Capital Economy

The national economy is involved in a period of rapid growth, and there are no better examples of this expansion than in the Beijing economy, in its industrial sector, in its investment in infrastructure and on environmental protection. Here we unpack what that means as given in the city's statistics for 2004.

The Economy and GDP
The gross domestic product (GDP) of Beijing was 428.33 billion yuan (US$53 billion) for 2004, up 13.2 percent over the previous year. The local economy had grown at about 10 percent annually for five consecutive years.
In 2004, fixed-asset investment was valued at 252.83 billion yuan (US$31.60 billion), up 17.2 percent over the previous year. Retail sales of consumer goods were valued at 219.18 billion yuan (US$27.40 billion), up 14.4 percent. The total value of exports and imports was US$94.66 billion, an increase of 38.2 percent. Of this, the value of imports was US$74.08 billion and the value of exports was US$20.57 billion, up 43.5 and 21.8 percent, respectively.
Reforms of the investment and financing system were deepened. Investment by non-state-owned enterprises was the driving force for growth of Beijing's investment, reaching 117.3 billion yuan (US$14.66 billion) for 2004, up 22.5 percent and representing 54.2 percent of total fixed asset investment in Beijing.
Investment by non-government Chinese enterprises in Beijing went up 22.5 percent, reaching 136.97 billion yuan (US$17.12 billion), and accounting for 54.2 percent of total fixed asset investment in Beijing.
Foreign funds utilization also increased. The city approved 1,806 foreign-funded projects in 2004, and the contractual value of foreign investment totalled 51.8 billion yuan (US$6.26 billion), up 92 percent over the previous year. Foreign direct investment (FDI) realized in 2003 came to 25.49 billion yuan (US$3.08 billion), up 43 percent.
The number of enterprises in the capital's 27 development zones grew to 29,752 in 2004, of which 24,416 were already producing. Development zones in Beijing generated 487.62 billion yuan (US$60.95 billion) in revenue, up 25 percent over 2003.
(Source: Beijing Bureau of Statistics March 2005)
WEB LINK: For further information on economic conditions in the capital, the Beijing Investment Guide (2004-05) has more at: http://www.btmbeijing.com/contents/en/investment/2004/economic/national, http://www.btmbeijing.com/contents/en/investment/2004/economic/import

Infrastructure
In 2004, total investments in fixed assets of Beijing totalled 252.83 billion yuan (US$30.547 billion), up by 17.2 percent over the previous year, but the growth rate was 1.7 percentage points smaller than for the previous year. Investment in infrastructure development was 63.14 billion yuan (US$7.628 billion), up 22.7 percent; investment in technological transformation and renovation, 17.53 billion yuan (US$2.11 billion), down by 18.9 percent; and investment in real estate development, 147.33 billion yuan (US$17.8 billion), up 22.5 percent. About 720,000 sq.m of old, substandard housing was demolished, including 299,000 sq.m of dilapidated housing. Nearly 24,000 households were resettled in new homes.
New housing projects involving 6.09 million sq.m were built in 2003, an increase of 33.9 percent; 3.821 million sq.m of projects were also completed, an increase of 15 percent.
In 2004, total investment in the renovation of rundown houses was reported at 20.31 billion yuan (US$2.54 billion), about as much as the previous year.

Public Transportation
The public transit system continued to improve with a total investment of 14.88 billion yuan (US$1.86 billion), accounting for 33 percent of urban infrastructure investment for Beijing. The construction of Subway Lines No. 4, 5 and 10 (plus the Olympic Branch) began with 86 kilometres under construction. Highway construction continued to develop with 953 kilometres built or renovated.
At the end of the year, there were 599 bus and trolley bus lines in operation across Beijing. In 2004, public transit vehicles (excluding taxis) transported 5.12 billion passengers. Of these, 4.52 billion passengers were transported by buses and trolley buses, and 610 million used the rail system.
About 52,000 taxicabs were in operation during 2004, a drop of 11,000 from the previous year. Taxicabs transported 590 million.

Public Utilities
The water, electricity, gas and heating supply capacity of the capital was sufficient during 2004. About 630 million cubic metres of tap water was sold, of which, 540 million cubic metres was sold for household consumption.
The Zhangfang, Pinggu and Huairou Emergency Backup Water Source projects were completed and began to supply water, 
In 2004, a total of 45.17 billion kilowatt hours (kWh) of electricity was used in Beijing, up 8.9 percent over the previous year. Of this, 8.02 billion kWh was used by households in urban and rural areas, up 13.8 percent. 
At the end of the year, there were about 3.58 million gas users in Beijing, including 2.53 million users of natural gas. Centralized heating came to cover 87.77 million sq.m,, 11.8 percent larger than the previous year.

Post
There were 57.5 fixed telephone trunk lines per 100 persons, up 21 percent during the year. There were 13.359 million mobile phone users in Beijing, up 20.5 percent. There were 90.6 mobile phones per 100 persons, up by 17.6 percent over the previous year. 

