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best the true status of a global city. Certain states may try to reach or reinforce their status by providing additional sources according to their contingencies.
In other cases direct choice of specification can also be observed. It still remains related to Friedmann’s categorization of second and third tier world cities, however it may less likely to suggest a ’quality’ difference.
Examining the Chinese context
Many aspects are needed to be taken into account in order to describe the complexity of Chinese global city development. Cause and effect varies greatly, while the high population and continent size area makes the network of cities the most compound on Earth. In this specific case of global city research, economic weight is perhaps the most suitable way to mark the development related differences. On the other hand highly centralized apparatus tend to contain local efforts; decisions often require a final consent by Beijing instead of being directly made on provincial or municipality level.
How and why do some Chinese global cities stand out among regional centres?
The question is in correlation with the role expected to be fulfilled by a global city within its host economy. Normally it would require a long introduction of variables, which is perhaps unnecessary at this point, – a simple division will indicate the main differences. Based on the location (resource/labour availability, the size of nearby markets) and political traditions, global city formation is the mixture of natural selection and concious planning, while a geographically advantageous position may help to boost this process. Preferences of the local elite – throughout their initially set goals in city development plans among global city ‘candidates’ – may lead to lower international command ability, although domestically they bare with strong local resource and capital concentration capacities (similar to global cities).
Some other places recognized that they may not be able to go that far, hence they deliberately transformed into a local centre, instead of aiming for a global status. It is/was mostly an option for either developed middle size cities or Chinese and other developing cities with higher population in a less capitalized environment.
Remaining metropolises of the world are also affected by globalization and still respond to the challenges, although they tend to remain reserved in a
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seeking environment. Their goal is to locally maximize their potential before engaging in world-class financial or other, advanced service related expansion (if they choose to do so). It means that, in theorem they have the potential to grow beyond just middle-weight cities or local hubs, but their urban transformation have just begun, while some privileged cities in their region are expected to secure and maintain their leading position in the urban hierarchy.
Until recently the scarcity of local literature and the domination of Western point of view also affected our understanding about the ongoing urbanization in China and elsewhere in the developing world. Changes can be perceived by the increasing number of publications that consider emerging-international or specifically the Chinese context. Meanwhile, authors are trying to emphasize that global city formation is possible through multiple ways. Thus there is no exact trajectory that a city has to follow. It also means that the definition of global city is getting more inclusive. Emerging critics about methodology or indicators are subjects of further reconsiderations within the topic. In general, global cities are the results of extensive planning and the application of multiple practises worldwide.
Analizing ’Chinese global cities’ under this general term would be misleading.
Runner-ups behind regional leaders (Beijing, Shanghai, Guanzhou, Hong-Kong and maybe Shenzhen or Chongqing) are following their own paths with a great diversity.
The number of those cities being considered as a global/world city does vary:
contemporary lists mention at least fifty – from which only a few has been acknowledged internationally. It is subject to further changes sith many cities engaged in pursuing strategic expansion in order to achieve a global city vision. The outcome of these tendencies is not visible yet.
Anyhow, in spite of the local/provincial intentions or policy agenda, it is unlikely that too many of the other large cities will fit into (or challenge) the already established ’system’. Top Chinese cities (Beijing and other leading cities of Pearl River Delta (PRD), Yangtze River Delta (YRD) or Bohai area concentrate the greatest amount of capital and R&D. Their superior position is backed up by their casual access to sea. In addition the already fierce competition for qualified labourforce bounds short-term technological catch-up. Without being attractive to high-value added industries, cities are not competitive internationally. Notwithstanding a transformation to third or second tier world city is undeniably possible.
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Chinese cities approach globalization in various ways based on the elite’s interest, however, it eventually remains influenced by the CCP’s concerns in Beijing.
In this unique system the so-called transnational capital class12 has no open access to Chinese cities, although they are unlikely to get completely rejected either. It is part of the central planning and affects pathways of global city formation.
