E L A NÁLISIS D IDÁCTICO EN LA F ORMACIÓN DE

Source: Wuhan Municipal Year Book

Public transport 24% Walking 35% Cycling 19% Private car 22% CHINA

na’s second city with a National Independent Innovation Demonstration Zone (after Beijing’s Zhongguancun). In 2011, Wuhan became the first of China’s 16 pilot regions for ‘promoting integration of S&T and finances’. In 2012 it was selected as one of the first National Culture and S&T Integration Demonstration Bases, and also become one of the first national Intellectual Property Demonstration Cities. In 2015 it was selected as a demonstration city for start-up and innovation for small and micro enterprise, and as an experimental zone for innovation and reform in finances. Also in 2015 it was selected as one of eight zones across China (the only one in mid-China) for experimentation with innovation across sectors. As a result of these des- ignations, a number of R&D centres, incubators and technology transfer bases have been built. for the production of solar energy. With productive agriculture in its hinterland, Wuhan has

significant opportunities for biomass production. Across the region there are now a number of modest-sized biomass plants using straw, methane plants using waste from pig farms, and also bio-fuel plants from waste oils and fats.

The Municipality of Wuhan is working hard to attract R&D into the energy field, and to bring domestic and international investment into green-energy-related industries in the city. As a result, Wuhan is an emergent green-energy technology innovation hub.

Wuhan is also a leader in terms of promoting energy efficiency, with increasingly stringent regulations for energy use in manufacturing and buildings. The response has been impressive. WISCO, for example, is partnering with the General Electric Corporation (GE) to build a biomass power plant that could significantly reduce industrial emissions in the city. There are also a number of remarkable low- or zero-energy demonstration buildings – including the Wuhan Greenland Centre, which is planned as the world’s fourth-largest building; and the new Energy Centre at Wuhan University, located in the 140-metre Energy Flower, designed to resemble a lily, which is said to be the most energy-efficient building in the world. The development of a smart grid by the municipality, supported by GE, is also supporting the shift towards energy efficiency.

There are ambitious targets in terms of electric vehicles and the shift to bio-fuels. The Dongfeng Motor Corporation, for example, is partnering with Detroit Electrical Corporation in the pro- duction of 100 000 hybrid and 50 000 fully electric vehicles, while Renault-Nissan is building an electric plant in Wuhan. There are also now a number of bio-fuel production facilities in Wuhan and surrounding cities.

INNOVATION-DRIVEN ECONOMY

Wuhan is a city experiencing strong growth momentum, but it is still relatively weak in terms of innovation economies, lagging behind major cities in China such as Beijing and Shanghai, and also behind second-tier cities such as Shenzhen and Hangzhou. A major challenge for Wuhan is clearly the need to move up the value chain, through building innovation capabilities. Wuhan ranks 293rd on the 2thinknow Innovation Cities Global Index – far behind China’s top cities, but also behind Dalian, Xi’an, Dongguan, Chongqing and Xiamen.

Expenditure on R&D is relatively high at 3% of GDP, but many of the innovative products de- veloped in Wuhan are used elsewhere rather than in city industries. A major challenge for innovation stems from the ownership structure of firms in Wuhan. Nine of the top 10 firms in the city are state-owned. Unlike the large state-owned firms in Beijing, those in Wuhan are mainly in traditional industries, and do not have a strong tradition of investment in R&D, or of innovation.

However, Wuhan does have areas of innovation that are emerging strongly, including in optical electronics, bio-industry, and green-energy vehicles; concentrated, for example, in clusters such as the Wuhan BioLake.

