The Progress on the Implementation of the Plan for the Development of Nansha New District

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(October 10th, 2012)

by the People's Government of Guangdong Province

On September 6th of 2012, the State Council approved the Plan for the Development of Nansha New District of Guangzhou. This constitutes a significant measure aimed at promoting the transformation of the Pearl River Delta, facilitating long-term stability and prosperity of Hong Kong and Macao, shaping a new pattern of economic openness and enhancing China's international competitiveness and influence. The Plan for the Development of Nansha New District of Guangzhou also marks another strategic plan made by the central government for Guangdong's socioeconomic development, following the Outline Program for the Reform and Development of the Pearl River Delta (2008 – 2020), the Plan for the Overall Development of the Modern Service Cooperation Zone of the Former Deep-Ocean Port and the Plan for the Overall Development of Hengqin.

The Profound and Far-reaching Strategic Significance of Nansha New District

Located in the southern tip of Guangzhou Municipality of Guangdong Province, Nansha New District of Guangzhou (hereinafter referred to as Nansha New District) is blessed with an advantageous geographical position and a picturesque ecological environment. With a solid industrial foundation, Nansha New District presents tremendous development potential and an extensive radius of influence. As a strategically important district, Nansha has established close ties of cooperation with Hong Kong and Macao. The approval and implementation of the Plan for the Development of Nansha New District of Guangzhou is a testimony to the tremendous support of the central government for the reform and development of Guangdong. It also marks the establishment of another important national new district in one of three economic growth engine regions (Beijing-Tianjin-Hebei, the Yangtze River Delta and the Pearl River Delta), following Pudong New District of Shanghai and Binhai New District of Tianjin.

The development of Nansha New District is conducive to advancing the comprehensive cooperation between Guangdong, Hong Kong and Macao and to maintaining the long-term stability and prosperity of Hong Kong and Macao. Nansha New District will serve as a complementarity to Qianhai of Shenzhen and Hengqin of Zhuhai. Such a model of staggered development between regions will produce the following favorable results. First, it will further bring into play the comparative advantages of Guangdong, Hong Kong and Macao, therefore facilitating the comprehensive, extensive and deep cooperation between Guangdong, Hong Kong and Macao. Second, it will promote the efficient agglomeration and reasonable flow of productive factors and bring about the liberalization of service trade in Hong Kong and Macao. Third, it will help build up a high-quality circle of life between Guangdong, Macao and Hong Kong, which features trans-regional environmental management, sharing of public services and full-fledged transportation facilities. Finally, it will help shape a new pattern of Guangdong--Hong Kong--Macao cooperation, solidify Hong Kong's position as an international financial, shipping and trade center and strengthen Macao's position as an international destination of tourism and leisure.

The development of Nansha New District is conducive to playing out Guangzhou's role as a national central city and to exploring the path to new urbanization. The development of Nansha New District will further expand the strategic development space of Guangzhou into a national central city. Furthermore, it will strengthen the comprehensive bearing capacity of Guangzhou, improve the comprehensive service function and cultivate new economic growth pole. By exploring the path to new urbanization, Nansha will become a new platform for economic transformation, a new stage for urban upgrading, a new region for demographic structural readjustment and a new model of ecological friendliness. In the last analysis, Nansha New District will help accumulate experience for China's program of new urbanization.

The development of Nansha New District is conducive to promoting coordinated development among regions and to building a world-class cluster of cities in the Pan Pearl River Delta. It is imperative to strengthen commercial service, scientific and technological innovation, education & training, shipping logistics, high-end manufacturing and other industrial function. Doing so is favorable for fostering a pattern of regional coordinated development featuring staggered development, clear-cut layers and orderly cooperation.. Doing so is also conducive to enhancing the international competitiveness of Hong Kong, advancing the economic diversification of Macao and fostering the economic integration in the Pearl River Delta. Effort will be exerted to build a world-class base of advanced manufacturing and modern services and to expand the radius of influence of the Pearl River Delta. The ultimate objective is to build a cluster of cities that are of greatest dynamism and international competitiveness in the Asia Pacific.

The development of Nansha New District is conducive to shaping a new pattern of an open economy and to improving the international competitiveness of China. The construction of Nansha New District is conducive to implementing the national maritime development strategy and creating new advantages of marine economic development. It can also provide immense support for the protection and comprehensive exploitation of oceanic resources. The development of Nansha New District can help expand the scope of openness of South China to the outside world and help build a core cluster zone for intensive exchange and cooperation between the Pearl River Delta, South China, ASEAN and the countries around the Indian Ocean. It can also help strengthen China's connections to Europe and America and further expand international economic and trade cooperation with Africa, Latin America and other emerging markets, ultimately forming a new pattern of economic openness in the Pearl River Delta and South China and improving China's international competitiveness and influence.

