An administrative shift for the better

Moreover, construction activities in most Chinese cities are dependent on not only landscape and traffic conditions, but also the location of local government offices (usually in the city center surrounded by lower-level administrative departments). So, the relocation of a local government's offices could give rise to a new growth pole.

Unlike many cities that have benefited from the relocation of administrative departments, Beijing will only move the municipal authorities' offices to Tongzhou, which is already a relatively developed district. Since the district government offices will remain where they are, Beijing's municipal departments will be closer to them to deal more efficiently with local affairs. Besides, the fact that central government offices will not be relocated will limit the municipal government's ambitions (and ability too) to rebuild a city center in Tongzhou.

Whether the relocation of administrative departments can be called a success, in essence, depends on its potential to create a new administrative center that can attract an increasing number of industries and people during its expansion.

Such being said, all parties involved in the relocation－individuals, enterprises and government departments－should be able to make decent gains in the long run in terms of, for example, better living conditions, higher profits and more availability of land. This in turn will help increase the advantages of the new administrative center.

The relocation of local government offices is basically about political decision-making, but its success depends largely on market-oriented rules. In Beijing's case, it will take more than new public facilities and government compounds to rebrand Tongzhou as a successful subsidiary administrative center.

The author is a researcher at the Development Research Center of the State Council.