FORMULATING FOREIGN ENCLAVES IN SHANGHAI: State Action in Globalization Dr. Salie Jun WANG, University of Hong Kong INTERNATIONAL CONFERENCE on CHINA’S URBAN LAND AND HOUSING IN THE 21 ST CENTURY Center for China Urban and Regional Studies, Baptist University, Lam Woo International Conference Center, Hong Kong, China, Dec, 2007 Acknowledgement : An earlier version is under press in the Journal of Housing and the Built Environment

Formulating foreign enclaves – state action in globalization OUTLINE  INTRODUCTION  BACKGROUND: Globalizing Shanghai and the Pulling-in of Elite Group  CASE OF GUBEI NEW DISTRICT  DISCUSSION AND CONCLUDING COMMENTS: State in planning and implementation

Formulating foreign enclaves – state action in globalization INTRODUCTION  Street lingo −residents of the areas within the inner circle speak English … while those residing outside the outer circle speak the Shanghai dialect  Foreign enclaves: luxury estate on privileged land occupied by foreigners  Reshaping of urban spaces in global reorganization of labor and industry  Literature  Actors: local – global −Actors and their varying power and control in the spectrum of geographic scales  Market-centered system vs. State-centered system −Entrepreneurial city

Formulating foreign enclaves – state action in globalization INTRODUCTION  The problem of this study −The role of the state in the formulation of foreign enclaves at the initial stage of foreign enclave development, −how they conceive of the meaning behind the development of foreign enclaves and then −how they design and implement corresponding strategies as one means towards structural competitiveness of the city of Shanghai, −using the case of Gubei New District in Shanghai.

Formulating foreign enclaves – state action in globalization BACKGROUND: Globalizing Shanghai and the Pulling-in of Elite Group  Economy, especially economic efficiency being given the priority  Globalization being an opportunity to  Boost economic development  Accelerate industrial restructuring  From Foreign Direct Investment (FDI) to Foreigner Professional Labor (FPL)  Shift in structure of FDI and Foreign-invested enterprises

Formulating foreign enclaves – state action in globalization BACKGROUND: Globalizing Shanghai and the Pulling-in of Elite Group  Economy, especially economic efficiency being given the priority  Globalization being an opportunity to  Boost economic development  Accelerate industrial restructuring  From Foreign Direct Investment (FDI) to Foreigner Professional Labor (FPL)  Shift in structure of FDI and Foreign-invested enterprises

Formulating foreign enclaves – state action in globalization BACKGROUND: Globalizing Shanghai and the Pulling-in of Elite Group  Economy, especially economic efficiency being given the priority  Globalization being an opportunity to  Boost economic development  Accelerate industrial restructuring  From Foreign Direct Investment (FDI) to Foreigner Professional Labor (FPL)  Shift in structure of FDI and Foreign-invested enterprises  Pulling-in of Foreign Professional Labor −Wave one: Mainly Foreign expatriates −Wave Two: Talent immigration scheme  Preferential policies: −Article 88: ---- Article 88, revised −Building the Talents Highland of Shanghai ---- Article 122 −The Highland of International Talents

Formulating foreign enclaves – state action in globalization BACKGROUND: Globalizing Shanghai and the Pulling-in of Elite Group

Formulating foreign enclaves – state action in globalization CASE OF GUBEI NEW DISTRICT  Gubei New District  Origin: −housing foreigners in the bourgeoning and limited housing market  Set up: − “ Builidng Gubei New District ” as a subsequnt step following “ Developing Hongqiao ETDZ ” in 1984 −Set up the Gubei United Steering Committee  Location: −South side of the Hongqiao ETDZ  Size: −136 acres, 24 blocks, −gross floor space – sq.m  Residents: −About households, From more than 30 countries and regions

Formulating foreign enclaves – state action in globalization CASE OF GUBEI NEW DISTRICT  Structural relationship between Gubei United Development Company and the Local governments Gubei United Development Company China Enterprises New Changning Ltd. Pujiang Construction & Development Company Construction Department of Changning District Shanghai Architectural Design & Research Institute Shanghai Municipal Commission of Construction & Administration Joint-ventures as developers Gubei Donghai Property Compnay Baocheng Property Compny Baixin Propoerty Company … Gubei Property Management Company Changning District Government Shanghai Municipal Housing, Land & Recourse Administrative Bureau Oversea counterparts Municipal LevelDistrict Level Departmental sectors Responsibilities: Relocate original residents Master plan & infrastructure planning/construction Land parcel leasing The one and only channel for cooperation etc

Formulating foreign enclaves – state action in globalization  For mobile population segments  Locational advantage −on the path linking Hongqiao Airport and city core CASE OF GUBEI NEW DISTRICT _Preparation and Planning

Formulating foreign enclaves – state action in globalization  For mobile population segments  Locational advantage −on the path linking Hongqiao Airport and city core  For foreigners  Continental European Classic Style & Palace Style  English speaking service −International schools −Special Street office  Oversea marketing CASE OF GUBEI NEW DISTRICT _Preparation and Planning

Formulating foreign enclaves – state action in globalization CASE OF GUBEI NEW DISTRICT _Preparation and Planning  For foreigners

Formulating foreign enclaves – state action in globalization  For mobile population segments  Locational advantage −on the path linking Hongqiao Airport and city core  For foreigners  Continental European Classic Style & Palace Style  English speaking service −International schools −Special Street office  Oversea marketing  For affluent class  Locational advantage −decent place, close to upper quarter  Higher standard in architectural design −Apartment/house design, material, car park space, electronic appliances  Services CASE OF GUBEI NEW DISTRICT _Preparation and Planning

Formulating foreign enclaves – state action in globalization STATE IN PLANNING & IMPLEMENTATION  Identifying interest of the city  Vision: a financial and trading center of the Asian and Pacific Region  Identical interest of interest groups: city, advanced service industry, professional labors  Action plan for the interest – acting to enhance structural competiveness  Unified and strategic manner : Cooperation of a variety of branches of the government through the entity of Gubei United Development Company Collective contribution by preferential policy for talents and concentration of urban resources to residential enclaves Accelerating transformation of labor structure to facilitate industrial restructuring  Period-specific strategies and the Adjustments: −A more complete market system −Shift in recognized benefit brought about by development of foreign enclaves (form a means to attract and root foreigners to an industry sector of real estate with promising profit, as well as place making)

Formulating foreign enclaves – state action in globalization STATE IN PLANNING & IMPLEMENTATION  Reciprocal relationship of actors with identical interest  While interest of local working class sacrificed for the moment  Replacement of population segments  Repeated investment on already privileged areas  Widened contrast of foreign (high end) enclaves and ordinary residence