Page 62 - 2021 Special Report
P. 62
Economic Overview in South China
Overview its proximity to ASEAN to welcome new industrial
investments in the automobile, petrochemical
S outh China is a leading engine in and machinery manufacturing sectors in recent
China’s economic growth that years. Hainan has also invested extensively in
includes not only the province of Guangdong, infrastructure to bring in modern service sectors
Fujian, Guangxi, and Hainan, but also the Special such as exhibitions and logistics, and high value-
Administrative Regions of Hong Kong and added industries such as pharmaceuticals. With its
Macau. Together, the economy of these regions stated target to become an international tourism
measured RMB20.56t in 2019, or around 20.8% of destination in the 13th Five Year plan, Hainan has
the national GDP, much of which is concentrated also launched an offshore duty-free policy and
in coastal regions such as the Pearl River Delta. travel visa waiver to welcome tourists.
Forerunners in China’s Economic Meanwhile, the economic prospects for the
Hong Kong and Macau SARs are set to improve
Reform due to increasing integration with Mainland China,
particularly since the announcement of the Greater
The coastal region of South China is now home Bay Area in July 2017, when President Xi Jinping
to China’s technology and financial centers, as it witnessed the signing of the “Development of the
benefits from being at the forefront of China’s Guangdong-Hong Kong-Macau Greater Bay Area”.
economic reforms. Shenzhen, Shantou and Being a long-standing portal between Mainland
Zhuhai in Guangdong and Xiamen in Fujian were China and the rest of the world, the SARs, especially
designated as the first four special economic Hong Kong, may tap into: 1) the rising connectivity
zones when the opening-up policy began in 1978. of Mainland China’s financial markets with the
With the support of significant capital investments rest of the world; 2) their unique positioning as a
from the Chinese diaspora originating in areas gateway for the Belt and Road Initiative through
such as Taishan, Macau, Hong Kong, Chaozhou, overseas connections, particularly as a financing
Xiamen and Fuzhou, the region has quickly and litigation center; and 3) synergy with Shenzhen
developed into an external facing manufacturing in terms of technology research and development,
hub since the 1980s. In the decades that followed, according to President Xi’s pledge in May 2018,
the provinces have also successfully moved up possibly through comparative advantages in
from production of labor-intensive light-industry academic research.
products and processing trade to higher value-
added products such as mobile phones and the Outlook
service industries.
The Greater Bay Area is envisioned by the
The transition opened up opportunities for government to become a leading metropolis. Its
inland provinces in the region which remain development is also expected in the 13th Five
hubs for national resources and agriculture. Year Plan to radiate into adjacent regions. As the
Inland provincial governments have been GBA develops by leveraging the diverse strengths
proactive in attracting new inbound investments. of its constituent cities, e.g., in technology and
Specifically, the Guangxi government has aligned innovation, finance, shipping and trade, advanced
its comparative advantages in heavy industry and manufacturing and hospitality, it will also create a
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Overview its proximity to ASEAN to welcome new industrial
investments in the automobile, petrochemical
S outh China is a leading engine in and machinery manufacturing sectors in recent
China’s economic growth that years. Hainan has also invested extensively in
includes not only the province of Guangdong, infrastructure to bring in modern service sectors
Fujian, Guangxi, and Hainan, but also the Special such as exhibitions and logistics, and high value-
Administrative Regions of Hong Kong and added industries such as pharmaceuticals. With its
Macau. Together, the economy of these regions stated target to become an international tourism
measured RMB20.56t in 2019, or around 20.8% of destination in the 13th Five Year plan, Hainan has
the national GDP, much of which is concentrated also launched an offshore duty-free policy and
in coastal regions such as the Pearl River Delta. travel visa waiver to welcome tourists.
Forerunners in China’s Economic Meanwhile, the economic prospects for the
Hong Kong and Macau SARs are set to improve
Reform due to increasing integration with Mainland China,
particularly since the announcement of the Greater
The coastal region of South China is now home Bay Area in July 2017, when President Xi Jinping
to China’s technology and financial centers, as it witnessed the signing of the “Development of the
benefits from being at the forefront of China’s Guangdong-Hong Kong-Macau Greater Bay Area”.
economic reforms. Shenzhen, Shantou and Being a long-standing portal between Mainland
Zhuhai in Guangdong and Xiamen in Fujian were China and the rest of the world, the SARs, especially
designated as the first four special economic Hong Kong, may tap into: 1) the rising connectivity
zones when the opening-up policy began in 1978. of Mainland China’s financial markets with the
With the support of significant capital investments rest of the world; 2) their unique positioning as a
from the Chinese diaspora originating in areas gateway for the Belt and Road Initiative through
such as Taishan, Macau, Hong Kong, Chaozhou, overseas connections, particularly as a financing
Xiamen and Fuzhou, the region has quickly and litigation center; and 3) synergy with Shenzhen
developed into an external facing manufacturing in terms of technology research and development,
hub since the 1980s. In the decades that followed, according to President Xi’s pledge in May 2018,
the provinces have also successfully moved up possibly through comparative advantages in
from production of labor-intensive light-industry academic research.
products and processing trade to higher value-
added products such as mobile phones and the Outlook
service industries.
The Greater Bay Area is envisioned by the
The transition opened up opportunities for government to become a leading metropolis. Its
inland provinces in the region which remain development is also expected in the 13th Five
hubs for national resources and agriculture. Year Plan to radiate into adjacent regions. As the
Inland provincial governments have been GBA develops by leveraging the diverse strengths
proactive in attracting new inbound investments. of its constituent cities, e.g., in technology and
Specifically, the Guangxi government has aligned innovation, finance, shipping and trade, advanced
its comparative advantages in heavy industry and manufacturing and hospitality, it will also create a
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