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T ony Abbott wants to see cranes standing above the cities of Australia. First he’ll have to come to western China and the ancient city of Chongqing because that’s where it appears almost all the world’s cranes are being used. A city that dates its history back more than 2000 years, its population is growing nearly 200,000 residents a year. Within three blocks of the absolute centre of the city — a centre dominated by huge Cartier, Rolex and Louis Vuitton advertisements — there are a few 50 storey-plus skyscrapers being built. And across the Yangtze River in the “new Chongqing” more than a dozen high cranes are being put to use building high-rise apartments. And even at the end of the city’s main airport there are almost 30 high cranes working on new residential and business developments. A decade ago Shanghai was where almost 50 per cent of the world’s high cranes were being used. While that city continues to grow at a mind-boggling pace, the cranes have moved westwards to centres such as Chongqing, which has averaged economic growth of 14 per cent a year for the past five years. For most Australians, Chongqing is unknown. History-minded people might recognise it as the capital of China during World War II. Now, however, it is just a city that most have never heard of. But later this month direct flights will commence between Sydney and Chongqing. The city’s airport already handles more than 22 million passengers a year — almost double the number through Perth Airport. In a city with so many skyscrapers it is perhaps not a surprise that Australian company Eastern Elevator has established its Chinese headquarters in Chongqing. The city is also home to car manufacturers including Ford, Suzuki, Fiat and China’s Chery. Australia’s DSI, which supplies drivetrains and clutches, has set up in Chongqing to supply the industry. And 100km away, through a series of tunnels and bridges, is Chongqing Iron and Steel where you can watch WA iron ore unloaded from ships that have made their way up the Yangtze. The steel that is made will find its way to the nearby car manufacturers. Looking at all the cranes and all the construction it’s easy to get carried away about China’s economic future. It can be too easy to miss the forest for all the 50-storey concrete and steel trees. Many big apartment blocks are being built but there is continuing doubt about who will live in them — China is getting richer quickly but that wealth is not being spread evenly. The country also is spending hundreds of billions of dollars creating the world’s biggest high-speed rail network. About $24 billion is being sunk into a high-speed rail link to the far western city of Urumqi. It seems to have been built to satisfy political concerns about western provinces where large minorities, or in some cases ethnic majorities, are not so enamoured of Beijing’s form of government. At $24 billion, that’s a lot of cash to make a political point. Yet it marches on, with pundits surprised by the public usage of the 10,000km of high-speed rail already in existence. And it has taken some pressure off the airport system. Closer to home, Mr Abbott has made plenty of political mileage in his focus on building major road projects in Sydney, Melbourne and Brisbane. At the same time, he has made clear his Government’s distaste towards funding urban rail projects, much to the chagrin of Colin Barnett and Troy Buswell. But driving around Shanghai, Chongqing and Beijing as I have for the past fortnight, it’s clear that roads are not the single answer for the mass transit of millions of people. Shanghai is clearly being consumed by cars. It is a combination of a population that is rapidly becoming more wealthy, enabling more and more people to buy a car to put on to a road system already congested beyond belief. Beijing’s 10-lane ring roads are something to behold. But they are also choking, as are the residents as smog combines with dust to make face masks more than a fashion accessory. And Chongqing is in a difficult situation because the town centre is so mountainous that moving goods, let alone people, is extremely difficult. Especially when you’re adding thousands of people a week to the city. In each case, authorities are trying to deal with the avalanche of cars with policies such as taxing lightly small engine vehicles or experimenting with public transport — Chongqing has a monorail-type Metro that effectively runs through some buildings as well as a type of subway. Figures out last week from the Australian Bureau of Statistics suggest Perth will overtake Brisbane as the nation’s third biggest city by 2028, with a population of three million. Given the space which Perth — with a population approaching two million — has managed to absorb it seems more than downright stupid to expect an extra million residents, and their near quarter-acre blocks, to only use a crowded road system to move about. While much is made of the way China residents are buying more cars as they get richer, a less remarked-on development is also under way in Australia. Whereas Chinese residents are buying their first car, in Australia more and more people have two or three cars. Congestion on roads is worse in Sydney, where public transport is an extended four letter word, and Melbourne. Infrastructure is more than just roads. It is about integration, recognising that people need to go about their business and getting it in place with an eye to the future as well as present day costs. Focusing on one mode of transport in a country that is growing fast is asking for trouble. And the political leaders who make the decisions today won’t be around to face the consequences of their missteps. That goes as much for the leaders of the Chinese Communist Party as those inhabiting the Commonwealth and State government benches. Onwards, upwards: Construction work on the Wayaobao Bridge, part of the Yuiang Highway in Chongqing municipality, China. Picture: Getty Images Chinese boom has a message Shane Wright Economics Editor bruce springsteen WIN TICKETS TO ENTER ONLINE AT SPIRITRADIO.COM.AU weight loss & exercise guide the new year Look out for our New Year Weight Loss & Exercise Guide (Centrespread of Today, wrapping Mind and Body section) in tomorrow’s The West Australian. 2279435-1πJPRP060113 17 OPINION thewest.com.au Monday, January 6, 2014

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Page 1: thewest.com.au Chinese boom has a message · bruce springsteen WIN TICKETS TO ENTER ONLINE AT SPIRITRADIO.COM.AU weight loss & exercise guide the new year Look out for our New Year

Tony Abbott wants tosee cranes standingabove the cities ofAustralia. First he’llhave to come towestern China andthe ancient city of

Chongqing because that’s whereit appears almost all the world’scranes are being used.

