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0 White Paper on the Business Environment in China
This is mostly because as a new city that emerged Improved Flow of Resources within
economically in the past four decades, Shenzhen the GBA
does not have an endowment of top research
universities. Instead, Shenzhen creates its talent Expanded Catchment Area for Labor Supply
pool mainly through attracting graduates from the
rest of mainland China and Hong Kong, in addition Shenzhen’s location within the GBA protects it
to opening branches of famous universities in the from resource shortfalls and provides opportunities
city. Among the top 100 universities in Greater for further improvement of its economic structure.
China ranked by Shanghai Ranking Consultancy4 , The Outline Development Plan (“the Plan”) for
6 are located in Hong Kong, 2 are in Macao and 3 the GBA, released in February 20196 , considers
are in Guangzhou, but none of the universities in the future of the 9+2 cities in the area to be one
Shenzhen made the list. intricately connected metropolis with a combined
population of over 70m and a total size of 56,000km2.
Nevertheless, this is an area where Hong Kong In addition, while the governments of top-tier cities
has comparative advantages, as a significant share may limit the number of new migrants, smaller cities
of its technology R&D spending goes to academic in the region may attract non-resident talent to
institutions and the public sector. It is also home settle by providing equivalent registration (hukou),
to some of the best research universities in the more affordable homes and access to public goods.
region. Hong Kong’s pipeline of tech talent may This region will then be connected by subway and
complement Shenzhen’s strengths in technology intercity train systems to reduce most commuter
adaptation and application under initiatives such journeys to within an hour.
as the Hong Kong-Shenzhen Innovation and
Technology Park and partnering with national-level On 6 November 2019, the Leading Group for
laboratories in Hong Kong. Development of the Guangdong-Hong Kong-Macao
Greater Bay Area also approved7 a sixteen-point
strengths in technology adaptation and application under initiatives such as the Hong Kong-Shenzhen plan to support Hong Kong people living in the GBA.
Among them, six measures have been introduced to
InnovaFtioingan9d T:echNnolaogtyiPoarknaandlparratnenrinkg iwnithgnatoiofnalu-lenveil vlabeorrastoiriteiseinsHoinng Kotnhg.e GBA allow Hong Kong professionals in legal, architecture,
construction and insurance to work in the GBA.
Fig 9: National ranking of universities in the GBA Together with the existing areas already allowed
under the Mainland China and Hong Kong Closer
University Location National ranking Economic Partnership Arrangement (CEPA), this
plan will strengthen the multi-layered supply of
The Chinese University of Hong Kong Hong Kong 4 talent working in Shenzhen.
The University of Hong Kong Hong Kong 8
The Hong Kong University of Science and Technology Hong Kong 12 Land prices to equalize with the elimination of
City University of Hong Kong Hong Kong 13 borders
Sun Yat-sen University Guangzhou 16
The Hong Kong Polytechnic University Hong Kong 20 Guangzhou is the sole top tier city in mainland
Macau University of Science and Technology Macao 21 China that has been able to keep its property prices
South China University of Technology Guangzhou 33 from significantly overheating in the past few years,
University of Macau Macao 38 arguably due to its amalgamation with Foshan.
Hong Kong Baptist University Hong Kong 44 In effect, tightly controlled purchase restrictions
Jinan University Guangzhou 96 in larger cities have kept home prices stable and
limited transactions, and thus housing demand has
Note: As of 2018 been driven to nearby cities and price differences
between cities have decreased.