There is one area in which Wuhan has a major national advantage. After the major centres of Beijing and Shanghai, Wuhan is one of China’s most celebrated centres of education. It is said to have the largest student population in the world. It is not simply about quantity; Wuhan hosts two of the QS Top 50 BRICS Universities for 2016 – Wuhan University (16th), and Huazhong University of Science and Technology (34th). There are also other up-and-coming universities including the Wuhan University of Technology, which is a recent amalgamation of specialist uni- versities including a transportation university and an automotive university. Apart from univer- sities there are other major research centres in Wuhan, such as the National Centre for Optical Communication Research in China. It is this strength in education and research that positions Wuhan as a potential new centre of innovation in China.

age. Instead, large numbers of refugees arrived in the city from other provinces, boosting the city population. In the 1950s Mao Zedong supported the development of Xi’an, in an effort to rebal- ance development across the regions of China – but also because Xi’an was far less vulnerable to attack from foreign armies than the coastal cities. A number of industries were relocated to Xi’an, as well as important educational institutions such as the Xi’an Jiatong University, which was relocat- ed from its original campus in Shanghai.

The strategic significance of Xi’an declined in the early years of economic reform after 1978. The focus at the time was on export-oriented industrialisation and the opening of the port cities to the global economy, with Xi’an, in the geographic centre of China, not well-placed. In 2000, Chi- na’s State Council launched its ‘Go West’ policy, and this created the conditions for a massive new growth surge for Xi’an. Huge state investments went into western China, with Xi’an being one of the hubs of new growth. Annual growth in GDP has been greater than 13% since 2000, making Xi’an one of the faster-growing city economies in the world.

Xi’an also emerged as a national and global tourism hub, following the extraordinary discovery of the Terracotta Army in 1974, and the proclamation of the excavations as a UNESCO World Heritage Site in 1987.

POPULATION

POPULATION SIZE

The UN Population Division estimates a 2015 population of 6.04 million for the Xi’an urban agglomeration.

POPULATION RANKING

In terms of UN data the Xi’an urban agglomeration is ranked 56th in the world, 26th in the BRICS, and 13th in China.

POPULATION GROWTH

Xi’an has grown at the moderately fast annual rate of 3.2% in the period 2010 to 2015, down from peak rates of over 7%.

POPULATION DIVERSITY

In 2010, 98.5% of the population was Han Chinese, with 1% Hui (Chinese Muslim) and the remain- der a scattering of other minorities. The proportion of the foreign-born population is miniscule.

STRUCTURE OF THE URBAN AGGLOMERATION

The basic structure is of a dominant core with outward sprawl and a highly irregular urban edge, as villages develop as urban centres in a largely haphazard way. In ancient times the city was contained within the city walls, which were destroyed at the end of the Tang Dynasty and rebuilt during the Ming Dynasty. The 12km2 within the walls remains the commercial and political centre of the city, although the city has since expanded far beyond these limits.

Beyond X’ian there are two small cities. Almost immediately outside of X’ian, north of the Weihe River, is Xianyang, with a population of around 324 000 people. Then there is Weinan, 50km to the east, with about 356 000. In 2010, China’s State Council approved a plan for the Greater Xi’an Met- ropolitan area, which includes all the administrative districts of Xi’an, the two satellite cities, and a number of smaller settlements. The total population of the metropolitan area is around 10 million.

XI’AN

西安

CONTEXT

LOCATION AND STATUS

Xi’an is located almost in the geographic centre of China, in the centre of the Guanzhong Plain. It is the capital of Shaanxi Province.

HISTORY

The Guanzhong Plain is often referred to as the ‘cradle of China’s civilisation’. It is an ancient hub of human activity and creativity. This was the region where the Zhou people lived; and when they conquered China around 3 100 years ago, they established Xi’an as the national capital. Xi’an was the political, economic and cultural hub of China, remaining the capital for around 1 200 years across thirteen dynasties. Xi’an was also the first city in China to open to the world, as the starting point of the famous Silk Road that connected central Asia to Europe.

During the short-lived Qin Dynasty (221-206 BC) the first emperor of a united China, Qin Shi Huang, ordered the construction of the famous terracotta warriors. During the Tang Dynasty (AD 818-904), Xi’an, then known as Chang-an, was the largest city in the world, with a population of one million. Xi’an was destroyed at the end of the dynasty; and when it was eventually rebuilt, during the Ming Dynasty, it was a shadow of its former glory.

