Pinggu is one of the 18 districts of Beijing, and is located to the northeast of the city about 70km from the main metropolitan area. It occupies an area of 1,075 square kilometers and has a population of 430,000. To the northwest it is directly connected to Shunyi and Miyun; and to the southeast to Jixian in Tianjin and Longxian in Hebei. Its location makes it a natural junction for commercial traffic between Beijing, Tianjian and Hebei province, and it is effectively at the heart of the Beijing-Tianjin-Bohai Bay area. The Jing Ping Ji Expressway - more than 1,000km long, and near to completion - will greatly reduce the travelling time between Beijing and Xingang (in Tianjin), further enhancing the district as the main commercial hub.

In 1996 Pinggu was chosen by the Beijing Municipal Environmental Protection Bureau and the State Environmental Protection Administration as one of the nation's "ecology demonstration areas" - national role model for development that is environmentally sensitive and sustainable. Pinggu has subsequently followed a master plan of economic growth that environmentally sound. In 2000, the Beijing Municipal Government established the Xinggu Industrial Development Zone, and embarked on an active policy of building up Pinggu as a new economic hub.

The current development and economic success of Pinggu is based on four economic "pillars": its role as the Jing Jin Aviation Economic Centre; the Beijing Mafang Industrial Zone; the Beijing Mafang Logistics Base; and the Beijing Xinggu Economic Development Zone. The district already has an impressive logistics infrastructure, and recently the first phase of Beijing's Jingdong International Bonded Logistics Base has successfully been completed. The rapid growth of industry is further strengthening the appeal of the region. As the Beijing 2008 Olympic Games gets closer, there is expected to be enormous new business opportunities for Pinggu.

In 1999, the GDP of Pinggu was approximately RMB 3 billion. By 2007 the GDP for just the first half of the year matched that amount, and the district continues to grow at a rate of 10.6% p.a.

Jing Jin Aviation Economic Centre

As a result of coordination and cooperation between the aviation authorities of Beijing and Tianjin, the Beijing Capital International Airport is now passenger-oriented whereas the Tianjin Binhai International Airport focuses on freight. The flow of passengers and freight between the two terminals has created an opportunity for Pinggu to play a key role as the logistics hub for both. This role is expected to stimulate the growth of Beijing Mafang Industrial Zone, Beijing Mafang Logistics Base and the Beijing Xinggu Economic Development Zone.

Beijing Mafang Industrial Zone, located 35km from Beijing Capital International Airport and covering about 20 square kilometres, is expected to play a key role in the development of aviation-based logistics and modern manufacturing industries in the district. The completion of the Jing Ping Ji Expressway and the upgrading of Pinggu customs will further improve the logistics infrastructure, and is aimed at attracting third-party logistics companies and processing trade companies that are capable of competing internationally. But this is just part of the commercial development: the upgrading of rail and road as well as the air freight facilities will create a world-class logistics platform; and the Park will offer a complete range of services and facilities including export processing trade, a bonding centre and high-grade storage facilities.

The Mafang Logistics Base is right next to Mafang Industrial Park, near the Jing Ping Ji Expressway, and will be connected to the proposed expressway for freight in eastern Beijing. The Logistics Base occupies 300 hectares, has a comprehensive road network, well-equipped communications facilities and is establishing an ideal infrastructure and working environment for logistics businesses and related enterprises. To complement all this, the Shanghai Customs will set up an inspection gate in the near future. (Pinggu already has an exclusive customs office in Beijing, which is responsible for export declarations from Jingdong and the three other counties in northern Beijing: Shunyi, Huairou and Miyun. The office gives Pinggu an advantage in processing seaborne freight.)

Xinggu Economic Development Zone was set up in 2002 as "Beijing's automotive production base". At present, the development zone has attracted more than 20 South Korean enterprises, and a total investment of RMB 2 billion. Sung Woo Hitech Limited was the first Korean automotive accessories manufacturer to establish operations in Beijing, and that subsequently attracted more Korean enterprises to set up factories and offices in Pinggu. In order to attract even more Korean investment, the Government is planning to allocate about 200 hectares for the South Korea Park in the Xinggu Development Zone.

The Xinggu Development Zone has favorable conditions for economic and business growth, and targets modern manufacturing corporations, logistics companies and tourism-based enterprises. To date, the Zone has attracted 118 companies with a total investment of more than RMB 4 billion.

Beijing's economic training centre

As a result of the economic boom in the Beijing-Tianjin-Bohai Bay area, more than 15,000 foreign enterprises are now operating in Beijing and Tianjin, and that number is increasing by 3,000 every year. With such huge employment and investment opportunities, convenient transportation and excellent infrastructure, Pinggu - as the economic hub of Beijing and Tianjin - has naturally developed a training industry. The governments of Pinggu, Beijing and Tianjin have cooperated to attract highly respected training and educational institutions, both international and domestic, and Pinggu will ultimately become the training centre for Beijing.