Note: As of 2018Source: Shanghai Ranking Consultancy
6. www.gov.cn/zhengce/2019-02/18/content_5366593.htm#1
In “About the individual income tax preferential treatment of individuals in the Greater Bay Area”, which was 7. www.info.gov.hk/gia/general/201911/06/P2019110600848.htm
Source: Shanghai Ranking Consultancyjointly issued by the Ministry of Finance (MOF) and the State Taxation Administration (STA) on 14 March 20197,
foreign talent from eligible high-end industries will receive subsidies to bridge the gap in individual income
between mainland China and Hong Kong SAR if they generate their income in the GBA. This will likely lead to an
ianrfeluax. Ionf fore“iAgnbtaloentuantd intchreaese tihne indceinvtivieds fuor maulltiniantiocnaol cmorpoeratiotnas txo exppanrdeopfeerartioensnintthiae l
tImrepraovtemd felonwtof orefsouinrcdesiwviitdhiun tahelsGBiAn the Greater Bay Area”,
wExphanidcedhcatcwhmaenst arejoa foirnlatbolrysupipslysued by the Ministry of Finance
Shenzhen’s location within the GBA protects it from resource shortfalls and provides opportunities for further
(MOF) and the State Taxation Administration (STA)improvement of its economic structure. The Outline Development Plan (“the Plan”) for the GBA, released in
considers the fouvteurre70o5mf thaend9+a2toctiatilessizine the area to be one intricately connected metropolis
population of of 56,000km2. In addition, while the governments of
February 20198,
on 14 March 2019 , foreign talent from eligible high-with a combined
top-tier cities may limit the number of new migrants, smaller cities in the region may attract non-resident talent
end industries will receive subsidies to bridge theto settle by providing equivalent registration (hukou), more affordable homes and access to public goods. This
garengahioopnuwr.ililnthenibne cdoninvecitdedubyasulbwiany acndoinmterciety trabinesysttwemsetoerenducemmoast cionmlmautner djournCeyshtoinwitahin
and Hong Kong SAR if they generate their income in
the GBA. This will likely lead to an influx of foreign
talent and increase the incentives for multinational
corporations to expand operations in the area.
4.www.shanghairanking.com/Greater_China_Ranking/Greater_China_
Ranking2018.html
5. www.chinatax.gov.cn/n810341/n810755/c4148969/content.html
7 www.chinatax.gov.cn/n810341/n810755/c4148969/content.html
66 8 www.gov.cn/zhengce/2019-02/18/content_5366593.htm#1
This is mostly because as a new city that emerged Improved Flow of Resources within
economically in the past four decades, Shenzhen the GBA
does not have an endowment of top research
universities. Instead, Shenzhen creates its talent Expanded Catchment Area for Labor Supply
pool mainly through attracting graduates from the
rest of mainland China and Hong Kong, in addition Shenzhen’s location within the GBA protects it
to opening branches of famous universities in the from resource shortfalls and provides opportunities
city. Among the top 100 universities in Greater for further improvement of its economic structure.
China ranked by Shanghai Ranking Consultancy4 , The Outline Development Plan (“the Plan”) for
6 are located in Hong Kong, 2 are in Macao and 3 the GBA, released in February 20196 , considers
are in Guangzhou, but none of the universities in the future of the 9+2 cities in the area to be one
Shenzhen made the list. intricately connected metropolis with a combined
population of over 70m and a total size of 56,000km2.
Nevertheless, this is an area where Hong Kong In addition, while the governments of top-tier cities
has comparative advantages, as a significant share may limit the number of new migrants, smaller cities
of its technology R&D spending goes to academic in the region may attract non-resident talent to
institutions and the public sector. It is also home settle by providing equivalent registration (hukou),
to some of the best research universities in the more affordable homes and access to public goods.
region. Hong Kong’s pipeline of tech talent may This region will then be connected by subway and
complement Shenzhen’s strengths in technology intercity train systems to reduce most commuter
adaptation and application under initiatives such journeys to within an hour.
as the Hong Kong-Shenzhen Innovation and
Technology Park and partnering with national-level On 6 November 2019, the Leading Group for
laboratories in Hong Kong. Development of the Guangdong-Hong Kong-Macao
Greater Bay Area also approved7 a sixteen-point
strengths in technology adaptation and application under initiatives such as the Hong Kong-Shenzhen plan to support Hong Kong people living in the GBA.
