In July, blue
posters reading "Challenge the WTO, Establish the CBD" appeared in
all the streets of Chaoyang district. No longer could the "eastern
region" full of foreign companies, office buildings and embassies
resist the advance of the Central Business District (CBD). In the
International CBD Expo held in August, place for the Beijing international
business district of 3.99 sq. km in Chaoyang district was put forward,
which is planned to be located to the east of Eastern Bridge, west
of Xidawang Road, north of Chaowai Street and south of Jianwai Street.
When extending their operations in China, foreign companies set up
offices in an international business environment. "In fact, early
in 1993, the 'General Plan for Beijing' approved by the State Council
has clearly provided that a CBD encompassing finance, insurance, information,
consultancy, culture and office facilities, would be established between
Dong'erhuan and Dongsanhuan, from Jianguomen to Chaoyangmen.", said
Mr. Qiu Shuiping, vice director of Chaoyang district, "In the past,
there was no centralized programming of the CBD under construction.
Now the office buildings, restaurants and apartments scattered in
different districts occupy an area of over 22,000,000 sqm. Built in
a centralized location, it will become a CBD, and the macroscale has
surpassed some foreign metropolises."
"At first sight, foreign companies are surprised at the scattering
of business districts in Beijing, some first-rate office buildings
even alternate as residential buildings." Mr. Zhong Rongming, assistant
general manager of the Beijing China World Trade Center Co., Ltd.,
holds the same idea as Mr. Qiu Shuiping, "Many large foreign enterprises
and companies believe that there should be a more specified CBD programming,
a modernized Beijing up to the international standard can not remain
in such a mess."
Two Relocation Stories
Eight years ago, soon after the establishment of Yajia International
Group, Mr. Wang Huiyao returned from Canada. At first, he chose an
office in the Friendship Hotel. "It's really very inconvenient". Most
of his foreign customers were near Dongsanhuan in Chaoyang District,
the Great Wall Seraton Hotel, Kunlun Hotel, Scitech, CITIC, Guibinlou
and Changfugong Center. All the important conferences were held in
the China World Hotel and China World Trade Center there. "Moreover,
apart from the Russian and Luxembourg Embassies, all the Embassies
we often visit are located near Dongsanhuan", said Wang Huiyao, "A
round trip from the Friendship Hotel to the east takes two hours in
general, if there is a traffic jam, so I can only rush to one or two
places in a day. It's really very tiresome shuttling on the road."
Three years ago, Mr. Wang Huiyao bought an office of 300 sqm in the
Hanwei Mansion. He said, "Though the premium and rental are very high,
we really get numerous benefits, it's only a ten minute walk from
our office to the customers' hotel. Even millions of dollars can't
outweigh this advantage".
It is the same with Motorola. Twelve years ago, the Motorola Company
entered China, its first head office was near Zhongguancun in Haidian
District. When establishing its North Asian head office, a place opposite
to the China World Trade Center in Dabeiyao became their final choice.
The biggest production base for Motorola lies near Tanggu, Tianjin,
and it takes at least one more hour from Zhongguancun to the Tianjin
Highway, Beijing entrance, while Dabeiyao is adjacent to the highway,
and only a one hour journey takes you to Tianjin. In 1998, the twenty-storey
Motorola Mansion was put into use, all the offices were let out in
that year.
Mr. Qiu Shuiping says, "Dongsanhuan and Jianwaidajie form a giant
crossroads at the Dabeiyao intersection, and lining this crossroads
are a group of office buildings, one of which is the Hanwei Mansion."
To the east is the Kerry Center, to the north is the tall Jingguang
Center, to the south is the large international business center, China
World Trade Center, and on opposite, are the HP Building, Motorola
Mansion and the Merchant Building. Numerous luxury department stores,
1/3 of the city's luxury hotels, more than half of its five-star restaurants,
apartments and entertainment centers, are focused here. Many enterprises
originally located in Jianwai and Chaowai districts are now planning
their relocation. An area of 2 sq. km. is estimated to be developed.
Mr. Qiu Shuiping says, "the primary facilities and conditions for
a CBD are ready here." The business center will consist of a core
district, an extended district and a complex district. Two roads between
the two "golden crossroads" formed by Dongsanhuan and Jianwai, Dongsanhuan
and Chaowai will merge into an organic whole, and extend to Liangmahe.