The development of Nansha New District is well underpinned by a sound foundation.

---- Advantageous Geographical Location. Located at the outlet of the Pearl River and in the geometric center of the Pan Pearl River Delta, Nansha is an important channel through which the Pearl River empties into the ocean. As a crucial linkage of the city clusters on both sides of the Pearl River, Nansha is 38 nautical miles and 41 nautical miles away from Hong Kong and Macao respectively. Nansha is connected by its 100-kilometer radius to the city cluster of the Pearl River Delta(the most economically developed region of Guangdong), Hong Kong and Macao. In its 75-kilometer periphery, one can reach one of five international airports in Guangzhou, Shenzhen, Zhuhai, Hong Kong and Macao.

---- A Robust Economic Growth Momentum. After a decade of development, Nansha New District has built up strong overall industrial capacity, therefore further consolidating the foundation for economic development and openness. A variety of industrial zones are rolling forward on a robust momentum, most notably Nansha Economic and Technological Development Zone, High-tech Industrial Development Zone and Bonded Port Zone. Advancing manufacturing and modern service sectors are developing at a fast pace, including automobile, shipbuilding, heavy machinery, shipping logistics, high-tech innovation and leisure tourism. A port modern industry has developed to its initial shape.

---- Full-fledged Infrastructure. Beijing-Hong Kong-Macao Expressway, Nansha Port Expressway, Guangzhou Metro Line 4, Guangzhou-Shenzhen-Hong Kong Passenger Line and Guangzhou Nansha Port have been put into operation. Nansha boasts a full-fledged transportation network consisting of water transportation, aviation, railways and highways. The function as a regional transportation hub has been significantly enhanced, while the function of providing supplementary services has been improved.

---- A Sound Ecological Environment. Nansha is blessed with excellent natural endowment and abundant ecological resources, including coastal wetland, Lingnan water landscape and forest parks. The green coverage has reached 41%, while per-capita green park space has amounted to 38 square meters. With a picturesque living environment, Nansha was granted the golden award of "the Most Livable Urban Districts of the World" by the United Nations in 2011. Therefore, ii is fair to say that Nansha has well balanced socioeconomic development against ecological protection.

---- A Close Tie of Cooperation. Located in close proximity to Hong Kong and Macao with linguistic similarity, Nansha has established a close business tie with Hong Kong and Macao. Nansha has undertaken development cooperation with businesses from Hong Kong and Macao since the 1980s. A group of national scientific and technological research platforms and high-end demonstration projects have been put in place. Moreover, Nansha New District is a pilot zone for the implementation of Closer Economic Partnership Agreement between Guangdong, Hong Kong and Macao (CEPA).

Nansha New District is strategically positioned to be built into a demonstration zone of comprehensive cooperation between Guangdong, Hong Kong and Macao.

The strategic positioning of Nansha New District can be described as the following: building on Guangzhou and the Pearl River Delta; connecting Hong Kong and Macao; providing services to Mainland China and orienting towards the world. Nansha is positioned to become a quality living circle of Guangdong, Hong Kong and Macao and a model of new urbanization. It is set to become a hinterland of productive service-based modern industries, a world-class comprehensive service hub, a pilot zone for innovation in social management services and a demonstration zone for Guangdong-Hong Kong-Macao cooperation.

---- Guangdong--Hong Kong-- Macao Circle of Quality Life. On the basis of its advantageous geographical location, abundant ecological resources and unique culture of Lingnan water landscape, Nansha New District will jointly protect the regional ecology with Hong Kong and Macao by adopting advanced concepts in urban planning, public services and social management. By conducting trans-regional abutment in infrastructure, Nansha will seek to perfect its trans-regional cooperation mechanism in the realm of public services and achieve the facilitation of customs clearance between Guangdong, Hong Kong and Macao. Nansha is exerting great effort to jointly shape a Guangdong-Hong Kong-Macao circle of quality life with Hong Kong and Macao, which bears the following characteristics: a healthy and sound ecological environment, a compacted and orderly spatial pattern, a comfortable and picturesque urban-rural landscape, an environmentally-friendly and efficient transportation network, quality and efficient public services and a close and well-functioning cooperation mechanism.

