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Expel polluting industries, build new industrial parks

July 2, 2015

konjaku: more on the effort to remove from Beijing those industries and businesses deemed inappropriate for the capital city.


Yesterday afternoon, this newspaper (reporter Gu Zhongshan) learned that the Beijing industry working conference has decided that starting this year, twelve types of polluting industries, especially casting, forging, and home furniture manufacturing, will face readjustment and removal from our city. Starting this year, annually 300 or more businesses categorized as polluting, focussing on town and village industrial compounds, will be subject to on-the- spot shut downs and withdrawal.

Although figures are not complete, last year the city cancelled or revoked the permits of over 800 businesses considered not appropriate to the capital city, and shut down on the spot 392 manufacturing or polluting industries.

Beijing is making a great effort to find suitable locations for businesses within the Beijing -Tianjin- Hebei sphere. This year our city will construct a biomedical industrial park in Ji county in Tianjin. It is pushing forward quickly with the construction of the 4th Hyundai plant [ in Cangzhou in Hebei] and a Mercedes Benz components and parts factory, A number of high-end, technologically innovative, “star” companies, are this year completing their alignment with the Beijing -Tianjin- Hebei cooperative development nexus. They are transferring their research and development, production and manufacturing arms to Hebei or Tianjin, while keeping their general headquarters concentrated in Beijing. In addition, a large number of businesses and industrial zones are staying in the city, but they are “upgrading.” In 2015, Beijing will transform the structures in 19 open economic industrial zones into environmentally responsible green buildings. and the same for five open economic marketing zones. By 2017 all the open economic zones will be transformed in this way.

town and village industrial compounds 镇村工业大院

konjaku: the article above mentions “focussing on town and village industrial compounds.” To understand better what these are, I translated the following. It appears industrial compounds belong to an earlier form of makeshift industrial development, now to be replaced by new industrial parks.
Shoubaozhuang village has previously appeared in this blog, as one of the villages in Chaoyang district subject to community transformation management:

Photos of Xihongmen town small factories:




Xihongmen moves out industrial compounds in order to restore village land


Recently in Xihongmen town, a new industrial park began to take form. In order to push ahead with urban rural transformation, as well as industrial upgrading, Xihongmen town, starting in 2012, began a plan to take five years removing 27 industrial compounds, and dispersing a population of 100,000 members of the floating population.

New Capital News (Xinjingbao) reporter Pu Feng

Geography:Xihongmen town is in southern Beijing between the 4th and 5th ring. Near Tuanhe road, in the past there gradually came into existence a village-level concentration of industrial compounds. The village land there was for the most part given over to industries run by the village collective. Starting in 2012, Xihongmen town began to demolish and remove these industrial compounds, and at the same time began industrial upgrading. The government has made a promise to the villagers, that after upgrading and transformation village collective ownership of the land will not change. The village collective will put up capital, and set up an affiliated company. Villagers will become shareholders, with an amount of shares based on how much they invest. This plan will be promulgated over the villages making up the entire town. The village residents will have a stable and long-term source of profits.

Xihongmen, in the northern most part of Daxing district, is close to central Beijing, therefore, it is a typical example of the “urban rural fringe zone”. During the 80s it developed a village collective economy, and 27 industrial compounds grew up in 27 village hamlets. As times changed, these compounds gradually became antiquated and on the low-end side of the industrial scale. They were places where members of the floating population collected. Accidents caused by safety violations became frequent occurrences.

In the effort to push forward industrial upgrading of the urban rural fringe zone, starting in 2012, Xihongmen made a plan to demolish industrial compounds over the next five years, vacating 9.6 million square acres.Getting rid of the congestion of industrial factories also means reducing the congestion of people. By 2017, the new Daxing Industrial Park will completely supersede the 27 industrial compounds, and make obsolete also the100,000 members of the floating population who worked in them.

At the northeast corner of Nanqiao in Xihongmen town, adjacent to the green zone, is a narrow road, on which two cars can barely pass each other. Large and small trucks criss-cross, kicking up clouds of dust. On the north side of the road there is a small three story building, surrounded and obscured by steam and vapor. Behind it are rows of other small buildings, forming an enclosing wall around the compound. There are 10 or so transport trucks parked in front. Although the local residents have already heard this compound will be demolished,for the time being business continues.

