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Development Planning of Xi’an for Commercial Network (2004-2020)

2015-12-10 15:18:44

In accordance with the unified arrangements of the Ministry of Commerce, in coordination with the specific provisions of the fourth round of city overall planning for Xi'an City, considering the reality of development of the commercial industry in Xi'an City, adhering to the principles of scientific planning, rational distribution, full function and orderly competition, for promoting the prosperity of the city, enhancing the convenience and benefit functions for the citizens, improving the service network of the urban and rural, speeding up the construction of the western commercial center, boosting the international competitiveness and sustainable development capability, this Development Planning of Xi’an for Commercial Network (2004-2020) is hereby formulated.

Chapter One General Provisions

1.1 Background

Xi’an was a well-known ancient capital and economic & trade in the word, as the starting point of the ancient Silk Road, its commercial industry has a glorious history. Recently, for the purposes of “development of grand commerce, construction of grand market and activation of grand circulation”, the commercial industry of Xi’an has made considerable progress by virtue of making significant adjustments to the economic structure, deepening the system reform and strengthening the construction of infrastructure. A unified, open, diversified and competitive configuration for commercial circulation has initially established and the position of the western commercial center is gradually taking shape.
Based on the current relevant standards and specifications, with reference to commercial network planning of different cities at home and abroad, combined with the actual commercial situation in Xi'an City and considering the developments in the future, the control indicators and technical provisions mentioned herein are hereby formulated.
1.1.1 Current Status of the Commercial Industry in Xi’an
In accordance with Comrade Jiang Zhemin’s inscription of “technology, tourism and commerce as the priority and pioneer”, shopping malls, department stores, supermarkets, warehouse stores, home furnishment and appliance centers, outlets, specialty stores, convenience stores and other new formats are booming throughout the city.
1.1.2 Current Status of Commercial Network Layout in Xi’an
 Current Status of Retail Network Layout
 With the move-forward of the western development strategy and the continuous development of the city scale, the large retail network grows rapidly and the structure of commercial types is being gradually optimized in Xi’an. But there are still many problems in the layout of the city's retail network: large retail networks are too concentrated in the downtown area, lack of commercial support services in new-established regions, the shopping environments of retail networks need renovation. 
 1.1.3 Basis for Planning
 Xi’an City Fourth Round of Overall City Planning 
 Category of Retail Formats (GB/T18106-2004) 
 Xi’an City Tenth Five-Year Planning of National Economic and Social Development 
 Concept for Strategic Planning of Economic Integration of Xi’an and Xianyang 
 Xi’an City Tenth Five-year Planning for Development of Commercial Industry
   Xi’an City Regulation on Commercial Retail Format 
 Xi’an City Planning for Development of Modern Logistics Industry 
 1.2 Guidelines
 In accordance with the development concepts of 'internationalization, marketization, humanism and ecologicalization', combined with 'Well-known city for Tourism', 'One of China's important education, research, equipment manufacturing, high-tech industrial bases and transport hub cities,' 'Chinese Segment of the new Eurasian continental bridge and one of important central cities in the western and the upper and middle reaches of the Yellow River' and other city positions, considering the reality of the economic development and the construction of commercial network in the city, to promote the prosperity of the city, enhance the convenience and benefit functions for the citizens, improve the service network of the urban and rural, speed up the modernization of circulation developing new types of marketing formats, expand consumption areas, optimize the consumption structure, communicate the urban and rural markets, take advantage of the leading role of the circulation industry and enable the commercial industry can play a greater radiation and driving role in the regional economy.

1.3 Planning Concepts
 1.3.1 Concept of Grand Commerce
 Based on the perspective of development of the grand commerce, to conduct planning for modern commercial networks in Xi'an. The concept of development of grand commerce means not only to develop the retail, wholesale trade, commercial processing, packaging, merchandise warehousing, logistics and commercial intermediary services, but also to develop commercial financial services, commercial research services, business promotion and associated catering, tourism services, exhibition industry, entertainment and other fields, so as to enable the commercial industry to become a main pillar industry for promoting the growth of the regional economy.
 1.3.2 Concept of Grand Market
To introduce the concept of construction of the grand market into the commercial planning. Nowadays, the market is not only for meeting the supply and demand for production and the needs of the people’s living, but also becomes the dynamic source for the overall economic development, the basis for social stability. Construction of the grand means to strengthen the construction of infrastructure and supporting facilities, to establish a number of large market in a variety of forms, throughout wide areas with outstanding specialty, high competitiveness and high degree of informatization.

1.3.3 Concept of Grand Circulation
The modern commercial circulation does not only include commodity flow and logistics, but also includes information flow, capital flow, and talent flow. The commercial circulation will be centered on the market, based on the commodity, by means of circulation to make it rapid, efficient, smooth and orderly. Invigorating the circulation is not only limited to the local circulation, but also to take advantage of Xi'an's status as the ' Chinese segment of the new Eurasian continental bridge and an important central city in western China and the upper and middle reaches of the Yellow River', to link the east and the west, breakthrough the north and the south, in order to achieve the inter-regional and cross-border circulation.
 1.3.4 Concept of Leisure Commerce
 With improvement of the people's living standards and increase of the time spending in leisure and recreation, the leisure economy is developing very rapidly, and promotes the development of the leisure-oriented commerce. People go to the Commercial Street, shopping centers and other commercial networks, not only for shopping, but also a kind of fashionable leisure activities. Growth in the demand of leisure consumption will make the commercial networks integrated with shopping, dining and entertainment, communication, recreation and other leisure functions popular with more and more consumers.
 1.3.5 Concept of Technology and Internet Commerce

Modern commerce increasingly focuses on the information network. Relying on modern science & technology and the network platform, and significantly developing e-commerce, with high technology as the main body, based on a high starting point to develop a new type of commerce with international level and establish the efficient and rational chain commerce network and distribution network, so as to meet and develop various levels of consumers consumption demands.
 1.3.6 Concept of Tourism Services Commerce
 The commercial network in a city is an integral part of the city space. With the gradual consolidation of the status of Xi’an as a well-known tourism city and the continuous development of its tourism industry, the higher requirements are put forward for the planning of the commercial network. The concept of tourism service commerce is to combine the layout of the commercial network with enhancement of the city's image and improvement of the cityscape, pay attention to the historical context, protect famous historic and cultural sites, build up a tourism and culture commercial district with rich historical background and higher cultural taste, so as to meet the demands of the domestic middle and high-end tourism and overseas tourism consumption. In construction of the  commercial networks, we should pay attention to follow the successful models abroad, through innovation and development, build up a modern commercial environment and create a pleasant and elegant commercial atmosphere, to strengthen the common development of tourism and commerce.
 1.3.7 Concept of Green Ecological Commerce
The concept of green-eco commerce is the concrete reflection of implementation of the requirements of sustainable development. The development of the commercial circulation industry should coordinate with the development of population, environment, transportation and resources, namely paying attention to strengthen the ecological construction, preventing from commercial pollution and protecting the eco-virtuous circle. We should combine the ecological environment protection with the set-up of commercial networks.  

1.3.8 Concept of Educational Commerce
 Xi'an is an important research and talents base in China. Currently, there are 32 full-time universities in total in Xi'an with 401 thousands of students and 654 general secondary schools with 628 thousands of students. Xi'an ranks the third, only next to Beijing and Shanghai, in the number and scale of colleges and universities, among the major cities in the country. The development of the education industry will annually bring more than one million student consumers to Xi'an. Therefore, in planning and construction of commercial networks, this special consumption group cannot be ignored, so as to develop students' consumption market, and tap students consumption potential and facilitate their shopping.
 1.4 Planning Principles
 1.4.1 Rational Allocation of Resources and Overall Coordination of Development
 The commercial system is an important part of a city system, the development planning of modern commercial circulation shall follow the principles of rational allocation of resources and overall coordination of development and the layout of commercial networks shall, based on the overall development of the city, coordinate with the population distribution, consumer demand, transportation system, environmental protection and in line with the development of related industries, so as to make effective and rational allocation of resources.
 1.4.2 Distinguish Hierarchical Structure and Improve Supporting Functions
 The development of modern commerce shall distinguish the hierarchical structure and improve the supporting functions. First, to meet the different consumption demands and develop hierarchical commercial networks with different levels and functional complementation; second, the layout of commercial facilities shall create the rational circle structure and hierarchy, highlight the development focus and define the development direction. 
 1.5 Scope, Scale and Period of Planning
 1.5.1 Scope of Planning

