Press conference: Beijing Olympics and economy

TBS

Earlier, you talked about the high tech would be one of the drivers to drive the economy. After the Olympics, more specifically, what would be the drivers of your economy, to Mr. Chen?

Chen Jian

Driving factors is like that. The target of economy is very clear, it is based on the services industry. In the preparation period in the past seven years, due to the adjustment, the structure such as services and cultural and innovation industries are developing very rapidly in the first half year. And Beijing's industry is not aimed at Beijing alone, but the whole countries. The service industry was only 39.1% at the value of service last year. Therefore, we need a rapid development. That will promote the overall development in China. That is why we propose to change the ways of development. There is a huge room for service industry. After the Games, the development of all these industries would have a lot of areas for growth.

TBS

Earlier in terms of the real estate prices, you mentioned that there was a rational growth and a rational advancement. Now perhaps in Shenzhen area, it may have different conditions. There is unreasonable collapse in Shenzhen area, but here is very rational growth. What can you say about the difference? Could you explain further?

Chen Jian

In the entire time of the past 7 years, Chinese economy grows from 800 US dollars to 2,500 US dollars per capita in China. All cities in China in terms of the real estate prices all went up. The prices in some cities went up faster, there are some bubbles. Take Shenzhen for example, Shenzhen used to be 5,000 RMB per square meter, then it went up to 20,000 RMB per square meter. There must be some bubbles inside. Also the faction and position of that city are different. There are some special factors compared with Beijing. The condition of Beijing is a political center, the position of international exchange center can not be replaced by Shenzhen. The real estate pricing in Beijing is different. Many people want to buy houses in Beijing as a reputation and a success. Last year, Beijing added 520,000 new populations. These are the driving forces.

AFP

I'd like to ask you that over the last 8 years, Beijing has enjoyed an incredible construction boom which has required a large number of migrant workers. Is there any way that this construction boom can be sustained or if not, what will happen to the workers that moved here?

Chen Jian

Over the past many years when China started its reform and opening-up policy, those migrant workers, as you said, are part of the entire modernization drive. They played a very important role in the development of the economy. In the past seven years in preparation for the Games, when it came to the constructions, you can see all the construction companies recruiting workers from various parts of the country such as from the rural areas in the country.

After the Olympic Games, there will be many hot spots in economic development in term of construction. Post-Games construction industry may witness a certain period of readjustment because in preparing for the Games, there is a boom of construction. After the Games, there will be more hot spots of investment. But compare to the Games period, there will be some readjustment.

The construction companies will have many more projects in other areas so they will send these workers elsewhere. The migrant workers will follow project. We need further discussion or research on that. Thank you.

DPA

I am from Germany. Can you explain more about the use of the venues after the Games? The National Stadium and the other venues in the future? Thank you.

Du Wei answers the question.

Du Wei

You are interested in post Games utilization. When it comes to designing and planning of the venues, the post Games utilization is taken into consideration. On the one hand, we have taken the population distribution into account in the utilization. At the stages of the building, we built them in places where they are more people, that is, universities and regions where there are many people. So there will be great utilization after the Games. Another point is in the common domain of the Olympic Green, the major large scale venues, such as the Bird's Nest and the Water Cube are the iconic structures for the 2008 Games. And we can't expect in a short term all the investment will be regained right away. That was what actually happened to other cities. In the common domain, we have tried to provide a comprehensive site of conditions for sports and together activities. This will increase the utilization and the rate of utilization in the major constructions. Some other venues, temporary venues, in other words, temporary constructions. These constructions will have new uses after the Games, some will be dismantled. Some will in accordance with the plan of the whole area will be adjusted and renovated and adjusted for other uses. In the 7 years of preparation for the Games, there has been a huge growth in the popular awareness of the Games, the participation of sports have grown greatly. 50% of Beijing people participated in sports and physical activities in Beijing. So we believe the post Games and over a long period of time, these venues will be used pretty well. The utilization will be high.

Wang Hui

Thank you very much, Mr. Du. Next question.

Foreign reporter

Before the Olympics, what was the percentage of people involved in the physical activities? You said now it is 50%. What was before? And also, can you tell us what would be the cost for the government of maintaining the Olympic venues each year for the next straight five years, when the period of adjustment happens.

Du Wei

Those people participated in sports increased on a yearly basis. So I think the venues, apart from providing good areas for exercise from the management perspective, also try to increase the consumption of sports facilities. In the course of the management of the venues, they are working out new models and forms for managing the venues, in a cost-effective way. The managing companies will immediately open them up for popular use.

Wang Hui

Any other questions? If there is no question, that would be the end of the press conference today. Thank you very much for the interest you have shown in our post-Olympic economy. We are going to hold three press conferences tomorrow. One is on food safety, which is going to be in press conference room 4. The second is at 11 a.m., in this room. The third will be held in the afternoon in press conference room 4 again. It will be talking about the Paralympic Games and the torch relay of the Paralympics. I hope you will be able to attend. Thank you.