The majority of the world’s major cities have a Central Business District (CBD), an “engine room” with loosely defined geographical boundaries whose corporate inhabitants give impetus to development of local and global economies. Mercy Sun reports on the ongoing development of Beijing’s embryonic CBD.

As with many other things, Beijing is having to play catch-up in development of its own full-scale CBD. The nucleus has been gradually developing for some time, with more than 2,000 international and other large entities in the same area. Signs are that it wont be too many years before the Chinese capital’s CBD will be as familiar to the global business sectors as long-established counterparts which are synonymous with the likes of New York (Manhattan CBD), Paris (La Defense), Tokyo (Shinjuku), and Hong Kong (Central District).

Located between the East Second and East Fourth ring roads, the CBD is by design in a superior geographic position. The very core of the CBD, the conjunction of the East Third Ring Road and Jianguomenwai Dajie, is just 5 kilometres from Tian’anmen Square, 5.8 kilometres from the entry to Capital International Airport Expressway, and 5.3 kilometres from the entrance to the Beijing-Tianjin-Tangshan Expressway.

The Sixth Chaoyang International Business Festival will be held in Beijing September 15-18, 2005. As an annual business event, Beijing Chaoyang International Business Festival plays an important role in publicizing the economic development of the capital and the regional economic constructional accomplishments of Chaoyang District, accelerating Beijing CBD’s construction, and improving the development of Beijing CBD’s modern service industry.

China Business Centre

The New York Manhattan China Business Centre was officially set up in Chaoyang District on July 5. The Centre will be committed to cooperation and exchanges between the Chinese government, Chinese companies and American companies. It was initiated and founded by New York Manhattan China Representative Office. The Representative Office also facilitated the sister city relationship establishment between Chaoyang and Manhattan. Through the bond, Manhattan can share their 100-year-old CBD development experiences with Beijing CBD and promote the development of Beijing CBD. According to Yao Jiren, general representative of Manhattan China Representative Office, there are already many Chinese companies contacting the Centre looking for investment opportunities and cooperation with American companies.

The United States is Chaoyang’s second-largest foreign investment source country. Chaoyang has 769 American companies like Motorola, Agilent and Ford with a total investment of US$3.815 billion.

Big Law Firm Arrives

The King & Wood Law Firm, the biggest comprehensive law firm in China, formally settled in the Fortune Plaza of Beijing CBD on July 14. Established in 1993, King & Wood is the earliest partnership law firm approved by the Ministry of Justice and Beijing Judicial Bureau in China. It is also the legal counselor of the Organising Committee of the 2008 Olympic Games.

Survey Cites Potential

The 2004 annual survey of the prosperity of Beijing CBD has been completed by Beijing CBD Administrative Commission and the Chinese Economy Prosperity Centre (CEPC) of the National Bureau of Statistics of China (NBSC).

The survey involved 300 questionnaires of leading companies located in the Beijing CBD and lasted two months. They received more than 200 feedback questionnaires.

The prosperity survey follows the international practice of calculating the weighted average of the multiple index (SI), confidence index (CI), competitiveness satisfaction index (CSI), competitiveness confidence index (CCI), competitiveness anticipation index (CAI) and the future development anticipation index (DAI). A prosperity index of 100 locates the critical point between prosperity and non-prosperity. An index between 100 and 200 represents prosperity. The survey found a comprehensive Potential Index of 140.26. This reflects satisfaction with corporate competitiveness, high confidence among Beijing CBD companies and high expectations for the China, Asia-Pacific and the global economies. It convincingly proves the booming CBD with great future potential.

CCTV Won’t Hurt Traffic

Beijing CBD Administrative Commission says it has disproved the hearsay that the new site for China Central Television will create traffic jams in the Central Business District. Based on a floor area ratio of 5.5, it is calculated that the floor area of the new site of CCTV could reach 800,000 square metres to accommodate 50,000 staff. But the floor area of the real layout is only 550,000 square metres, a floor ratio of 3. The expected number of staff is only 10,000, 40,000 less than the average in the CBD. The unique operating hours of a 24-hour TV station should will also not contribute significantly to rush-hour traffic jams.

Sidebar

CBD Traffic Plan

The road system and organization of inside and outside traffic in CBD is very up-to-date. Roads are about 155 hectares, 39 percent of the total CBD area.

Beijing CBD Commission invited the MVA Group, a company specializing in Hong Kong traffic management, to investigate and predict future traffic flows.

On MVA’s advice, they widened roads, reconstructed crossings and improved the traffic environment. First, among other things, improving the traffic environment means increasing the number of highways, adding two subways and several interchange stops. Second is solving the parking problem. CBD regulations require at least 65 parking bays for every 10,000 square metres of construction area.

Third is reinforcement of the traffic management system. CBD architects are considering underground construction, especially downtown, to connect an underground pedestrian sidewalk system with underground garages.

Some key junctions will be improved, including:

1) Dongdaqiao Lu and Jianguomenwai Dajie to be converted into a crossroads

2) Jintai Lu to be lengthened to Tonghui Beilu;

3) Adjustments to west Chaoyang Lu to thin traffic;

4) Move the fast from the north to the south bank of the Tonghui River.

The East Third Ring Road separates the CBD into two parts: east and west. The draft of the scheme for this road area has been modified so many times that even some CBD projects applying for permit have had to be rearranged: Sohu on Jianguomenwai Dajie, for example, has had its construction area reduced by nearly 30 percent.

The Beijing CBD Traffic Plan retains a grid road network, a flexible and convenient road system with a road area ratio of 39 percent. For most of the world’s major cities, public transport is the preferred way of dealing with traffic problems. The Chinese-language motto of the Beijing plan is “civil facilities firstâ€. In three years, subway line 10 will be completed and the road system of the CBD will be reconstructed to meet the needs of construction.

Construction area

To construct a first-class international CBD in Beijing, the city government collected plans from eight design firms. After due consideration, the Detailed Comprehensive Plan for Beijing CBD was compiled. The total construction area of Beijing CBD will be 800-1,000 hectares, of which 50 percent will be office buildings, 25 percent apartments and 25 percent commercial, service, cultural and entertainment facilities.

The commercial facilities will mainly be located on both sides the East Third Ring Road and Jianguomenwai Dajie. The core of the CBD will be the northeastern corner of Dabeiyao Junction, an area of about 30 hectares. High buildings will be built along both sides of the East Third Ring Road.