In accordance with the city's future layout mode of 'Nine-palace pattern, chessboard road network, outstanding axis and one city with six centers', this planning covers the geographical scope of the future central city and multiple sub-centers of Xi'an.
 1.Scope of Main City: Ancient Chang'an in Tang Dynasty as the central district, ring expressway as the basic profile, minor and partial outward expansion, east to Hongqing, West to Jiyang, south to Chang’an, north to the Weihe River. By 2010, the land use scale for construction of the main city will be 524 square kilometers; by 2020 the land use scale for construction of the main city will be 600 square kilometers. 
 2.Scope of Urban: including 11 administrative districts, namely Beilin District, Lianhu District, Xincheng District, Weiyang District, Yanta District, Baqiao District, Chang'an District, Lintong District and Yanliang District, as well as Hu County and Gaoling County, which are to become new districts. From 2010 to 2020, the planning area of the urban will be 778 square kilometers.
 3.Scope of Municipal Area: administrative area under Xi'an’s jurisdiction, a total area of 10,108 square kilometers. By 2010 the total land use scale for the city's urban and town construction will be 850 square kilometers (among which the scale of land use for construction in the peripheral area surrounding the urban will be 72 square kilometers).
 The middle and long-term planning involves 'six sub-centers', that is to take shape one sub-center in the southwest, mainly consisting of Hu County and High-tech District; two sub-centers in the northeast, one mainly consisting of Xinzhu and Lintong and the other mainly consisting of Yanliang, and one sub-center in the north of Weihe Reiver, mainly consisting of Gaoling (across the Weihe River) and Jinghe industrial Zone; one sub-center in the southeast, mainly consisting of Lantian; one sub-center in the west, mainly consisting of Zhouzhi. Such six sub-centers cover the construction land of about 400 square kilometers with population of 4,000,000 (including the population distributing in the established towns).
 1.5.2 Scale of Population
 On the basis of the population of 716.58 million in Xi’an in 2003, as estimated with an average annual natural population growth rate of 4.5 ‰, it is expected that the population in Xi’an by 2010 will reach 9,554,600 and 10,306,900 by 2020.
 Among such population, the scope of the main city: the population in the main city will be 5,245,900 by 2010 and 6,000,000 by 2020.
 The scope of urban: the scale of the population in the urban will be 7,007,000 by 2010 and 7,733,600 by 2020.
 The scope of municipal areas: the scale of the population in the municipal areas will be 9,554,600 by 2010 and 10,306,900 by 2020.

Considering the factor of floating population, this plan identifies the scale of population in Xi'an city will be 10 million in the short term and 12 million in the long term.
 1.5.3 Period of Planning
 The period of this planning is from 2004 to 2020.
 1.6 Contents and Focus of Planning
 1.6.1Contents of Planning
 The first section is Xi'an City General Layout Planning of Commercial System 
 The second section is Xi’an City Layout Planning for each Commercial Format. The commercial formats are categorized as four types: retail, wholesale market, commercial street and logistics.
 1.6.2 Focus of Planning
 Based on the role of Xi’an as the Commercial Center in the western and its overall planning, to determine the focus in Xi'an commercial network planning: commercial network planning in the urban, commercial network planning in the peripheral area, including Xi'an City General Layout Planning of Commercial System and retail commercial networks planning, commercial streets planning and wholesale markets planning and logistics parks planning sections.
 The commercial network planning in the urban will be based on the planning for three levels of commercial services network as the core, consisting of the central business district, the commercial zone along Ring 2 Road and community commerce.
The planning of commercial networks in the peripheral area will, according to the expansion direction of the framework of the city, consist of the commercial zone along Ring 3 Road, commercial circles of the satellite cities and town commerce.

Chapter Two Objectives of Commercial Network Planning
 2.1 Objectives of Planning
 To combine the geographical advantages of Xi'an and its position as a central city, based on the concept of building up a green-eco city suitable for both business development and living, highlighting the features of ' enjoying modern commercial civilization in a historical and cultural ancient city', constantly improving the overall level of modern commercial circulation in Xi'an, cultivating and improving a commercial network circulation system with rational structure, supporting facilities, advanced technology, and efficient operation. Treating the implementation of the western development as an opportunity, in accordance with the development requirements of the optimal combination of logistics resources and rational allocation of production elements, adhering to the development principles of 'policies for guidance, breakthrough of monopoly, integration of resources, expanding open-up, standardization of operation', we will improve the commercial system, further enhance the radiation and competitiveness of the commercial circulation industry in Xi’an. Based on the metropolitan circle of Xi'an, to influence the middle and upper reaches of the Yellow River, make Xi'an become an internationalized western commercial center, intersecting the east and the west, driving the western China, radiating the whole country, linking Central Asia.
 By 2020, to substantially build up Xi'an as a western commercial center with scientific layout, optimized format, rational structure, full function and orderly competition. In details, including the following six areas:
 A commodity trading and exhibition center integrated with shopping, entertainment, sightseeing and business event, having important influence in the western region; a modern logistics center in the western with modern circulation organization forms as main coexisting business forms of logistics and distribution, chain store & franchise, professional market, warehousing mall, distribution center and wholesale enterprises mainly in the form of modern circulation organization; a commodity distribution and trade center of fruits, building materials, automotive, electronics, electromechanical products, and other daily necessities oriented to the Midwest and the whole country, even to the west Asia market with strong attraction, wide radiation and much influence; a modern transmission center of commercial information represented by e-commerce and based on the support of information technology support, combined the tangible and intangible market together; a cultivation center of western commercial talents for establishing a cultivation mechanism for market-oriented, export-oriented commercial talents with training, certifying, appraising, reserving and recommending professional managers as its core; a commercial and cultural center of the ancient city with integrity, courtesy, and civilized business as support.

2.2 Estimation of Total Amount
 On the basis of Xi’an total retail sales of 44 billion Yuan in 2003, as estimated with average annual growth rate of 13% -15% of Xi'an total retail sales of social consumption from 2004 to 2010, it is expected that Xi’an total retail sales of social consumption will reach 100-120 billion Yuan by 2010; as estimated with average annual growth rate of 11% -13% from 2010 to 2015, it is expected that Xi'an total retail sales of social consumption will reach 180-200 billion Yuan by 2015; as estimated with the average annual growth rate 8% -11% from 2015 to 2020, it is expected that Xi’an total retail sales of social consumption will reach 280-320 billion Yuan by 2020.
 2.3 Estimation of Land for Commercial Facilities and Business Space
 Referring to the matching standards of city population and business space of similar cities, considering the natural growth of population and the process of urbanization, the expansion of the city size and the increase of tourism consumer population, the increase of floating population, the increase of car ownership and other factors, to determine the standard of business space per capita in Xi'an is 0.8 to 1.2 square meters / per person. According to the population projections, it is expected that the total business space in Xi'an City should be controlled between 7,700,000-11,500,000 square meters by 2010; it is expected that the total business space in Xi'an City should be controlled between 8,000,000-12,000,000 square meters by 2015; it is expected that the total business space in Xi'an City should be controlled between 8,300,000-121,500,000 square meters by 2020; including: the population scale in the main city is 6,000,00 with the total controlled business space between 6,000,000-8,000,000 square meters for about 4,000 -4,800 acres of commercial land needed; the population scale in the remaining areas of the urban is 1,728,600 with the total controlled business space between 1,300,000-2,000,000 square meters for about 1,000 -1,500 acres of commercial land needed.
 The total population in the periphery areas (Lantian, Zhouzhi, towns and other towns) surrounding the urban of Xi’an City, is 2,573,300 (including non-agricultural population of 600 thousand), the planning business space is 2,100,000-3,200,000 square meters, the land scale of 1,600-2,400 acres.
  The above does not include the land for construction of logistics and distribution.
 2.4 Functional Structure of Commercial Network
 The central business district, in accordance with the principles of outstanding features and premium quality, focusing on adjustment, renovation and improvement in the center business district, optimizing the structure, gathering the brands improving quality, march on an intensive road of development.
 The commercial zone along Ring 2 road, in accordance with the principle of reasonable configuration and security of supply, focusing on development and construction of the commercial zone along Ring 2 road, treating the regional commercial center as a link, driving the rational distribution of the commercial networks in the whole region to meet the demand of consumption.
 The commercial zone along the Ring 3 road, in accordance with the principles of larger and stronger, enhancement of radiation, accelerating development of the commercial zone along the Ring 3 road with horizontal combination, communication of urban and rural, enhancement of functions, construction of grand market and invigoration of grand circulation.
 The commercial networks in the community, in accordance with standardization of integration and convenience and benefit to the citizens, renovate and enrich the commercial networks in the community and gradually take shape the multi-level rational layout with points integrated with the entire.
 2.5 As planned, to rebuild and improve ‘three levels of service networks’
 In accordance with the city's future layout mode of 'Nine-palace pattern, chessboard road network, outstanding axis and one city with six centers' and the planning requirements for improving the modern service system, to speed up rebuilding and improving three levels of commercial services networks of this City, taking shape the central business district, the urban commercial network, mainly consisting of the commercial zone along Ring 2 Road and the community commerce, as well as the peripheral commercial network, mainly consisting of the commercial zone along Ring 3 Road, commercial circles of the satellite cities and the town commerce.
 2.5.1 Strengthen and enhance the central business district
 According to further strengthening the function of tourism and business services of the central district, to build up the first level of commercial service network in the old town covering 8.84 KM2(within the wall of the Ming Dynasty).  
 ■ Near term planning is to accelerate the pace of new build-up and renovation of the West Street, East Street, North Street, Jiefang Road and other key business-intensive areas, strengthening a variety of new formats within the urban, renovate and improve the existing commercial networks, constantly to improve the service networks of 4 avenues (east, south, west north) and Jiefang Road commercial Street within the urban.
 ■ Mid-term planning is to accelerate the development of the north-south avenue as the axis, Jiefang Road and Shajinqiao avenue opposite to each other, east-west five roads, Lianhu road and east-west avenue opposite to each other, forming a shape of the Chinese character‘
’in the central business district. Focusing on optimizing the network layout and structure adjustment, developing business function areas, combining the traditional features and the modern atmosphere together.
 ■ Long-term planning is to taking the bell tower as the center, north to Lianhu Road, west to the North-South Guangji Street, east to the Duanxiamen, baishulin, south to the south wall, forming a shape of the Chinese character “
” in the central business district and build up a number of large department stores, fashion outlets including a number of professional commercial streets, integrating shopping, leisure, entertainment and tourism into one complex and creating a central commercial pedestrian street. The construction of such commercial street area shall, in accordance with the requirements of high starting point and high standard, integrate the existing resources, implement the overall contiguous development, vigorously carry out attraction of investment, adjust the network layout, optimize the format structure, promote the network quality, improve the road environment, mitigate the traffic pressure, shape the image of a noble block, improve catering, finance and other ancillary services, enable it to become a jewel of western China commerce, creating the core western business area in the future with the features of noble shopping, leisure and entertainment, sightseeing and tourism. 
 2.5.2 Construction and Development of the Commercial Zones along Ring 2 road and Ring 3 road
 To construct and develop the second level of commercial service network in the commercial zones along Ring 2 road and Ring 3 road and the peripheral commercial areas.
 ■ The recent plan is to focus on construction and improvement of the commercial zone along Ring 2 road. Construct regional commercial centers surrounding Tumen, Xiaozhai, Sanqiao, Qujiang, Hujiamiao, Zhang Jiabao and other regions, rationally set up some large supermarkets, specialty stores and wholesale markets of agricultural products and household goods. Begin to construct the first suburban shopping mall in Xi’an, speed up the construction of the new logistics park and logistics and distribution center.
 ■ The mid-term planning is to construct the commercial zone along Ring 2 road and other regional commercial centers. surrounding Ring 3 line, to focus on construction of commercial networks in Jingwei District, Xinzhu District and Changan District, etc. to rationally set up suburban shopping malls, warehouse club stores and some wholesale markets of agricultural production materials, industrial production and other commercial service facilities in the urban fringe and trunk roads. 
 ■ The long-term planning is to further strengthen and improve the development and construction of the commercial networks of Lintong, Yanliang, Gaoling, Hu County and other satellite towns.
 2.5.3 Construction of supporting community commercial service networks

