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6 Special Report on the State of Business in South China
2. Guangdong Province
Heart of the PRD nancial Department released its “Overall Plan of Guangdong
Province in Establishing an Integrated Experimental Area for
Guangdong has the largest regional GDP of China’s prov- Financial Reform and Innovation.” The Plan suggests that add-
inces and is the country’s biggest exporter, accounting for more ed value in the financial industry will account for more than 10
than a quarter of China’s total foreign trade. The provincial percent of provincial GDP by 2020.
capital, Guangzhou, is the heart of Cantonese culture. Guang-
dong is also home to three out of four of China’s original special The New Guangdong FTZ
economic zones - Shenzhen, Zhuhai and Shantou.
On April 20, 2015, the policy frameworks for the Tianjin,
In terms of commerce, the cities of Guangdong lead not Guangdong and Fujian Free Trade Zones (FTZs) were officially
only the PRD but in many cases the country as a whole, with published by the State Council, along with an updated Nega-
Guangzhou ranking number one in Forbes China’s “Best Cities tive List, which details prohibited or restricted industries for
for Business 2014” . The city is actively supporting the develop- foreign investment in all of the four existing FTZs in China.
ment of micro, small and medium-sized enterprises, such as via
tax incentives introduced in a November 2012 circular. Geographic Scope
The Guangdong FTZ covers an area of 116.2 square kilometers
Economy and consists of the three following, pre-existing development
zones:
Guangdong’s economy is estimated to have grown by 7.8 per-
cent in 2014 and reached a GDP output of more than US$1 tril- • Guangzhou Nansha New Area (including Nansha
lion last year according to official statistics released by Guang- bonded port)
dong government . If Guangdong were a separate country, it Major industries: shipping industry, logistics, financial
would rank as the world’s sixteenth largest economy, behind industry, international trade, high-end manufacturing
Mexico and Spain, and ahead of Indonesia and the Netherlands.
Guangdong is also taking action to shift its focus onto servic- • Shenzhen Qianhai Development Zone
es rather than manufacturing. With average wages among the Major industries: financial industry, modern logistics,
highest in the country, there is a growing potential to reorient information services, technology services
the provincial economy toward domestic consumption rather
than exports and cheap labor. • Zhuhai Hengqin New Area
Major industries: tourism industry, finance services,
The PRDcontributed 85 percent of Guangdong’s economic cultural and education industry, hi-tech industries
growth in 2014 through the following leading industrial out-
puts: Lifted Restrictions
Service Provision between Hong Kong, Macau and Guangdong
1. Communications equipment, computers and
other electronic equipment • Hong Kong and Macau service providers are now al-
lowed to set up wholly foreign-owned international
2. Electrical machinery & equipment shipping enterprise within the FTZ;
3. Smelting and processing of metals
4. Raw chemical materials and chemical products • Hong Kong and Macau service providers are now al-
5. Automobiles lowed to set up intermediary service institutions for
6. Plastics studying abroad at one’s own expenses within the FTZ;
7. Petroleum refining and nuclear fuel processing
8. Garments and footwear • Hong Kong/Macau-invested travel agencies (capped at
9. General purpose machinery a number of five, separately) are now allowed to provide
10. Textiles overseas group travel services (with the exception of Tai-
wan);
Furthermore, the provincial government is also taking steps
to advance the financial industry. In 2012, the province’s Fi- • Hong Kong/Macau investors are now allowed to provide
high-end medical services and launch pilot schemes to
exchange patients among one another;
50
2. Guangdong Province
Heart of the PRD nancial Department released its “Overall Plan of Guangdong
Province in Establishing an Integrated Experimental Area for
Guangdong has the largest regional GDP of China’s prov- Financial Reform and Innovation.” The Plan suggests that add-
inces and is the country’s biggest exporter, accounting for more ed value in the financial industry will account for more than 10
than a quarter of China’s total foreign trade. The provincial percent of provincial GDP by 2020.
capital, Guangzhou, is the heart of Cantonese culture. Guang-
dong is also home to three out of four of China’s original special The New Guangdong FTZ
economic zones - Shenzhen, Zhuhai and Shantou.
On April 20, 2015, the policy frameworks for the Tianjin,
In terms of commerce, the cities of Guangdong lead not Guangdong and Fujian Free Trade Zones (FTZs) were officially
only the PRD but in many cases the country as a whole, with published by the State Council, along with an updated Nega-
Guangzhou ranking number one in Forbes China’s “Best Cities tive List, which details prohibited or restricted industries for
for Business 2014” . The city is actively supporting the develop- foreign investment in all of the four existing FTZs in China.
ment of micro, small and medium-sized enterprises, such as via
tax incentives introduced in a November 2012 circular. Geographic Scope
The Guangdong FTZ covers an area of 116.2 square kilometers
Economy and consists of the three following, pre-existing development
zones:
Guangdong’s economy is estimated to have grown by 7.8 per-
cent in 2014 and reached a GDP output of more than US$1 tril- • Guangzhou Nansha New Area (including Nansha
lion last year according to official statistics released by Guang- bonded port)
dong government . If Guangdong were a separate country, it Major industries: shipping industry, logistics, financial
would rank as the world’s sixteenth largest economy, behind industry, international trade, high-end manufacturing
Mexico and Spain, and ahead of Indonesia and the Netherlands.
Guangdong is also taking action to shift its focus onto servic- • Shenzhen Qianhai Development Zone
es rather than manufacturing. With average wages among the Major industries: financial industry, modern logistics,
highest in the country, there is a growing potential to reorient information services, technology services
the provincial economy toward domestic consumption rather
than exports and cheap labor. • Zhuhai Hengqin New Area
Major industries: tourism industry, finance services,
The PRDcontributed 85 percent of Guangdong’s economic cultural and education industry, hi-tech industries
growth in 2014 through the following leading industrial out-
puts: Lifted Restrictions
Service Provision between Hong Kong, Macau and Guangdong
1. Communications equipment, computers and
other electronic equipment • Hong Kong and Macau service providers are now al-
lowed to set up wholly foreign-owned international
2. Electrical machinery & equipment shipping enterprise within the FTZ;
3. Smelting and processing of metals
4. Raw chemical materials and chemical products • Hong Kong and Macau service providers are now al-
5. Automobiles lowed to set up intermediary service institutions for
6. Plastics studying abroad at one’s own expenses within the FTZ;
7. Petroleum refining and nuclear fuel processing
8. Garments and footwear • Hong Kong/Macau-invested travel agencies (capped at
9. General purpose machinery a number of five, separately) are now allowed to provide
10. Textiles overseas group travel services (with the exception of Tai-
wan);
Furthermore, the provincial government is also taking steps
to advance the financial industry. In 2012, the province’s Fi- • Hong Kong/Macau investors are now allowed to provide
high-end medical services and launch pilot schemes to
exchange patients among one another;
50
