Wuhan, the “thoroughfare of nine provinces”, is facing with profound changes in the world economy and society, unparalleled tasks in achieving domestic reform, development and stability, and unprecedented contradictions, risks and challenges. Therefore, it is important for Wuhan to objectively analyze the macro environment of the economic and social development during the “13th Five-Year Plan” period in order to modernize Wuhan’s urban governance system and governance capability, which is not only related to the growth prospects in future five years, but also related to sustainable development in the long term.

By researching into the macro environment of Wuhan’s economic and social development during the “13th Five-Year Plan” period, the international and domestic economic and social development environment have been scientifically analyzed in order to grasp opportunities and challenges faced by Wuhan in the new development period and clarify the city orientation and sustainable development model.

1. The first part of the research report has provided an historical review of Wuhan’s economic and social development. According to historical and realistic analyses in this report, Wuhan, a megacity in Central China, has been the regional center for a long time in history. With prominent advantages in location, market, resources, science and technology and industry, Wuhan has become the strategic junction for the communication and exchange of resources, information and technology in eastern and western regions of China. Despite abundant advantages, Wuhan’s urban development has been unsatisfactory and its comprehensive competitiveness has gradually decreased since the reform and opening up, failing to play its strategic role in connecting the eastern and western region and driving the leaping development in the central region of China. In the beginning of the “12th Five-Year Plan” period, the Wuhan Party Congress solemnly proposed that the national central city shall be constructed to achieve the rejuvenation of Wuhan. In order to achieve the “Rejuvenation of Wuhan”, five plans such as the “Industrial Doubling Programme”, “Upgrading Plan of Service Industry”, “Independent Innovation Ability Improvement Plan”, “Urban Construction Plan” and “Internationalization Improvement Plan” have been formulated and implemented, bringing about a new development period for Wuhan. Wuhan has made outstanding economic and social development achievements during the “12th Five-Year Plan” period and the “13th Five-Year Plan” period will become the key stage for Wuhan to develop into the national central city. In order to make plans for Wuhan’s development during the “13th Five-Year Plan” period scientifically, various factors related to the international, national and municipal environment of Wuhan must be considered. In other words, attentions must be paid to profound changes brought by the global scientific and technological revolution and the new normal of the national economy of China in order to achieve the target of doubling Wuhan’s economic aggregate by trillions, thus promoting Wuhan’s economy in terms of “quantity” and “quality” synchronously during the new round of development.

2. The second part of the research report has provided a detailed analysis of the international environment faced by Wuhan’s economic and social development during the “13th Five-Year Plan” period. According to the analysis, there is a high chance for the world economy to achieve the moderate recovery despite numerous uncertainties. The development “difference” continues to exist, with emerging economies playing a prominent role among those economic entities experiencing the weak recovery. Medium-high speed and medium-low speed growth coexists in the world economy. Regional economic cooperation in the world shows geographical features. New energy and new methods have created new spaces for global economic development. The competition for the scientific and technological dominance has become intensified. The scientific and technological revolution has brought about profound changes in the world and the Asian-Pacific region enjoys the highest growth potential during the “13th Five-Year Plan” period. To be more specific, among those Asian-Pacific regions, the Yangtze River Economic Belt of China in the East Asia has the highest chance of achieving growth.  

3. The third part of the research report has analyzed the domestic environment for Wuhan’s economic and social development during the “13th Five-Year Plan” period. During this period, the basic point of the national economic and social development has changed from being mainly driven by external demand to being driven by domestic demand, and Wuhan is becoming the forefront of expanding domestic demand. In addition to the original “Yangtze River Delta Urban Agglomeration” and “Pearl River Delta Urban Agglomeration”, the Urban Agglomeration in the Middle Reaches of the Yangtze River has become the new growth pole of which Hubei Province and Wuhan City are at the core position. The economic development belt has also extended from the Coastal Economic Belt to the Yangtze River Economic Belt of which Hubei Province and Wuhan City are most important parts. Instead of giving priority to coastal areas during the opening up process, inland and coastal areas will be emphasized simultaneously.