A city that dates its historyback more than 2000 years, itspopulation is growing nearly200,000 residents a year.

Within three blocks of theabsolute centre of the city — acentre dominated by hugeCartier, Rolex and Louis Vuittonadvertisements — there are afew 50 storey-plus skyscrapersbeing built.

And across the Yangtze Riverin the “new Chongqing” morethan a dozen high cranes arebeing put to use buildinghigh-rise apartments.

And even at the end of thecity’s main airport there arealmost 30 high cranes workingon new residential and businessdevelopments.

A decade ago Shanghai waswhere almost 50 per cent of theworld’s high cranes were beingused. While that city continuesto grow at a mind-boggling pace,the cranes have movedwestwards to centres such asChongqing, which has averagedeconomic growth of 14 per cent ayear for the past five years.

For most Australians,Chongqing is unknown.

History-minded people mightrecognise it as the capital ofChina during World War II. Now,however, it is just a city thatmost have never heard of.

But later this month directflights will commence betweenSydney and Chongqing. Thecity’s airport already handlesmore than 22 million passengersa year — almost double thenumber through Perth Airport.

In a city with so manyskyscrapers it is perhaps not asurprise that Australiancompany Eastern Elevator hasestablished its Chineseheadquarters in Chongqing.

The city is also home to carmanufacturers including Ford,Suzuki, Fiat and China’s Chery.Australia’s DSI, which supplies

drivetrains and clutches, has setup in Chongqing to supply theindustry.

And 100km away, through aseries of tunnels and bridges, isChongqing Iron and Steel whereyou can watch WA iron oreunloaded from ships that havemade their way up the Yangtze.

The steel that is made willfind its way to the nearby carmanufacturers.

Looking at all the cranes andall the construction it’s easy toget carried away about China’seconomic future.

It can be too easy to miss theforest for all the 50-storeyconcrete and steel trees.

Many big apartment blocksare being built but there iscontinuing doubt about who willlive in them — China is gettingricher quickly but that wealth isnot being spread evenly.

The country also is spendinghundreds of billions of dollarscreating the world’s biggesthigh-speed rail network. About$24 billion is being sunk into ahigh-speed rail link to the farwestern city of Urumqi.

It seems to have been built tosatisfy political concerns aboutwestern provinces where largeminorities, or in some cases

ethnic majorities, are not soenamoured of Beijing’s form ofgovernment.

At $24 billion, that’s a lot ofcash to make a political point.Yet it marches on, with punditssurprised by the public usage ofthe 10,000km of high-speed railalready in existence. And it hastaken some pressure off theairport system.

Closer to home, Mr Abbott hasmade plenty of political mileagein his focus on building majorroad projects in Sydney,Melbourne and Brisbane.

At the same time, he has madeclear his Government’s distastetowards funding urban railprojects, much to the chagrin ofColin Barnett and Troy Buswell.

But driving around Shanghai,Chongqing and Beijing as I havefor the past fortnight, it’s clearthat roads are not the singleanswer for the mass transit ofmillions of people.

Shanghai is clearly beingconsumed by cars. It is acombination of a population thatis rapidly becoming morewealthy, enabling more andmore people to buy a car to puton to a road system alreadycongested beyond belief.

Beijing’s 10-lane ring roads

are something to behold. Butthey are also choking, as are theresidents as smog combineswith dust to make face masksmore than a fashion accessory.

And Chongqing is in adifficult situation because thetown centre is so mountainousthat moving goods, let alonepeople, is extremely difficult.

Especially when you’re addingthousands of people a week tothe city. In each case, authoritiesare trying to deal with theavalanche of cars with policiessuch as taxing lightly smallengine vehicles orexperimenting with publictransport — Chongqing has amonorail-type Metro thateffectively runs through somebuildings as well as a type ofsubway.

Figures out last week from theAustralian Bureau of Statisticssuggest Perth will overtakeBrisbane as the nation’s thirdbiggest city by 2028, with apopulation of three million.

Given the space which Perth— with a populationapproaching two million — hasmanaged to absorb it seemsmore than downright stupid toexpect an extra millionresidents, and their near

quarter-acre blocks, to only usea crowded road system to moveabout. While much is made ofthe way China residents arebuying more cars as they getricher, a less remarked-ondevelopment is also under wayin Australia.

Whereas Chinese residentsare buying their first car, inAustralia more and more peoplehave two or three cars.

Congestion on roads is worsein Sydney, where publictransport is an extended fourletter word, and Melbourne.

Infrastructure is more thanjust roads. It is aboutintegration, recognising thatpeople need to go about theirbusiness and getting it in placewith an eye to the future as wellas present day costs.

Focusing on one mode oftransport in a country that isgrowing fast is asking fortrouble. And the politicalleaders who make the decisionstoday won’t be around to facethe consequences of theirmissteps.

That goes as much for theleaders of the ChineseCommunist Party as thoseinhabiting the Commonwealthand State government benches.

Onwards, upwards: Construction work on the Wayaobao Bridge, part of the Yuiang Highway in Chongqing municipality, China. Picture: Getty Images

Chinese boom has a message■ Shane Wright

Economics Editor

brucespringsteen

WIN TICKETS TO

ENTER ONLINE AT SPIRITRADIO.COM.AU

weight loss & exercise guide

the new year

Look out for our New Year

Weight Loss & Exercise

Guide (Centrespread of

Today, wrapping Mind and

Body section) in tomorrow’s

The West Australian.

2279435-1

πJP

RP

060113

17OPINION thewest.com.auMonday, January 6, 2014