Development Zones
At the end of 2004, 29,752 enterprises were operating in Beijing's 27 development zones, of which 24,416 were actually producing, 5,353 more than a year ago.
The total revenue generated by Beijing's development zones was 487.62 billion yuan (US$60.95 billion) for 2004, up 25 percent over the previous year. The total value of the industrial output of the zones rose to 279.6 billion yuan (US$35.95 billion), up by 37.2 percent, with profits hitting 28.74 billion yuan (US$3.59 billion) during the year, up 20.9 percent.
Beijing's Central Business District (CBD), Zhongguancun Science and Technology Park, and Beijing Development Zone were the three most dynamic areas in Beijing. The CBD had become home to more than 3,000 foreign businesses, including 130 on the Fortune List of the Global 500.
Zhongguancun Science & Technology Park continued to grow throughout 2004. Over the year, 4,268 high-tech enterprises were identified, up 3.1 percent over 2003, bringing to 20,364 the total number of high-tech enterprises there. The ZSTP generated 362.52 billion yuan (US$45.32 billion) in revenue for the year, up 25.6 percent. Added value reached 76.09 billion yuan (US$9.19 billion), up 25.1 percent (at current prices), accounting for 17.8 percent of Beijing's GDP.
In 2004, the Beijing Economic Development Zone had 808 enterprises, which involved a total investment of US$69 billion (US$8.33 billion). By the end of the year, exports from development zones were valued at 18.28 billion yuan (US$2.29 billion) paced by pharmaceuticals, telecommunications and new-materials industries.  
(Source: Beijing Bureau of Statistics April 2005)

Environment
Twenty-two billion yuan (US$2.75 billion) is being invested in Beijing誷 environmental protection and environment-related services from 2004 to 2008.
In 2004, there were 229 days in which the air quality was rated as fair or good, accounting for 62.5 percent of the days in the year, and five days more than the previous year.
Air pollution prevention continued with 1,037 coal-fuelled burners being renovated. In 2005, 2,000 coal burning boilers will be converted to clean-energy use; 3,800 diesel-burning buses will be taken off the city's streets.
Up to 20,000 taxis that fail to meet the European III Emission Standards will be replaced by new and environmentally friendly vehicles.
Great efforts were made to continue to protect wildlife and natural reserves during 2004.
Traffic noise-control projects were carried out along some sections of the Fourth Ring Road. 
Ecological conservation projects continued in 2004. In 2003, 200,000 mu (13,333 hectares (ha)) of arid land in the top five sandstorm disaster areas in the Yongding, Chaobai and Dasha river valleys, in Kangzhuang Town of Yanqing and Nankou Town of Changping District were reened.?

Reforestation/Afforestation
Latest statistics indicate a sizable increase in afforestation/reforestation protects in 2004, with 42.3 million trees planted in Beijing. At the end of 2004, 49.5 percent of the Beijing area was covered with trees, representing an annual increase of 2 percent.
(Source: Beijing Municipal Bureau of Parks, April 2005)

Greening Beijing - Parks and Landscaping
The construction of the Miyun and Hanshiqiao wetlands began in 2004. Protected environmental zones now account for 8 percent of the total area of Beijing.
Newly added green areas totalled 8.48 sq.km, including 20 large sites, covering a total area of 11.7 sq.km. The coverage rate of greened land in urban and suburban areas was 41.8 percent, 0.7 percentage points larger than previous years.
The per capita area of greened land was 10 sq.m., an increase of 0.4 square metres from 2003. Green belts?covered an area of 47,600 hectares in 2004.
(Source: Beijing Statistics Bureau; Beijing Municipal Bureau of Parks,
April 2005)

Waste Treatment
The building of five sewage treatment plants will be accelerated. The Xiaojiahe and Wujiacun Sewage Treatment plants along with the Jiuxianqiao Reused Water Disposal Plant went into operation during 2003. The Xiaohongmen Sewage Treatment Plant and the Zhuanhe River control project and the sewage damming project on the Liangshui River valley were well under way in 2003. Of these, the Lugouqiao Sewage Disposal Plants and Qinghe Sewage Disposal Plant Second Phase were completed in 2004.
Sewage treatment capacity reached 1.89 million tons per day during 2003. In 2004, 58 percent of the sewage discharged in urban and suburban areas was treated, an increase of 2 percentage points over the previous year.
Since 2000, the Beijing Environment Protection Bureau has reported the daily air quality to the public. Vehicles failing exhaust emission standards have been forbidden to be driven. From September 1, 2003, the use of about 300,000 vehicles without the Green Environment Protection Mark was forbidden in areas within Beijing's Second Ring Road.
New progress was made in the recycling of water with 52.7 kilometres of recycled water pipelines built during 2004. Twenty-five percent of sewage was recycled. Twenty-eight exposed garbage dumps within the Fifth Ring Road were put in order.
Beijing's first medical refuse disposal plant was completed during 2004.
(Source: Beijing Environment Protection Bureau 2004-05)

Water
An increase in current water prices should guarantee better water quality over time, now that the Water Affairs Bureau, established in April 2004, has supervision of water supplies, conservation programmes and wastewater treatment in Beijing.
A greater effort was made to protect the city's watershed and resources, and recycling of water was encouraged. During the year, 52.7 km of recycled water pipelines were built.
An investigation was conducted into the sources of pollution affecting No.3 and No.4 Water Source Plants. This aims to further protect water quality in the Miyun and Huairou reservoirs.
(Source: Water Affairs Bureau, April 2005)

Wind-generated Electricity
China has kicked off a range of wind power projects. Beijing has set up several wind power plants, in part to serve the needs of the 2008 Olympic Games. 
(Source: Beijing Bureau of Statistics April 2005)