Further issues of one-party system (e.g.: invisible hand, freedom of speech or censorship) renders China to a less favourable location for international organizations.
Compared to the economic weight of the country it is clearly lack of international NGOs and intergovernmental organizations (IGOs) that disregard global city endeavours as well.
To indicate the difference, Chubarov called them “state-centered world cities” and pointed out that these cities require distinct approach from their Western counterparts (Chubarov & Brooker, 2013). Meanwhile, Chinese uniqueness is getting more widely recognized throughout Western literature, while in parallel, growing interest about key aspects of world/global city researches can also be observed in China. Local scholars in the past twenty years, first translated, then adjusted Western perceptions to the domestic context.13 In the following period Chinese publications covered topics of internationalization or the impacts of related socio-economic changes. Despite the growing interest, it is still uncommon to see Western and East-Asian scholars working together, while the dynamic changes in the network of (Chinese) global cities causing uncertainities about proper categorization.
In a very recent publication of (Parilla & Trujillo, 2016), the two authors tried to re-approach global city notion via introducing new terms for sub-categories such as: the area specific Asian Anchors located nearby the Pacific coastline or Knowledge Capitals with competitive education and R&D (Hangzhou). The rest of the division
12 Investors and strategists either dependent or independent from MNCs.
13 It is not embedded that well in academic circles yet: “Much research in China has been characterised by indeterminacy in naming and a lack of unified vocabulary for describing the articulation of Chinese cities with globalisation. Such a problem is ongoing and in Chinese language literature a number of terms are mentioned including ‘international city’, ‘internationalised city’,
‘internationalised metropolis’ or ’global city’. Of course [...] the term ‘world city’ has been [...]
adopted in government reports and more commonly used in Chinese academic literature” (Chubarov
& Brooker, 2013)
Besides there is an author, who promotes the term: ‘internationalised metropolis’ which he thinks is more concomitant with Chinese conditions.
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(China Factory, American/International Middleweights, etc.) is less relevant for this research.14
The Asian Anchors in Chinese context are those five cities that have been mentioned above. These cities either national basing points for domestic companies or financial service providers, and mainly dealing with RMB-related transactions (except for Hong Kong). Government support of capital market has clearly raised the importance of Shenzen and Shanghai. Apart from Beijing, these two cities control now the highest percentage of international transactions.15
“All five are characterised by the growing presence and influence of financial services industry. [...] Shanghai has been identified by government to become a global financial centre and hub for transaction, pricing and clearing of RMB-denominated financial products. There were 1049 financial institutions in Shanghai as of the end of 2010, 439 more than five years earlier.” (Chubarov & Brooker, 2013)
The situation is quite similar to Beijing, where recent statistics shows that 15% of the city’s GDP is coming from financial related services (Chubarov & Brooker, 2013). It is controversial that despite the government agenda to further increase the importance of Shanghai in global financial industries, Beijing still concentrates a higher portion of assets.
Nonetheless in several other aspects Chinese cities are not showing real signs of catching-up. Although most of the coastal global cities were capable of attracting major international events, average living conditions are still behind other global cities. It does not only mean recreational facilities or housing, but the low level of foreigners’ cultural and physical presence. Tourism is an other segment that remained weak with the only two exception of Beijing and Shanghai (Hong Kong excluded).
Beijing as the nation’s capital overperforms other regional centres and dominates service industry, R&D and a significant portion of creative industries. Its comparison with other major cities would be misleading. The city already overtops its rivals in many global city indicators, although it derives from its centralization efforts, but not
14 I came across only once with the similar distinction of global cities, hence it is safe to say that this sort of categorization is still fresh within the literature.
15 Functioning of Chinese Stock Exchanges will be explained in a later section. International transactions are limited within China, originating from the non-convertibility of the currency.
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exclusively. Beijing perhaps been more carefully designed in order to serve as a representative capital for a strenghtening China.
Thus, the development of coastal area should be examined without further comparisons with Beijing. Instead a more neutral way of ’measurement’ should be applied from the next paragraph.