Major characteristics of the domestic environment for Wuhan’s economic and social development during the “13th Five-Year Plan” period are as follows: Medium and high-speed growth has become the new normal of China’s economy. Driving factors of China’s economy has changed from factor and investment to innovation and reform. Exports from China’s high-end manufacturing industry and upgraded domestic consumption have become new driving forces for economic growth. The urban-rural relation featured by the “coordination of industrialization, informatization, urbanization and agricultural modernization” has enlarged China’s economic development space. A new type of economic structure characterized with competition and cooperation has been developed. The construction of the ecological civilization system has promoted the “Image of China”.

During the “13th Five-Year Plan” period, Wuhan, a megacity in Central China, shall play its leading role in leading, radiating and promoting regional economic development basing on the “new normal” of China’s economy. Its strategic role in driving the development of the Yangtze River Economic Belt shall come into play, too. Major historical opportunities brought by the construction of Shanghai Free Trade Zone, the implementation of the opening up of inland and border regions and the construction of the supportive national economic belt shall be seized to develop Wuhan into the “steel waist” (strong support) of this economic belt, and thus to promote the sustainable development of China’s economy during the “13th Five-Year Plan” period.

4. The fourth part of the research report has discussed opportunities and challenges as well as advantages and disadvantages faced by Wuhan’s economic and social development during the “13th Five-Year Plan” period. As the core area of the “endogenous” economy, Wuhan has abundant freshwater resources, good land carrying capacity, vast market and strong scientific and educational strength. Great industrial achievements have been made by Wuhan, creating a number of characteristic industries and leading industries. A relatively complete industrial system has been built and the production capacity of industrial products has been greatly enhanced. In recent years, Wuhan has comprehensively promoted the construction of the national central city and national innovation centers, created a solider development foundation and achieved a good development momentum, thus showing an enormous development potential. Instead of imitating the positioning of megalopolis such as Beijing and Shanghai, it is better for Wuhan to strengthen its own advantages and develop itself into nodal city connecting the eastern and western region of China. During the “13th Five-Year Plan” period, Wuhan must master the overall situation and come down to earth to formulate feasible strategies and policy systems in order to give play to its role in upgrading the Yangtze River Economic Belt, develop Wuhan into a national central city, and thus revive the glory of Wuhan.

(1) Opportunities of Wuhan’s economic and social development during the “13th Five-Year Plan” period: The “innovation-driven strategy” will improve the core competitiveness of Wuhan, the implementation of the “Yangtze River Economic Belt” will boost the level of Wuhan’s opening up, and the “national industrial planning” will promote industrial upgrading in Wuhan. The “domestic demand and consumption driven economy” will bring opportunities for leapfrog development of Wuhan, and the “power list” will promote a new round of reform among government institutions.

(2) Challenges of Wuhan’s economic and social development during the “13th Five-Year Plan” period: The industrial growth will reach the peak, and the growth of traditional pillar industries is limited. Wuhan is likely to be affected by frequent systematic risks. The financial system is not perfect, and the financing structure is unreasonable. The energy is in shortage while the energy consumption in some industries remains too high. The market-oriented reform has not been fulfilled and driving functions of the city are unsound.

(3) Advantages of Wuhan’s economic and social development during the “13th Five-Year Plan” period: On one hand, Wuhan has been initially equipped with foundations essential for the development of the national central city, including economic, innovative, cultural, scientific and technological conditions. The “Industrial Doubling Programme” will promote the industrial development and transformation. The “Urban Construction Plan” will enlarge the comprehensive carrying capacity of Wuhan rapidly. The Guiding Opinions on the Construction Management and Approval of Wuhan will boost the vitality of entrepreneurship and capital accumulation. The plan of “Motherland Overpass” will contribute to advantageous transportation system including the highway transportation, railway transportation, waterway transportation and air transportation. The strategy of developing “Environment-oriented City” will bring about significant progresses for the green development and ecological civilization construction.

