To get a better understanding of the grand project to integrate development of Beijing and neighboring Tianjin Municipality and Hebei province, one has to start with the country's ongoing transformation of the regional development pattern in which "competition" used to play a dominant role.

In this development model, the central government delegates powers to the local governments and links their interests, which range from tax revenues to personal promotion, to regional development. This motivates them to play a major role in boosting the local economies and enhancing the country's economic competence.

However, this has produced some fierce, even cut-throat competition, between governments at all levels, as they compete with each other rather than cooperate. While this competition has benefited some regions in regards to their economic achievements, it has also led to local protectionism, market divisions and administrative barriers.