To establish a number of convenience stores, supermarkets, discount stores, grocery stores and other commercial networks in the densely-populated areas, new residential areas, development zone, urban towns and other regions for the mass’ convenience to consume, construct and develop the third level of commercial service network. Focus on construction of the supply facilities for people's daily necessities, to improve the service functions of the urban community commerce and the urban town, enable it to be equipped with features of rational network, complete industries, supporting services and convenience and benefit to the citizens.

Chapter Three Overall Layout of Commercial Network
 According to the current status of Xi'an City commercial layout, Xi'an City commercial system is divided into three levels of commercial  service network: the first level of commercial service network is the central business district; the second level of commercial service network includes four parts: regional commercial center, the commercial zone along Ring 2, the commercial zone along Ring 3 and the commercial circle in satellite towns; the third level of commercial service network includes the urban community commerce and urban town commercial area. The commercial network layout reflects the regulatory orientation of 'fashionable shopping in the center, leisure and consumption along Ring 2, enhanced radiation along Ring 3.
 3.1 CBD Planning
 3.1.1 CBD means the business center with highly-concentrated commerce, integrated business services and ultra-wide scope of services. Its functional features are: organic integration of complete industries, full function, forming shopping, catering, tourism, leisure, entertainment, finance and business appointment; its commercial characters are: relatively dense network, the most dynamic market, the most prosperous commerce, extremely strong radiation; its format characters are: prominent brand features, rational allocation of resources, and deeply-segmented market and the obvious window effect. Its passenger flow features are: a large daily passenger flow, the increasing proportion of migrant consumer population to the total volume of the passenger flow, as expected, to exceed more than 50%.
 3.1.2 The central business district of Xi'an, located within the Ming Dynasty City Wall, in the heart of Xi’an city, is the city's most bustling commercial section and the main concentrated venue for citizens’ shopping, the prime commercial location in Xi’an and the core area of Xi’an retail service networks. This district, regarding the historical and cultural context as the foundation, taking the commercial street with ancient style and traditional characteristics as an important carrier, highlighted by the old and famous brands with the historical heritage, combining modern commercial networks and new formats, has obvious location advantages, and cultural and tourism advantages, is the typical central business district with combination of tradition and modernity, the carrier of culture and tradition of Xi’an city, has the unique cultural charm and commercial appeal, bringing together so many well-known department stores, outlets and commercial streets in Xi’an, such as Kaiyuan Mall, Minsheng Department Store, Parkson Shopping Center, Century Golden Square, Luomashi, and Shuyuanmen pedestrian street, etc.
 3.1.3 The overall objective for construction of the network in Xi’an central business district is: to constantly improve the degree of the commercial concentration, promote the strategic adjustment of the layout of the network, enhance the taste of the commercial facilities, focus on optimizing and adjusting the layout structure of the network, develop the center business functional areas and combine the traditional features and the modern flavor. In the near term the central business district will focus on adjusting the layout of the existing retail outlets and restrict the construction and development of large supermarkets and wholesale markets in such district. To increase the proportion of new formats, improve the service function, enhance the modern flavor so as to create a highly bustling modern metropolitan commercial center.
 3.1.4 Considering the nature of the city and the current status of the market layout, the commercial orientation of the central business district in Xi’an is an integrated commercial center, focusing on shopping, leisure and tourism. Consumption is primarily aimed at tourism customers, consumers in the surrounding areas of the grand Xi'an metropolitan circle and Xi'an citizens.
 3.1.5 The central business district shall combine with its location characteristics, promote adjustment of the operational structure, develop and expand new areas of operation and services, improve the operation and service functions, by virtue of highlighting the advantages, featuring the operation, dividing the grades and completing the category, so as to form the special commercial atmosphere, integrated with leisure, tourism and shopping.
 3.1.6 The commercial network in CBD will be arranged according to the following functions and features:
 To serve the middle and high-end consumer groups and domestic and foreign tourists as the main objective, through the introduction of well-known brands, to form a fashionable shopping district concentrated with department stores, outlets and specialty stores, surrounding the bell tower as the core commercial circle.
 To renovate to the traditional commercial network facilities in the east revenue, renovate and construct Luomashi commercial pedestrian street, Tanshijie aquatic products street, Shangpu Road communication products Street; to construct 3-4 large commercial facilities to the east of Xi'an Restaurant, near the crossing of Duanxiamen and etc.; Continue to improve Kaiyuan Mall, Century Golden Square, Fanhui department, Xi'an Restaurant, Laosun’s Paomo and other well-known commercial enterprises’ service functions, in order to form No.1 western commercial downtown shopping district, focusing on featured commercial streets, fine department stores, specialty stores, local tourism souvenir shops and old and famous restaurants.  

To plan and construct the commerce and tourism street along the West Avenue, to newly build up 5-6 large comprehensive commercial facilities as an opportunity to quickly promote the commercial atmosphere of the West Avenue; to consolidate the business operation of the traditional old brands, renovate the Chenghuang Temple market, newly build up the Hui Muslim food commercial street in the West Avenue, to form a flavor food court and featured shopping area in the West Avenue and its surrounding areas, focusing on the traditional ethnic food and merchandise, ethnic restaurants, tourism souvenirs supplementing jewelry and paintings, antiques, sculpture, crafts and build up a tourism and commerce street with strong national tourist attractions and good reputation in the international market.
 To constantly enrich the commercial atmosphere of modern and fashion consumption in the South Avenue, while improving the service features and  advantages of the department stores, specialty stores, and financial institutions, business clubs, star hotels in the South Avenue, to form a leisure and sightseeing area, focusing on western-style bars, cafes, recreation room and leisure bars at its surrounding areas.
 To further fill up the commercial facilities in the North Avenue, introduce brand commercial enterprises stationed, newly build up 3-4 large-scale and high-grade commercial facilities in the middle of North Avenue and near the Bell Tower, making the North Avenue become one of new highlights, reflecting the modern commercial civilized consumption sites in Xi'an. 
 3.1.7 Guideline for Setting of Commercial Networks in CBD
 ■ Encouraged Setting:
 In the CBD, to encourage establishment of well-known brands outlets, specialty stores, featured catering networks, cultural and recreational facilities, and shops of tourist souvenirs with western characteristics, to vigorously introduce the old brands stationed; combined with renovation of the traditional commercial networks in the downtown, to renovate the existing department stores, in accordance with the principles of concentration of contiguous development, overall develop and construct several department stores or downtown shopping malls in a suitable section.
 Format setting emphasizes boutique, mid-high end and differentiated operation.
 ■ Restricted Setting:
 Large supermarkets and warehouse club stores, etc.
 ■Prohibited Setting:
  Suburban shopping malls, all types of wholesale markets and bazaars, etc.