There are other key zones around the city, including: the Xi’an Yanliang National Aviation Hi-Tech Industrial Base, established in 2004 as the only one of its kind in China, which has po- sitioned Xi’an as the largest aviation R&D and production base in China; and the Qujiang New District, focusing on the culture and tourism industries.

The rapid growth of the tertiary sector mainly had to do with spectacular growth in the tourism industry, cultural industries, and service outsourcing. In 2013, Shaanxi Province, of which Xi’an is the capital, had 282 million domestic tourists, an increase of 22.8% on 2012, and 3.5 million overseas tourists. Software outsourcing is one of the major growth industries in the city, and a Software New Town has recently been opened.

The launch of China’s ‘One Belt, One Road’ initiative presents major opportunities for Xi’an, which is strategically placed at the eastern edge of the inland Silk Road trade route. Xi’an has been preparing for this initiative, including through the development of the Xi-Xi’an New Area, which includes logistics and trade parks.

GOVERNANCE

The overall urban governance structure for China is explained on the coversheet. Within the governmental hierarchy the Municipality of Xi’an has sub-provincial status reporting to central government through Shaanxi Province. There have been suggestions that Xi’an be elevated to a province-level municipality, given its status as the leading city in north-west China, but it is unlikely that this status will be conferred for some time.

DEVELOPMENT CHALLENGES

Xi’an has a combination of problems, relating to both relative underdevelopment and rapid growth. Despite its recent spurt of growth, Xi’an still lags well behind the large coastal cities in terms of development indicators. In 2014, Shaanxi Province (of which Xi’an is capital) had a GDP per capita (PPP) of USD 12 967, compared with USD 27 629 for Beijing, USD 26 896 for Shanghai, and USD 17 532 for Guangdong. It also lagged slightly behind other regions in the interior, such as Chongqing at USD 13 224. Around 7% of the city’s population does not have a local hukou, and therefore lacks access to full services.

Xi’an has a serious air-pollution problem. Its Annual Mean PM10 is 113, which is high even for China, where Xi’an is ranked as the sixth-worst city.

THEMATIC REPORTS

TRANSPORTATION

ECONOMIC LOGISTICS

Xi’an has a central location in China, and is well linked to destinations across the country by road, rail and air. The Xi’an Xianyang International Airport is the eighth-largest in China, with nearly 33 million passengers in 2015. It connects across China and to other destinations in East Asia. Xi’an has no fewer than six major passenger-transport railway stations, including one of the eight major national railway stations. Xi’an North Railway Station connects to the high- speed trains of the Zhengzhou-Xi’an High Speed Railway (which also connects to Beijing), which was opened in 2010. The nearly-900-kilometre High-Speed Railway to Datong is under construc- tion. Xi’an is also on the Eurasia rail link, which links through to Rotterdam in The Netherlands.

ECONOMY

According to the Brookings Institution, the GDP for Xi’an in 2014 was USD 124.19 billion (PPP). While it lagged behind other large Chinese cities, its growth performance was impressive. Dur- ing the period 2011 to 2015 (12th Five-Year Plan), the average annual GDP growth for Xi’an was 10.96%. Within the BRICS it ranks around 20th, similar in size to Rio de Janeiro and the Central Witwatersrand.

The recent surge of economic development in Xi’an followed the launch of China’s ‘Go West’ policy in 2000. Large-scale government funding was poured into key locations in Western China including Xi’an, and this stimulated massive growth in GDP. Since 2000, the GDP of Xi’an has been growing faster than 10% per annum. In the period 2001 to 2005, the average growth was 13.5%, increasing to 15% between 2006 and 2010, and declining to around 12% after 2011. Even at these extraor- dinary rates, Xi’an was lagging behind Chongqing and Chengdu, the other two cities in the West Triangle Economic Zone.

Although X’ian does have a large and growing manufacturing sector, the tertiary sector is larger, and growing slightly faster.

STRUCTURE OF THE ECONOMY, 2014

Source: Xi’an Municipal Year Book

Since the 1950s Xi’an has been a hub of heavy industry, but the catalyst for the recent growth of the city was the establishment of the Xi’an Hi-Tech Industries Development Zone (HTIDZ) in 1988, which received national-level status in 1991. This zone offers incubation and other specialised services for software, pharmaceutical, biomedicine and other hi-tech industries. It has attracted around 6 000 enterprises, including transnational corporations such as Philips Electronics, Bosch, Fujitsu and Pepsi.