(4) Disadvantages of Wuhan’s economic and social development during the “13th Five-Year Plan” period: The ratio of the heavy industry is too high, which means the industrial structure is unreasonable. The product competitiveness is not strong. The urban construction is blindly expanded while the construction of supporting facilities lags behind. The ecological environment is worsening, contributing to difficulties of ecological treatment. The marketization is not high, and the attraction of investment is insufficient. The Internet has brought about impacts on traditional management methods and working methods, too.

5. The fifth part of the research report discussed basic ideas of Wuhan’s economic and social development during the “13th Five-Year Plan” period basing on the development momentum of Wuhan.

(1) Basic connotation of Wuhan’s economic and social development during the “13th Five-Year Plan” period: In terms of the development content, innovative development, green development, coordinate development and win-win development shall be achieved during this period. In terms of urban functions, the “big city disease” shall be avoided, the “polarization effect” of the city shall be enhanced, and the core urban circle shall be developed to support the rise of Central China.

(2) Overall goal of Wuhan’s all-round economic and social development during the “13th Five-Year Plan” period: Overall goals are as follows: The innovation-driven development shall take the lead in China, and the system of urban functions for the national central city shall be basically developed. The appearance and quality of the city shall be increased to a new level, and the precedence in developing the moderately prosperous society shall be achieved. Wuhan shall be developed into top three sub-provincial cities in China in terms of the comprehensive economic strength, and its “leading” position among all Chinese cities shall be consolidated, laying the solid foundation of reviving and developing Wuhan into a national central city. Realistic bases of Wuhan’s economic and social development during the “13th Five-Year Plan” period are as follows: Wuhan is facing with multiple opportunities, and its development has enters into a new stage. The growth momentum is obvious and its development vitality is emerging.

(3) Basic ideas of Wuhan’s economic and social development during the “13th Five-Year Plan” period: More attention shall be paid to the new round of Internet-based technological revolution and industrial transformation. New opportunities and challenges brought by the new normal of economic development to Wuhan shall be emphasized. New space and new functions of urban development shall be focused basing on the “Three Strategies” of China. The National Innovation Center, National Advanced Manufacturing Center, and the National Trade and Logistics Center shall be constructed. Requirements of developing the national innovation-oriented city shall be followed, and the new-type industrialization, urbanization and informatization shall be emphasized. Large projects, large industries, large spaces and large patterns shall be developed in accordance with the internationally advanced and domestically leading standards.

6. The sixth part of the research report provides macro-level countermeasures for Wuhan’s economic and social development during the “13th Five-Year Plan” period: (1) Wuhan’s “13th Five-Year Plan” shall be adaptive to the medium and long-term strategy. (2) A new round of development shall be accelerated by Wuhan during the “13th Five Year Plan” period. To be more specific, the main industrial development direction shall be insisted to promote the development of advanced high-end manufacturing industry in Wuhan. In addition to industrial development, service sector shall be enlarged and strengthened, too. Investments in urban constructions shall be increased, and moderately excessive urban infrastructures shall be constructed. The national internet-based trade and logistics center shall be constructed basing on the development of informatization. The urban spatial pattern with “multiple centers with multiple axes” shall be developed basing on the integration of multiple plans. Active participation into the international competition shall be made to build a comprehensive opening-up pattern. Problems emerging from the process of urban construction, including the debt, financing, demolition, management and livelihood, shall be solved by initiating the “urban management revolution”. (3) Reform measures shall be implemented practically and comprehensively to optimize the urban development environment (including market environment, legal environment, government environment and cultural environment) in order to improve the capacity of Wuhan in agglomerating resources, stimulating industrial development, and driving the economic growth.