What appears to be very important in the topic of Chinese global cities is the term
‘zones’, sith these are the cornerstones of later unfolding development. Zones are limited geographical units in designated regions and offer better supervision (and control) for party elite over local economy. As the part of the opening up process variously named zones were created and remained important until today. Existence of them contributed to the rise of cities like Shanghai as regional and global centre.
“Development zones are the focus of China’s efforts towards globalization and modernization. They enjoy preferential tax treatment, improved urban infrastructure, easier access to international markets, and professional government services.” (Wei
& Leung, 2005)
Central efforts along with the exceptional abilities of Chinese state compared to other developing countries, enabled several coastal cities – including Shanghai – to carry out economically/administratively favourable reforms with ’functional extension’.
The state together with the local government actively participate(d) in global city formation wherein previously set up developmental zones had a substantial role.
Besides the states’ overview of the process, apperance and integration of MNCs was also a very important step. Inflowing FDI greatly contributed to Shanghai and her kins’
global city transformation.
Despite the above mentioned complexity there is at least one more thing in common among all the notable globalized cities, namely the real-estate industry, which was capable of transforming urban space into a modern business and living environment.
As part of this development sooner or later Central Business Districts (CBDs) emerged all over the country’s major cities, projecting the presence of capital and knowledge. It is, however often a result of one-sided view, wherein one certain aspect may dominates as follows:
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“Political and economic actors based in the emerging global cities appear to be keenly aware of how the context of “globalization” justifies putting public resources into making their cities more internationally competitive.” (Timberlake, Wei, Ma, &
Hao, 2014).
Except for Timberlake, the correspondence of global city making and ’human factor’
was hardly mentioned by others, although it is clear that local elites put a lot of effort into global city building (almost exclusively led by personal interests not by altruism).
Outcome does vary though, reaching and maintaining global city status is both very demanding and much depends on city leaders, national policy or the firms located in the proposed city. Considering that, Shanghai, Beijing and Guangzhou will be always dependant on ’external’ factors, and must find their ways to utilize resources in a successful way.
Aside from the resources provided by the state, it is also important to have a good FDI attraction ability on site with the effective support of R&D sector.
Shanghai in that understanding proved to be the best performer. Its special rights (free trade zones, extensive space waiting to be developed) guaranteed the city’s outstanding growth. There are multiple programs running simultaneously from which Shanghai can benefit.16 It established the basis for her to become a major (global) city for Chinese and world economy. The recreation of Shanghai’s urban places were likely the best example of modernized China outside of Beijing. However, it doesn’t mean that Shanghai has become a better place in all respects. Instead, as a side-effect of its development now facing multiple problems originating from its status.
Outlook on the social aspects of Chinese transition
International competition and expansion came along with the transformation of local societies. China is no exception here, but seemingly has an advantage by having a ’strong state’, which in fact couldn’t be as well realized as one would expect;
housing problems remained a main issue all over the country’s major cities, while social polarization has increased. ’Floating population’ such as migrants without
16 The broadest and most extensive among them is “High and new technology enterprise” program and
“Technology advanced service enterprise” program (Marro, 2015).
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registration or hukuo17 are constantly facing hardships (Timberlake, Wei, Ma, & Hao, 2014). Overcrowded cities may not be interested in improving certain conditions either, while there is an ongoing struggle with the population inflow and the mitigation of it. Local governments have the right and the power to relocate people, although sometimes they act against themselves by creating large satellites outside of the core city. The low-income labour being driven away nowadays may later emerge into a new type of problem (e.g: in infrastructure, services). However the discussion of this matter is not an intended topic for this thesis.
An other aspect is related to the polarization of ’indigeneous’ population, whom sometimes fall under the same negative discrimination as hukous or illegal migrants, not to mention the problem of unaffordable housing.
Notwithstanding law enforcement on mitigation of migration still remains weak as the example of Shanghai suggests, where official and inofficial population have huge odds in numbers.