新葡京网址

Apt test case for new normal

Apart from accommodating “non-capital functions” of Beijing, Xiongan New Area can also explore a sustainable development path that strikes a balance between maintaining economic growth and curbing property prices, as well as protecting the environment — which, in other words, is the new normal of moderate but sustainable and eco-friendly economic growth.

Besides, it is not proper to compare Xiongan New Area with Shenzhen Special Economic Zone, established in the 1980s, or the Shanghai Pudong New Area, set up in the 1990s, in terms of just potential economic output. Xiongan New Area has a wider range of goals which include studies to find ways to cure the “urban ills”, transform the economic structure and implement a new pattern of urbanization. Since the yet-to-materialize new area will eventually cover 2,000 square kilometers — from 100 sq m in the initial period — it will be large enough to explore ways of solving the problems faced by cities and optimizing development in densely populated areas.

Strengthening public resources and building infrastructure facilities that support the development and growth of cities will be given priority to improve communication between the new area and the cities around it. Jingjinji Intercity Railway Investment Corporation, co-financed by the governments of Beijing, Tianjin and Hebei province and China Railway Corporation, has already been officially launched. So it’s possible that work on the intercity railways would start soon.

And once hospitals, branches of universities and scientific research institutions are established in, and State-owned enterprises move into the area, they will attract a resourceful and efficient talent pool, as well as more workers to Xiongan.

Nie Huihua, vice-president of the National Academy of Development and Strategy, Renmin University of China

Pilot project for property tax

For infrastructure construction in Xiongan New Area, public-private partnerships may be a good way to involve the private sector to build and/or improve infrastructure facilities and thus reduce the pressure on the government to keep on injecting capital to establish the new area.

Aside from individual operation of infrastructure projects, an integrated development model is also a good choice for streamlining overall urban planning.

However, a potential risk in encouraging PPPs to build public infrastructure is that it will increase the government’s burden of management, because the relationship between the local government and the companies in charge of construction will be totally dependent on contracts and economic ties. So before applying this mode, local authorities’ capacity should be carefully evaluated.

Xiongan New Area also offers a good chance to launch pilot projects for collecting property tax on residential properties used for commercial purposes. It’s highly possible that the local authorities will make efforts to offer affordable and low-rent housing to attract more talents and provide good living conditions for the residents, but they cannot control the entire local property market. So houses used as commercial properties will continue to be a part of the local real estate market, making it possible to launch the pilot property tax project. And if the pilot project is successful, it will open another channel of revenue for the local authorities and thus reduce their dependence on the sale of land-use rights to earn revenues.

全文链接：//m.chinadaily.com.cn/en/2017-04/10/content_28853601.htm?from=singlemessage&isappinstalled=0