In 1994, Tianjin began to move industry out of the old city area and build Binhai. In 1999, then Chinese President Jiang Zemin praised the achievements of the area, saying: “Binhai New Area will surely have a bright future as the strategy and plan for its development are absolutely right.”

Although Binhai expanded quickly in terms of economic output, foreign trade and industrial capacity, its many other advantages were not fully developed and utilized. These advantages included its abundant natural resources, proximity to Beijing and prime location on the transport network in northern China that branches out all the way to the western and eastern borders, and to northeastern Asia.

In 2005 Binhai New Area officially became part of the national strategic development plan. The next year, the State Council designated it the second area for piloting regional economic reforms after Pudong New Area. This allows local governments greater autonomy to make development policies and plans according to local conditions, giving Binhai a leg up in its future development.

In 2008, Binhai worked out a pilot reform plan, which positioned the region as a modern manufacturing and scientific development base that serves the Bohai Sea Economic Rim, an international logistic center, a regional hub for aviation, as well as a livable and eco-friendly coastal area. Binhai is expected to play an important role in promoting the economic development of Beijing, Tianjin, Hebei Province and the Bohai Sea Rim area.

Moreover, the scheme covers reforms in finance and land management, and the establishment of a free trade area, namely the Dongjiang Bonded Harbor. The bold and new policies drew unprecedented attention nationwide.

Many large industrial projects have been launched in Binhai. For example, an assembly plant for the A320 series of airliners, a factory run by Danish wind turbine firm Vestas, the production of ethylene and oil, a shipbuilding hub with an annual capacity of three million tons, a national animation industry park and the National Supercomputer Center have all been put into operation.

A new industrial development path has been formed in Binhai that features high-tech projects such as aircraft manufacturing and petrochemicals and focuses on the development of finance, cultural industries and new energy. Much effort has been made to enhance the ability to innovate and to do independent research and development.

Since Binhai was officially announced part of the national development strategy, Chinese president Hu Jintao has made three inspection trips to the area.

On his visit in April, 2011, the president said: “Binhai New Area has entered a new phase now that it is fully developed and opened up. Efforts should be made to consolidate achievements and make the area a national model for the scientific approach to development.” Binhai’s development signals that China’s center of economic gravity is moving northwards and growth patterns are changing. In the 1980s Shenzhen’s economic boom was a result of the development of process manufacturing driven by intense foreign investment, but Binhai’s success is down to a more efficient use of energy and resources.

Reforms Unleash New Vigor

As one of the experimental zones for China’s regional economic reforms, Binhai is rising as one of China’s most dynamic and open areas with huge development potential. Its rapid development can be attributed mainly to administrative reforms introduced in 2009. The central government decided to amalgamate three districts of Tianjing – Tanggu, Hangu and Dagang – into Tianjin Binhai New Area, and a new district government was formed, with fewer and more streamlined administrative departments than any other district in the country.

“The ultimate goal for the reform of the administrative system is to improve administrative efficiency. In the past the area lacked effective coordination among its various administrative districts that had independent operations and separate development plans. Under this situation it was difficult for resources to be efficiently allocated, and production factors like land, capital and human resources couldn’t flow freely,” said Zhou Liqun, acting dean of the Binhai Development Research Institute at Nankai University.