Page 76 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
shelf it, yielding zero investment returns, and yet very in 2013, followed by the establishment of its Health
little of that flow to infrastructure and research” (Kong). Care Imaging Customer Center, a facility where medical
professionals can study the company’s newest Magnetic
The facts concerning the area, according to CW CPA Resonance Imaging (MRI) and X-ray technologies.
(a professional advisory firm owned and managed by It offers the company a showcase for its locally
Thomas Wong and Rosanna Choi), are quite impressive. manufactured high-tech medical devices (CW CPA).
The Pearl River Delta has more than 60 million
inhabitants, which is comparable to the population of The opportunities in Guangzhou are not less plentiful.
the United Kingdom. The population of Guangdong The city is famous as car manufacturing base of mainly
Province, where the Bay Area is located, together with Japanese brands, namely Honda and Toyota. Another
that of Hong Kong and Macao counts more than 110 big industry is the oil refining and chemical industry.
million people. By the end of 2016, 275 Fortune Global Global players such as British Petroleum, Royal Dutch
500 firms had invested in Shenzhen, and more than Shell or BASF are big investors in the city. For example,
280 in Guangzhou. Fifteen Chinese Fortune Global BASF started its investment in the region in 1998 and
500 firms are headquartered in the region (six Hong expanded its manufacturing base steadily over the
Kong, five Shenzhen, three Guangzhou, one Foshan). last years. In 2015, they formed a joint venture and
The average GDP (107,011 yuan) in 2015 was 2.2 times bought out a Chinese chemical manufacturer to expand
higher than China’s national average (49,992 yuan). its manufacturing base in the region. Beside these
Shenzhen’s per capita GDP with around $26,000 in 2015 industries, targets for investments are bio-science, as well
was the highest among all Mainland Chinese cities. as the transportation and logistics industries, especially
In 2015, the Pearl River Delta region (without Hong in regard of e-commerce and cargo. Not only Shenzhen,
Kong and Macao) generated 9.1 percent of China’s GDP Guangzhou and Hong Kong give the region unique
(Guangdong, which generated 11 percent in that year, opportunities. Cities such as Dongguan, Foshan and the
leads this category for 27 consecutive years among all others on the Chinese mainland have huge capacities
Chinese provinces). In addition, the region accounted in regard of factories and assembly lines. It is possible
for 7.5 percent of China’s total retail sales of consumer to produce high quality products on a large scale.
goods with only 4.3 percent of the country’s population. Dongguan has the fourth highest exports of all Chinese
Shenzhen holds rank #3 and Hong Kong rank #5, cities, which clearly shows its role as a manufacturing
followed by Guangzhou on rank #7 of the world’s busiest base for the global market. The Greater Bay Area will
container harbors (2016). Hong Kong ranks #6 and play a remarkable role in China’s economic integration
Shenzhen #8 of the world’s biggest stock exchanges with the world. The nine cities on the mainland and
by market capitalization. With Hong Kong and Macao, their industrial zones provide knowledge and expertise
the area is globally the most integrated economic city in manufacturing electronic, chemical, automotive
cluster in Greater China. The most important part in the and other high-tech products for the domestic and
integration of the Pearl River Delta with Hong Kong and world market. A mature innovation and start-up culture
the world is the Closer Economic Partnership Agreement mainly concentrated in Shenzhen and Guangzhou will
(CEPA). It grants in Hong Kong incorporated companies accelerate the future development of the region. Hong
exclusive market access to China for certain industries Kong will keep playing a key role in that development
and products. Especially foreign invested businesses in through its outstanding connectivity and expertise in
Guangdong FTZs can take advantage of CEPA (CW CPA). the finance industry. In the wake of China’s One Belt One
Road Initiative, the products and services of the area and
The Bay Area offers huge potential for investments in its professions will be in high demand to contribute this
manufacturing, services, and procurement or as a selling epic project (CW CPA).
market especially in regard of the industries promoted in
the 13th Five Year Plan. Shenzhen is famous for its high- Moving Forward
tech manufacturing opportunities, telecommunication,
financial and logistics industries. Renowned global According to the then Shanghai City Party Chief
enterprises such as ZTE and Huawei are headquartered Han Zheng, the May 2017 opening of several new FTZs
there and many international firms have regional by Beijing marked the “3.0 version” of the FTZ since
operations in the city. E.g. Siemens, ranking #71 on the its debut in 2013 and first expansion three years ago.
