Page 64 - 2019 Special Report on the State of Business in South China
P. 64
Guangdong Province
The Economy and electronics. In recent years amid rising labor cost,
Guangdong is moving upward the production chain
Guangdong has a total area of to higher technology industries. Among them, many
179,757 square indigenous enterprises have also developed a strong
kilometers. Total population stood at 111.7million at brand name, such as Huawei, Tencent, BYD, Midea,
the end of 2017, out of which 83.4% have registered Gree etc. In 2017, the top five industries in Guangdong
residency. The Pearl River Delta (PRD) Economic Zone by value-added are: computer, communication and
is the province’s economic hub, its GDP accounting for electronic equipment, electrical machineries and
84.4% of Guangdong’s GDP in 2017. The PRD Economic equipment, automobile manufacturing, metal products,
Zone covers nine cities – Guangzhou, Shenzhen, and chemical products manufacturing.
Zhuhai, Foshan, Jiangmen, Dongguan, Zhongshan,
Huizhou and Zhaoqing. As for the service sectors which accounted for 53.6%
of GDP in 2017, Guangdong aims to further increase
Guangdong remains the largest province by the their overall relative share in GDP. While development of
size of its economy, at 8.97 trillion yuan or 10.8% of the service sectors will be expedited across the board,
the national total in 2017. Compared to the other their structure will be optimized to develop Guangdong
economic hubs in China such as the Yangtze River Delta, into a regional financial center, modern logistics hub
Guangdong stands out for having: in southern China, as well as an international business
travel and shopping center.
1) The largest external facing economy with its
exports accounting for 27.5% of national total in 2017. Guangdong accounted for about 19% of China’s total
It is because Guangdong is a major export-processing utilized FDI. Foreign investments in Guangdong are
base for foreign investors. It is also the home to Canton mainly engaged in manufacturing industries (around
Fair, China’s largest export trade fair. Cities that have 25% of the utilized FDI). For tertiary industry, leasing and
the largest industrial production include Guangzhou, business services was one of the most attractive areas,
Shenzhen, Dongguan, Foshan, Huizhou, Jiangmen and absorbing 17.3% of the total utilised FDI, followed by
Shantou; and real estate (15.5% of the total FDI).
2) The largest retail market of consumer goods at Recent Policies and Reforms
around 10.7% of national total in 2017. With annual per
capita disposable income at 33,003 yuan (+7.3% year-on- Plan for Further Deepening the Reform
year) in 2017, Guangdong has the highest propensity to and Opening-up of the China (Guangdong)
consume among China’s more developed, high-income Pilot Free Trade Zone
provinces. With the rising income level and the economic
structure adjustment, the consumer expenditure pattern On May 4, 2018, the State Council released the
is also undergoing structural changes in favor of services Plan for Further Promoting the Reform and Opening-
such as transportation and communications. up of the China (Guangdong) Pilot Free Trade Zone
(the “Plan”), specifying the strategic positioning of the
Traditionally, output of light industries used to China (Guangdong) Pilot Free Trade Zone (the “GDFTZ”),
account for over half of the province’s total industrial i.e., to grow into a pilot area featuring the new open
output. Major products include electrical appliances economy system, a high-level opening-up hub and a
such as television sets, electrical fans and refrigerators, demonstration area for cooperation in the Guangdong-
and labor intensive products like garments, toys, shoes Hong Kong-Macao Greater Bay Area.
64
The Economy and electronics. In recent years amid rising labor cost,
Guangdong is moving upward the production chain
Guangdong has a total area of to higher technology industries. Among them, many
179,757 square indigenous enterprises have also developed a strong
kilometers. Total population stood at 111.7million at brand name, such as Huawei, Tencent, BYD, Midea,
the end of 2017, out of which 83.4% have registered Gree etc. In 2017, the top five industries in Guangdong
residency. The Pearl River Delta (PRD) Economic Zone by value-added are: computer, communication and
is the province’s economic hub, its GDP accounting for electronic equipment, electrical machineries and
84.4% of Guangdong’s GDP in 2017. The PRD Economic equipment, automobile manufacturing, metal products,
Zone covers nine cities – Guangzhou, Shenzhen, and chemical products manufacturing.
Zhuhai, Foshan, Jiangmen, Dongguan, Zhongshan,
Huizhou and Zhaoqing. As for the service sectors which accounted for 53.6%
of GDP in 2017, Guangdong aims to further increase
Guangdong remains the largest province by the their overall relative share in GDP. While development of
size of its economy, at 8.97 trillion yuan or 10.8% of the service sectors will be expedited across the board,
the national total in 2017. Compared to the other their structure will be optimized to develop Guangdong
economic hubs in China such as the Yangtze River Delta, into a regional financial center, modern logistics hub
Guangdong stands out for having: in southern China, as well as an international business
travel and shopping center.
1) The largest external facing economy with its
exports accounting for 27.5% of national total in 2017. Guangdong accounted for about 19% of China’s total
It is because Guangdong is a major export-processing utilized FDI. Foreign investments in Guangdong are
base for foreign investors. It is also the home to Canton mainly engaged in manufacturing industries (around
Fair, China’s largest export trade fair. Cities that have 25% of the utilized FDI). For tertiary industry, leasing and
the largest industrial production include Guangzhou, business services was one of the most attractive areas,
Shenzhen, Dongguan, Foshan, Huizhou, Jiangmen and absorbing 17.3% of the total utilised FDI, followed by
Shantou; and real estate (15.5% of the total FDI).
2) The largest retail market of consumer goods at Recent Policies and Reforms
around 10.7% of national total in 2017. With annual per
capita disposable income at 33,003 yuan (+7.3% year-on- Plan for Further Deepening the Reform
year) in 2017, Guangdong has the highest propensity to and Opening-up of the China (Guangdong)
consume among China’s more developed, high-income Pilot Free Trade Zone
provinces. With the rising income level and the economic
structure adjustment, the consumer expenditure pattern On May 4, 2018, the State Council released the
is also undergoing structural changes in favor of services Plan for Further Promoting the Reform and Opening-
such as transportation and communications. up of the China (Guangdong) Pilot Free Trade Zone
(the “Plan”), specifying the strategic positioning of the
Traditionally, output of light industries used to China (Guangdong) Pilot Free Trade Zone (the “GDFTZ”),
account for over half of the province’s total industrial i.e., to grow into a pilot area featuring the new open
output. Major products include electrical appliances economy system, a high-level opening-up hub and a
such as television sets, electrical fans and refrigerators, demonstration area for cooperation in the Guangdong-
and labor intensive products like garments, toys, shoes Hong Kong-Macao Greater Bay Area.
64
