Page 58 - 2020 Special Report on the State of Business in South China
P. 58
Economic Overview in South China
Overview Specifically, the Guangxi government has aligned
its comparative advantages in heavy industry and
South China is a leading engine in its proximity to ASEAN to welcome new industrial
China’s economic growth that investments in the automobile, petrochemical,
includes not only the province of Guangdong, and machinery manufacturing sectors in recent
Fujian, Guangxi, and Hainan, but also the Special years. Hainan has also invested extensively on
Administrative Regions of Hong Kong and infrastructure to bring in modern service sectors
Macau. Together, the economy of these regions such as exhibitions and logistics, and high value-
measured at RMB18.58t in 2018, or around 20.6% added industries such as pharmaceuticals. With its
of the national GDP. Much of the economy is stated target to become an international tourism
concentrated at the coastal region especially the destination in the 13th Five Year plan, Hainan has
Pearl River Delta. also launched offshore duty-free policy and travel
visa waiver to welcome tourists.
Forerunners in China’s Economic
Meanwhile, the economic prospect of the
Reform SARs of Hong Kong and Macau is set to gain from
increasing integration with the Mainland. This is
The coastal region of South China is now home particularly the since the announcement of the
to the technology and financial centers in China, Greater Bay Area in July 2017, when President Xi
as it benefits from being at the forefront of China’s Jinping witnessed the signing of “The development
economic reforms. Shenzhen, Shantou and of Guangdong-Hong Kong-Macau Greater Bay
Zhuhai in Guangdong and Xiamen in Fujian were Area”. Being long-standing portal of the Mainland
designated the first four special economic zones to the rest of the world, the SARs, especially Hong
since the opening up policy began in 1978. With Kong, may tap on 1) the rising connectivity of the
the support of significant capital investments from financial market in the Mainland with the rest of
the Chinese diaspora that originated in areas such the world; 2) the unique positioning as a gateway
as Taishan, Macau, Hong Kong, Chaozhou, Xiamen for Belt and Road Initiative through its connections
and Fuzhou, the regions established quickly to to overseas, particularly as a financing and
become an external facing manufacturing hub litigation center; and 3) the synergy with Shenzhen
since the 1980s. In the decades that followed, in terms of updating technology research and
the provinces have also successfully moved up development, according to President Xi’s pledge
from production of labor-intensive light-industry in May 2018, possibly through its comparative
products and processing trade to higher value- advantage in academic researches.
added products such as mobile phones and the
service industries. Outlook
The transition opened up opportunities for The Greater Bay Area is envisioned by the
the inland provinces in the region which remain government not only to become a leading
hubs for national resources and agriculture. metropolis in itself. Its development is also
The governments of inland provinces have been expected in the 13th Five Year Plan to radiate
proactive in attracting new inbound investments. to adjacent regions. As the GBA develop by
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Overview Specifically, the Guangxi government has aligned
its comparative advantages in heavy industry and
South China is a leading engine in its proximity to ASEAN to welcome new industrial
China’s economic growth that investments in the automobile, petrochemical,
includes not only the province of Guangdong, and machinery manufacturing sectors in recent
Fujian, Guangxi, and Hainan, but also the Special years. Hainan has also invested extensively on
Administrative Regions of Hong Kong and infrastructure to bring in modern service sectors
Macau. Together, the economy of these regions such as exhibitions and logistics, and high value-
measured at RMB18.58t in 2018, or around 20.6% added industries such as pharmaceuticals. With its
of the national GDP. Much of the economy is stated target to become an international tourism
concentrated at the coastal region especially the destination in the 13th Five Year plan, Hainan has
Pearl River Delta. also launched offshore duty-free policy and travel
visa waiver to welcome tourists.
Forerunners in China’s Economic
Meanwhile, the economic prospect of the
Reform SARs of Hong Kong and Macau is set to gain from
increasing integration with the Mainland. This is
The coastal region of South China is now home particularly the since the announcement of the
to the technology and financial centers in China, Greater Bay Area in July 2017, when President Xi
as it benefits from being at the forefront of China’s Jinping witnessed the signing of “The development
economic reforms. Shenzhen, Shantou and of Guangdong-Hong Kong-Macau Greater Bay
Zhuhai in Guangdong and Xiamen in Fujian were Area”. Being long-standing portal of the Mainland
designated the first four special economic zones to the rest of the world, the SARs, especially Hong
since the opening up policy began in 1978. With Kong, may tap on 1) the rising connectivity of the
the support of significant capital investments from financial market in the Mainland with the rest of
the Chinese diaspora that originated in areas such the world; 2) the unique positioning as a gateway
as Taishan, Macau, Hong Kong, Chaozhou, Xiamen for Belt and Road Initiative through its connections
and Fuzhou, the regions established quickly to to overseas, particularly as a financing and
become an external facing manufacturing hub litigation center; and 3) the synergy with Shenzhen
since the 1980s. In the decades that followed, in terms of updating technology research and
the provinces have also successfully moved up development, according to President Xi’s pledge
from production of labor-intensive light-industry in May 2018, possibly through its comparative
products and processing trade to higher value- advantage in academic researches.
added products such as mobile phones and the
service industries. Outlook
The transition opened up opportunities for The Greater Bay Area is envisioned by the
the inland provinces in the region which remain government not only to become a leading
hubs for national resources and agriculture. metropolis in itself. Its development is also
The governments of inland provinces have been expected in the 13th Five Year Plan to radiate
proactive in attracting new inbound investments. to adjacent regions. As the GBA develop by
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