7. The seventh part of the research report has discussed main measures promoting Wuhan’s economic and social development during the “13th Five-Year Plan” period: Investments into social infrastructures shall be increased to promote balanced economic and social development. The modern industrial system shall be built to strengthen its supporting capacity. The scale and level of the service sector shall be improved to develop the “new engine” of development for the next five years. The ecological civilization construction shall be enhanced to promote the cyclic and green development. Diversified investors shall be developed to speed up the reform of the investment system.

8. The eighth part of the research report has provided the following 10 policy suggestions for Wuhan’s economic and social development during the “13th Five-Year Plan” period:

(1) To actively seize new opportunities brought by the opening up and development of the Yangtze River Economic Belt. Major historical opportunities brought by the construction of Shanghai Free Trade Zone, the implementation of the opening up of inland and border regions and the construction of the supportive national economic belt shall be seized to develop Wuhan into the “steel waist” (strong support) of this economic belt. To this end, the following three measures shall be taken. Firstly, moderately excessive constructions of transportation infrastructures shall be made to develop the comprehensive transportation system. Secondly, the high-tech industrial belt along the Yangtze River, the advanced manufacturing belt and the modern agricultural demonstration belt shall be developed basing on the industrial development. Thirdly, the urban agglomeration in the middle reaches of the Yangtze River, the ecological city belt along the Han River and the eco-culture tourism town belt along the Jianghan Canal shall be constructed basing on the ecological culture. By then, the Central China, especially the middle reaches of the Yangtze River, will realize a comprehensive rise, and this region will become the nodal region connecting China with the international world as well as the east-central-west economic corridor with the north-south economic corridor. The world-class urban agglomeration will be developed, too.

(2) To develop high-end manufacturing industry and strategic emerging industries by relying on modern service industry. Basing on the national strategy of accelerating the industrial structure transformation, the construction of “Optics Valley of China” shall be promoted vigorously, and the modern service industry shall be developed and strengthened to promote the integration of the service sector with various industries and thus to occupy a leading position in the high-end modern service sector and strategic emerging industries. To this end, the following measures shall be adopted. Firstly, Wuhan shall try to be the “first” to develop the modern industry. Adjustments of six major industries (equipment manufacturing, food, electronic information, ship and marine engineering equipment, medicine and resources recycling) shall be emphasized, and the industrialization of new-generation information technologies and new materials such as the cloud computing, Internet of Things, 3D printing and Beidou navigation shall be accelerated. The scale development of industries related to the biology, energy conservation, environmental protection, new energy and new energy automobile shall be promoted. Secondly, Wuhan shall fear about being “outdated”. In other words, Wuhan shall resolutely eliminate resource-intensive, energy-intensive and pollution-intensive outdated capacities such as small-scale plants producing the cement, iron and steel and electrolytic aluminium. The upgrading and transformation of traditional industries such as the metallurgic industry, petrochemical industry, building materials industry and textile industry shall be promoted to practically improve their technological levels. Thirdly, Wuhan shall build the “smart city”. During the 13th “Five-Year Plan” period, the great mass fervour of constructing the “smart city” shall be made use of to integrate the new-generation information technologies such as the Internet of Things, cloud computing, mobile broadband and big data into the urban construction, management and operation, so as to equip the traditional urban management with a keen “sense of touch”, well-developed “nerves”, a smart “brain”, and “wings” of information. The Overall Planning for Wuhan Smart Cities shall be implemented vigorously and the internetworking information infrastructure system shall be constructed to facilitate the information exchange and business interaction, thus developing an international information hub.

