Adjustment of Industrial Structure

Relocation of the massive Shougang Group, or Capital Iron and Steel Corporation, complex in western Beijing, a large-scale steelworks and traditionally one of Beijing's top economic performers and tax payers began during the Tenth Five-Year Plan. This move demonstrates Beijing's firm resolve to adjust its industrial structures.

The transformation of the city's urban functions and orientations means more than a mere change in governmental guidance and enterprise investment strategy. It, to an extent, marks a change and adjustment away from traditional industries to make way for the development of new, high-tech industries strongly focused on scientific development and innovation that can lead to the production of new products and services for a modern, globalized market.

During the Tenth Five-Year Plan, with the continuous optimization of its industrial structures, Beijing's total economic value enlarged rapidly, and its economic strength was remarkably enhanced. Its character as a capital city economy came into view, even if only gradually.

The adjustment of Beijing's industrial structure came during a period of quickened development in the modern service, high-tech and modern manufacturing industries, which are considered more in accord with the functional characteristics of a capital city. The transformation of conventional agriculture to modern urban agriculture, and the leading features of the services industry became more obvious.

Statistics from an economic census indicated that in 2004, the added value of the tertiary industry accounted for 67.8 percent of the total regional output value. In 2005, the figure remained above 67 percent.

In 2004, added values from financing, wholesale and retail, information transmission, computer services and software industries as well as real estate development accounted for 11.8 percent, 9.7 percent, 7.4 percent and 7.2 percent of the city's gross domestic product (GDP). They have become important pillars supporting economic growth.

Key urban functional areas began to take shape, and an economy with regional features was taking shape. Construction of the city's financial streets was well under way, and the streets began serving as the country's largest assembly area for the headquarters of financial and insurance businesses. Central business districts had also begun to take shape. Construction of functional areas such as the Xuanwu Media Boulevard, the Qianmen Traditional Cultural and Commercial Street, the Liulichang Cultural Industry Garden were also being promoted. The Zhongguancun High-Tech Garden reached its goal of “take a new look in three years,” thus becoming a base for the intensive growth of new- and high-tech industries.

Beijing has grasped the opportunity of international transfer of modern manufacturing industries to quicken its pace in building suburban industrial bases and industrial gardens. The Shunyi Automobile City, the Yizhuang Micro-Electronic Industrial Base, the Daxing Biological Medicine Base, the Tongzhou Optics-Mechanics-Electrics Integration Base had all began to take shape. A cluster of modern manufacturing industries had come into being and the industrial build-up effect began to reveal itself.

During the Tenth Five-year Plan, Beijing experienced an annual increase of 11.8 percent in total output value, 1.8 percentage points higher than that under the Ninth Five-Year Plan. The per capita GDP, calculated on the basis of the number of the city's permanent residents, reached US$4,970, and in 2005, the figure exceeded US$5,000. In the past five years, 1,109 billion yuan (US$138.6 billion) in accumulated investment was received, more than double the 546.2 billion yuan (US$68.3 billion) under the Ninth Five-Year Plan. The annual increase during the Tenth Five-Year Plan was 17 percent on average, 8 percentage points higher than under the Ninth Five-Year Plan.

In 2005, the retail volume for social consumption commodities was assessed as 289 billion yuan (US$36.1 billion). Consumption gradually began to take its place in the city’s economic growth with improvements to the consumer economy.

The per capita disposable incomes of urban and rural residents improved to 17,500 yuan (US$2,187.5) and 7,850 yuan (US$981.25) in 2005; these were increases of 10.2 percent and 9.9 percent during the Tenth Five-year Plan.