspects: 1 ) The stability and scalability of marine transportation are limited; 2)The approach to harnessing marine tourism resources remains extensive; 3)Offshore oil and gas industry's economic contribution rate is low; 4)Ocean shipping industry, the equipment manufacturing industry, the scope of development in marine product and material industry is limited. In terms of emerging industries, the low input in science and technology from the Southern marine economic circle leads to its lag behind in strategic industries development.23

In the terms of marine science and technology, the input and output level of the Southern marine economic circle is in the middle reaches of national level, with lower investment in science and technology, coupled with scattered regional marine scientific and technological resources, thus

23 Jianzhen Zhu Liu Yan. Research of Pearl Delta Regional Marine Industrial Distribution based on the theory of point axis [J]. Regional Economic Review,2013(4):18-28. - 68 -

Xinhua Ocean Development Index Report(2013) allowing less integration of marine science and technology. In addition, the Southern marine economic regions lack an effective organization-wide coordination, with policy measures not in place in time, a direct result of low transformation rate of science and technology.24

In terms of the marine environment, the overall seawater and sediment environment conditions in the Southern marine economic circle are good as a whole. Ocean dumping activities did not affect the waters around sensitive targets and other maritime activities. Offshore oil and gas development activities did not obviously impact nearby marine features. Coastal water pollution, ecological damages, disaster-prone environmental problems remain outstanding.

In terms of integrated ocean management, the sea area space use fee of the Southern marine economic circle is ranked the second on the national total proportion list, with Hainan in the highest proportion, followed by Guangdong Province, while in sea area use, Guangxi and

Guangdong account for the highest proportion.

24 Jianzhen Zhu Xiao Wang. The basic principle of target and safeguard measures of Pearl Delta Regional Marine Industrial Distribution[J]. Marine Economy,2012(3):35. - 69 -

Xinhua Ocean Development Index Report(2013)

5. Evaluation of China's Five Regional Marine

Economy Pilot Development

Table 6 China five marine economy pilot area statistics name time target advantage Strategic importance 2015:Basically establish the modern 1, Conducive to marine industry expanding the space for system, and reach 1、 The comprehensive development of national the general advantages of economy, safeguarding requirement of marine space national security building a well-off resources are strategy. Shand society. obvious 2, Conducive to speeding ong 2020: establish a blue 2、 Rich in marine up the formation of a Penin economic zone which organisms and the new economic growth sula Jan is highly developed energy mineral pole of Chinese Blue 2011 in marine economy , resources. economy, and improving Econ optimized in 3、 Profound Marine the layout of the coastal. omic industrial cultural resource . 3, Conducive to Zone structure,harmony 4、 The loading ability promoting the between man and of marine ecological construction of marine nature of the Blue environment is ecological civilization Economic Zone, terrific. and the sustainable taking the lead in development of marine realizing economy. modernization.

2015: comprehensive 1、 Marine resources are 1, Conducive to Zheji strength of the marine abundant. promoting the ang economy 2、 The area condition transformation and marin significantly is extremely upgrade of marine e enhanced. The level advantageous. economy and sustainable econo of service 3、 The characteristic development. my Feb substantial increased. industrial is in 2, Conducive to devel 2011 The transformation obvious advantages. improving the coastal opme and upgrade effects 4、 The mechanism of area strategic nt of marine economy the system is development pattern in demo are distinct. The flexible and the , realizing sea-land nstrati marine scientific and efficient. coordination. on cultural education 5、 Strong support 3, Conducive to the zone leads in the country. ability to Science protection of state - 70 -

Xinhua Ocean Development Index Report(2013)

The marine education . strategic material supply ecological security, safeguarding environment the national marine improved rights and interests. significantly. 2012: comprehensive built a powerful province of marine economy and modern marine industry system. 1、 Rich marine 1, Conducive to resources. enhancing the overall 2、 Tremendous strength and Guan strength in marine competitiveness of gdong economic . marine economy. marin 3、 The strength of 2, Conducive to the 2015: basically built e Marine Science and formation of new a powerful province econo technology is economic growth pole, of marine economy. my prominent. promoting the July 2020: to achieve the comp 4、 The marine coordinated development 2011 strategic goal of the rehen ecological of Guangdong area. construction of a sive environment 3, Conducive to powerful province of experi protection leads in optimizing the overall marine economy. menta the country. development pattern of tion 5、 The distinctive the coastal area of china. area features of 4, Conducive to the comprehensive realization of sustainable marine development of Chinese management。 marine industry. 2015: basically 1, Conducive to established the enhancing the modern marine comprehensive The industrial system, the competitiveness of the Strait 1、 Advantageous comprehensive Economic Zone on the of location conditions. marine management west side of the straits. Fujia 2、 Obvious in the Nov level improved 2, Conducive to the n resource advantages. 2012 significantly and improvement of the Blue 3、 Profound culture. basically realized economic layout of Econ 4、 A good ecological legalization, coastal area, promoting omic environment. standardization, coordinated regional Zone informationization . development. 2020: 3, Conducive to comprehensively promoting the peaceful