The second major initiative was the Xi’an Economic and Technological Development Zone (ETDZ), established in 1993 and elevated to national status in 2000. This was the first Export Processing Zone (EPZ) in north-west China, and it has brought in 1 800 companies including major transna- tional companies such as Coca-Cola, Hitachi, Mitsubishi and Siemens, focusing on petrochemicals, electronics, food and beverages, and biopharmaceuticals. The zone is being expanded to include a focus on non-manufacturing sectors such as education, trade, finance, entertainment and cater- ing, with the city’s new railway station also included in the ETDZ.

Manufacturing 27% Construction 13% Agriculture 4% Trade 12% Transport 4% Hotel & acommodation 3% Finance 10% Real estate 6% Other services 22% CHINA

GREEN ENERGY

Xi’an is in the heart of the coal fields of north-west China. While China as a whole is heavily dependent on coal as a source of energy generation, Xi’an is even more so. For Shaanxi Province as a whole, coal, petroleum and gas are the largest industries. In 2010, Shaanxi exported 23% of its electricity production to other parts of China.

However, there are major shifts under way which could have significant repercussions for the coal fields of Shaanxi. Data from 2014, and into the first half of 2015, suggest that there could be a major reversal happening in the use of coal across China. In the first half of 2015 domestic coal sales dropped by 8.1%, and domestic coal production by 5.8%. This is largely the result of the rise of renewables – wind, water and solar – in electricity production, but also the effects of more stringent environmental regulations.

The shift from coal may have short- to medium-term economic challenges to Xi’an and Shaanxi, but considerable environmental benefits. But it will not be an overnight process. There are at least five large coal-fired power stations still under construction in Shaanxi, to add to the exist- ing eight. There was also one small hydro power station under construction, to add to the four small power stations on the Han and Yellow Rivers.

Within the municipal area of Xi’an, 184.5 billion kWh of electricity was generated in 2013, of which 88% was coal-fired (or thermal), and the remaining hydro. While electricity produc- tion remained overwhelmingly coal-based, there were indications of a shift. Between 2012 and 2013, there was a decrease of 1.8% in thermal generation, and an increase of 4.2% in hydro. There are also some reports of other forms of electricity production, although still on a small scale, such as a small power plant built by a Canadian company that produces electricity from crop stalks provided by farmers, and a landfill methane-recovery and electricity-generation pro- ject in the city.

The Xi’an Statistical Yearbook also suggests increasing levels of energy efficiency. The energy consumption per unit of GDP (ton of SCE/10 000 yuan) reportedly dropped from 1.03 in 2005 to 0.568 in 2013.

Some progress has also been made in moving away from petroleum as a fuel. Almost all taxis in the city now use Compressed Natural Gas (CNG).

INNOVATION-DRIVEN ECONOMY

Xi’an is a middle-ranking city in China. In the 2thinknow index, Xi’an ranks 270th globally and 14th in China. This is despite high expenditure on R&D. In 2014, for example, 5% of GDP came from R&D expenditure, far higher than the national average of around 2%. However, much of the research and many of the innovation products are used elsewhere, and are not converted into productivity gains in Xi’an. The Beijing Review referred to conservatism in Xi’an in adopting innovations.

Xi’an does have key strengths in terms of R&D that must be converted into economic gains for the locality. The most important may be its considerable strength in academic education and research, and its deep pool of technical expertise (although there is said to be a lack of management exper- tise). Xi’an’s advantage goes back to the Maoist era, when a number of key academic institutions were relocated from coastal cities for strategic reasons. There are said to be around 37 public and 36 private universities, more than 660 research institutes, and 400 000 specialist technicians. The universities include the Xi’an Jiaotong University, which was ranked by QS as 24th in the BRICS in 2016. This university has an innovation fund that allocated around RMB 50 million to