State-market dynamics of central business district (CBD) development in Chinese cities - An anchor-firm perspective

Unlike their Western counterparts, central business districts (CBDs) built in post-reformed China are often sit-uated in remote locations without pre-existing advantages. Neither market-centered nor state-centered mecha-nisms can sufficiently explain their emergence and growth. Using the lens of state-market dynamics and perspective of anchor firm, this study examines the spatiality and growth of two recently established CBDs in Guangzhou. Important processes are captured. (1) Empowered by soft-budget constraints, the local government can launch ambitious CBD projects in peripheral locations. (2) Owing to its relationship with state-owned en-terprises and its capability in manipulating the land market, the local government has adopted an anchor-firm strategy to engender positive externalities that attract additional investments and industries. This strategy has played a crucial role in expediting the launch of a new CBD. (3) Although state initiatives are pivotal in initiating the growth of Chinese CBDs, their effectiveness is subject to the locational attributes of producer services, the central CBD activities. The findings highlight the intrinsic relationship between the state and the market, which is fundamental in theorizing the nature and dynamics of new urban space production in China.