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Xinhua Ocean Development Index Report(2013)

built a powerful development of cross province of marine strait relations. economy。 1, Conducive to deepen the Tianjin Binhai New Area Development and opening up strategy, optimizing the overall 1、 Unique geographic Tianji development pattern of conditions. n the coastal area. 2、 Good marine marin 2015: basically 2, Conducive to industry base. e completed the marine enhancing the level of 3、 Relatively complete econo Sep strong city marine development, infrastructure. my 2013 2020: fully finished promoting the 4、 Tremendous devel the marine strong transformation of strength of science opme city。 economic development and technology. nt mode of the ocean. 5、 Perfect policy pilot 3, Conducive to environment. promoting the marine ecological civilization construction, enhance the capacity for sustainable development.

5.1 Shandong Peninsula Blue Economic Zone

In recent years, the marine industry in Shandong Peninsula Blue

Economic Zone has increased in scale year by year; marine economy continues to maintain steady growth and its proportion within the whole province's economy is also in a rise year by year. Shandong marine economy has initially formed the development setup in which the

1st,2nd,3rd industries including marine fishery, marine transportation, shipbuilding industry, petroleum chemical industry, coastal tourism mutually promote, with chains of the industries continuously extending.

While Shandong Peninsula Blue Economic Zone is achieving rapid

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Xinhua Ocean Development Index Report(2013) development, there still exist some problems at the same time. In the aspect of the marine industrial structure, the efforts of tertiary industry development need to be strengthened and the industrial structure is not perfect, so they must optimize the industrial structure based on the reasonable utilization of resources. In marine management, mature and perfect management system has not been formed yet while ocean development and management mechanism cannot meet the requirements of the market economy, and there is the lack of accurate marine spatial planning which leads to the waste of resources. In the aspect of the marine science and technology, mismatch exists between the input and output of marine science and technology while the transformation rate of science and technology achievements is not high.

5.2 Zhejiang Marine Economic Development Demonstration Zone

In recent years, the comprehensive exploitation of marine economy in Zhejiang has made substantial progress, and the ratio of GOP to the total national marine economy is about 1/10, and it has formed a relatively complete system of marine industry. Emerging industries such as petrochemical, iron and steel industry, shipbuilding, port industry and marine tourism, desalination of seawater, marine bio-pharmaceutical, marine renewable energy have become the new economic growth point.

The development in the fields of port logistics industry, shipbuilding - 73 -

Xinhua Ocean Development Index Report(2013) industry, seawater utilization industry and the other fields is at the forefront of the country.

5.3 Guangdong Marine Economic Comprehensive Experimentation Zone

In recent years, Guangdong‟s marine economy has steadily improved, with the development of marine engineering, marine medicine and biotechnology, marine chemical technology, seawater products deep processing and other fields in the leading position of the country; marine emerging industry is playing an increasingly prominent part in accelerating the transformation of economic development mode and promoting the industrial structure optimization.

While achieving a significant development, there also exist some problems in Guangdong‟s marine economic comprehensive experimentation zone. First of all, the problems arising from the excessive consumption of resources generated by the traditional development model and environmental degradation and other issues still haunt Guangdong‟s future development. Secondly, the idea of seeking development only from land economy in the past has not been fully changed yet. Finally, the big three crises in population, resources, environment remain a big hurdle for Guangdong„s development.

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Xinhua Ocean Development Index Report(2013)

5.4 The Strait of Fujian Blue Economy Experimentation area

In recent years, driven by Fujian Strait Blue Economic

Experimentation Zone, five big dominant marine industries including marine fishery, marine port logistics industry, coastal tourism industry, shipbuilding industry, marine engineering construction are exhibiting rapid growth, and marine biology; marine industrial equipment and other emerging industries are also accelerating; the role of marine economy in supporting the economic development of Fujian has been increasing.

