Xi'an's history dates back 3,100 years. It was the capital of 13 dynasties, so numerous historical sites are buried underground. Major ruins in the region include those of the Han Dynasty (202-220 B.C.), Great Wall, and the Epang Palace of the Qin Dynasty (221-206 B.C.). The ruins sprawl over 108 square kilometers, making up one-hundredth of Xi'an's total area.

The Daming Palace was the center of politics, economics and culture during the Tang Dynasty. In the 280 years of its existence, the Daming Palace functioned as the hub of international communication at that time. More than 17 emperors have lived and presided over government affairs in the palace.

To protect cultural heritage, Xi'an city authorities must submit a report to the State Administration of Cultural Heritage before conducting municipal construction projects, even for subways. With the expansion of the urban area, the ruins region has become the core area of the city, and it is an unavoidable problem in urban construction.

"In the past, we wanted to change the face of the ruins region, but couldn't because of an underdeveloped economy. Now that we can afford it, we must restore the dignity of this historical site. We will preserve the major ruins region in a scientific way, and make rational use of it. It will not be a burden in our urban development, but a new growth center," says vice mayor Duan Xiannian

New Industrial Model

The key to preservation and reconstruction of the ruins region is funding. Within the 3.2 square kilometers of the Daming Palace Ruins Region, 3.5 million square meters of buildings were dismantled, involving 100,000 inhabitants.

"Relocating 100,000 inhabitants cost RMB 8.4 billion. We want to improve the living standards of these citizens, and their new homes are not far from their old ones, so that they can benefit from the Ruins Park. After all, they have made a great sacrifice for the protection of the ruins," says Duan Xiannian. But this is only a small part of the project. The total renovated area will cover nearly 20 square kilometers. "The fund for preservation and reconstruction will amount to RMB 18 billion," adds Duan.

This is a huge sum compared to RMB 16 billion, the total revenue of Xi'an in 2009.

An important source of funding is big real estate developers. Duan Xiannian adopted the "reverse order." The government borrowed money to requisition land, make city planning and build infrastructure facilities. The prepared land is then auctioned off to recoup the funds. Their viewpoint is that the value of land lies in its environment, and the environment elevates industrial activity.

Before getting involved in the Daming Palace Ruins Region, Duan Xiannian had successfully conducted some large-scale cultural relic projects. His accumulated experience and fundraising skills have made the preservation and reconstruction project a reality.

"Many people have realized that historical splendor can stimulate cultural renaissance in commercial development, and reshape the city's culture. This is a new industrial model. Historical value increases through cultural renaissance," says Ren Xi'an, deputy director of the Xi'an Qujiang Daming Palace Ruins Region Preservation and Reconstruction Office.

Seamless History and Modernity

As Daming Palace was the most luxurious palace in Chinese history, people are still debating aspects of the plan.

"To preserve the integrity of the site, no reconstruction is allowed within the ruins region, because the archaeological work has not yet been completed. Archaeological excavation must be considered in construction," says Zhang Jinqiu, chief architect of Danfeng Gate, the main entrance of the Daming Palace.

Except for some underground ruins that are in excavation, the buildings above ground were destroyed in the 10th-century warfare. Even the debris was damaged in the later years, leaving only some foundations and rammed earth strata.