3.2 Planning of Second Level of Commercial Networks
The planning of the second level of commercial networks involves four parts: regional commercial centers, the commercial zone along Ring 2 road, the commercial zone along Ring 3 road and the satellite commercial circle.
 3.2.1 A regional commercial center means a regional commercial center with moderate concentrated commerce, sound operation and service functions and extensive scope of services. From the perspective of building up internationalized metropolis, vigorously develop 20 regional commercial centers in Xi’an as planned.  
 Near term to focus on building up 12 regional commercial centers, such as Xiaozhai commercial center, Tumen commercial center, Hujiamiao commercial center, Bei'erhuan commercial center, high-tech district commercial center, Shapo commercial center, Zhang Jiabao commercial center, Hongmiaopo commercial center, Jingkai District commercial center, Qujiang commercial center, the textile city commercial center and Sanqiao Commercial center.
 In the mid-term to build up 5 regional commercial centers such as Weiqu commercial center, Guodu commercial center, Chanba River Ecological Park commercial center, Lintong commercial center and Jingwei District commercial center.
 3.2.3 Guideline for Setting of Regional Commercial Centers:
 ■Encouraged Setting:
 Middle-sized department stores, specialty stores, outlets, supermarkets, convenience stores, catering networks, cultural and recreational facilities. To encourage setting up professional wholesale markets and logistics and distribution centers in the Ring 3 commercial zone. 
 ■Moderate setting:
 Specialty stores, large supermarkets, home appliance and building materials stores, suburban shopping malls and bazaars, can moderately set up community shopping malls in six city sub-centers.
 3.3 Planning of Community and Town Commercial Areas
 The community commercial layout emphasizes the number and structure of the commercial networks should match to the size of the community. Xi'an will, in accordance with the quantitative relationship between its population size and the setting of its commercial networks, vigorously develop modern community-convenient commerce. The purpose of the community commercial networks is to meet residents’ daily consumption, closely focusing on their living needs, mainly setting up the commerce and services necessary for their daily living and consumption, setting up a complete package of household goods, catering networks and daily service networks. The service targets are mainly local residents. The community commerce shall, in accordance with the characteristics of different communities in Xi’an, set up the commercial networks. The concept of its commercial layout is to lay out, treating the community as the carrier, focusing on the community's small circle of short radius, based on the convenient services.
 3.3.1 The key construction areas of the center city community commerce included in the community (residential areas) commerce are: the residential areas 1 km away from the downtown or the regional commercial centers 1 km, with their respective population of 30,000-50,000 people and their respective service radius of 500 meters or so. Their community commerce areas will be generally set up according 200-500 square meters per thousand people. Meanwhile, in the newly-established communities, the appropriate-sized community neighborhood commerce center may be also set up, its business area shall be controlled at around 25,000-30,000 square meters.
 The community commerce is encouraged to set up commercial shopping malls integrated with shopping, catering, recreation, entertainment and living services, so as to meet the residents’ diversified consumption demands and grocery stores, convenience stores, discount stores, supermarkets, restaurants, barber shops, repair shops and other service facilities. As the main format, fresh food supermarkets, generally covering the area of about 1,000 square meters, focus on development of chain stores for regulation and integration. Convenience stores, generally radiating a radius of 500 meters, 5-7 minutes’ walk to arrive, 16 to 24 daily business hours, carry out payment of toll, purchase of tickets, delivery of goods, housekeeping, postal services and other incidental services.
 During the planning period, by virtue of all the concerned parties, to introduce diversified investors to overall integrate and renovate the low-end grocery stores, food stores in the street, by means of direct operation, franchising, shareholding, lease and restructuring, etc., to vigorously develop chain operations.
 The purpose is to benefit the public, appropriately set up the public catering, hairdressing, laundry, groceries, rent, dyeing, repairing, sewing and other service facilities.
 Restricted Setting: department stores and specialty stores, etc. 
 Prohibited Setting: Warehouse club stores, professional wholesale markets and large supermarkets, etc.
 The construction of the commercial networks of newly-established residential community must, in accordance with the relevant national norms and regulations,  proportionately support the construction, reflecting the people-oriented principle, in line with the environmental requirements suitable for community residents to live, to eliminate the impact of the flow of people, noise, and traffic, etc. on residential environment arising out of the establishment of large-scale commercial facilities.
 For the original urban blocks, to focus on improving service functions of the commercial network formats, enrich the kinds of commercial networks, enhance the grade and quality of commercial networks; for communities with the streets, residents’ committee transformed from villages and towns, to focus on improving the commercial supporting facilities, to enhance the network service levels, renovate and optimize the existing networks and add new service networks.
 3.3.2 The central town community commerce shall, based on the systematic framework of 3 counties and 44 towns, according to the overall strategy of the urban system planning 'enhance the polarization, expand the scale, concentrate on the axial, drive the flank', focus on the structure of the town-level of commercial network system for the town communities in the rural. The central towns play a model role to drive other towns to develop. In conjunction with the central town planning, to actively promote the construction of central town commercial system.
 Each town commerce shall, according to their respective industry-oriented, transportation hub, tourism-oriented, modern living and ecological leisure and other functional orientation, build up scientific and reasonable commercial networks, focusing on the construction and renovation of retail networks, so as to meet the consumption demands of different levels of residents as the goal, encourage setting up fresh food supermarkets, convenience stores, specialty stores, catering networks, living service networks, upgrading the meat and vegetable markets.
 According to the local population and purchasing power, to moderately develop supermarkets, department stores, specialty stores, discount stores, and culture and entertainment networks. To moderately set up large supermarkets, warehouse club stores, wholesale markets. The village level of networks shall be mainly based on convenience and benefit to the public and the network size should not be too large, focusing on standardizing business development direction.

 Chapter Four: Retail Network Planning

The proposed retail network is composed of two parts: the large-scale retail network which includes department stores, hypermarkets, large specialty stores, shopping malls, membership stores and home furnishing stores, etc.; and the small- and medium-scale retail network which includes grocery stores, discount stores, supermarkets, convenience stores, specialty stores and franchised stores, etc.

4.1 Objectives of large-scale retail network planning

To offer enhanced guidance for the planning of department stores, shopping malls, specialty stores and hypermarkets; to realize rational geographical distribution of high-level retail, catering, leisure and other services with good images; and to make such services a part of the wonderful commercial landscape of Xi’an and an impetus to uplift the image of the city.

4.1.1 Optimizing the development of large department stores

A department store is a retail establishment that primarily sells all kinds of clothing, shoes, bags, beauty, household products and domestic appliances by counters and self-service shelves. With an area of no less than 6,000 m2, the store normally features luxurious and refined decoration as well as complete functions and services. A department store is preferred to be located in a level-one commercial district or a district commercial center. In the face of great challenges posed by other retail businesses, the department stores are showing a downward trend in market share. The city shall establish a moderate number of new department stores in a centralized way in CBDs, and enhance upgrading and functional renewal of existing ones, so as to change traditional department stores with a single function into modern comprehensive stores with complete functions.

4.1.2 Developing a moderate number of membership stores

A membership store is a superior wholesale and retail shop which primarily sells clothing, food and necessities to general customers at cheaper prices. Of at least 4,000 kinds of commodities, a large portion is taken by name-brand products. The preferred location for the store is in-between the 2nd Ring and the 3rd Ring with convenient traffic and open spaces. In view of the considerable area that may be served by one such store, the number of membership stores shall be controlled to a moderate level.

4.2.1 Department store

A department store is normally situated in a CBD, district-level commercial center and commercial cluster formed in history. It targets mainly at residents and irregular customers and shall stay within or adjacent to a large business district which serves over 0.3 or 0.5 million residents and people from the surrounding areas. The stores shall be placed in major commercial functional zones, and their quantity shall depend on the population size of the city. In view of the above, the number of department stores in Xi’an shall not exceed 35, and such stores shall be located in level-1 commercial districts and regions where over 0.5 million people reside.

The planning of department stores shall prioritize the renovation and upgrading of existing stores, and allow a moderate number of new stores to be built. From now to 2006, the city shall strive to uplift the business performance of Kaiyuan, Minsun, Century Ginwa, Parkson and other existing businesses, and turn them into the flagship department stores of Xi’an. It shall also offer guidance for, among others, Shaanxi Military Store, Qiulin Co., Ltd, Taibai Mall and Zhonghui Department Store to adjust and adopt differential marketing strategies, so as to obtain market competitiveness in their respective districts, and form business clusters in CBDs and district-level commercial centers. From 2006 to 2010, three to four new department stores are expected on East Main Street; and two to three on West Main Street and North Main Street, where appropriate, to diverse high-end commercial businesses in CBDs. From 2011 to 2015, two city-level shopping malls are planned to be established in each of the four directions of east, west, south and north in key district-level commercial centers. From 2016 to 2020, several medium-level department stores will be built in satellite sub-cities like Yanliang, Lintong, Gaoling and Huxian County commercial center.

4.2.2 Membership store

A membership store shall stay within or adjacent to a large business district. Considering the population density, traffic conditions and surrounding commercial climate, the number of membership stores in Xi’an shall be set at 10, with each serving a population of 0.5 million or 5 km around. The store shall be built alongside a busy road on the urban-rural fringe where traffic is convenient, without interfering with the business districts of any hypermarkets. In view of these, Xi’an shall build theses ten stores at the 3rd Ring commercial belt. As a self-service shopping center where commodities are stocked on warehouse racks, the store normally takes up a business area of about 10,000 m2, and features practical and simple decoration. The targeted customers include small and medium retail stores, restaurants and group clients.

Considering the urban layout and demographic distribution of Xi’an, from 2004 to 2010, four to six membership stores will be established at the 3rd Ring commercial belt, including Sanqiao, Zhangjiabu, Textile City, Qujiang, Xinjiamiao and Shilipu, etc. From 2011 to 2020, another four to six such stores will be established in-between Chang’an and Huxian Counties, Sanqiao and Xianyang, Lintong and Weinan, and Yanliang and Gaoling.