However, there still exist some problems in the development of Fujian

Strait Blue Economic Experimental Zone. First of all, Fujian Strait Blue

Economic Experimental Zone is north to Yangtze River Delta, south to

Pearl River Delta, so it not only has the role of radiation, but also the

"siphon" effect; in this sense, how to cope with the situation properly is an urgent problem to be resolved. Secondly, the marine management system is not perfect, and laws and regulations are far from perfect.

Finally, the inertia of the traditional development mode still exists while the inputs in marine science and technology and innovative momentum are insufficient.25

25 Dongmei Zheng. The study on the overall strategy of building the Fujia Strait Sea Blue Economic Experimental Zone(J) Journal of Party School of CPC Fujian Provincial Committee, 2013(1):67-75. - 75 -

Xinhua Ocean Development Index Report(2013)

5.5 Tianjin Marine Economic Development Pilot26

In recent years, the Coastal New Region of Tianjin city has achieved considerable development. In 2012, the overall economic development of

Coastal New Region still maintained a steady and rapid development momentum, with modern service industry of the Coastal New Region in rapid development, the tertiary industry proportion enhanced.

While the Coastal New Region of Tianjin city is in development, there are also issues worthy of concern: Firstly, land investment density, environment carrying capacity is close to saturation; the high extroversion constantly increases the risk of the region's manufacturing industry development. Secondly, the Coastal New Region‟s economic growth relies heavily on the pulling of investments; therefore, this unreasonable demand pattern needs to be adjusted. Once again, the manufacturing industry of the Coastal New Region accounts for excessively high proportion, while the service industry development lacks momentum. Finally, the development of Coastal New Region is under heavy pressure.

26 Tianjin marine economy development pilot has just been approved the establishment, the report mainly studies about the situation of Tianjin Binhai New Area. - 76 -

Xinhua Ocean Development Index Report(2013)

Appendix:The Explanation of the Research Methods for Xinhua Ocean Development Index

1. The Overall Research Thoughts

The index research and development work falls into six steps. The first step is the index theory research; at this stage, through literature data collection we get to know the basics of the marine-related theory and the current situation of marine development thoroughly, and we also grant government agencies, researchers, industry experts in-depth interviews so as to take advice from experts on index compiling methods, flow of ideas and index selection, and explore the marine career development thoughts and path. The second step refers to the design of index system; at this stage, through in-depth interviews with experts, we construct the indicator system of Xinhua Ocean Development Index, and organize the expert committee for certification. The third step is the data collecting and processing; at this stage, by using the global information acquisition system of Xinhua News Agency, we accomplish the preliminary collection of indicator data, and make synchronous standardization for the related index data during 2006 -2011. The fourth step is the index modeling and calculation; based on the preceding theoretical research and the correlation between the indexes, we establish the index model, and

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Xinhua Ocean Development Index Report(2013) calculate the index results. The fifth step is the index report writing; at this stage, we accomplish index report under the guidance of the index expert committee. The sixth step is the index results releasing.

In-depth interviews with The global information acquisition experts system of Xinhua News Agency

The index The design The data The index The index The index collecting modeling theory of index report results and and research system processing calculation writing releasing

The guidance of the index expert committee Figure 34 The research progress of Xinhua Ocean Development Index

2. The Design of Index System

2.1 Principle of Index Selection

China Sea development index refers to totally measure and reflect the development of China's marine career track, monitor and reflect the development issues, it makes the timely reflection for the growth and business status of Chinese marine industry as the goal, and strives to cover various areas of China marine development, it mainly takes the objective index analysis, so as to objectively, justly measure the development status of China Marine.

In order to ensure a fair and objective index evaluation , in the process of index system design and index selection for China‟s ocean development index , we have to the consider the following principles:

Objective: The index system mostly selects objective

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Xinhua Ocean Development Index Report(2013) indicators ,emphases the selection of the real operating data which is able to verify and query; The index analysis method is objective and reproducible;

Comprehensive: the index system emphasizes a basic index data base which includes 4 1st-level indicators,11 2nd-level indicators and 51

3rd-level indicators, and make the first period calculation of China‟s ocean development index, in which the 3rd-level index is majority selected from synthetic indicators, the system fully reflects the development status of

China marine;

Science: the index system is of scientific structure which fully reflects the development of Chinese marine economy, marine science and technology innovation, marine environmental resources, comprehensive marine management; The index selection is of scientific which matches the requirements of consistent, representative, correlation and relative independence; The index demonstration is of scientific which is confirmed after many rounds of experts‟ advice and research in the committee of experts;

Authority: the selected index mainly from domestic and foreign authoritative statistics, the data is of specification, stable, uniform caliber; the weight system is measured by a combination of expert method, questionnaire survey method, strategy oriented method and it experienced after many rounds of collection, studies and comparison, and is of

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Xinhua Ocean Development Index Report(2013) authority and guidance.