(3) To establish an urban infrastructure system with complete functions and well-developed highways, railways, waterways, airlines and bridges. To this end, the following measures shall be taken. Firstly, Wuhan shall improve the unobstructed comprehensive transportation network and try to develop the “Motherland Overpass” and “Subway City”. The external transportation shall be expanded and extended to enlarge the radiation scope to develop Wuhan into the “National Comprehensive Transportation Hub” and the “International Transportation Hub in Central China” as soon as possible. Secondly, Wuhan shall optimize and upgrade the urban transportation to improve the internal traffic circulation. The idea of “promoting the urban development pattern by constructing rail transits” shall be insisted to promote the seamless integration of high-speed railways, urban railways and subways, and thus to develop the urban expressway network system with the rail transit as the backbone, with urban ring roads, rapid radiation roads, and under-river tunnels as the support, and with main roads, secondary roads and access roads as the base. It is expected that the 388-kilometer rail transit network will be constructed to cover Wuchang District, Hankou District and Hanyang District of Wuhan City, which allows people to travel to new urban districts within half an hour by 2020. Thirdly, Wuhan shall strengthen the construction of underground pipe network and improve the water supply and drainage network. The water-supply security assurance improvement plan, drainage facility construction plan and the full sewage collection and treatment plan shall be promoted vigorously. The construction of the large-diameter drainage tunnel shall be started as soon as possible to develop the “underground aorta” of the city. Fourthly, Wuhan shall improve the power supply and gas supply facilities, and establish strong energy and power networks. The development of the modern smart power grid shall be accelerated by giving priority to external circuits while taking the internal circuits as complements. The Special Planning on Gas in Wuhan (2013 - 2020) [1] shall be implemented to increase the coverage rate of gas in urban development area to 100%. Fifthly, Wuhan shall strive to solve difficult urban transportation problems. The priority shall be given to the public transportation to develop Wuhan into the “Subway City”. The underground transportation network shall be developed by paying more attention to constructions of the underground transportation. The rapid road network system shall be improved and the non-motorized transportation system shall be established and promoted.

(4) To vigorously promote scientific and technological progress and improve the labor quality. In order to vigorously promote scientific and technological progress, Wuhan shall take the following measures. Firstly, Wuhan shall strengthen and cultivate innovation entities such as scientific and technological enterprises. Secondly, Wuhan shall develop innovation platforms such as the East-Lake National Independent Innovation Demonstration Zone. Thirdly, Wuhan shall develop and improve transformation systems to make R&D directions determined by the market and enterprises, get projects and funds allocated by the market, and make achievements assessed by the market. Fourthly, the achievement transformation shall be promoted by various methods such as organizing the promotion event (auction) for major scientific and technological achievements. Fifthly, the “Thousand Talents Program” and “Hundred Talents Program” shall be made use of to attract and develop talents. The evaluation mechanism of scientific and technological talents shall be reformed and new (integrated) talent training modes shall be developed. Wuhan shall make use of advantageous educational resources and concentrated medium and large commercial enterprises to implement the commercial talent training plan to promote functions of the commercial talent training base, college student training base and social training base. Commercial enterprises shall be encouraged to construct the national commercial talent training and demonstration base jointly with institutions of higher learning, so as to develop comprehensive and multi-level vocational education and training system to cultivate and provide commercial talents nationwide. To this end, the pre-job training shall be strengthened firstly. Secondly, skill trainings for labourers shall be enhanced. Thirdly, the reemployment training shall be reinforced. Fourthly, the professional qualification certificate system shall be promoted. Lastly, national training bases shall be developed to cultivate and provide commercial talents.

(5) To strive for the establishment of the National Central City and the largest “Free Trade Zone” in inland China. There are 5 national central cities in China, including 4 municipalities and Guangzhou City. Those cities are mainly located in coastal and southwest areas while none of them are located in the central, northwest and northeast region of China. Therefore, it might be better to construct Wuhan into a national central city when planning the layout of national central cities, so as to develop Wuhan into a core city of the national growth pole and promote the construction of the urban agglomeration in the middle reaches of the Yangtze River. In the light of development, over 60% of the urban population will be absorbed into future urban agglomerations, which indicates that the urban agglomeration is not only the main pattern of urbanization, but also the main carrier of absorbing the newly increased urban population [2]. According to the national planning for main functional areas, those urban agglomerations need to be developed with emphasis and priority. In order to promote the construction of the Yangtze River Economic Belt, it is necessary to develop the Yangtze River Delta Urban Agglomeration, Urban Agglomeration in the Middle Reaches of the Yangtze and Chengdu-Chongqing Urban Agglomeration into national growth poles.