4.2.3 Large specialty store

A large specialty store offers specialized commodities, wide varieties and full choices. It sells products of characteristic brands where the principal goods of business take up 90%. The store engages principally with pharmaceuticals, audio-video products, books, household appliances, culture, service, house furnishings, watches & clocks, glasses, foods, hardware, decorative materials, electrics and chemical engineering products, etc. The targeted customers are those with a need for certain commodities, which are not limited to local residents. Generally, the store features a flexible layout and stays within or adjacent to a commercial district with a population of over 0.1 or 0.2 million. Considering the total population of the city and the replacement of large specialty stores with other business forms, the number of such stores to be built up recently shall stay at about 60, where those for household appliances shall not exceed 20, those for pharmaceuticals not exceed 30, those for telecommunication products not exceed 18, and those for books not exceed 20. The preferred locations shall be in district-level commercial centers, on the urban-rural fringe, alongside busy roads, and near large residential areas compatible with the urban development plan, to offer services to customers within 2 km away.

4.2.4 Hypermarket 
A hypermarket shall be located on the rural-urban fringe, alongside a busy road or near a residential area compatible with the urban development plan, and shall stay within or adjacent to a business district with a population of over 0.1 million. The shop shall take up a business area of 6,000 m2, and target at residents within some 2,000 meters away. Considering the changes in population by districts in Xi’an and the replacement of different business forms, the number of planned hypermarkets shall not exceed 40 as per the short-term plan, and shall reach about 60 as per the medium- and long-term plan. The hypermarkets of the city shall be located mainly at the 2nd Ring commercial belt, so as to be adjacent to residential areas or alongside busy roads.

According to the short-term plan which takes into proper account the key factors in retail network planning, demographic distribution structure and traffic & parking conditions of Xi’an, etc., the city will set up 15 to 20 new hypermarkets at the 2nd Ring commercial belt, each being about 2 km away from each other to avoid overlapped operation across the street or next to the door. Those new hypermarkets include: one in Zhangjiabu district; one in Beiguanzhengjie Street; one in Shapo area at the east section of  the South Second Ring Road; one in Textile City area; one in Qujiang New District; one in Jixiang Village area; one in Yanta Rd. area; one at the north entrance of Tangyan Rd. in High-Tech Zone; one in Changying Rd. area; one in South Wenyi Rd. area; one in Sanqiao area; one in the west part of Daxing Rd.; one in Taihua Rd. area; one in Xianning Rd. area; one or two in Weiqu; and one or two in Guodu.

The medium- and long-term plan indentifies another 20 hypermarkets in Chang’an District, Lintong District, Yanliang District, Huxian County, Phase-II Park of the High-Tech Development Zone, Phase-II area of the Economic Development Zone, and the boundary between Xi’an and Xianyang, etc. based on the expectations on the economic development speed and population growth of Xi’an as well as the income increment of urban citizens.

4.2.5 Shopping mall

A suburban shopping mall, normally situated at a traffic hub in the outskirts, shall take up a construction area of over 100,000 m2 and stay within or near a large business district with a population of over one million. The shopping mall targets at residents within the business district and customers coming from a distance away. The suburban shopping malls of Xi’an shall be located somewhere outside the 3rd Ring where sees a low population density, convenient traffic conditions (especially at the intersection of main roads or with an easy access to express transportation system) and extensive tracts. One shopping mall shall be placed every 30 kilometers. Due to various factors, the suggested number of shopping malls to be built in the outskirts of Xi’an prior to the year 2015 is three.

To be specific, from 2004 to 2006, the first suburban shopping mall of Xi’an was planned between the north of Chang’an Hi-tech Industrial Park and the south to Zhangba Rd.; from 2007 to 2010, the second one was planned between the east of Xi’an-Tongchuan Expressway. in the Economic Development Zone in Northern Suburbs and the south of the Bypass; and from 2011 to 2015, another shopping mall would be planned between Xi’an and Xianyang (to the west of Sanqiao Township and alongside Xixian Rd.), based on the progress of economic integration of the two cities. 
Considering the characteristics of urban development of Xi’an, coupled with the city’s commercial layout & structure and traffic conditions, the shopping malls within the city proper shall be located mainly in district-level commercial centers and hopefully the planned six sub-centers of the city, to stay away from residential areas or places with heavy traffic loads.

According to the short-term plan, a shopping mall is planned in CBD; according to the medium- and long-term plan, one or two shopping malls will be expected in each of the six sub-centers, respectively. 
The community shopping malls lie normally in newly established large communities or district-level commercial centers which are densely populated, somewhere in-between the 2nd Ring and the 3rd Ring or beyond the 3rd Ring.

Since the business model of shopping malls is still in its infancy in China, the construction, location selection and planning of such malls shall be continuously optimized according to the city’s economic development scale, urban master plan and other factors.

4.3 Small and medium commercial network layout
4.3.1 Centralized layout

The term “centralized layout” refers to the idea of placing small and medium commercial facilities of various kinds in commercial streets or shopping malls. In this way, the small and medium facilities can develop a complementary business strategy of relying on the huge customer flows attracted by adjacent large facilities to gain more development potentials. Meanwhile, once gathering together, such small and medium facilities will translate into booming industries and businesses.

4.3.2 Community-based layout

The term “community-based layout” refers to the idea of arranging small and medium commercial facilities around communities to offer convenient services to customers within a short distance way. It lays an emphasis on the number and structure of commercial service facilities, which shall be compatible with the scale of the communities. Xi’an shall vigorously develop community-based modern convenient businesses, based on the population and the number of existing commercial facilities.

4.4 Key points of small and medium commercial network planning

4.4.1 Grocery store

A grocery store is a small type of retail business that primarily sells tobaccos, beverages, wines and snacks by counters and self-service shelves. The store normally takes up a business area of 100 m2 in a residential area or traditional business district, and targets at relatively fixed residents within 300 meters away.

4.4.2 Convenience store
A convenience store is a self-service retail shop that stocks foods and a range of everyday items to facilitate the customers. The store normally takes up a business area of around 100 m2 in a residential area, traffic station, terminal, gas station, hospital, school, entertainment venue, office building and other places of public activities or alongside a busy road. It targets mainly at residents and singles within 500 meters away, and deals with small, instant and urgent consumption activities. The store can also offer various services.

4.4.3 Discount store

A discount store is a self-service retail shop which sells products, mostly name-brand products, at prices lower than the typical market value. It normally takes up a business area of around 300 to 500 m2 in a residential area or alongside a busy road where the rent is relatively cheap. It targets mainly at residents within 2,000 meters away.

4.4.4 Supermarket

A supermarket is a self-service retail shop offering a wide variety of processed & fresh foods, household products and other daily necessities for the customers. The traditional supermarket occupies a business space of over 500 m2 and is usually situated in or near a district-level commercial center or residential area, so as to attract residents within 500 meters away, equivalent to a 10 to 15 minutes walking distance. The supermarket operates for at least 12 hours per day. In the face of a soaring number of supermarkets in Xi’an, the chain enterprises which are now undersized and poorly organized shall develop chained operation through acquisition of smaller supermarkets and gradually increase the share of fresh foods during the planning period.

4.4.5 Franchised store

A franchised store is a retail shop that sells principally a small volume of high-quality products of one certain brand with high gross profits. The store is normally situated at/in a CBD, district-level commercial center, specialty street, shopping mall and department store, with a business area based on the nature of its commodities. The store targets mainly at customers who have a relatively high consuming capability or who follow the fashion, and strives to maintain its brand reputation. The employees have to equip themselves with rich professional knowledge to offer professional services. During the planning period, the city shall encourage merchants to open franchised stores of globally or nationally famous brands to cater for the personalized needs of customers, and develop them into chained stores.

4.5 Changing free markets of small commodities and agricultural products into supermarkets

To achieve the goals of bringing the free markets of small commodities and agricultural products in Xi’an up to a satisfying scale and standard, from 2004 to 2010, the city plans to choose from various districts and counties ten such markets with certain scales and market effects, and change them into supermarkets; and appoint large chained enterprises to set up supermarkets which sell fresh foods, non-staple foods and daily necessities in new residential communities, schools and other densely populated areas. In around 2015, the city will finish the transformation of 134 traditional free markets of small commodities and agricultural products into supermarkets.

4.6 Underground commercial area development

In line with the requirements of Administrative Regulations on Urban Underground Space Development and Utilization formulated by the Ministry of Housing and Urban-Rural Development as well as pertinent rules on the protection of this renowned historical and cultural city, Xi’an shall develop and utilize underground resources by zones in an ordered and scenically sound way, based on the detailed plans to integrate military with civilian purposes in addition to ensuring easy and comfortable traffic for the citizens. According to the subway construction plan of the city, no underground commercial programs are allowed within the planned areas of subways Line 1 (Textile City - Sanqiao) and Line 2 (Chengyun Village – TV Tower); and continence stores, franchised stores, mini supermarkets and other types of retail businesses shall be reasonably placed at major stops along the Line 1 and Line 2.