Comprehensive >The index system emphasizes a basic index data base which includes 4 1st-level indicators, 11 2nd-level indicators and 51 3rd-level indicators. Objective >The system fully reflects the development >The index system mostly status of China marine. selects objective indicators, emphases the selection of the Science real operating data which is Principle of Index Selection >The index system is a scientific able to verify and query. of Xinhua Ocean structure. >The index analysis method Development Index >The index selection is of is objective and reproducible. scientific which matches the requirements of consistent, Authority representative, correlation and >The selected index mainly from relative independence. domestic and foreign authoritative >The index demonstration is of statistics, the data is of specification, scientific which is confirmed after stable, uniform caliber. many rounds of experts‟ advice >The weight system is of authority and research in the committee of and guidance. experts. Figure 35 The principle of the selection of Xinhua ocean development index and indicators

2.2 Structure of Indicator System

Based on the four principles of being objective, comprehensive, scientific and authoritative, Xinhua Ocean Development Index has established a construction method with the objective evaluation indicator system as its principle part, in which all the indicators are from the original data released by the authorities and can be acquired by open channel, or the data source which is synthesized and calculated through a systemic and scientific method, and maintained and regularly updated by professional organizations. The indicator system includes four 1st-level indicators which are also the four sub-indicators, including 11 2nd-level indicators and 51 3rd-level indicators. Specifically, the design of China‟s marine development index in each layer indicator is described as follows. - 80 -

Xinhua Ocean Development Index Report(2013)

Table 7 The indicators in each layer of Xinhua Ocean Development Index 1st-level 2nd-level Effect 3rd-level Index/4th-level Index Index Index Direction Econom GOP(Gross Ocean Product) positive ic GOP accounts for the proportion of GDP positive Growth GOP‟s Annual Growth Rate positive The added value of the high-tech Marine industry accounts for the proportion positive high-tech of GDP industry The employment of marine high-tech structure Index industry accounted for the proportion positive of marine industry employment The added value of marine fishery Marine fishery positive industry development The number of Marine Fisheries index positive employment Ocean shipping The added value of marine positive industry shipbuilding industry development The number of Marine shipbuilding positive index employment Offshore oil and The added value of marine oil and gas Marine positive gas industry industry Econo development The number of offshore oil and gas mic positive Industri index industry employment Develo al Marine The added value of marine pment positive Develop engineering engineering construction industry Index ment construction industry The number of marine engineering positive development construction industry employment index Marine The added value of Marine chemical positive chemical and and salt industry salt industry The number of Marine chemical and development positive salt industry employment index Marine bio The added value of Marine bio positive pharmaceutical pharmaceutical industry industry The number of Marine bio development positive pharmaceutical industry employment index Marine power The added value of Marine power and positive and seawater seawater utilization industry utilization The number of Marine power and positive industry seawater utilization industry - 81 -

Xinhua Ocean Development Index Report(2013)

development employment index Marine The added value of Marine positive transportation transportation industry industry The number of Marine transportation development positive industry employment index Marine tourism The added value of Marine tourism positive industry industry development The number of Marine tourism positive index industry employment Oceanographic graduates scale index positive Marine graduates structure than index positive science Marine professional scale index positive and The marine scientific research personnel accounted for positive Marine technol the proportion of employment in the sea Science ogy Marine scientific research funds index positive and input Marine scientific research institutions senior staff size positive technol index ogy Number of marine scientific research institutions positive innovat The sea related patent authorization number positive ion science The sea related patent authorization number accounts for positive index and the proportion of the total number of patents technol Number of marine scientific research positive ogy Results into application and technology services together output accounted for the proportion of the total number of positive scientific research Coastline Length positive Island Area positive The total area of sea positive Resourc Coastal aquaculture area positive e Costal salt pan area positive Marine endow recoverable reserves of offshore oil accumulated proven positive environ ment technology, mental geographical region's per capita water resources positive resourc the ratio of the wetland area in region to the total area of positive es the region index The area index of sea pollution negative pollutio The area index of the red tide disaster negative n level Marine-dumping wastes(dredged material) index negative Marine petroleum exploitation pollution emissions negative pollutio Coastal area comprehensive utilization of industrial solid positive n waste volume index of

