Page 514 - 2021 White Paper
P. 514
1 White Paper on the Business Environment in China
3.1 Economic Overview in South China
Overview and machinery manufacturing sectors in recent
years. Hainan has also invested extensively in
S outh China is a leading engine in infrastructure to bring in modern service sectors
China’s economic growth that such as exhibitions and logistics, and high value-
includes not only the province of Guangdong, added industries such as pharmaceuticals. With its
Fujian, Guangxi, and Hainan, but also the Special stated target to become an international tourism
Administrative Regions of Hong Kong and Macau. destination in the 13th Five Year plan, Hainan has
Together, the economy of these regions measured also launched an offshore duty-free policy and
RMB20.56t in 2019, or around 20.8% of the travel visa waiver to welcome tourists.
national GDP, much of which is concentrated in
coastal regions such as the Pearl River Delta. Meanwhile, the economic prospects for the
Hong Kong and Macau SARs are set to improve
Forerunners in China’s Economic due to increasing integration with Mainland China,
Reform particularly since the announcement of the Greater
Bay Area in July 2017, when President Xi Jinping
The coastal region of South China is now home witnessed the signing of the “Development of the
to China’s technology and financial centers, as it Guangdong-Hong Kong-Macau Greater Bay Area”.
benefits from being at the forefront of China’s Being a long-standing portal between Mainland
economic reforms. Shenzhen, Shantou and China and the rest of the world, the SARs, especially
Zhuhai in Guangdong and Xiamen in Fujian were Hong Kong, may tap into: 1) the rising connectivity
designated as the first four special economic zones of Mainland China’s financial markets with the
when the opening-up policy began in 1978. With rest of the world; 2) their unique positioning as a
the support of significant capital investments from gateway for the Belt and Road Initiative through
the Chinese diaspora originating in areas such as overseas connections, particularly as a financing
Taishan, Macau, Hong Kong, Chaozhou, Xiamen and litigation center; and 3) synergy with Shenzhen
and Fuzhou, the region has quickly developed into in terms of technology research and development,
an external facing manufacturing hub since the according to President Xi’s pledge in May 2018,
1980s. In the decades that followed, the provinces possibly through comparative advantages in
have also successfully moved up from production academic research.
of labor-intensive light-industry products and
processing trade to higher value-added products Outlook
such as mobile phones and the 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
its proximity to ASEAN to welcome new industrial supply chain of ideas, resources and talent within
investments in the automobile, petrochemical the region. Meanwhile, regional connectivity and
514
3.1 Economic Overview in South China
Overview and machinery manufacturing sectors in recent
years. Hainan has also invested extensively in
S outh China is a leading engine in infrastructure to bring in modern service sectors
China’s economic growth that such as exhibitions and logistics, and high value-
includes not only the province of Guangdong, added industries such as pharmaceuticals. With its
Fujian, Guangxi, and Hainan, but also the Special stated target to become an international tourism
Administrative Regions of Hong Kong and Macau. destination in the 13th Five Year plan, Hainan has
Together, the economy of these regions measured also launched an offshore duty-free policy and
RMB20.56t in 2019, or around 20.8% of the travel visa waiver to welcome tourists.
national GDP, much of which is concentrated in
coastal regions such as the Pearl River Delta. Meanwhile, the economic prospects for the
Hong Kong and Macau SARs are set to improve
Forerunners in China’s Economic due to increasing integration with Mainland China,
Reform particularly since the announcement of the Greater
Bay Area in July 2017, when President Xi Jinping
The coastal region of South China is now home witnessed the signing of the “Development of the
to China’s technology and financial centers, as it Guangdong-Hong Kong-Macau Greater Bay Area”.
benefits from being at the forefront of China’s Being a long-standing portal between Mainland
economic reforms. Shenzhen, Shantou and China and the rest of the world, the SARs, especially
Zhuhai in Guangdong and Xiamen in Fujian were Hong Kong, may tap into: 1) the rising connectivity
designated as the first four special economic zones of Mainland China’s financial markets with the
when the opening-up policy began in 1978. With rest of the world; 2) their unique positioning as a
the support of significant capital investments from gateway for the Belt and Road Initiative through
the Chinese diaspora originating in areas such as overseas connections, particularly as a financing
Taishan, Macau, Hong Kong, Chaozhou, Xiamen and litigation center; and 3) synergy with Shenzhen
and Fuzhou, the region has quickly developed into in terms of technology research and development,
an external facing manufacturing hub since the according to President Xi’s pledge in May 2018,
1980s. In the decades that followed, the provinces possibly through comparative advantages in
have also successfully moved up from production academic research.
of labor-intensive light-industry products and
processing trade to higher value-added products Outlook
such as mobile phones and the 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
its proximity to ASEAN to welcome new industrial supply chain of ideas, resources and talent within
investments in the automobile, petrochemical the region. Meanwhile, regional connectivity and
514
