Page 198 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
in the coming decades. “With the deepening of reached 11 trillion yuan (US$1.6 trillion) in the
the BRI, green development should be taken as first 11 months of 2018, surpassing whole year’s
a top priority, in addition to other key factors like investment of 2017. Investments in Guangdong
gross domestic product and employment,” said and Jiangsu provinces have taken the lead among
Ma Jun, chairman of the Green Finance Committee the whole country by breaking through the 1
of the China Society for Finance and Banking. trillion yuan threshold. Zhejiang province ranked
“The majority of investments worldwide in the the third with an investment of 927.1 billion yuan.
coming decades will be in the BRI economies. So, Besides the total investment amount, year-on-year
the initiative is expected to drive a huge amount growth of real estate investment in certain regions
of capital globally,” said Ma. President Xi Jinping was also outstanding, with the Tibet autonomous
shared his vision for green development at the first region witnessing a 136 percent increase, topping
Belt and Road Forum for International Cooperation the whole country. Twenty-four out of the 31
in May 2017. He urged participating economies to regions saw yearly growth in property investment,
embrace “the new vision of green development and with 14 of them increasing over 10 percent. The
a way of life and work that is green, low-carbon, acceleration of shanty towns’ renovation and
circular and sustainable”. Xi reiterated his vision at infrastructure construction in Tibet have attributed
the second BRF in April 2019. Joint development of to the region’s property investment. South China’s
the initiative is also aimed at building an open and Hainan province, which boasts of tourism and
green development road, he said (Cheng et al.). recreation activities, saw a large slump in property
investment in the first three quarters, as the
More domestically, twelve ministries, including province has implemented strict house purchasing
the Ministry of Transport, have issued a four-year restrictions to ban housing speculation. Hainan
green travel action plan (2019-22), which aims to sold 13.1 million square meters of commercial
promote green travel and improve the quality of residential buildings during January-November
public transportation services, as well as raise 2018, down 36.5 percent on a yearly basis. Sales
people’s awareness of the benefits of green revenue fell 21.2 percent to 190.5 billion yuan. New
travel. The aim is to build a well-organized, eco- construction houses area in Hainan totaled 17.87
friendly, clean, low-carbon, intensive and highly million square meters, a drop of 7.1 percent (Chen).
efficient green public transport system by 2022.
The plan proposes building a comprehensive The country’s property market will continue to
public transportation service network, accelerating stabilize into 2020 as the central authorities further
the integration of intercity transport modes and stress establishing a long-term mechanism for
optimizing urban road networks. The standards the healthy development of the sector. A Political
of public transportation services are to be raised Bureau of the Communist Party of China (CPC)
in order to provide a better travel experience to Central Committee meeting held in April 2019
the public. Slow-moving traffic systems should reiterated that housing is for living, not speculation,
be improved, the use of automobiles reduced, and emphasized the creation of a long-term
and parking management strengthened. The mechanism of one city, one policy. This suggested
large-scale use of new energy vehicles will be stable land prices, stable house prices and stable
promoted, especially in urban areas and for price expectations should prevent the property
public transportation. The construction of market from drastically rising and falling, and this
charging infrastructure for the green vehicles will will be the main regulatory target for the future.
be accelerated so as to establish a convenient China’s home market stabilized in number of sales
and highly efficient charging network system and sales prices during the first quarter of 2019.
throughout the country (CD, Green Travel). The total gross floor area traded from January to
March fell 0.9 percent year-on-year to 298 million
Real Estate square meters, while transaction value increased
5.6 percent year-on-year to 2.7 trillion yuan (US$399
Total real estate investment of China’s 31 billion). Residential transaction volume slumped
provinces, cities and autonomous regions 29.2 percent quarter-on-quarter in the 20 hot spot
cities the property as consultancy tracked across
198
in the coming decades. “With the deepening of reached 11 trillion yuan (US$1.6 trillion) in the
the BRI, green development should be taken as first 11 months of 2018, surpassing whole year’s
a top priority, in addition to other key factors like investment of 2017. Investments in Guangdong
gross domestic product and employment,” said and Jiangsu provinces have taken the lead among
Ma Jun, chairman of the Green Finance Committee the whole country by breaking through the 1
of the China Society for Finance and Banking. trillion yuan threshold. Zhejiang province ranked
“The majority of investments worldwide in the the third with an investment of 927.1 billion yuan.
coming decades will be in the BRI economies. So, Besides the total investment amount, year-on-year
the initiative is expected to drive a huge amount growth of real estate investment in certain regions
of capital globally,” said Ma. President Xi Jinping was also outstanding, with the Tibet autonomous
shared his vision for green development at the first region witnessing a 136 percent increase, topping
Belt and Road Forum for International Cooperation the whole country. Twenty-four out of the 31
in May 2017. He urged participating economies to regions saw yearly growth in property investment,
embrace “the new vision of green development and with 14 of them increasing over 10 percent. The
a way of life and work that is green, low-carbon, acceleration of shanty towns’ renovation and
circular and sustainable”. Xi reiterated his vision at infrastructure construction in Tibet have attributed
the second BRF in April 2019. Joint development of to the region’s property investment. South China’s
the initiative is also aimed at building an open and Hainan province, which boasts of tourism and
green development road, he said (Cheng et al.). recreation activities, saw a large slump in property
investment in the first three quarters, as the
More domestically, twelve ministries, including province has implemented strict house purchasing
the Ministry of Transport, have issued a four-year restrictions to ban housing speculation. Hainan
green travel action plan (2019-22), which aims to sold 13.1 million square meters of commercial
promote green travel and improve the quality of residential buildings during January-November
public transportation services, as well as raise 2018, down 36.5 percent on a yearly basis. Sales
people’s awareness of the benefits of green revenue fell 21.2 percent to 190.5 billion yuan. New
travel. The aim is to build a well-organized, eco- construction houses area in Hainan totaled 17.87
friendly, clean, low-carbon, intensive and highly million square meters, a drop of 7.1 percent (Chen).
efficient green public transport system by 2022.
The plan proposes building a comprehensive The country’s property market will continue to
public transportation service network, accelerating stabilize into 2020 as the central authorities further
the integration of intercity transport modes and stress establishing a long-term mechanism for
optimizing urban road networks. The standards the healthy development of the sector. A Political
of public transportation services are to be raised Bureau of the Communist Party of China (CPC)
in order to provide a better travel experience to Central Committee meeting held in April 2019
the public. Slow-moving traffic systems should reiterated that housing is for living, not speculation,
be improved, the use of automobiles reduced, and emphasized the creation of a long-term
and parking management strengthened. The mechanism of one city, one policy. This suggested
large-scale use of new energy vehicles will be stable land prices, stable house prices and stable
promoted, especially in urban areas and for price expectations should prevent the property
public transportation. The construction of market from drastically rising and falling, and this
charging infrastructure for the green vehicles will will be the main regulatory target for the future.
be accelerated so as to establish a convenient China’s home market stabilized in number of sales
and highly efficient charging network system and sales prices during the first quarter of 2019.
throughout the country (CD, Green Travel). The total gross floor area traded from January to
March fell 0.9 percent year-on-year to 298 million
Real Estate square meters, while transaction value increased
5.6 percent year-on-year to 2.7 trillion yuan (US$399
Total real estate investment of China’s 31 billion). Residential transaction volume slumped
provinces, cities and autonomous regions 29.2 percent quarter-on-quarter in the 20 hot spot
cities the property as consultancy tracked across
198