---- A Model of New Urbanization. In adherence to the principles of putting people first and balancing all relevant factors, Nansha New District endeavors to blaze a path to new urbanization featuring a low-carbon economy, a city of intelligence, social civility, a picturesque ecology, urban-rural integration and a life of happiness. To achieve this goal, the following initiatives should be undertaken: to maintain reasonable intensity of development, to optimize the urban functional structure and pattern, to utilize land in an intensive and efficient manner, to perfect the urban public service system, to improve urban governance structure, to enhance urban-rural living environment and to innovate the mechanism and system of urbanization.

---- A New Hinterland of Productive Service-based Modern Industries. Massive effort will be exerted to promote Guangdong-Hong Kong-Macao joint scientific innovation projects and industrialization of major technological products. Initiative will be taken to bring about leapfrog development of strategic emerging industries and to shape an open and internationalized regional innovation system. Importance is attached to strengthening cooperation with Hong Kong and Macao in such modern service sectors as finance, insurance, cultural creativity, research and development, design, shipping logistics and leisure tourism so as to improve regional industrial core competitiveness. By fully tapping into its port advantages, Nansha New District will accelerate the development of advanced manufacturing, including automobile, shipping building and heavy machinery. By moving industries up the value chain, Nansha seeks to build a modern industrial system led by productive service sectors.

---- An International First-class Comprehensive Hub of Services. Effort will be made to build a hub infrastructure system related to transportation and information with high standards and to enhance such comprehensive service functions as commercial service, scientific innovation and education & training. Initiative will be taken to innovate mechanisms of cooperation with Hong Kong, Macao and the rest of the world. Focus will be placed on shaping an internationalized business climate of honesty, integrity, efficiency and civility. Importance is attached to achieving liberalization of service trade with Hong Kong and Macao and to providing new carriers for the expansion of the service sectors from Hong Kong and Macao in the Mainland market. By building new bridges connecting the Mainland to Hong Kong, Macao and the international market, Nansha seeks to develop a comprehensive service hub that connects the Hong Kong, Macao and the international market and provides services to the Mainland market.

---- A Pilot Zone for Innovation in Social Management Service. By learning advanced experience in social management from Hong Kong, Macao and the world, Nansha seeks to constantly expand the realm of cooperation with Hong Kong and Macao in social management. Effort will be made to attract institutions and high-caliber personnel in social management from Hong Kong and Macao. Initiative will be taken to make social management scientifically-based, streamlined and humanity-oriented. The ultimate objective is to establish an efficient social management system that is full of dynamism, harmonious and stable.

The Development Objectives of Nansha New District

During the 12th Five-year Plan Period, Nansha has laid out its urban structure, developed its high-end industries, established a full-fledged infrastructural system and set up an ecological system of water landscape. Visible results have been achieved in socioeconomic development, with the start-up area taking its initial shape. Significant progress has been registered in fostering comprehensive cooperation between Guangdong, Hong Kong and Macao and in probing the path to new urbanization. By 2015, the comprehensive service function of Nansha will have been remarkably strengthened, while its ecological environment will have been further optimized, with the green coverage rate reaching 43%. A closer tie of cooperation will have been fostered with Hong Kong and Macao, while the living standard of the people of Nansha will have been continuously improved. The ultimate goal is to form a basic framework of the demonstration zone for comprehensive cooperation between Guangdong, Hong Kong and Macao.

By 2025, Nansha New District will have registered significant breakthroughs in its socioeconomic development, with a more advanced infrastructural system. Nansha New District will have been built into an industrial highland of advanced productive service sectors and a world-class scientific innovation center. The business climate will have been brought into alignment with that of Hong Kong and Macao. People's well-being and the living environment will have been further enhanced, while its international competitiveness and influence will have been significantly boosted. Service will have accounted for about 25% of its total GDP. The ratio of R & D personnel, senior managers and high-caliber personnel agonist the overall population will have been raised. Nansha will have been developed into a national new district for deepening the comprehensive cooperation between Guangdong, Hong Kong and Macao. Nansha will have played a greater role in maintaining the long-term stability and prosperity of Hong Kong and Macao and served as a model for China's reform and development.

The Development Principles of Nansha New District

---- Putting people first and giving priority to shaping a livable environment. Guided by the advanced concepts concerning urban development, Nansha will focus on meeting the requirement of putting people first and highlighting the distinctive features of Lingnan Culture. Effort will be exerted to develop a sound ecology and shape a way of production and living that emphasizes resource conservation and environmental friendliness, with the overarching objective of building Nansha New District into a land of mesmerizing water landscape.

