July 10,2008

Beijing Olympic Games Force Slower Economic Pace

By CSC staff
 

There is a breathless feeling in China these days as preparations for the long-awaited Beijing Olympic Games are finalized. Many thousands have gathered in every city to see the torch pass through.  Every newly finished venue is inspected by the media for the benefit of TV viewers. More and more product advertisements feature well-known Chinese and foreign athletes. The ubiquitous daily countdown ticking off the days, hours, minutes and seconds seems to be quickening, quickening.

But as that pace picks up, other parts of Chinese, and particularly Beijing, life are slowing, slowing, and even stopping.   

The main reason, of course, is security. China has invested enormous resources of money, time and pride into these coming games and will stop at almost nothing to insure that the events will pass without any untoward or embarrassing incidents.  Security arrangements have been thought out and are being implemented down to small details.  

For instance, Beijing has banned all express companies from airlifting liquids. Many companies that have their samples transported by express companies are now required to transport them by much slower rail freight. Cosmetics companies that originally planned to hold exhibitions in Beijing have been forced to move the shows to other cities.

The government has pushed up travel security standards, adding to airport and subway station crowding. Airport patrons at cities such as Beijing and Shanghai are now going through security inspections even before they go into the building. Subway passengers in Beijing are, too. At major Beijing subway stations, passenger lines as long of dozens of meters are often seen during peak hours in the morning. Commuters living far away from their companies have to leave home earlier by an hour or more due to crowding and inspections.

The government has announced that from July 20 to September 20, Beijing-registered automobiles will face road access limits. Vehicles with license plates ending in odd numbers will be banned from the roads on even-numbered calendar days, and those with plates ending in even numbers will be banned from the roads on odd-numbered days. What this policy means to the city with a population of 17 million is not known, but judging from the experience of last year’s China-Africa Cooperation Forum, at least, troubles will rise but chaos is unlikely.

Beijing has also strictly limited vehicles from other cities driving into Beijing. All vehicles entering Beijing face three security inspections to screen for the transportation of explosives. Some big trucks are being turned back. Some Beijing-based furniture makers have had to suspend transportation to outlying areas.

Meanwhile, Beijing has also reinforced intellectual property protection, especially for that of official Organizing Committee sponsors. And to guarantee their interest, Beijing has specially plotted A area and B area, in which competitors of official sponsors are banned from raising outdoor advertisements. Some outdoor advertising operators who have already signed contracts with clients may suffer big losses.

The air pollution in the capital is also a problem, but the government feels it has it under control. Beijing has ordered steel and chemical plants shut down during the Olympic Games. The same order has also been delivered to all lime and cement makers. Even some BBQ restaurants will be required to close due to safety and environmental concerns. No detailed compensation policy has been released. 

 

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