Page 66 - 2020 Special Report on the State of Business in South China
P. 66
Guangdong
The Economy years amid rising labor cost, Guangdong is moving
upward the production chain to higher technology
Guangdong has a total area industries. Among them, many indigenous
of 179,757 sq enterprises have also developed a strong brand
km. Total population stood at 113.5m at the end name, such as Huawei, Tencent, BYD, Midea, Gree
of 2018, out of which around 83% have registered etc. In 2018, the top five industries in Guangdong
residency. The Pearl River Delta (PRD) is the by value-added are: Computer, communication
province’s economic hub, its GDP accounting for and electronic equipment, electrical machineries
83.3% of Guangdong’s GDP in 2018. The PRD and equipment, automobile manufacturing, metal
Economic Zone covers nine cities – Guangzhou, products, and fuel processing.
Shenzhen, Zhuhai, Foshan, Jiangmen, Dongguan,
Zhongshan, Huizhou and Zhaoqing. As for the service sectors which accounted
for 54.2% of GDP in 2018, Guangdong aims to
Guangdong remains the largest province by further increase their overall relative share in GDP.
the size of its economy, at RMB 9.73t or 10.8% of While development of the service sectors will be
the national total in 2018. Compared to the other expedited across the board, their structure will be
economic hubs in China such as the Yangtze River optimized to develop Guangdong into a regional
Delta, Guangdong stands out for having: financial center, modern logistics hub in southern
China, as well as an international business travel
1) The largest external facing economy with its and shopping center.
exports accounting for 26.0% of national total in
2018. It is because Guangdong is a major export- Guangdong accounted for about 16.3% of
processing base for foreign investors. It is also China’s total utilized FDI. Foreign investments in
the home to Canton Fair, China’s largest export Guangdong are mainly engaged in manufacturing
trade fair. Cities that have the largest industrial industries (around 35.9% of the utilized FDI). For
production include Guangzhou, Shenzhen, tertiary industry, leasing and business services was
Dongguan, Foshan, Huizhou, Jiangmen and one of the most attractive areas, absorbing 16.7%
Shantou; and of the total utilised FDI, followed by real estate
(16.2% of the total FDI).
2) The largest retail market of consumer
goods at around 10.4% of national total in 2018. Recent Policies and Reforms
With the rising income level and the economic
structure adjustment, the consumer expenditure Policies and Measures to Further Promote
pattern is also undergoing structural changes Scientific and Technological Innovation
in favor of services such as transportation and
communications. On January 7, 2019, the Guangdong Provincial
People's Government issued the notice on
Traditionally, output of light industries used “Policies and Measures to Further Promote
to account for over half of the province's total Scientific and Technological Innovation” (the
industrial output. Major products include electrical “Guangdong Notice”). The Guangdong Notice
appliances such as television sets, electrical fans proposes that innovation is the first driving force
and refrigerators, and labor intensive products like for development and also proposes to promote
garments, toys, shoes and electronics. In recent
66
The Economy years amid rising labor cost, Guangdong is moving
upward the production chain to higher technology
Guangdong has a total area industries. Among them, many indigenous
of 179,757 sq enterprises have also developed a strong brand
km. Total population stood at 113.5m at the end name, such as Huawei, Tencent, BYD, Midea, Gree
of 2018, out of which around 83% have registered etc. In 2018, the top five industries in Guangdong
residency. The Pearl River Delta (PRD) is the by value-added are: Computer, communication
province’s economic hub, its GDP accounting for and electronic equipment, electrical machineries
83.3% of Guangdong’s GDP in 2018. The PRD and equipment, automobile manufacturing, metal
Economic Zone covers nine cities – Guangzhou, products, and fuel processing.
Shenzhen, Zhuhai, Foshan, Jiangmen, Dongguan,
Zhongshan, Huizhou and Zhaoqing. As for the service sectors which accounted
for 54.2% of GDP in 2018, Guangdong aims to
Guangdong remains the largest province by further increase their overall relative share in GDP.
the size of its economy, at RMB 9.73t or 10.8% of While development of the service sectors will be
the national total in 2018. Compared to the other expedited across the board, their structure will be
economic hubs in China such as the Yangtze River optimized to develop Guangdong into a regional
Delta, Guangdong stands out for having: financial center, modern logistics hub in southern
China, as well as an international business travel
1) The largest external facing economy with its and shopping center.
exports accounting for 26.0% of national total in
2018. It is because Guangdong is a major export- Guangdong accounted for about 16.3% of
processing base for foreign investors. It is also China’s total utilized FDI. Foreign investments in
the home to Canton Fair, China’s largest export Guangdong are mainly engaged in manufacturing
trade fair. Cities that have the largest industrial industries (around 35.9% of the utilized FDI). For
production include Guangzhou, Shenzhen, tertiary industry, leasing and business services was
Dongguan, Foshan, Huizhou, Jiangmen and one of the most attractive areas, absorbing 16.7%
Shantou; and of the total utilised FDI, followed by real estate
(16.2% of the total FDI).
2) The largest retail market of consumer
goods at around 10.4% of national total in 2018. Recent Policies and Reforms
With the rising income level and the economic
structure adjustment, the consumer expenditure Policies and Measures to Further Promote
pattern is also undergoing structural changes Scientific and Technological Innovation
in favor of services such as transportation and
communications. On January 7, 2019, the Guangdong Provincial
People's Government issued the notice on
Traditionally, output of light industries used “Policies and Measures to Further Promote
to account for over half of the province's total Scientific and Technological Innovation” (the
industrial output. Major products include electrical “Guangdong Notice”). The Guangdong Notice
appliances such as television sets, electrical fans proposes that innovation is the first driving force
and refrigerators, and labor intensive products like for development and also proposes to promote
garments, toys, shoes and electronics. In recent
66