Chapter Five: Wholesale Market Planning

5.1 Objectives of planning

Based on the 3rd Ring commercial belt, Xi’an shall press ahead with key projects to set up demonstrative examples, so as to gradually form a batch of high-end wholesale markets and medium- & large- wholesale clusters with robust functions and extensive influences. By enhancing the functions, and bring management activities up to standards through joint efforts, the city can develop a diversified wholesale structure and internet-based wholesale system; encourage wholesale enterprises to emerge; promote IT application and large-scale modern development of wholesale markets; give full play to the role of wholesale markets in allocating resources, collecting & sharing information, pricing and guiding production activities; and enable medium- & large-sized wholesale markets to offer a fresh impetus to the development of commerce & trade and goods distribution in Xi’an, and drive the growth of industry, agriculture, service industry and other related sectors.

5.2 Spatial layout of wholesale markets

5.2.1 Controlled development zone
The areas within the 2nd Ring shall see controlled development of wholesale markets. Considering the characteristics of the city proper development, no additional wholesale markets shall be established within the 2nd Ring. To be specific, no wholesale markets are allowed in municipal-level CBD (e.g. inside the city walls), district-level commercial centers (e.g. Xiaozhai, High-Tech Zone and Tumen) and densely inhabited districts. The original wholesale markets shall carry out stepwise customer diversion and rectification. Only those with a moderate area and a moderate shipment volume of IT, telecommunication products, household appliances, books and other products of high added value can be retained; those with a large shipment volume of vegetables, aquatic products, fruits, clothing and production materials, etc., shall gradually vacate the premises.

5.2.2 Key development zone

Lying in-between the 2nd Ring and the 3rd Ring on the rural-urban fringe, the key development zone shall be a gathering place of large-scale wholesale markets with huge freight volume of construction materials, automobiles, fruits, vegetables, aquatic products and farm & sideline products, etc. The construction of such markets shall not impinge on the features and overall environment of the places where they locate, and shall stay a certain distance away from the districts of residence, culture and education.  

5.2.3 Pilot development zone

Situated at the 3rd Ring commercial belt, the pilot development zone shall be where large wholesale parks reside to accommodate various wholesale markets in accordance with the urban master plan of Xi’an. The parks shall also have comprehensive service facilities with integrated management, instruction, centralized supervision and coordination functions, and shall stay as close to the logistics parks and distribution centers as possible. In addition to transportation and warehousing, the wholesale parks shall also develop multiple functions such as information management, funds settlement, centralized supervision, logistics R&D, talent training, convention and exhibition.

5.3 Renovation and upgrading of the wholesale markets

The existing wholesale markets in Xi’an shall undergo renovation, integration and reallocation, etc. to optimize the layout and revamp the markets.

5.3.1 Renovation
Xi’an shall press ahead with key projects to set up demonstrative examples. The key projects for renovation and upgrading shall include leading wholesale markets with solid foundations and considerable scales, such as the cloth wholesale market on Wenyi Rd. and non-staple food wholesale market on Tanshi Street, which are expected to play a demonstrative and guiding role. For example, the above-mentioned non-staple food market shall be transformed into a commercial street for local specialties and famous tourist souvenirs of Shaanxi. Some wholesale markets, which have insufficient scales or spaces but boast huge potentials and may seriously put back the development prospects if reallocated, shall be expanded. All profitable and promising markets which engage in the retail and wholesale of high-value products, depend lightly on land access and traffic and not compromise the overall image of the city shall be properly protected and guided in improving supportive facilities, enhancing service functions and uplifting the grades.  

5.3.2 Integration

The city shall close or change the business scope of shell markets, redundant markets or markets with poor economic returns, severe pollutions, incomplete supportive facilities, reconstruction difficulties, dim prospects or incompatibility with urban development trend. Any markets of the same kind within the wholesale clusters are encouraged to merge in multiple forms. And markets with identical nature, adjacent locations, and considerable development prospects shall be integrated, such as Daming Palace construction material market with Taihua Rd. construction material market, and light industry wholesale market with Renhe and Yiwu commodities cities.

5.3.3 Reallocation

Any profitable and promising wholesale markets which are somehow affected by land access, traffic, pollutions and other factors shall be moved to the outskirts of the city where traffic is convenient. For example, Yuxiangmen automobile wholesale market, Ziqiang Rd. hardware wholesale market, Changle Rd. fruit wholesale market, Tanshi Street non-staple food and aquatic products wholesale market, and Wenyi Rd. cloth wholesale market, etc., shall be reallocated to the third ring commercial belt.

5.4 Non-staple food wholesale market planning

The recent years have seen a rapid growth of non-staple food wholesale markets in Xi’an. By the end of 2003, the number of wholesale markets for five categories of edible agro-products (incl. grains, vegetables, fruits & melons, fowls &live stocks and aquatic products) recorded 145, accounting for about 29.71% of all wholesale markets in the city. To be specific, those for vegetables, fowls and live stocks reached 123, accounting for 25.2% of all wholesale markets in the city; those for dried and fresh fruits reached 13, accounting for 2.66%; and those for grains and oil registered 9, accounting for 1.84%.

Chapter Six: Commercial Street Planning

6.1 Objectives of commercial street planning
A commercial street is a block with a high density of various franchised stores, specialty stores and featured stores where special products and professional services are available. The commercial street is an integral part of the urban commercial network, a miniature and pick of the urban commercial progress, a gathering place of commercial facilities, and a powerhouse to the sustained development of trade & commerce, goods distribution and tourism industries. The planning, construction and development of commercial streets play a vital role in modern trade & commerce and goods distribution. The modern commercial street shall feature a “customer-oriented” spirit, rich cultural connotations, distinctive tourism highlights and complete supportive facilities, and shall embody a good combination of shopping, leisure and recreation activities. Also, it shall become an important vehicle for traditional commercial cultures to interact with modern ones to bring enhanced charms.

With a long history of development, the commercial streets of Xi’an have grained growing momentums in recent years. Under the great pressure of emerging large-scale retailers in the outskirts and new towns of the city in addition to the impetus of urban renewal, Xi’an has made intensified efforts in the construction and upgrading of commercial streets, which has led to marked improvements in their environment and varying increments in customer flow, business volume, market attractiveness and influences. But we shall never ignore the problems with the streets, such as unobvious characteristics, land overuse and incomplete supportive facilities, and the solutions shall rely heavily on the formulation and implementation of related plans.

6.2 Key points of commercial street planning
To adapt to the needs of social, economic and urban spatial development, Xi’an shall build a reasonable amount of commercial streets; accelerate the upgrading, construction and development of featured streets; offer a better environment of shopping; and form a commercial street system with distinctive characteristics, complete functions, reasonable layouts, diverse types and varied levels. The city will turn commercial streets into the mainstay for the commerce & trade and goods distribution industry and will strive to form a few streets with considerable visibility and reputation in the West and even in China, so as to add luster to this modern commercial metropolis.

6.3 Commercial street layout

6.3.1 The commercial streets shall be laid out in line with the requirements of urban development and planning 
The commercial streets are a product of urban development; their layout shall, therefore, adapt to and tally with the requirements of urban development and urban master plan to embody various functions. Though located mainly in CBDs and secondary commercial service network, the commercial streets shall also take regional balance into due account, combining new urban areas with commercial functional blocks to develop a moderate amount of commercial streets. Both in the old city proper and commercial streets, great importance shall be attached to the protection of time-honored brands and inheritance of traditional cultural with historical values, in an effort to enrich the cultural connotations of the commercial streets. As due respects shall be given to the spatial structure, road layout and architectural style formed throughout the history, large-scale demolishing and rebuilding works are improper in upgrading the commercial streets, so as not to destroy the original features and historical & cultural atmosphere of the city.

6.3.2 The commercial streets shall stay in harmony with urban traffic system.

The commercial streets in CBDs shall be reconstructed without increasing any pressure on urban traffic system, and those outside the 2nd Ring commercial belt shall enjoy convenient traffic. The specialty streets shall carry out renovation based on sample presentation and trade negotiation, and separate business flow from logistics. The renovation and construction of commercial streets shall make much account of surrounding road network and static traffic facilities, which are easy for customers to gather and evacuate and may not interfere with the overall running of urban traffic system.

6.3.3 The commercial streets shall be equipped with supportive facilities and optimized shopping environment.

The commercial streets shall highlight overall compatibility and human-based design with a “people-oriented” business mindset, and equip themselves with corresponding tourism, leisure and recreational facilities according to respective conditions, so as to create a sound shopping environment and enhance their attractiveness for customers. The supportive facilities shall include, by functions, traffic facilities, public facilities, greening facilities, recreational facilities, leisure facilities and information facilities, etc.  

6.3.4 The commercial streets shall have unique orientation and image.

The commercial streets shall have their own unique features and customer sources, and shall reach a reasonable scale to enhance the market competitiveness. Either too long or too wide streets are not favorable for laying out business facilities with appropriate density and scale, and attracting customers. The commercial streets of varying types and features shall fit in together to bring solid benefits; adopt unique architectural styles to keep compatible with the urban design and avoid weary sameness; grow unique commercial charms, product charms and functional charms that well combine tradition with modernity; and develop an industrial structure (40% for shopping, 30% for catering, and 30% for leisure and recreation) to meet the multi-leveled and multi–directional customer needs.

