Page 70 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
amongst Guangdong, Hong Kong and Macao, and total, ranking the 1st out of 31 provinces,
promote the construction of a global competitive and its value-added reached RMB5.2 trillion,
industrial system, as well as an international center accounting for 46.8% of GDP with 6.6% YoY
for technology and innovation. The GBA is expected growth. Moreover, Guangdong aims to increase
to become a dynamic world-class city cluster and the number of 5G base stations from 134,000 to
an ideal place for living, working, and travelling. 250,000, covering 100 million users with digital
economy of RMB10.7 trillion by 202516, keeping
In early 2021, the development of the GBA was the leading position of digital economy in the
once again emphasized in the Outline of the 14th country. Recently, a regulation was released
Five-Year Plan (2021-2025) for National Economic by Department of Industry and Information
and Social Development and the Long-Range Technology of Guangdong, to further strengthen
Objectives Through the Year 203513. Hong Kong also the communication and cooperation with
announced its Chief Executive’s 2021 Policy Address Hong Kong and Macao in fields such as digital
to push further integration of Hong Kong into the infrastructure, digital trade, and digital finance.
national development14. Recently, two general plans
were promulgated by the central government to Digitalization drives new business model in
spur the next stage of high-quality development Hong Kong: With growing technology capabilities,
of the GBA, underlining the strategic positioning of digital advances, and innovative breakthroughs,
Hengqin in terms of promoting diverse economy Hong Kong is accelerating the implementation of
in Macao, and highlighting Qianhai’s importance in digital technology in several sectors. Particularly,
leveraging Hong Kong's advantages to strengthen some businesses are forced to speed up
the cooperation of the GBA. digitalization due to the disruption caused by
COVID-19 pandemic, such as E-commerce. Offline
Digitalization to achieve stores are shifting their operation strategy to offer
sustainable development more online products and services; shopping
goals in the long-term malls are setting up E-commerce channels to
support retailers to continue their business;
GBA is raising as a powerhouse of traditional food and beverage (F&B) companies
digitalization are becoming more proactive to reach out for
consumers17. Hong Kong’s start-up companies
The GBA is actively consolidating its strengths also target the GBA as an ideal innovation base,
and implementing digitalization across a range with dense network of suppliers, large skilled
of sectors. By 2035, as laid out in the Outline of labor force, mature logistics infrastructure, as
the Development Plan for the Guangdong-Hong well as government incentives and fund support.
Kong-Macao Greater Bay Area15, the nation targets Hong Kong's Dedicated Fund on Branding,
to establish a technology-and-innovation-driven Upgrading and Domestic Sales (BUD Fund) offers
development model in the region, and further up to HK$1,000,000 (US$128,700) grants per
enhance its global competitiveness. project for new businesses to help them scale
up in the Mainland China and Southeast Asia.
Guangdong digital economy takes lead in Additionally, the projects under joint research
China: By the end of 2020, Guangdong’s digital and development between Guangzhou and Hong
economy contributed 13.3% of the country’s Kong will receive as much as RMB4.5 million
(US$640,000) funds support18.