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Xinhua Ocean Development Index Report(2013)

control Marine-dumping wastes management index positive The number of marine environment observatories positive The affected population of storm surge disasters in negative coastal areas Disaster The crops disaster area negative prevent The loss of the ship negative ion Marine agricultural disaster area negative The direct economic loss negative The number of coastal observatories in coastal area positive ecologic Marine natural reserve area index positive al protecti Ecosystem health index in key sea areas positive on Sea declaratory sea area positive area Marine manage royalties for using sea areas positive compre ment hensive Law inspection frequency of marine law enforcement positive manage enforce ment ment the number of the illegal violations found in marine law index negative manage enforcement ment

3. Data Acquisition and Processing

The objective three level indicator data of Xinhua Ocean development index is mainly from a variety of open statistical almanacs, annual reports of the National Bureau of Statistics, the State Oceanic

Administration, the Marine Information Center and other authoritative bodies. To ensure that the definition of each indicator is clear and definite, we engage in textual research and confirmation into the indicators which require some calculating processing, and the compute modes in particular.

On account of the differences between the measurement units of different observation indicators in the index evaluation system, multi-type

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Xinhua Ocean Development Index Report(2013) indicators, including the scale, quantum, rate, rank and other types of indicators, must undergo standardized processing before the actual index calculation that is, eliminating the effect of the measurement units on each observation indicator through statistical transformation.

x j=1,2,...n Set the original data as i,,, j k t ,thereforei=1,2,...s ; i ; k=1,2,...m ij, ;t=1,2,...T ,in this case we can get the original data matrix X :

s ni X= xi,,, j k t Tm ij, ij11 On the ground that the positive inversions of the indicators are different, standardized processing procedure is as follows:

x ( 1 ) If i,,, j k t is positive , the processed index will x y  i,,, j k t *100 i,,, j k t x be i, j , k ,0 ;

( 2 ) If is negative , the processed index will x y  i, j , k ,0 *100 i,,, j k t x be i,,, j k t 。 After the standardization process, we can not only eliminate the unit of measurement from the evaluation index but also unify the magnitude of each index, while the difference of difference degree between the internal value of each index will not be eliminated. In this case we can get the dimensionless index numerical matrix Y :

s ni Y= yi,,, j k t Tm ij, ij11

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Xinhua Ocean Development Index Report(2013)

4. Index Mathematical Model Calculation

4.1 The Establishment of Weight System

The weight system of Xinhua Ocean development index is set mainly by the expert scoring method. The project expert committee through the weight questionnaires set the scoring form to make the quantitative assessment of the relative importance from the 1st-level indexes, 2nd-level indexes and parts of the 3rd-level indexes, so as to get the preliminary weight, there by the calculating method is as follows:

 y Set i,,, j k t as the 1st expert‟s subjective score for indicator i,, j k ,

According to the expert scoring results we get the 3rd-level indicator

p weight i,, j k :

L i,,, j k l p = l1 i,, j k mij, L i,,, j k l kl11

q nd  Set ij, as the 2 -level indicator weight ,while i,, j l as the 1st y expert‟s subjective score for indicator ij, ,and we will know that:

L  i,, j l q = l1 ij, ni L  i,, j l jl11

w st  Set i as the 1 -level indicator weight,while il, as the1st expert‟s

y subjective score for indicator i ,and there we get :

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Xinhua Ocean Development Index Report(2013)

L il, l1 wi = sL il, il11

While setting the weight system of indicator system at all level, we totally assign the weight according to the importance of each indicator, that is, evaluate the importance degrees in aspects of whether it is able to measure the level of China‟s ocean development, or reflect the problems in the operation of China‟s marine development, or reflect China's marine development strategy, and assign the appropriate weights.