Among them, six measures have been introduced to
InnovaFtioingan9d T:echNnolaogtyiPoarknaandlparratnenrinkg iwnithgnatoiofnalu-lenveil vlabeorrastoiriteiseinsHoinng Kotnhg.e GBA allow Hong Kong professionals in legal, architecture,
construction and insurance to work in the GBA.
Fig 9: National ranking of universities in the GBA Together with the existing areas already allowed
under the Mainland China and Hong Kong Closer
University Location National ranking Economic Partnership Arrangement (CEPA), this
plan will strengthen the multi-layered supply of
The Chinese University of Hong Kong Hong Kong 4 talent working in Shenzhen.
The University of Hong Kong Hong Kong 8
The Hong Kong University of Science and Technology Hong Kong 12 Land prices to equalize with the elimination of
City University of Hong Kong Hong Kong 13 borders
Sun Yat-sen University Guangzhou 16
The Hong Kong Polytechnic University Hong Kong 20 Guangzhou is the sole top tier city in mainland
Macau University of Science and Technology Macao 21 China that has been able to keep its property prices
South China University of Technology Guangzhou 33 from significantly overheating in the past few years,
University of Macau Macao 38 arguably due to its amalgamation with Foshan.
Hong Kong Baptist University Hong Kong 44 In effect, tightly controlled purchase restrictions
Jinan University Guangzhou 96 in larger cities have kept home prices stable and
limited transactions, and thus housing demand has
Note: As of 2018 been driven to nearby cities and price differences
between cities have decreased.
Note: As of 2018Source: Shanghai Ranking Consultancy
6. www.gov.cn/zhengce/2019-02/18/content_5366593.htm#1
In “About the individual income tax preferential treatment of individuals in the Greater Bay Area”, which was 7. www.info.gov.hk/gia/general/201911/06/P2019110600848.htm
Source: Shanghai Ranking Consultancyjointly issued by the Ministry of Finance (MOF) and the State Taxation Administration (STA) on 14 March 20197,
foreign talent from eligible high-end industries will receive subsidies to bridge the gap in individual income
between mainland China and Hong Kong SAR if they generate their income in the GBA. This will likely lead to an
ianrfeluax. Ionf fore“iAgnbtaloentuantd intchreaese tihne indceinvtivieds fuor maulltiniantiocnaol cmorpoeratiotnas txo exppanrdeopfeerartioensnintthiae l
tImrepraovtemd felonwtof orefsouinrcdesiwviitdhiun tahelsGBiAn the Greater Bay Area”,
wExphanidcedhcatcwhmaenst arejoa foirnlatbolrysupipslysued by the Ministry of Finance
Shenzhen’s location within the GBA protects it from resource shortfalls and provides opportunities for further
(MOF) and the State Taxation Administration (STA)improvement of its economic structure. The Outline Development Plan (“the Plan”) for the GBA, released in
considers the fouvteurre70o5mf thaend9+a2toctiatilessizine the area to be one intricately connected metropolis
population of of 56,000km2. In addition, while the governments of
February 20198,
on 14 March 2019 , foreign talent from eligible high-with a combined
top-tier cities may limit the number of new migrants, smaller cities in the region may attract non-resident talent
end industries will receive subsidies to bridge theto settle by providing equivalent registration (hukou), more affordable homes and access to public goods. This
garengahioopnuwr.ililnthenibne cdoninvecitdedubyasulbwiany acndoinmterciety trabinesysttwemsetoerenducemmoast cionmlmautner djournCeyshtoinwitahin
and Hong Kong SAR if they generate their income in
the GBA. This will likely lead to an influx of foreign
talent and increase the incentives for multinational
corporations to expand operations in the area.
4.www.shanghairanking.com/Greater_China_Ranking/Greater_China_
Ranking2018.html
5. www.chinatax.gov.cn/n810341/n810755/c4148969/content.html
7 www.chinatax.gov.cn/n810341/n810755/c4148969/content.html
66 8 www.gov.cn/zhengce/2019-02/18/content_5366593.htm#1
