Abstract

City cluster is a manifestation of urban space in its mature stage of development, and is the spatial unit in which economies participate. The Beijing-Tianjin-Hebei (Jing-Jin-Ji) region accounts for 2% of China’s land mass, 8% of its population and 10% of its total economy. As the nation’s political and cultural center and a core region of economic development in Northern China, it bears great potential to develop into a world-class city cluster. Experience in developed countries shows that neighboring cities could achieve significant synergy through developing complementary industries, promoting the flow of diverse production factors. This would in turn lead to stronger regional competitiveness, propelling this city cluster into becoming a global engine of economic growth and technological innovation. Cities of different scale and spatial characteristics within the region have developed clear and distinctive strategic advantages. Primary core, and secondary core together with small and mid-sized cities form a cascading structure that function collectively and synergistically through a virtuous circle of factor formation and productivity enhancement thereby providing solid foundation for sustainable economic development.

In China, the degree to which neighboring cities develop in synergy trails significantly behind the country’s stage and speed of economic development. Urban sprawl coupled with homogenized industry structures has resulted in severe resource depletion and overcapacity, and the rise of systematic risk within the economy. Poor coordination in the construction of infrastructure, lack of collaborative mechanisms among industry clusters, and restricted reciprocal flow of critical factors of production are hindering city clusters’ ability to unleash their full potential. The Jing-Jin-Ji region is both unique and typical in China’s economic context. A breakthrough in its synergistic development would on one hand invigorate the distinctive economic region around China’s capital, and on the other hand provide paradigmatic reference for other emerging city clusters in China.

Based on systematic research, and comparative international benchmarking, this report explores the current situation and pressing challenges in achieving synergistic development within the Jing-Jin-Ji region, and provides practical recommendations for optimization and improvement. Four aspects of development are being discussed in this report, namely infrastructure, industry development, social development, and support mechanisms. In terms of infrastructure, the Jing-Jin-Ji region has made notable achievements in advancing connectivity within the region, but still lags significantly behind leading city clusters around the world. Driven by the local interest motive, major defects exist in the intra-regional traffic networks, mismatching expectations of major public investments. In terms of industry development, while leading city clusters achieve synergy through differentiation between cities, excessive gaps in development conditions between cities within the Jing-Jin-Ji region hinders collaboration, restricting factors of production in Beijing and Tianjin from spilling over into neighboring cities and converting into productivity. In terms of social development, the severe inequality of public resources distribution and clear inadequate coordination are major contributing factors to poor flow of resources. As for support mechanisms, further refinement is required for fully functioning top-down design, while spontaneous market coordination mechanisms are yet to be formed.

In further promoting synergistic development in Beijing, Tianjin and Hebei Province the boundaries between cities and policy restrictions should be lowered, and further improvements are made on connectivity, to promote cross-regional cooperation in various forms and among multiple entities. In terms of public services, lessons should be drawn from domestic experience where administrative barriers are lifted to allow effective flow of factors of production. As for supporting mechanisms, the differentiated roles of the government and the market should be clearly defined. On the one hand, effective policies should be devised to provide impetus for change; and on the other hand, participation from the private sector should be encouraged to sustain momentum for transformational processes. Only such a comprehensive approach could lead to material, inclusive and continued breakthrough in fostering synergistic development within the Jing-Jin-Ji region.