Page 64 - 2020 Special Report on the State of Business in South China
P. 64
5 Share of tech industry is particularly high in Guangdong
Fig 5 Share of tech industry is particularly high in Guangdong
Hi-tech industry
40
35
% of industrial production 30
25
20
15
10
5
0 Fujian Guangxi Hainan National
Guangdong
Note:NAos otfe2:01A7s of 2017
SourcSeo: Wuirndce: Wind
The transition opened up opportunities for the inland provinces in the region which remain
hubs for national resources and agriculture. The governments of inland provinces have
Figbe6eTnhperoGarcetaivteerinBaatytraAcrteinaginneGwuiannbgodunodnginvestments. Specifically, the Guangxi government
haFsiga6ligTnheedGitrseacteormBpaayrAarteivaeinaGduvaanngtdaognegs in heavy industry and its proximity to ASEAN to
welcome new industrial investments in the automobile, petrochemical, and machinery
manufacturing sectors in recent years. Hainan has also invested extensively on
infrastructure to bring in modern service sectors such as exhibitions and logistics, and high
value-added industries such as pharmaceuticals. With its stated target to become an
international tourism destination in the 13th Five Year plan, Hainan has also launched
offshore duty-free policy and travel visa waiver to welcome tourists.
Meanwhile, the economic prospect of the SARs of Hong Kong and Macau is set to gain
from increasing integration with the Mainland. This is particularly the since the
announcement of the Greater Bay Area in July 2017, when President Xi Jinping witnessed
the signing of “The development of Guangdong-Hong Kong-Macau Greater Bay Area”.
Being long-standing portal of the Mainland to the rest of the world, the SARs, especially
Hong Kong, may tap on 1) the rising connectivity of the financial market in the Mainland with
the rest of the world; 2) the unique positioning as a gateway for Belt and Road Initiative
through its connections to overseas, particularly as a financing and litigation center; and 3)
the synergy with Shenzhen in terms of updating technology research and development,
according to President Xi’s pledge in May 2018, possibly through its comparative advantage
in academic researches.
SoSuroceu: rHconeg:KHonognTrgadKe oDenvegloTpmraendt CeouDnceilvelopment Council
Outlook
The Greater Bay Area is envisioned by the government not only to become a leading
metropolis in itself. Its development is also expected in the 13th Five Year Plan to radiate to
adjacent regions. As the GBA develop by leveraging the diverse strengths of its constituent
cities, in technology and innovation, finance, shipping and trade, advanced manufacturing
and hospitality, it is also creating a supply chain of idea, resources and talents in its vicinity
region. Meanwhile, regional connectivity and rising demand for improved quality of life will
also support development of modern services across the region. It could thereby create a
more developed and interconnected South China with the Pearl River Delta at its center.
Guangdong
64 The economy
Guangdong has a total area of 179,757 sq km. Total population stood at 113.5m at the end
Fig 5 Share of tech industry is particularly high in Guangdong
Hi-tech industry
40
35
% of industrial production 30
25
20
15
10
5
0 Fujian Guangxi Hainan National
Guangdong
Note:NAos otfe2:01A7s of 2017
SourcSeo: Wuirndce: Wind
The transition opened up opportunities for the inland provinces in the region which remain
hubs for national resources and agriculture. The governments of inland provinces have
Figbe6eTnhperoGarcetaivteerinBaatytraAcrteinaginneGwuiannbgodunodnginvestments. Specifically, the Guangxi government
haFsiga6ligTnheedGitrseacteormBpaayrAarteivaeinaGduvaanngtdaognegs in heavy industry and its proximity to ASEAN to
welcome new industrial investments in the automobile, petrochemical, and machinery
manufacturing sectors in recent years. Hainan has also invested extensively on
infrastructure to bring in modern service sectors such as exhibitions and logistics, and high
value-added industries such as pharmaceuticals. With its stated target to become an
international tourism destination in the 13th Five Year plan, Hainan has also launched
offshore duty-free policy and travel visa waiver to welcome tourists.
Meanwhile, the economic prospect of the SARs of Hong Kong and Macau is set to gain
from increasing integration with the Mainland. This is particularly the since the
announcement of the Greater Bay Area in July 2017, when President Xi Jinping witnessed
the signing of “The development of Guangdong-Hong Kong-Macau Greater Bay Area”.
Being long-standing portal of the Mainland to the rest of the world, the SARs, especially
Hong Kong, may tap on 1) the rising connectivity of the financial market in the Mainland with
the rest of the world; 2) the unique positioning as a gateway for Belt and Road Initiative
through its connections to overseas, particularly as a financing and litigation center; and 3)
the synergy with Shenzhen in terms of updating technology research and development,
according to President Xi’s pledge in May 2018, possibly through its comparative advantage
in academic researches.
SoSuroceu: rHconeg:KHonognTrgadKe oDenvegloTpmraendt CeouDnceilvelopment Council
Outlook
The Greater Bay Area is envisioned by the government not only to become a leading
metropolis in itself. Its development is also expected in the 13th Five Year Plan to radiate to
adjacent regions. As the GBA develop by leveraging the diverse strengths of its constituent
cities, in technology and innovation, finance, shipping and trade, advanced manufacturing
and hospitality, it is also creating a supply chain of idea, resources and talents in its vicinity
region. Meanwhile, regional connectivity and rising demand for improved quality of life will
also support development of modern services across the region. It could thereby create a
more developed and interconnected South China with the Pearl River Delta at its center.
Guangdong
64 The economy
Guangdong has a total area of 179,757 sq km. Total population stood at 113.5m at the end