Within an area of 3 sq. km. there, besides the China International
Exhibition Center, the embassy zone II, and the embassy zone III which
is under construction, there are a group of modern complex mansions,
office buildings, restaurants, apartments and commercial and cultural
entertainment centers with a gross area of millions of sqm.
At present, there are 12,000 more "three-capital" enterprises and
1,100 more offices of commercial councils, banks and enterprises from
more than a hundred countries and regions. 160 out of the largest
500 multinational companies in the world have also invested or established
offices in Beijing.
Mr. Jiang Xiaoyu, who organized the International CBD Expo in July,
says, "After China's entry into the WTO, Beijing will face a new wave
of foreign investment, and the foreign companies will select the best
business district. So it's necessary to build a multifunctional CBD".
We Have Felt the Strong Potential of the Market
There are many indications of a bright future for the Beijing CBD.
A survey in 1999 showed that the vacancy rate of first-rate office
buildings fell from 28% in the second quarter to 24% in the third
quarter, and their capacity in taking in more customers remained stable.
According to international practice in the establishment of a CBD,
two features can ensure a success, one is that the rental is 30%-50%
higher than in other districts, the other is that finance, insurance,
consultancy, lawyers and accountants are grouped in the CBD. The center
is the China World Trade Center, after its 123,900 sqm project last
year, the rental area amounts to 520,000 sqm, the occupancy rate quickly
recovered to 90%, and 85% went to multinational enterprises, including
56 out of the Top 500, with the monthly rental per sqm increasing
from U.S.$ 49 in April to U.S.$ 62 in July, almost twice as much as
in the Dongfang Square in Chang'an Street. Though, new consultancy,
insurance, financial and communication companies keep swarming in,
in order to maintain a good customer structure, the number of ever
booming IT companies were even limited in their entering.
Mr. Zhong Rongming, assistant general manager of the China World Trade
Center Co., Ltd. says, "We have felt the strong potential of the market".
The estimated recovery in 2000 of the high-grade office buildings
market has come to us in advance. "Most of the first-rate office buildings
are located in the CBD, and the continuous decrease of the inventory
has clearly demonstrated the thriving of the market and the potential
of the CBD."
Government Management on the Beijing CBD Construction
Vice director of the general office with the government of Chaoyang
district, Mr. Li Yang, who drafted the comprehensive research report
for the CBD, is confident that it's a natural success to develop the
4 square kilometers area into a CBD."
But it doesn't mean the government won't help. "In foreign countries,
CBD construction is also undertaken by the government, it's not a
spontaneous action."
Li Yang believes that for a government engaging in the healthy development
of the CBD, the most practical work is to accelerate infrastructure
construction. "The CBD is by no means a new concept, it appeared in
the west twenty years ago, and what we should do is to inject new
ideas into the old concept." At present, many western cities are busy
in functional reconstruction. Taking London as an example, it must
face the great municipal traffic pressure caused by the insufficient
preparations in the initial construction.
According to Li Yang, the "new CBD" should firstly have network facilities.
The Internet plays a vital role in modern offices, and stressing network
construction in advance is of crucial importance. For example, in
a famous office building in Chaoyang district, the poor condition
of the overall wire arrangements has forced many enterprises to move
out.
Multiple functions and complete service is another feature of the
Beijing CBD. Li Yang explains that "A frequent complaint about the
CBD in western countries is that the skyscrapers turn into a dead
city at night, and this is the result of the single business function."
Therefore, the Beijing CBD will be built with retail, exhibition,
education, apartment and office facilities. "This calls for complete
and prompt service, with any of the customer's requirements being
satisfied with quality service in the most convenient way."
Like Wang Huiyao, many businessmen in the commercial center of Chaoyang
district have been involved in the CBD construction in different countries,
and naturally they often compare our CBD with those abroad. Of course,
there is much to be improved. In the environment, a narrow street
crowded with little restaurants and repair shops may well lie opposite
a five-star restaurant, and the only thing you can see out of the
window is rows of low dormitories, rather than beautiful beaches or
modern streets. The biggest difficulty is still the traffic. The CBD
is located near the airport, and the Erhuan, Sanhuan and other highways.
The traffic facilities are excellent, but the traffic congestion is
still a common occurrence. Li Yang admitted that the road net density
is far below requirements, and the government is determined to build
more roads in the CBD.
A motion has been put forward by the administrative authority, as
proposed by experts, for the share holding system and foreign and
non-governmental capital to be adopted in the future CBD.
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