---- Fostering high-end development to lead the future trend. In adherence to the concept of "diamond water landscape" with high quality, uniqueness and delicacy as its core, Nansha will seek to shape an environment favorable for living and business operation by attracting a large pool of high-caliber personnel and high-end industries. Initiative will be taken to develop emerging industries and new forms of business. By undertaking cooperation with Hong Kong and Macao, Nansha New District will improve its comprehensive service function and core competitiveness so as to expand its radius of international influence.

---- Advancing reform and innovation by implementing pilot projects. Effort will be made to speed up institutional innovation so as to build up a sound business climate in which international business rules are adopted. Initiative will be taken to further perfect the market economic system and modern social management structure, with the objective of strengthening development dynamism and momentum.

---- Upholding the central position of the market and guaranteeing the rule of law. It is imperative to bring into full play the role of the market in resource allocation and to strengthen the intensity of government coordination in the planning and construction of infrastructure facilities. Advanced management mechanisms will be introduced from Hong Kong and Macao to shape a sound legal environment. By so doing, we can build up sound institutions for the reform and development of Nansha New District.

---- Overall planning and implementing the plan in a step-by-step fashion. Plans will be developed with strategic thinking, good vision and peace of mind so as to ensure high-standard planning, construction and management. A reasonable timeline of development and construction will be drawn up in a scientific manner so that enough leeway is left for future development. The improvement of development efficiency and urban quality will be taken as a thread that holds the entire program together. The ultimate goal is to build Nansha New District into a new model of urban construction in China.

The Plan for the Development of Nansha New District of Guangzhou will be implemented to the fullest.

---- At the National Level. Relevant departments of the State Council will perform their respective duties and further strengthen their support and guidance for the development of Nansha New District. Coordination mechanisms will be put in place, which are led by the National Development and Reform Commission and participated in by relevant departments of the State Council, Hong Kong SAR, Macao SAR, Guangdong Province and Guangzhou Municipality. These mechanisms are established to help solve problems that crop up in the implementation process of the Plan for the Development of Nansha New District of Guangzhou. Tremendous support will be rendered in the aspects of policy implementation, project arrangement and institutional innovation so that a sound policy environment will be created for the development of Nansha New District. Facilitation in finance and taxation will be achieved with Hong Kong and Macao. Policy support will be strengthened in the aspects of opening up to the world, land management, marine management, social affairs and management services.

---- At the Provincial Level. The People's Government of Guangdong Province will fulfill the various tasks stipulated in the Plan for the Development of Nansha New District of Guangzhou. Documents concerning the opinions on the implementation of the Plan for the Development of Nansha New District of Guangzhou will be issued. Working mechanisms will be put in place to clarify the realms of responsibility. Conditions will be created, administrative approval power will be delegated to governments at local levels and the procedures of administrative approval will be streamlined. Supplementary support policies will be formulated, which mainly touch upon the following aspects. Effort will be exerted to promote the establishment of systems and institutions pertaining to the comprehensive cooperation between Guangdong, Hong Kong and Macao. A sound legal framework will be built for the development of Nansha so that a sound legal environment will be created for the scientific development of Nansha New District.

---- At the Municipal Level. As the mainstay for the development of Nansha New District, the People's Government of Guangzhou Municipality will designate the development of Nansha New District as the "No.1 Project" for promoting new urbanization of Guangzhou, with detailed implementation plans formulated and special institutions established. The Decision on Comprehensively Implementing the Plan for the Development of Nansha New District of Guangzhou has been issued. In line with the strategic positioning and development priorities outlined in the Plan for the Development of Nansha New District, effort will be exerted to implement relevant projects. In accordance with the core concepts of "scientific development and construction in an incremental manner", initiative will be taken to coordinate urban construction, advance industrial development, build up infrastructural facilities, create a sound environment of abutment with Hong Kong and Macao and promote management services for the new district with high standards, great efficiency and high quality. Importance is attached to innovating the mode of development and management of Nansha New District. Overall planning is conducted while plans are implemented in a step-by-step fashion. Effort will be made to explore the possibility of building flexible and efficient institutions and systems. It is imperative to speed up the formation of an internationalized business climate, shape strategic development platforms for the cooperation between the Mainland, Hong Kong and Macao and to promote the integration of the Pan Pearl River Delta.

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