The concept of establishing the Capital Economic Region (“CER”) has been around since 2004. But, there has been a lot of behind the scenes wrangling on its priorities over the past decade. This was because the interests of its main stakeholders, Beijing, Tianjin and Hebei , were not fully aligned with respect to the re-distribution of industrial growth. Despite progress on this re-distribution, the less contentious development of regional expressways, high speed rail and suburban metro links has already moved ahead.
However, we expect that the CER plan will now progress much more quickly than before. This is based on President Xi Jinping instructions announced earlier this year that the process of implementing the CER plan must be sped up. He indicated clearly to the CER’s main stakeholders that they had better bury their differences in order to “fast forward’ implementation of the plan. This has been mainly triggered by Beijing edging closer and closer to the tipping point of its longer term urban sustainability.
Source : DTZ (Groupe UGL)