Technology changes rapidly in the 21st century, and all industries - including logistics and manufacturing - rely on science and technology for further development. As a result, and as part of the overall growth plans, Pinggu is creating a high-tech "digital zone". A core part of the planning for this zone is to establish cooperation and collaboration with leading international IT corporations to allow entrepreneurs and businesses in Pinggu to have direct access to the latest developments in this vital, fast-moving field. In addition to its function to serve as the conduit for cutting-edge IT products from around the world, it is also hoped that this zone will develop its own IT establishments.

Development of leisure tourism

The development of Pinggu is not only focused on economic development: environmental conservation plays a major part in the overall planning. The District Government has proposed that "industry will strengthen the district, and tourism will enrich the people." While rapid industrial development is being encouraged, there's a specific emphasis on industries with zero pollution, low power consumption and high levels of efficiency in the utilization of resources. Enterprises that do not meet the set requirements for environmental conservation and industrial efficiency are not allowed in the zone. The District Government envisages Pinggu as Beijing's Ecological Garden, and they are determined to fulfill this role. Tourism is seen as an important industry, and there are plans to create dedicated leisure areas.

Pinggu is already earning a reputation for environmentally sensitive development, and much of the surrounding region remains undeveloped and unspoiled. Pinggu is surrounded by hills to the east, south and north, and is effectively part of the Pingchuan Valley. These areas - especially the highland areas and the municipal scenic area - have great natural beauty, including Jinhai Lake, the Grand Canyon, Jingdong Stalactite Cavern, Jingdong Grand Canyon Lake and WuYan Deep Pool. There are charming hikes to small villages where local culture is preserved. And the largest peach tree garden listed in the Guinness World Records can be found in Pinggu.

As part of its visitor development program, the Government is building conference and convention centres, which will be the hub of integrated business travel, leisure tourism center and entertainment facilities. Qin Gang, Secretary of the Beijing Pinggu District Committee, is confident that tourism will bring long-term benefits to Pinggu. He said that the next five-year plan for tourism will focus on the region's geographic advantages, natural environment and the development of an integrated tourist infrastructure. Key tourist attractions and scenic spots will be identified and upgraded, including forest areas, spectacular countryside locations, water courses (rivers, lakes, springs and waterfalls) and local cultural centres. To enable easy access to these areas, road systems will be developed or improved, including a 70-kilometre highway leading into the hill country. Other planned tourism developments include a world-class mine park, forest park and geo-park.

Concessions on foreign investment

To attract more foreign investment to Pinggu, the Beijing Municipal Government has implemented a range of special concessions for new businesses. The China Preferential Policy encourages foreign investors by offering concessions in corporate income tax; and SMEs who meet the high-growth requirements in Zhongguancun are also offered assistance with financing, including discounted loans from the Zhongguancun Science and Technology Park. Furthermore, the Beijing Municipal Government has implemented a special policy that allows expatriate and foreign-funded enterprises in Beijing to offer senior expatriate personnel special housing allowances and company cars. At the same time, senior management staff of investment enterprises can be granted a tax exemption based on a housing allowance.

Attracting Hong Kong investment

Investors in Hong Kong, Taiwan and Macau who establish businesses in Pinggu, are officially regarded as foreign-investment enterprises and can enjoy the same benefits offered to international corporations and investors. To encourage more Hong Kong investors to Pinggu, the Beijing Municipal Government is also maintaining close connections with Hong Kong, and embarking on initiatives such as the Beijing-Hong Kong Cooperation Symposium on Logistics, which was held in Hong Kong last year. Deputy Director for the Beijing Chamber of Commerce, Yan Xiaoyan, indicated at the meeting that the establishment of a major logistics infrastructure in Pinggu was opening the door for the closer communication and cooperation between the logistics industries in Hong Kong and Pinggu.

Meanwhile, the Beijing Tourism Bureau and the Hong Kong Tourism Board signed a "Beijing - Hong Kong's Olympic Tourism Promotion and Advertisement Cooperation Framework Agreement". The Pinggu District Danxia Mountain Comprehensive Development Project is one of five major trade development projects being promoted in Hong Kong, and presents a great opportunity for Hong Kong enterprises to invest in Pinggu tourism.

Pinggu has embarked on a course of parallel development focusing on logistics, special manufacturing industries and tourism, all supported by sound fiscal policies, environmental awareness and an excellent resource base. As the Beijing Olympics draws nearer, Pinggu and Hong Kong seem certain to have much closer communication and ever-greater cooperation in logistics and tourism.