Serving as an official forum under the China International Fair for Trade in Services (CIFTIS), the 2026 Headquarters Economy Conference and the Sixth Forum on Building Economy and High-Quality Urban Development convened in Beijing on September 11. Pi Jianhua, former Second-Level Inspector of the Industry Department at the National Development and Reform Commission (NDRC), participated as a distinguished panelist in the high-level dialogue titled "How Building Economy and New Quality Productive Forces Can Resonate, Innovate, and Thrive Together." The following is a transcript of the dialogue.
Regarding industrial development, the NDRC's mandate involves researching and formulating industrial development strategies, plans, and policies, along with coordinating solutions to major industry-related challenges. High-quality development stands as our foremost priority. Within the "15th Five-Year Plan," building a modern industrial system and consolidating the foundation of the real economy tops our strategic agenda, serving as the fundamental focus of our industrial efforts, with unwavering commitment to anchoring economic growth in the real sector. Furthermore, we adhere to the development trajectory of intelligence, green transformation, and integration. The Party Central Committee and the State Council have charted our blueprint and set our course, and as an industrial department, we follow this broad direction.
On April 7 and 8, 2026, the State Council convened the National Services Industry Conference, a landmark event being the first of its kind since the founding of New China. Firstly, it clarified the positioning of the services industry in the new era: it underpins our modern industrial system, serves as a key provider of high-quality living standards, acts as the primary channel for employment, and constitutes a vital component of new quality productive forces. Additionally, the conference outlined a 16-character guideline for services industry development: demand-driven, reform-focused breakthroughs, technology empowerment, and international cooperation, establishing the development principles for the sector. It also called for producer services to extend toward specialization and higher value chain segments, and consumer services to upgrade toward enhanced quality, diversity, and convenience, alongside launching an initiative to expand and upgrade the services industry. These measures sketch the blueprint and direction for the next five years.
Regarding the building economy, the integration of buildings with industry is viewed by our Industry Department as treating buildings as an integral part of the industry itself, never as mere commercial real estate. When formulating policies and conducting research, we recognize buildings as a new business format and growth point within the services sector. Under the new circumstances of cultivating new quality productive forces and constructing a modern industrial system, buildings can play a more significant role.
The NDRC supports the building economy through a series of policies: First, in megacities, Class A and super Class A office buildings are eligible to issue REITs as part of a pilot program. Second, following the Central Urban Work Conference last year, buildings can benefit from urban renewal and renovation policies, including national support for facade upgrades, insulation improvements, and pipeline renovations. Third, buildings undertaking energy-saving retrofits and green upgrades can apply for special funds dedicated to energy efficiency and greening initiatives. These are the tangible policy measures directly related to buildings.
Now, in the age of AI, where artificial intelligence replacing human labor has become a reality, AI's impact on buildings remains limited. What draws appeal to buildings? First, there is industrial clustering—businesses naturally gravitate toward one another. For instance, Changsha's construction machinery sector forms a world-class industry cluster, while Hollywood's film industry and the restaurant trade also exemplify clustering. A building represents a highly concentrated space, which constitutes a key attraction. Second, there is a scale effect, a crucial factor in enhancing industrial efficiency and lowering costs, which also includes a premium effect. As companies expand, they negotiate better loan terms with banks and secure purchasing advantages with suppliers. Buildings that bring companies together create scale advantages in areas like electricity and computing power, combining agglomeration benefits with convenience—where upstairs and downstairs are upstream and downstream, and a contract can be signed in the time it takes to enjoy a cup of coffee. Third, buildings serve as industrial parks. Building managers must shift their mindset, recognizing themselves as park administrators who provide services to enterprises and enhance their convenience. There is also a universal policy currently in place: the state accelerates the commercialization of scientific research results, offering subsidies for the first use of prototype equipment and first-batch products. Software developed within buildings can also access these benefits on initial application.
Disclaimer: All conference transcripts are compiled from on-site shorthand notes and have not been reviewed by the speakers. Sina's publication of this article aims to disseminate more information and does not imply endorsement of the viewpoints expressed or verification of the statements made.
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