13 The State Council of the People’s Republic of
China, http://www.gov.cn/xinwen/2021-03/13/con- 16 Department of Industry and Information Tech-
tent_5592681.htm nology of Guangdong, http://gdii.gd.gov.cn/mtbd1875/
14 The Hong Kong Special Administrative Region content/post_3498244.html
of the People’s Republic of China, https://www.policy- 17 techwireasia.com, https://techwirea-
address.gov.hk/2021/eng/index.html sia.com/2020/03/how-a-pandemic-is-ignit-
15 The State Council, The People’s Republic of ing-hong-kongs-digital-economy/
China, http://www.gov.cn/zhengce/2019-02/18/con- 18 CGTN, https://news.cgtn.com/news/2021-03-
tent_5366593.htm 08/Hong-Kong-startups-tap-into-Greater-Bay-Area-s-
digital-innovation--Yt0odZbSOQ/index.html
70
amongst Guangdong, Hong Kong and Macao, and total, ranking the 1st out of 31 provinces,
promote the construction of a global competitive and its value-added reached RMB5.2 trillion,
industrial system, as well as an international center accounting for 46.8% of GDP with 6.6% YoY
for technology and innovation. The GBA is expected growth. Moreover, Guangdong aims to increase
to become a dynamic world-class city cluster and the number of 5G base stations from 134,000 to
an ideal place for living, working, and travelling. 250,000, covering 100 million users with digital
economy of RMB10.7 trillion by 202516, keeping
In early 2021, the development of the GBA was the leading position of digital economy in the
once again emphasized in the Outline of the 14th country. Recently, a regulation was released
Five-Year Plan (2021-2025) for National Economic by Department of Industry and Information
and Social Development and the Long-Range Technology of Guangdong, to further strengthen
Objectives Through the Year 203513. Hong Kong also the communication and cooperation with
announced its Chief Executive’s 2021 Policy Address Hong Kong and Macao in fields such as digital
to push further integration of Hong Kong into the infrastructure, digital trade, and digital finance.
national development14. Recently, two general plans
were promulgated by the central government to Digitalization drives new business model in
spur the next stage of high-quality development Hong Kong: With growing technology capabilities,
of the GBA, underlining the strategic positioning of digital advances, and innovative breakthroughs,
Hengqin in terms of promoting diverse economy Hong Kong is accelerating the implementation of
in Macao, and highlighting Qianhai’s importance in digital technology in several sectors. Particularly,
leveraging Hong Kong's advantages to strengthen some businesses are forced to speed up
the cooperation of the GBA. digitalization due to the disruption caused by
COVID-19 pandemic, such as E-commerce. Offline
Digitalization to achieve stores are shifting their operation strategy to offer
sustainable development more online products and services; shopping
goals in the long-term malls are setting up E-commerce channels to
support retailers to continue their business;
GBA is raising as a powerhouse of traditional food and beverage (F&B) companies
digitalization are becoming more proactive to reach out for
consumers17. Hong Kong’s start-up companies
The GBA is actively consolidating its strengths also target the GBA as an ideal innovation base,
and implementing digitalization across a range with dense network of suppliers, large skilled
of sectors. By 2035, as laid out in the Outline of labor force, mature logistics infrastructure, as
the Development Plan for the Guangdong-Hong well as government incentives and fund support.
Kong-Macao Greater Bay Area15, the nation targets Hong Kong's Dedicated Fund on Branding,
to establish a technology-and-innovation-driven Upgrading and Domestic Sales (BUD Fund) offers
development model in the region, and further up to HK$1,000,000 (US$128,700) grants per
enhance its global competitiveness. project for new businesses to help them scale
up in the Mainland China and Southeast Asia.
Guangdong digital economy takes lead in Additionally, the projects under joint research
China: By the end of 2020, Guangdong’s digital and development between Guangzhou and Hong
economy contributed 13.3% of the country’s Kong will receive as much as RMB4.5 million
(US$640,000) funds support18.
13 The State Council of the People’s Republic of
China, http://www.gov.cn/xinwen/2021-03/13/con- 16 Department of Industry and Information Tech-
tent_5592681.htm nology of Guangdong, http://gdii.gd.gov.cn/mtbd1875/
14 The Hong Kong Special Administrative Region content/post_3498244.html
of the People’s Republic of China, https://www.policy- 17 techwireasia.com, https://techwirea-
address.gov.hk/2021/eng/index.html sia.com/2020/03/how-a-pandemic-is-ignit-
15 The State Council, The People’s Republic of ing-hong-kongs-digital-economy/
China, http://www.gov.cn/zhengce/2019-02/18/con- 18 CGTN, https://news.cgtn.com/news/2021-03-
tent_5366593.htm 08/Hong-Kong-startups-tap-into-Greater-Bay-Area-s-
digital-innovation--Yt0odZbSOQ/index.html
70