According to a local, the industrial compound is a complete small society. Inside there is a factory, dormitory, a market, even a kindergarden. Most of those inside do not have the relevant qualifications or specialized licenses.

Starting in 2011 or earlier, this Shoubaozhuang industrial compound, occupying 117 acres, had at its peak more than 280 businesses inside, more than half of which were clothing manufacturers. Xihongmen Assistant Town Head Wang Biao said, this sort of village-grade industrial compound gradually over time filled up with migrant workers, doing low-end industrial work, with many unfixed safety hazards. When these industrial compounds were first introduced into the area, land rents were cheap, “the villagers were happy with 3000 to 5000 yuan per 1 mu (1/6th of an acre) ,” renting out to multiple layers of intermediaries for contracted projects. Many non-conforming buildings went up, most of the profits went to the hands of the intermediaries. The villagers’ own profits were small, they nourished plenty of middlemen and land agents [slang: “land-worms”].
What this means is, the model of improving the village economy by renting out the village collective land, was desperately in need of fresh ideas. Shoubaozhuang bore the brunt of this scrutiny, and became the first pilot project. Starting in 2011, the old and shabby industrial compounds of non-conforming buildings, made of brick, tile, and colored tin roofing, were demolished. These have long since disappeared.

Now, in the diagram of the plan to transform plots of land in the urban fringe of Xhongmen town, there is an area designated “Number 3,” referring to a patch of empty land from which the old industrial compounds have been demolished and completely removed. There a Culture and Creative Industry Park is rising quickly from the ground, built by Shanghai Financial Valley.

Wang Biao said, to upgrade, the first step is to demolish the old. He leaked the information to us, that besides 500,000 square meters in parcel 2, there were 2 million square meters in parcel 1 that would become available.

How will the village use the cleared, soon to be vacant land for industry? As Xihongmen town pushes forward with the demolition, they have come up with a new management model to insure profits for the village collectives. Wang Biao said, after demolition of the industrial compounds, the ownership of the land will revert to the village collective. The right of use of the land will be registered with a property management company. The company, Shengshi Hongxian, under the direction of the government, will manage the interests of village shareholders. The government will provide a plan, recommend industries, and give support with infrastructure. After the development has gotten off the ground, the government will turn over management entirely to Shengshi Hongxian.

The property investors will pay rent on the land during the construction process, and once the construction is done, Shengshi Hongxian, following the concept of “switching land for capital,” will retain a fixed amount of property rights and ownership.

Shengshi Hongxian will also be responsible for distributing profits to the villagers, based on the value of the land in each village, and the proportion of shareholders. After the construction is complete, the villagers will have the opportunity to be employed in the new industrial park.

To summarize, the village collective retains ownership of the land, while the management company acquires the usage right of the land. The investors have property rights and title to the buildings that have been built on the land. The rights, interests, and obligations of these parties are clearly stipulated in the contract. This brings about an equitable sharing of the profits, and ensures both that the villagers do not lose land ownership, and that the investors will see profitable returns on their investment.

According to the Xihongmen plan, by 2017 the 27 village industrial compounds will all be demolished. The 9.6 million square meters of land will be divided according to the “20% 80% principle,” with 20% as land for development, and 80% designated for the green zone.

Wang Biao said, before setting this 20-80 percentage, they did some very exact calculations, and determined that, based on previous records, that out of the total of 9.6 million, if 2 million square meters (approximately 500 acres) was set aside for business use, that would generate enough profits to sustain the villagers. On this 20% of land, they will invite different types of industrial parks to be built. Already on the Number 3 plot, two new industrial parks are beginning to take form.

One of these is “Hongkun Jinronggu”(Hongkun Value Town), which will function as a general headquarters for small and medium size businesses, in internet finance, e-commerce, etc. The other is the Starlight Movies and Television Industrial Park which will develop image and sound technology, as well as animation. In addition, negotiations are ongoing with some sixty other businesses.

Hongkun Value Town renderings:


1417504293703 20140915150356372 2014731114624 b_275101726

These new industrial parks will completely replace the 27 old industrial compounds, which had within them more than 5000 individual businesses of all types, and 100,000 employees, members of the floating population. Wang said confidentially that this year that construction would start on 200,000 square meters, and it would be finished and ready for use by the 10th month of next year.
As for the 80% of land designated for the green zone, already 12,000 new trees have been planted, and are taking root under a blue sky.

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