Chapter Seven: Logistics Planning

7.1 Objectives of logistics sector planning in Xi’an
With an aim of establishing and optimizing a modern logistics system with “reasonable structure, supportive facilities, advanced technologies and highly efficient operation”, Xi’an shall turn into good account its advantageous location and the guiding policies and macro-control functions of the government. The city shall also enhance logistics infrastructure and application of modern IT technologies to attract enterprises with considerable scales and competitiveness, and offer vigorous supports to leading third-party logistics companies which feature the integration of production, study and research. The city shall also design and build up modern logistics parks and functional logistics distribution centers, to make sure that the growth rate of modern logistics industry surpasses the city’s GDP growth.

7.1.1 Specific goals:

■ The increment in the logistics industry shall reach RMB 34 billion by the year 2010 and RMB 55 billion by 2020. The output of the industry shall account for more than 15% of the city’s GDP.

■The proportion of logistics cost (warehousing, inventory, transportation and management) in GDP shall decrease by 1% per year from 2004 to 2010, and 1.5% per year from 2011 to 2020.

■ The city shall establish and support 2 to 4 large-scale third-party logistics enterprises with a market presence in the whole central and western areas by the year 2006, and enable 5 to 8 leading third-party logistics conglomerates with absolute regional predominance and a national coverage to keep a robust growth by the year 2010.

7.2 Logistics industry layout 
Since production materials and consumer goods are mostly imported into the East and then transported to the West by road, rail and sometimes air, Xi’an, as the hub for commodity collection and distribution between East and West China, will speed up the construction of two logistics parks, seven logistics centers and ten distribution centers from 2004 to 2010 in line with the urban master plan.

7.2.1 Establishing two new logistics parks

■XITLP Xinzhu Comprehensive Logistics Park

The park plans to take up an area of six square kilometers in Lintong-Xinzhu sub-center and will embody comprehensive functions. It enjoys superior traffic as is located to the south of the planned Xi’an North Railway Station, to the west of Xi’an-Yanliang Expressway, and adjacent to North 3rd Ring, Beltway and Xi’an-Tongchuan Expressway. The park is the largest logistics industry development zone and logistics enterprise cluster of the city and engages principally with the port cargo distribution and transshipment, warehousing, national & global freight forward, national & global air express, logistics information management and service, etc. for Xi’an and surrounding areas. The park will finish land zoning and planning from 2004 to 2006, and finalize the list of enterprises from 2006 to 2008, and will complete all construction and realize full operation in 2010.

■ Xi’an Liucunbu Airport Logistics Service Center 
Situated in Xixian Pilot Economic Zone and Liucunbao Industrial Park, the center adjoins the Economic Development Zone of Northern Suburbs and is surrounded by No. 2 Airport Line in the east, Taoyuan Rd. in the west, Beltway in the north and 3rd Ring Rd. in the south. It takes up an area of 4.7 square kilometers, and enjoys superior traffic conditions as is only 8 kilometers away from Xianyang Airport. With integrated airborne, railway and road transportation strengths, the center will become a comprehensive logistics base for modern warehousing, multi-modal transportation, processing & distribution, products sorting, wholesale and trade, etc.

7.2.2 Revamping and upgrading seven logistics centers

■Textile City Textile and Clothing Logistics Center
By dint of the tremendous industrial strengths, Textile City will gain renewed vitality alongside the construction of the new campus of Xi’an Textile College and the reform of the traditional textile sector through high and new technologies. Dealing principally with textile and clothing, this logistics center takes up an area of two square kilometers and enjoys convenient traffic as is located to the northwest of Textile City and adjacent to 3rd Ring Road, Xi’an-Lantian Highway and Xi’an-Ankang Railway. The center will become the largest base for the warehousing, processing and batch transfer of textile and clothing in West China. It plans to finish location selection and enterprises entry by 2008 and realize normal operation before 2010.

■ Weiqu S&T Logistics Center

Located to the south of the beltway and at the northwest corner of Weiqu Cluster, this 2-km2 center plans to offer warehousing and distribution services for high-tech products in virtue of the strengths of Weiqu Technology Park as well as higher-education institutions and scientific research academies in southern outskirts, so as to facilitate the development of information industry in Xi’an. The center will finish land zoning and planning, and finalize the list of enterprises prior to the year 2008, and will complete all construction in 2010.

■ Sanqiao Automobile Logistics Center

Based on China West International Auto City, the center engages with the warehousing and distribution of automobiles. It occupies a planned area of 2.3 square kilometers and enjoys advantageous traffic as is near Xi’an-Baoji Expressway Houweizhai Overpass and Railway South Loop. It will become the largest warehousing and distribution base for vehicles, mechanical and electrical products, and accessories in the West. The center will accomplish upsizing and technology upgrading in 2008, and will realize normal operation in 2010

■ Caotan Fruit Logistics Center

Based on Huasheng (Group) Corp. and Xi'an Modern Agriculture Comprehensive Development Zone, the center, with a planned area of 2 square kilometers, enjoys obvious traffic advantages as is located to the east of Xi'an-Tongchuan Expressway and in the vicinity of North Railway Station. As a major fruit producer, Shaanxi is expanding the industry of apples and kiwifruits by leaps and bounds. The establishment of Caotan Fruit Logistics Center will benefit the commercial production and export of fruits, and will provide a base for the warehousing, processing, sorting, packaging and transporting of fruits and farm & sideline products in West China. The list of enterprises to move into the center will be finalized in 2008, and all construction will be completed in 2010.

■ Beishiqiao Logistics Center

Located to the west of Xinghuo Rd., to the North of Longhai Railway and to the South of Daxing Rd., the center enjoys superior railway and road traffic conditions. Based on the vast warehousing areas to the north of Xi'an West Railway Depot and CMST Development Xi’an Branch, etc., the center is close to commerce & trade, goods distribution and production enterprises in the city proper, and will develop into a logistics and distribution base of daily consumer goods, foods and other industrial products. It will finalize the list of enterprises to move into the center and accomplish service upgrading prior to 2008, and will realize full operation in 2010.

■ CMST Development Building Material Logistics Center
CMST Development is a large-scale logistics company in Xi’an which offers integrated comprehensive services of warehousing, distribution, marketing, trade, processing, freight forwarding, information exchange and railway & road transportation, etc. The center will move beyond 3rd Ring Rd. after 2010.

■ Yinzhen Township Warehousing Logistics Center

Located to the southeast of Xi’an, Yinzhen Township is a pilot town in Shaanxi that implements small-town comprehensive reform. With abundant power supply, rich land resources and fresh water and advanced telecommunication technologies, the town has seen the presence of several large-scale warehousing logistics companies and trade markets. Yinzhen Township Railway Station has been identified by the railway authority as a comprehensive railway-based freight transportation center in the southern outskirts of Xi’an, and become an important hub along the main course of South-North supply transportation in China. The center plans to take up an area of 6 square kilometers, and will become a key south-north logistics base in Xi’an.

7.2.3 Planning the construction of ten distribution centers

Considering the current urban road & traffic conditions, as well as the role of Xi’an as a logistics center, the city shall turn into very good account the existing land resources, and build up Northwest China CPNL Distribution Center, Haixing Supermarket Logistics Distribution Center and Northwest China Farm and Sideline Products Logistics Distribution Center. In addition, the locations for ten planned logistics distribution centers are indentified, namely, Xianning Rd., Huaqing Rd., North Taihua Rd., Dabaiyang Rd., Zaoyuan Rd. and Youyi Rd., etc., so as to link up logistics centers with manufacturers and link up trade & commerce and goods distribution enterprises with end consumers.

Chapter Eight: Implementation Measures for Commercial Network Development Plan

8.1 Strengthening government regulation, control and guidance

The government shall give full play to the functions of its "visible hand" in setting up and developing a commercial network, so as to create a favorable climate for commercial development. Detailed planning and design, which shall be implemented upon scientific studies, are required for the construction of large-scale commercial service facilities. The government shall facilitate the implementation of commercial network plans by multiple means, including legislation, information consultation, grant of land and commercial development foundations. The government shall, in line with the requirement of commercial network planning, set forth stage-by-stage objectives; issue the construction guidance at regular intervals; notify the society of commercial service programs which are encouraged, permitted and banned by stages to guide social investment; manage market access of commercial service facilities through, among others, planning control system, joint conference system and hearing system, and guide corporate investment based on the commercial plan; concentrate similar businesses in specialized blocks to promote the development of the commercial street; and set strict control over any commercial facilities out of step with the overall commercial layout.

8.2 Ensuring the authority and consistency of commercial plans 
The city shall incorporate commercial plans into the urban master plan, and confer the force of laws and regulations on commercial plans upon approval of the Municipal People’s Congress. Government authorities at all levels shall earnestly implement such plans, which are not subject to any changes in personnel or interest of departments. Only in this way can we raise the investment expectations of the enterprises to attract investment and solicit business; and can we guide the merchants in selecting proper locations based on the plan to avoid overlap and disorder in the development of commercial service facilities.

8.3 Further improving local laws and regulations

The government shall improve local laws and regulations over the commerce & trade and goods distribution sector; regulate the performance of key market players; safeguard lawful operations; promote fair competition; and maintain sound market order. The government shall also encourage chain-store operations and commercial information application, and create a sound environment for business operation bulwarked by legal systems.

