Tianjin Municipality

Tianjin is China third largest city and one of the oldest industrial bases on the coastline and is one of the major port cities in China. Tianjin is strategically linked by sea, air and land to points all over China. The Current Dynamic Mayor is the former Governor of the People’s Bank of China (Central Bank) Mr. Dai Xianglong. Since he took over as mayor in 2003, Mr. Dai has helped attract multinational companies with favorable investment policies. He has tapped his banking connections and experiences to bring in hundreds of billions of Yuan in loans to rejuvenate Tianjin, Just last month, the central government pledged to make development of the city’s Binhai New Area, as investment zone that is already home to foreign companies like Motorola Inc. of the U.S, a priority over the next five years.

Tianjin is one of the four municipalities directly under the Central Government, is the largest open costal city in North China. Located in the northeastern part of North China Plain, at the end of Bohai Bay. The total area of the municipality is 11,919.7 square kilometers, of which the city proper occupies only 370 square kilometers. The city is administrative-divided into 13 districts and 5 counties, with a population of approximately 10.2 million.

Tianjin has a long history, for people lived and worked in Tianjin for 6,000 years ago. In the early 15th century, the city began to take shape and was officially named Tianjin. In 1860, Tianjin became a trading port. In the period between the end of 19th century and the beginning of the 20th century, Tianjin grew to become the largest seaport in North China, a position it remains today.

The geographic location of Tianjin is obviously favorable. Situated in the middle of the coastal area, it is not only close to Beijing, the capital, but provides the main shipping outlet to the rest of the world for the entire North and Northeast.

Besides, Tianjin is the eastern starting point of the Eurasian Bridge, the shortest rail link between China and Western Europe. Its favorable location, advances industries, convenient transportation., active foreign and domestic business, support from the vast interior area, rich natural source, perfect service facilities, and well-developed science and education, constitute and excellent condition for its opening to outside world. In more than a decade, Tianjin has recorded rapid and healthy economic growth. As a financial and commercial center, it plays an increasingly important role in China’s economy. The practice of opening to the outside world in multitudinous fields, on every level and in all directions, performed mainly within Tianjin Economic and Technological Development Area (TEDA), Tianjin Port Free Trade Zone and Tianjin Hi-tech Industrial Park, has been widened and expanded continuously. As a result, the city has made great progress in import and exports, and is highly favored target for international investors. Due to the impressive growth over the past decades. TEDA is now one of the most prominent economic development centers in China.

Infrastructure

Tianjin’s infrastructure is well developed. Tianjin Harbor is the largest comprehensive seaport in North China, through which commodities are imported and exported. It has already established business relations with over 300 seaports in 170 countries and territories. It boasts a highly efficient container wharf, the handling capacity of which ranks first in China.

Tianjin Binhai International Airport, a modern air terminal, is the largest air freight center in North China. The city also serves as a multi-modal transportation hub from which buses, truck and trains provide a vital link between the coast and the inland areas. The construction of Beijing-Tianjin-Tanggu Expressway has facilitated better transportation, enabling passengers to travel to and from Beijing in just over and hour. A modern communication network has already taken shape. Mobile telephone service, call waiting service, and microwave and satellite communication service are available for people to directly communicate with each other both at home and abroad.

The four power plants of Tianjin, namely; Dagang; Junliangcheng; Yangliuqing and Jixian Country Power Plant are incorporated into the North China Grid, ensuring the city an adequate power supply for daily living needs and industrial production.

A water conservancy project which diverts water from the Luanhe River to Tianjin ensures the city an adequate water supply. Tianjin is rich in petroleum and natural gas. A complete gas supply system has been built to supply liquefied petroleum gas, natural gas and manufactured coal gas. The city’s high gas-utilization rate makes it one of the cities in China where gas supply is the most highly popularized.

Business Monitor International (BMI) view: “We believe that growth in China will slow in 2006 to 8.6%, compared with 9.9% last year. The slowdown is based on the belief that fixed asset investment, which has been the main driver of the economy over the past few years, will slow as government attempts to stem fears of overheating begin to take effect. While 8.6% growth would represent a major slowdown on the 10%-plus rates of the past three years, it is still above the 7% figure that the country’s top officials are targeting as the sustainable rate of growth for the economy.”

Government view: China’s real GDP growth rate will slow to 9.6% y-o-y in Q1, and 9.4% in Q2, according to the State Information Centre, a top government think tank. Growth in Q405 was 9.9%, the same as for the full year. The State Information Centre also believes that inflation this year will be 2.2%, compared with 1.9% in 2005.

 

Prepared by:
Henry Lee Chan