(6) To develop Wuhan into a modern low-carbon demonstration city. To this end, the following measures need to be adopted. ① The theme concept of scientific development and low-carbon ecological civilization shall be established. ② Carbon emissions of carbon-intensive industries shall be lowered down, and low-end industries shall be promoted and developed into high-end ones. ③ Various effects brought by the energy conservation and emission reduction shall be make full use of. ④ The moral education shall be promoted to guide the public to participate into low-carbon and ecological civilization construction. ⑤ “Two hands” shall be utilized to integrate the government regulation and market regulation. ⑥ The “tough battle” shall be fought to practically implement the “13th Five-Year Plan” project.

(7) To form a reasonable urban layout for Wuhan. On December 8, 2014, the Standing Committee of Wuhan Municipal Government studied the Planning of the Main Functional Areas of Wuhan (hereinafter referred to as the “Planning”). According to this Planning, large-scale industrialization and urbanization developments to key ecological functional areas and ecological bottom-line areas such as the East Lake Scenic Area and Jiufengshan National Forest Park are strictly prohibited.

(8) To improve the efficiency of government administration and enhance government governance capability. Wuhan government shall timely organize the supervision, tracking, assessment and rectification for major plans which have been introduced in sequence in order to identify problems. The great enthusiasm shall be input to take serious measures to carry out rectifications practically, establish rules and regulations, and improve relevant systems and methods to clarify, perform, assess and investigate responsibilities of civil servants, thus promoting the work style, working efficiency and responsibility performance of civil servants. The motive power and resultant force of reform shall be enhanced, the responsibility of relevant departments shall be strengthened to increase their overall awareness and urgency consciousness, and the government reform shall be implemented to drive other important reforms. The goal is to drive various parties to participate into the establishment of a long-term coordinated system and mechanism to optimize the development environment, improve the governmental administration efficiency, and enhance the government governance capability.

(9) To foster innovative culture and rejuvenate Wuhan. The spirit of Wuhan is the outcome of the historical and cultural accumulation and the expression of characteristics of this city. The spirit of “Daring to be the first and striving for excellence” is not only a kind of catchword and guidance, but also represents a kind of working style, ideological level and spiritual pursuit. This kind of spirit shall be utilized to bring together the strength of Wuhan to promote the scientific and leaping development of this city. By then, Wuhan will become the center of Central China and an influential national central city that plays its leading role more widely in numerous fields, thus helping to achieve the comprehensive rejuvenation of Wuhan.

(10) To provide sound policy and project supports. Firstly, Wuhan shall embody working ideas and development measures of the “13th Five-Year Plan”, and plan for a number of major industrial projects with strong driving forces. A number of basic, functional and forward-looking urban construction projects relevant to the long-term development of Wuhan, including the comprehensive transportation hub, urban transportation, ecological treatment and municipal facilities, shall be planned in advance. Secondly, Wuhan shall seize opportunities brought by the implementation of directional regulation and control, construction of the Yangtze River Economic Belt, and promotion of new-type urbanization to strive for the chance of implementing major regional functional projects related to the industry, transportation and energy in Wuhan. Efforts shall be made to get those planned projects approved as soon as possible, and enable more projects to be selected and included into the national and provincial “13th Five-Year Plan”. Thirdly, Wuhan shall attract more businesses and investments, try to attract a number of large industrial projects with an investment of over 5 billion Yuan, bring in a number of leading enterprises from home and abroad and enable them to establish regional headquarters in Wuhan, thus providing strong project supports for the realization of the “13th Five-Year Plan”.