4.2 Index Calculation Model

The specific calculation formula of Xinhua Ocean development index are as follows:

nd y The 2 -level index i,, j t is calculated by using the weighted sum method:

L  mmi,, j i j  i,,, j k l y p** y y l1 ijt,,,,,,,,,, ijk ijkt ijkt mij, L kk11 i,,, j k l kl11

Therefore we get the 1st-level weight index calculated as follows:

LLL

m   ni n ii,,,,,,, j l n i ij,  i j k l  i j l y q**(**) y  yl1  ( y l  1) l  1 it,,,,,,,,, ijijt  ijtniLL   ijkt m i, jL n i j1 j  1 j  1 k  1 i,,,, j li,,, j k l  i j l j1 l  1kl11 j  1 l  1

As a result ,the Xinhua Ocean development index can be expressed as:

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Xinhua Ocean Development Index Report(2013)

LLL    s si,,,, l s ni  i j l  i l y w* y  y *l1  (( y * l  1 )* l  1 ) t i i,,,, t  i ts L   i j t ni L s L i1 i  1 i  1 j  1 i,, l i,, j l  i l i1 l  1jl11 i  1 l  1 LLL m  s ni ij, i,,,,, j k l i j l  il, 或yy ((( ( *ll11) * ))*)l1 t i,,, j k t mij, L ni L s L ij11k 1   i,,, j k l  ij, ,l  il, kl11 jl11 il11

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A. “Xinhua ocean development index report” is edited and published by Xinhua (Qingdao) International Marine Information Center, national financial information center Index Research Institute,and the final interpretation shall be answered by the institution above. Any website and other media and agencies have to indicate the source while redistributing or quoting from this report. Otherwise, we will investigate its legal liability legally B. The copyright of all the pictures, tables and text of the report belongs to Xinhua (Qingdao) International Marine Information Center, national financial information center Index Research Institute. Therefore, the copyright of the part of the chart with data source belongs to Xinhua (Qingdao) International Marine Information Center, national financial information center Index Research Institute. Part of the data comes from the open information, if there are problems involving copyright disputes, please contact us. C. Any constituent part of this report shall not be reengineering, copy, copy, transactions, or used for any commercial purposes without permission of Xinhua (Qingdao) International Marine Information Center, national financial information center Index Research Institute. If the contents of the report are used for the purpose of business, profit, or advertising, the user has to from the specifically Written authorization from Xinhua (Qingdao) International Marine Information Center, national financial information center Index Research Institute ,and indicate the source, and pay royalties to the agent above in accordance with the relevant provisions of the Chinese and international copyright law . D. Except the responsibility based on the provisions of laws or rules , Xinhua (Qingdao) International Marine Information Center, national financial information center Index Research Institute does not take any responsibility for the loss caused by the use of this report‟s material . E. The copyright of this report applies to the laws of People‟s Republic of China. Xinhua (Qingdao) International Marine Information Center, national financial information center Index Research Institute restores the explaining at any time and the right of modifying the disclaimer and terms.

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“Xinhua Ocean Development Index Report” Consultation Draft

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About Xinhua (Qingdao) International Ocean Information Center

Xinhua (Qingdao) International Ocean Information Center is established by the Xinhua News Agency, the Shandong provincial government and Qingdao Municipal Government ,as to positively build a high-end platform of the global marine information collection, processing and dissemination, give full play to the information, advice, think tanks, technology, publicity and other functions, it provides information for the marine economic development services, and promotes to the implementation for the national maritime strategy . The 21st century is the century of the ocean; the international community is increasingly deepening the development of the oceans. Xinhua (Qingdao) International Ocean Information Center, will have a foothold in Qingdao, face the world, introduce the Xinhua (Qingdao) marine economic development index series, regularly make a comprehensive assessment of the potential for development and competitiveness of costal nations and marine economic cities, and strive to make the index become the "China Index” which guides the investment, and become authoritative index of international influence in the marine-related field to guide the flow of international factors. While promoting the construction of Shandong Peninsula Blue Economic Zone, it will further improve the international discourse in this area, and enhance the soft power competition.

About Xinhua Indices

The Xinhua index is the short name of Xinhua Index Co. Ltd., Which is the sub-department of Xinhua News Agency. Xinhua index relies on the information collection network and global financial information services platform of Xinhua News Agency and carries out the business such as originality index, index derivatives, index products rating and evaluation and so on. The objective laws of the development of the world index market, that the growth and development of well-known index companies is closely coupled with international news agency or other media , which helps to establish the natural attributes of index such as objective, impartial and credible . It is this law which determines the birth of Xinhua Index and a rapid, sustained and vigorous development prospects incoming. Xinhua Index through the effective , actionable Index and the deep value-added services ,to provide good service to the global government , business , exchanges, investment institutions, various types of funds , asset management and private equity and other principal customers, help customers achieve brand communication and promotion in a wider range , and then help its value improve continuously. Meanwhile, Xinhua Index will maintain a positive contribution in the field of global public goods based on the traditional style of Xinhua News Agency, and practice Xinhua Index global social responsibility through the index associated public service activities.