Tianjin has issued a comprehensive coordinateddevelopment plan for the three layers, namelythe Binhai New Area, the urban area and surroundingdistricts and counties, to maintaincomprehensive, balanced and sustainable socialand economical development and configure newadvantages for development. Through joint effortsof the whole city, Tianjin is moving towards a newstructure featuring unique developments of thesethree layers, positive interaction, multi-dimensionaldevelopment and multi-polar support.

In the past few years, while the developmentin the Binhai New Area has remained fast, thepotential of Tianjin’s urban area and surroundingdistricts and counties are far from being fully explored.Under the negative influence of the currentadministration system, the development ofthe Binhai New Area and urban area tend to behomogenized. During the Tenth Five-Year Plan,GDP and fiscal revenue of the central districtsgrew by 182 percent and 279 percent respectively;while those of the Binhai New Area by 243percent and 694 percent.

Taking the development of the whole city intoconsideration, it is not realistic to only count onthe Binhai New Area for Tianjin’s overall growth.Therefore, it is critical to maintain coordinationof the industrial layout between urban areas andthe Binhai New Area. A development strategywas proposed at the Tianjin’s Ninth Party Congressheld in May 2007, declaring that the “BinhaiNew Area is to function as the growth engine,with major urban areas to develop rapidly andother districts and counties to follow the lead”.

The Binhai New Area has proposed to strengthencooperation with urban areas and the surroundingdistricts and counties in several aspectsto promote the coordinated developmentof the three layers. Consequently the balanceddevelopment of the entire city could be possible.

Firstly, the Binhai New Area will exert industrialadvantages and conduct an overall planningfor industrial layout and development policy,encouraging the industrial chain extending fromBinhai to the surrounding districts and countiesand forming an effective industrial structure ofmutual support. Secondly, the Binhai New Areawill exert policy advantages to further apply thepolicies adopted by Binhai to the whole city soas to drive development of other areas. Thirdly,the New Area will exert the advantage of opening-up to push forward the linkage between theurban area and Binhai in sharing the science &education resources and attracting investment,enabling Tianjin to strengthen its overall competitiveness.

Tianjin now enjoys a comprehensive, well coordinatedand connected development of threelayers and the Binhai New Area is playing its duepart as the growth engine. The constructionof eight functional zones in Binhai New Area isgearing up, with major projects right on track tobe completed. The service center of the Sino-Singapore eco-town finished construction.Projects such as the one-million-ton ethylenecracker and the Airbus A320 general assemblyline are under construction. Infrastructure constructionis in full swing. Forty-five projects werelaunched in the first half of 2008 with the investmentin place totaling RMB 20.5 billion yuan.

GDP of the Binhai New Area in the first half of2008 reaches RMB 146.745 billion yuan, up 23percent year-on-year. The growth rate is 6.7 percentagepoints higher than that of the whole city.It is the fastest growth speed in the past decade.Total industrial output value stemming from theBinhai New Area reached RMB 378.242 billionyuan from January to June, 2008, increased by32 percent year-on-year. During the period, theNew Area witnessed RMB 68.721 billion yuan offixed-assets investment, increasing by 40.3 percentyear-on-year.

Tianjin urban area strives to develop modernservice and metropolitan industry, improving thecity’s due functions in a comprehensive way. Thetwenty city-improving projects benefit city residents’living and working condition. Regarding theintroduction of investments, actual foreign investmentin place in Tianjin’s six urban districts is US$443 million, with a growth rate of 30 percent in thefirst half of 2008. Actual utilization of domesticcapital in urban areas is RMB 15.664 billion yuan,growing by 34.2 percent year-on-year.

The increasing development of districts and countiesof Tianjin leads to the enhancement of theireconomic strength. In the first half of 2008, GDP,fiscal revenue, investment in fixed assets andutilization of foreign capital in the districts andcounties are all higher than the average level ofthe city. In the first half of 2008, total industrialoutput value hit RMB 163.054 billion yuan, increasingby 40.6 percent, which is 10.1 percentagepoints higher than the city’s average. Agriculturalinfrastructure construction finished on a total of60,000 mu of land, which equals to the total constructionscale in the last decade. Pilot projects,in which farmers can switch their residential landfor houses, went well, with accumulative investmentover RMB 12 billion yuan.