Existing Forms of the village and Township Industrial Enterprises in Shunyi-County of Beijing City

Abstract

In this paper the authors clarify the existing forms of the village and township industrial enterprises (VTIEs) in a rural districts around Beijing, Shunyi-county under the economic reform and opening policy in China. The results are summarized as follows:
1. Before the economic reform the rural economy in Beijing City was stagnant, it had not experienced its rapid industrial growth. After the economic reform in 1978, (VTIEs) played important role in the expansion of rural economic flow but they had to solve financial, technological and market problems in order to develop further. Urban industry located in the city area of Beijing became overcrowded, so it was necessary to relocate a part of its production capacity. At the same time, many trading companies needed their producing bases to keep up with the growing trade after the economic opening. Thus, the interests of the urban enterprises were in harmony with those of the rural. So VTIEs in the rural districts around Beijing were able to prepare the conditions for their development.
2. VTIEs in Shunyi-county of Beijing City in order to grow and develop themselves, tried to get various contact with the trading companies and state enterprises located within the city area, and tried to get funds, to introduce technology and to expand the market. VTIEs also grew by the formation of the joint enterprises with foreign-affiliated firms through urban enterprises' mediation. VTIEs in Shunyi county aimed to seize all sorts of opportunities far business, getting into contact and linking with urban enterprises, and to develop to be “urban-rural integrated” enterprises. VTIEs linked with the state enterprises become to be their branch plants and are disturbed to develop as independent enterprises. On the other hand, VTIEs linked with the commercial and trading enterprises, most of which grow as expert enterprises, develop independently.
3. The contacts and links between VTIEs in Shunyi-county and urban enterprises practically do away with the social and economic separation between urhan and rural districts like the family registration system since the adopt of a planned economy, VTIEs expanding their space of activity, accelerate the formation of a urban-rural integrate economic zone. It means that the regional framework in the mechanism of China's economic development is changing.
In this paper the actual condition of VTIEs in Shunyi-county is presented, but there exist further research tasks; one it to analyze the development of VTIEs and its impact on the urban-rural relation based upon the accumulated regional surveys, the other is to consider theoretically the changing regional structure of China's economy.