SHANGHAI (Reuters) - Formula One chief Bernie Ecclestone will sign a deal on Monday to hold a Grand Prix in Shanghai from 2004 to 2010, an official with the company building the new China circuit said.
"Ecclestone will arrive on Sunday and the deal will be signed on Monday," the official, who declined to be named, said without elaborating.

Shanghai, China's richest city and bustling financial hub, has begun work on a 5.45-km (3.39 mile) race track and hopes to host a Grand Prix event in 2004 once it is complete.

The Chinese company said in July it had an agreement in principle with the Formula One administration to stage races in the city during that six-year period.

China hopes the two billion yuan ($241.7 million) circuit -- designed by German racetrack engineer Hermann Tilke, who was also responsible for a new track in Malaysia, the sport's latest newcomer -- will attract more attention to the high-speed sport.

City officials also hope a Shanghai Grand Prix would join a series of high-profile events the country has been named to host. Shanghai held an Asia-Pacific summit last year and Beijing will host the 2008 Olympics as well as this year's ATP Tennis Masters.

The Shanghai circuit, designed to look like the Chinese character 'shang', meaning 'to rise', is scheduled for completion in March 2004. It will hold 200,000 spectators and also include a theme park.

At present, the Formula One season comprises 17 grand prix, 11 of them in Europe. Malaysia was the most recent addition in 1999 and a new circuit outside Moscow is scheduled to be completed in 2003.

Ecclestone said Shanghai would host the Chinese Grand Prix on the city's two billion yuan ($240 million) German-designed race track, which is planned for completion in 2004.

The deal is a victory for China, which has been trying to join the European-dominated Formula One club for more than a decade and was up against countries, such as Turkey, who also are building tracks with an eye to hosting Formula One races.

The Formula One Administration, in turn, is hoping the Chinese Grand Prix will bring more fans to the sport -- which depends heavily on advertising -- by tapping the country's population of 1.3 billion people.

Shanghai alone is home to 16 million.

"We've had many, many offers for us to hold Formula One racing in different parts of China and I'm very, very pleased that we decided to wait for Shanghai," Ecclestone said after signing the deal in a ceremony with Mayor Chen Liangyu.

"We hope that coming to China will bring enthusiasm for motor sport," he said.

Ecclestone told Reuters he would give more details on the project at a briefing on Tuesday.

The design by Hermann Tilke -- a renowned Formula One circuit architect who was also responsible for a new track in Malaysia, the sport's latest newcomer -- was key to its success, officials from the company building it said at Monday's ceremony.

China spent more than nine years developing a circuit in the southern city of Zhuhai and was scheduled to join the F1 calendar in 1998, but the track failed to meet international standards.

"We know we lack experience and we look forward to your advice on how to host the event," Chen told Ecclestone in a brief meeting before the deal was signed.

CHINESE CHARACTER

The 5.45-km (3.39-mile), 200,000-seat Shanghai track, which is designed in the shape of a Chinese character -- 'shang', or to rise -- is the latest in a series of high-profile building projects for the city.

Shanghai is building the world's first commercial train using magnetic levitation technology and plans to add the world's tallest Ferris wheel to its ultra-modern skyline.

China is hoping to boost its international profile by hosting top-tier sporting events such as the ATP Tennis Masters in Shanghai next month and the 2008 Olympics in Beijing.

"Events like Formula One are important for China's economic development," Chen said.

Officials with the Shanghai circuit managers say other Chinese cities -- Beijing, Wuhan and Xian -- also plan to build motor racing circuits.

Max Mosley, president of the FIA, the sport's overseer, visited Shanghai last week to discuss the Grand Prix and is keen on China hosting races, too.

Mosley has said Formula One should target countries like India and China as racing hosts because a combined half the world's population could watch the races.

So far, 11 of the Formula One's grand prix events are held in Europe. Malaysia was the most recent addition in 1999 and a new circuit outside Moscow is scheduled to be completed in 2003.

 

Looks like an interesting circuit design. Should be a good passing zone braking into that hairpin following that long straight on the bottom.

Of course, with races in Bahrain and China, I wonder which European races will get the axe? Probably the extra German round at the Nurenburgring (Euro GP) for sure, I've heard that they are considering eliminating the San Marino GP, and as we all know the Belgian GP is in trouble as well (but I hope they don't axe that race, it's my favorite track).

- BT

 

San Marino is one of my favorite circuits, I could do without Hungary.