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Improving Efficiency of China Factory Land Use
Shanghai is using the factory land more reasonably and efficiently by changing the usage of land.
(1) Shanghai will strive to build a multi-level business cost structure and turn 5000 sq.km. Suburbs into low business cost areas.
(2) Shanghai will gradually turn idle and old factory buildings and premises into low-cost business and office buildings and metropolitan industrial parks. At present, in the districts of Huangpu, Jing’an and Luwan where land prices are high, the rental fee for metropolitan industrial parks is one RMB yuan /sq.m.day, much lower than that for business buildings in the neighboring areas.
(3) Foreign investors, like domestic investors, will be allowed to participate in public bidding of factory land in the unified land market environment.
(4) Shanghai will put into operation a series of factory land standards and systems. In 2005, the proportion of the total floor area to the land area of the industrial projects to be built rose from 0.5 to over 0.8, and investment intensity rose from approx. 2 bn. RMB yuan to 3.2 bn. RMB yuan.
(4) Shanghai has adopted in full scale Eighteen Measures for Economic and Intensive Use of Factory land to tap the potential of remaining factory land. In 2005, 11 districts and counties of Pudong, etc. of Shanghai eliminated 1,020 inferior enterprises of great energy consumption, bad environment and low social benefits, and vacated nearly 10 thousand mu of land. 293 enterprises in the whole city increased their floor area by 1.88 min. sq.m.by building additional stories and increasing the proportion of the floor area to the land area. In the coming five years, Shanghai will further Phase out 3,000-4,000 poor-performing enterprises, and vigorously encourage economical use of factory land.
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