THE Hangzhou Urban Economic Circle is a joint initiative between four cities in Zhejiang Province to benefit residents and businesses. Feng Jianmin looks at the united effort's current achievements and plans for the future.

Shaoxing residents studying in universities in Hangzhou may find it easier to look for jobs in their home town, residents in Jiaxing City may find it cheaper to enjoy the hilly scenes in Hangzhou, and Hangzhou residents can pay for hospital fees with their medical insurance account when seeking treatment in Huzhou. These are some of the benefits for people provided by a blueprint to develop Hangzhou and nearby counties and cities in Zhejiang Province as an integrated economic circle.

Mayors from four major cities in the Hangzhou Urban Economic Circle, namely Hangzhou, Huzhou, Jiaxing and Shaoxing, all about an hour's bus trip from each other, recently sat down together in Shaoxing to conclude the progress made in the past year and to discuss plans for the future.

The conference focused on a newly approved blueprint of the Hangzhou Urban Economic Circle. The four major cities pledged to provide better living conditions and earnings for their residents and companies.

Transport

As a basis of public life and economic development, the group decided to put roads and transportation as one of the priorities.

The four cities are speeding up the integration of a public transportation system in urban and rural areas to facilitate the mobility of residents. Several new public bus lines have been introduced connecting downtown Hangzhou with surrounding cities and counties. Last year, one line between Hangzhou and Haining City, and three regular buses linking downtown Hangzhou with Tonglu, Jiande and Chun'an counties were added to the existing network connecting five counties and Hangzhou.

Elsewhere, Jiaxing has accelerated construction of a coal transshipment hub and connections between Jiaxing Port and Hangzhou's crop port. A bridge across the Hangzhou Bay linking Jiaxing and Shaoxing is under construction, and commuters can expect to travel from Jiaxing to Shaoxing on the bridge by the end of next year.

This year, the four cities plan to map out a trans-city express railway system connecting a variety of counties in the area. A restructuring plan for Beijing-Hangzhou Grand Canal will also be carried out to facilitate water transportation in Zhejiang Province.

Tourism

Backed by convenient transportation and shared customs, the four cities are exploring business opportunities among themselves and to the outside.

The four cities have branded their tourist attractions under a single banner that boasts stunning views and amazing culture. This marketing strategy is part of an effort to promote tourist resources as a whole. Embracing a wide variety of landscapes from plains to mountain ranges, the region attempts to win favor among the broader public.

Last February, local tourist bureaus offered discounts of up to 60 percent for residents of the four cities on a tour to nearby scenic locations. More than 110 tourist destinations and hotels in the four cities were involved in the promotion, of which 70 were in Hangzhou. About 50,000 visitors participated, of which 70 percent were from Hangzhou.

Authorities confirmed that similar monthly promotions will be held this year as it benefits consumers and reduces advertising costs for tourist agencies.

Besides the domestic market, the four cities are also promoting their tourism brand overseas. Last September, local tourist bureaus visited several cities in Japan and South Korea. Talks were held to launch direct flights between the cities, and to accelerate corporations between travel agencies.

Statistics show that Hangzhou saw 2 million overseas visitors from January to September last year, about 21.5 percent more than 2009.

As of last year, tourist bureaus in the four cities set up a fund to develop tourism. Based on the agreement, the cities will put aside an amount of money each year to promote and improve tourist conditions. Hangzhou agreed to contribute 40 percent of the fund, while the other three will each pay 20 percent of the total. The total amount was 1 million yuan (US$151,581) in 2010, but it will vary each year depending on the number and scale of projects.

Medical insurance

Medical insurance and the employment market are also part of the blueprint.

The cities will adopt a more flexible medical insurance policy for their residents. Last year, Hangzhou added six intercity medical institutions to a list of 32 where Hangzhou residents can seek treatment with their medical insurance accounts. These measures have simplified the procedure for residents to clear payment in another city with their social welfare accounts.

This year, residents of Hangzhou will receive a new insurance card which will ensure medical insurance cover when rural and urban dwellers seek medical care in five counties on the outskirts of Hangzhou.

To provide more opportunities for the region's professionals, cities have joined together to host job fairs for intercity projects. Last May, 40 projects in Hangzhou and 18 in Huzhou held a job fair in Huzhou's Deqing County. One month later, around 2,000 job hunters gathered in Shaoxing to look for positions in 85 projects in the four cities.

Human resource authorities said they would hold at least one intercity job fair this year.

Industrial boost

Efforts have been introduced to balance economic development within the region.

In 2010, 96 Hangzhou-funded companies were relocated to make room for more profitable businesses. About half of the companies went to other cities and counties within the Hangzhou Urban Economic Circle to generate revenue for the less-developed areas.

For business communications, an e-commerce platform was set up to assist trading of local food and organize business talks. Guilds and associations in the four cities held joint conferences last year to share business resources. Other associations are planning similar talks in the near future.

Starting this week, local food companies are being encouraged to brand and sell their products at food exhibitions held simultaneously in Hangzhou, Huzhou, Jiaxing and Shaoxing.

This year, the four cities will construct focus on building five industrial zones in the region, including two industrial parks in Hangzhou, one in Huzhou, a modern service park in Jiaxing and a new economic complex in Shaoxing.

The Hangzhou Urban Economic Circle was set up centering on the city of Hangzhou, with three sub-centers including Huzhou, Jiaxing and Shaoxing. Under the plan, five counties within Hangzhou's territory and another six neighboring counties will be "closely linked," while influence will be extended to the three sub-centers.

The urban circle has an area of 34,585 square kilometers, accounting for nearly 34 percent of Zhejiang Province. By the end of 2009, there were a total of nearly 20 million people living in the circle, about 38 percent of the population in Zhejiang Province.

The area contributed about half of Zhejiang Province's economic growth in 2009, with a gross domestic product of more than 1 trillion yuan.

The Hangzhou Urban Economic Circle was rated the most competitive among the six urban economic circles in China, according to a report by the China Urban Development Institute last December.