Page 64 - 2023 Special Report on the State of Business in South China
P. 64
nomic Overview in South China
The economy of South China1 The most attractive region for
foreign investment
South China is a leading engine in
China’s economic growth that Despite the Covid-19 disruption, Chinese
includes not only the provinces of Guangdong, mainland and Hong Kong remained the most
Fujian, Guangxi and Hainan, but also the Special attractive destination for investment in 2021, with
Administrative Regions (SARs) of Hong Kong total foreign direct investment (FDI) inflows reached
and Macau. Thanks to the effective prevention US$181 billion and US$141 billion2 respectively.
and control of Covid-19, the economies of The four provinces of South China, with no
these regions reached RMB23 trillion in 2021, surprise, were the most dominant recipients,
accounting for around 20.1% of national gross absorbing 23% investment of the total mainland
domestic product (GDP). FDI inflows3. In June 2022, Guangdong unveiled 131
specific measures on six fronts to further stabilize
Forerunners in China’s Economic the economy and to attract further investment.
reform Authorities in Hainan are also building the island
as a national pilot zone for ecological civilization,
The reform and open-door policy of China which attracted foreign investment in this regard.
began with the adoption of a new economic
development strategy in late 1978. No region Outlook of South China
better encapsulates the success of this strategy
than South China, which was at the forefront The region is set to become a major powerhouse
of reform and opening-up initiatives and has that leverages each city’s strengths in a synergistic
been quickly developed as an external facing mannertodriveChina'stradeandeconomicgrowth,
manufacturing hub since the 1980s. In the decades particularly in technology and innovation, finance,
that followed, South China has been continuously shipping and trade, advanced manufacturing and
moving up the industrial ladder, from labor- hospitality. Meanwhile, regional connectivity and
intensive mass production to higher value-added rising demand for an improved quality of life will
manufacturing. Now it has been developed to a also support the development of modern services
more diversified region with various advantages across the region. This could thereby create a
from both manufacturing and service sectors. more developed and interconnected South China
Under the 14th Five-Year Plan, South China with the Pearl River Delta (PRD) at its center.
is expected to become a new technology and
innovation hub in the next five years, generate
new business models/opportunities and further
drive China’s economic growth.
1 South China, includes Guangdong province, 2 World Investment Report, UNCTAD, https://
Fujian province, Guangxi autonomous region, Hainan unctad.org/system/files/official-document/wir2022_
province, Hong Kong Special Administrative Region en.pdf
(SAR) and Macau (SAR) 3 Government sites of provinces/regions, EY
analysis
64
The economy of South China1 The most attractive region for
foreign investment
South China is a leading engine in
China’s economic growth that Despite the Covid-19 disruption, Chinese
includes not only the provinces of Guangdong, mainland and Hong Kong remained the most
Fujian, Guangxi and Hainan, but also the Special attractive destination for investment in 2021, with
Administrative Regions (SARs) of Hong Kong total foreign direct investment (FDI) inflows reached
and Macau. Thanks to the effective prevention US$181 billion and US$141 billion2 respectively.
and control of Covid-19, the economies of The four provinces of South China, with no
these regions reached RMB23 trillion in 2021, surprise, were the most dominant recipients,
accounting for around 20.1% of national gross absorbing 23% investment of the total mainland
domestic product (GDP). FDI inflows3. In June 2022, Guangdong unveiled 131
specific measures on six fronts to further stabilize
Forerunners in China’s Economic the economy and to attract further investment.
reform Authorities in Hainan are also building the island
as a national pilot zone for ecological civilization,
The reform and open-door policy of China which attracted foreign investment in this regard.
began with the adoption of a new economic
development strategy in late 1978. No region Outlook of South China
better encapsulates the success of this strategy
than South China, which was at the forefront The region is set to become a major powerhouse
of reform and opening-up initiatives and has that leverages each city’s strengths in a synergistic
been quickly developed as an external facing mannertodriveChina'stradeandeconomicgrowth,
manufacturing hub since the 1980s. In the decades particularly in technology and innovation, finance,
that followed, South China has been continuously shipping and trade, advanced manufacturing and
moving up the industrial ladder, from labor- hospitality. Meanwhile, regional connectivity and
intensive mass production to higher value-added rising demand for an improved quality of life will
manufacturing. Now it has been developed to a also support the development of modern services
more diversified region with various advantages across the region. This could thereby create a
from both manufacturing and service sectors. more developed and interconnected South China
Under the 14th Five-Year Plan, South China with the Pearl River Delta (PRD) at its center.
is expected to become a new technology and
innovation hub in the next five years, generate
new business models/opportunities and further
drive China’s economic growth.
1 South China, includes Guangdong province, 2 World Investment Report, UNCTAD, https://
Fujian province, Guangxi autonomous region, Hainan unctad.org/system/files/official-document/wir2022_
province, Hong Kong Special Administrative Region en.pdf
(SAR) and Macau (SAR) 3 Government sites of provinces/regions, EY
analysis
64