8.4 Improving the hearing system for large-scale commercial facilities

Considering the great impacts that may be generated by newly-opened large-scale commercial facilities, it is imperative to set up a hearing system for location selection. Led by commercial and trade authorities, the hearing shall be participated by the departments of planning, land and commerce, etc., and the hearing committee shall be composed of experts, individuals, government organizations and enterprises. The hearing system will be conducive to the birth of standardized review and consultation procedures, so as to offer stronger guidance and regulation for the construction and development of large-scale commercial service facilities in Xi’an. All new and upgraded commercial programs within the city proper shall strictly follow the layout and instructions identified in the present Plan. All commercial programs to be newly established or upgraded for special reasons shall be implemented under the conditions permitted by this Plan, upon approval of the hearing committee which is responsible for setting up large-scale commercial facilities in Xi’an.

8.5 Reinforcing unified leadership and coordination 
The commercial layout and development is a systematic work that involves the efforts of all departments and industries. The construction of large-scale programs involves the departments of industry & commerce, planning, traffic, fire fighting and municipal works, etc., and requires enhanced coordination among all functional departments of the government to solve practical problems in an effective way and uplift the efficiency of macro-management. The government shall also simplify the procedures for land grant and house demolition, help solve all kinds of problems that come along with the grant of lands, and coordinate the conflicts among various stakeholders.

8.6 Strengthening infrastructure construction 
We shall strengthen researches over compatibility and balance between commercial functions and traffic functions; rev up the construction of a reasonable amount of infrastructure; and remove the bottleneck in transport services and environment. Infrastructure construction is normally an area where market resources fail to be properly allocated, which rams home the need for the government to intensify guidance and investment, win supports from relevant departments at the municipal and provincial levels, and work out preferential policies for major commercial facilities. Definite efforts shall be made for the construction of road networks, packing lots, pedestrian tunnels, pedestrian overpasses, bus routes and other municipal infrastructure. Social funds are encouraged in setting up some infrastructure like packing lots.

8.7 Creating a commercial environment of good faith
Integrity and good faith underline an uplifted operational performance of commercial service facilities. The government has to create a commercial environment of good faith; enhance supervision and monitoring over commercial service facilities and, in particular, fresh food markets; offer guidance to enterprises and businessmen in realizing law-abiding operation and fair competition, and avoiding any fake and forged commodities which may jeopardize people’s life and health, such as unlicensed slaughtering, swill oil, poisonous rice and adulterated wine; take a strong stance against the marketing of fake and forged commodities, price swindling, oppression of the fellows of same trade; implement pilot credit awarding by commercial credit enterprises; and mobilize the society, media and industrial associations to play a supervisory role, so as to create a sound business environment where the society plays a decisive role in good-faith performance which in turn benefits the society.

8.8 Strengthening government services 
The government shall foster a sense of service, clearing up worries and problems for enterprises and individuals; take proactive and flexible approaches to offer related services, in a bid to arouse greater enthusiasm among enterprises for business operation and facilitate the development of commercial facilities; and set up the “Library of Construction Projects for Commerce & trade and Goods Distribution Industry of Xi’an” which includes the investment information for commercial and trade programs, so as to control and guide the construction of large-scale commercial facilities. For projects included in the library, the pertinent departments shall start up a few, reserve a few and follow up a few, targeting funds and setting up commercial layout in a reasonable way to fit in the overall plan of the city and the plan of municipal commercial facilities. The government shall also improve the commerce & trade and goods distribution network system of the city.  

8.9 Calling into full play the role of industrial associations 
The government shall gain a full recognition of the importance and role of industrial associations in commercial development; take advantage of the role of commercial federations, market associations, commercial street enterprise associations, marketing associations and other industrial agencies in offering services, facilitating communication and regulating activities; rely on the chambers of commerce and industrial associations at all levels for advices and preparations prior to making decisions; cooping such associations for discussing and formulating relevant national laws and policies; give full supports to such associations for enhanced coordination of the industry and safeguard the legitimate rights and interests of related enterprises; and enable them to function as a bridge for the government and home to their members and to assist the government in managing the progress of commercial development.

8.10 Guaranteeing land access by key commercial programs

The government shall guarantee land access by planned key commercial facilities, for which the land shall be reserved and retained for a certain span of time. Major changes have taken place to the original functions of land, which rams home the need for adjustment of land functions through legitimate procedures based on related plans. This Plan shall, in principle, be successfully implemented and stuck to in land resource allocation. Meanwhile, the land access by commercial facilities shall conform to the related national laws and regulations on land use, which is conducive to the market operation of lands.

8.11 Making vigorous efforts in attracting investment

To attract investment for key projects - We shall give prominence to major commercial service programs in attracting investment, and take in extensive capitals from foreign, State-owned and private investors, principally noted foreign-funded Fortune 500 enterprises, to jointly push forward such programs. We shall also introduce, through door-to-door business canvasses and promotion fairs in good time, key commercial programs with pertinence to better convince investors.  

To blaze new trails in attracting investment: encouraging organizations and individuals to act as liaisons to help attract investment, and creating an investment climate in which merchants are settled and well treated. First, we shall properly plan and vigorously publicize key commercial programs, foster a sound brand image, implement brand strategies, and attract investment through the brand reputation. Second, we shall identify one or two themes for soliciting business on a yearly basis based on the features of key commercial programs. Third, we shall optimize the network for attracting investment through multiple channels including agencies, commissions, liaisons, door-to-door canvasses and online activities. Fourth, we shall offer a favorable business environment and supportive services with a good image to attract investment, and forge a management system of comprehensive services for the investors.

8.12 Adopting “commercial developers” system

The system of “commercial developers”, which is prevalent in developed economies and regions over the past decade, shall be referred to and introduced in such key commercial programs as commercial function zones, commercial streets, wholesale market parks, wholesale markets, logistics parks and shopping malls. According to the system, the construction of commercial facilities must be undertaken by professional agencies with pertinent qualifications and competence of commercial development. The city shall also offer guidance for commercial developers in managing the platform of commercial streets, wholesale markets, logistics parks and shopping malls, so as to implement up-to-standard and centralized leasing and management which is conducive to high-organized commercial facilities. The commercial developers shall have a global vision, as well as experiences and achievements in commercial development and property management, competence and knowledge about business operation, and competence of commercial facilities design.

8.13 Introducing and cultivating high-quality talents
The government shall create a sound environment for talent to grow. The development of modern circulation industry requires a cohort of high-quality talents and management experts. In an effort to rev up the development of modern circulation industry and put into practice the commercial layout and development planning, the city has to foster a “people-oriented” work environment and entrepreneurial culture where talents can be attracted by career prospects, retained by sound atmosphere and motivated by proper mechanism. We shall also work out preferential policies for bringing in talents, and give priority to household registration, dependents employment, children's schooling and nursery and other practical problems of top-notch elites. In addition, we shall implement annual salary and stock option incentive systems for managers, and establish and optimize long-term incentive mechanism and performance evaluation system for enterprises. Domestic and overseas technical professionals from the circulation sector (incl. logistics, retail and wholesale, etc.) as well as talents in strategy management, marketing management, standardization management and information management shall be introduced into Xi’an through multiple channels, including talent fairs in and out of Xi’an and exchange meetings for students abroad.

The government shall intensify the training for commercial talents by setting up an open training base and offering regular training sessions for key personnel through a combination of long-term training with short-time training, school training with in-service training, and domestic training with overseas training, etc. The government shall focus on talent training for key enterprises and programs to foster a team with abundant knowledge about modern goods distribution business; and vigorously cooperate with research institutions, colleges & universities and social organizations, etc. to display their respective advantages, so as to intensify learning and researches over the theories and practical applications of modern goods distribution industry, and cultivate experts in different aspects through practices.

Chapter Nine: Miscellaneous

9.1 As the business administration authority of the municipal government, Xi′an Commerce and Trade Bureau has formulated and implemented this Plan in joint efforts with related departments of the municipality. The business administration authorities of each district shall help control the number and structure of businesses of all categories and forms within the corresponding administrative area, in line with the requirements of this Plan.

9.2 Xi′an Commerce and Trade Bureau shall publish commercial construction guidelines and classified commercial development catalogues on a regular basis; put forward stage-by-stage goals for the construction of commercial service facilities, based on the development priorities and urban commercial network planning of Xi’an; issue the construction guidance at regular intervals; and notify the society of commercial service programs which are encouraged, permitted and banned by stages to guide social investment

9.3 The renovation and establishment of any single retail commercial facility of over 4,000 m2 within the administrative regions of Xi’an city shall undergo a hearing procedure.

9.4 The executive committee for Xi’an commercial network planning shall be set up to implement and supervise the planning of commercial service facilities.

9.5 In addition to the present Plan, the commercial establishments at all levels shall also conform to other relevant rules and regulations of the State and Xi’an which are currently in force.

9.6 The commercial plans at all levels shall be implemented step by step, and the district-level commercial centers and residential-area-based commercial facilities within adjacent regions shall be arranged based on the overall planning to avoid overlap and redundancy. 
9.7 The present Plan is used mainly as guidance for the establishment of new commercial facilities, and can be referred to in revamping existing commercial facilities at all levels.

9.8 A moderate number of commercial facilities shall be laid out in a residential area, to offer the right categories and forms of businesses to facilitate and benefit the people.

9.9 The large commercial facilities shall be equipped with parking spaces for motor and non-motor vehicles, in accordance with the parking garages (lots) standards of the city which are currently in force.

9.10 Xi′an Commerce and Trade Bureau retains the final right to interpret this Plan.