Fortune Global 500 invested in a medical research center “System innovation is the core task of the zone,” he
76
shelf it, yielding zero investment returns, and yet very in 2013, followed by the establishment of its Health
little of that flow to infrastructure and research” (Kong). Care Imaging Customer Center, a facility where medical
professionals can study the company’s newest Magnetic
The facts concerning the area, according to CW CPA Resonance Imaging (MRI) and X-ray technologies.
(a professional advisory firm owned and managed by It offers the company a showcase for its locally
Thomas Wong and Rosanna Choi), are quite impressive. manufactured high-tech medical devices (CW CPA).
The Pearl River Delta has more than 60 million
inhabitants, which is comparable to the population of The opportunities in Guangzhou are not less plentiful.
the United Kingdom. The population of Guangdong The city is famous as car manufacturing base of mainly
Province, where the Bay Area is located, together with Japanese brands, namely Honda and Toyota. Another
that of Hong Kong and Macao counts more than 110 big industry is the oil refining and chemical industry.
million people. By the end of 2016, 275 Fortune Global Global players such as British Petroleum, Royal Dutch
500 firms had invested in Shenzhen, and more than Shell or BASF are big investors in the city. For example,
280 in Guangzhou. Fifteen Chinese Fortune Global BASF started its investment in the region in 1998 and
500 firms are headquartered in the region (six Hong expanded its manufacturing base steadily over the
Kong, five Shenzhen, three Guangzhou, one Foshan). last years. In 2015, they formed a joint venture and
The average GDP (107,011 yuan) in 2015 was 2.2 times bought out a Chinese chemical manufacturer to expand
higher than China’s national average (49,992 yuan). its manufacturing base in the region. Beside these
Shenzhen’s per capita GDP with around $26,000 in 2015 industries, targets for investments are bio-science, as well
was the highest among all Mainland Chinese cities. as the transportation and logistics industries, especially
In 2015, the Pearl River Delta region (without Hong in regard of e-commerce and cargo. Not only Shenzhen,
Kong and Macao) generated 9.1 percent of China’s GDP Guangzhou and Hong Kong give the region unique
(Guangdong, which generated 11 percent in that year, opportunities. Cities such as Dongguan, Foshan and the
leads this category for 27 consecutive years among all others on the Chinese mainland have huge capacities
Chinese provinces). In addition, the region accounted in regard of factories and assembly lines. It is possible
for 7.5 percent of China’s total retail sales of consumer to produce high quality products on a large scale.
goods with only 4.3 percent of the country’s population. Dongguan has the fourth highest exports of all Chinese
Shenzhen holds rank #3 and Hong Kong rank #5, cities, which clearly shows its role as a manufacturing
followed by Guangzhou on rank #7 of the world’s busiest base for the global market. The Greater Bay Area will
container harbors (2016). Hong Kong ranks #6 and play a remarkable role in China’s economic integration
Shenzhen #8 of the world’s biggest stock exchanges with the world. The nine cities on the mainland and
by market capitalization. With Hong Kong and Macao, their industrial zones provide knowledge and expertise
the area is globally the most integrated economic city in manufacturing electronic, chemical, automotive
cluster in Greater China. The most important part in the and other high-tech products for the domestic and
integration of the Pearl River Delta with Hong Kong and world market. A mature innovation and start-up culture
the world is the Closer Economic Partnership Agreement mainly concentrated in Shenzhen and Guangzhou will
(CEPA). It grants in Hong Kong incorporated companies accelerate the future development of the region. Hong
exclusive market access to China for certain industries Kong will keep playing a key role in that development
and products. Especially foreign invested businesses in through its outstanding connectivity and expertise in
Guangdong FTZs can take advantage of CEPA (CW CPA). the finance industry. In the wake of China’s One Belt One
Road Initiative, the products and services of the area and
The Bay Area offers huge potential for investments in its professions will be in high demand to contribute this
manufacturing, services, and procurement or as a selling epic project (CW CPA).
market especially in regard of the industries promoted in
the 13th Five Year Plan. Shenzhen is famous for its high- Moving Forward
tech manufacturing opportunities, telecommunication,
financial and logistics industries. Renowned global According to the then Shanghai City Party Chief
enterprises such as ZTE and Huawei are headquartered Han Zheng, the May 2017 opening of several new FTZs
there and many international firms have regional by Beijing marked the “3.0 version” of the FTZ since
operations in the city. E.g. Siemens, ranking #71 on the its debut in 2013 and first expansion three years ago.
Fortune Global 500 invested in a medical research center “System innovation is the core task of the zone,” he
76
