Page 414 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
3.1 Economic Conditions in South China
Overview and logistics, and high value-added industries such as
pharmaceuticals. With its stated target to become an
South China is a leading engine in China’s international tourism destination in the 13th Five Year
economic growth that includes not plan, Hainan has also launched offshore duty-free policy
only the province of Guangdong, Fujian, Guangxi, and and travel visa waiver to welcome tourists.
Hainan, but also the Special Administrative Regions of
Hong Kong and Macao. Together, the economy of these Meanwhile, the economic prospect of the SARs of
regions measured at 8.27 trillion yuan in 2017, or around Hong Kong and Macao is set to gain from increasing
20.7% of the national GDP. Much of the economy is integration with the Mainland. This is particularly since
concentrated at the coastal region especially the Pearl the announcement of the Greater Bay Area in July 2017,
River Delta. when President Xi Jinping witnessed the signing of
“The development of Guangdong-Hong Kong-Macao
Forerunners in China’s Economic Reform Greater Bay Area”. Being long-standing portal of the
Mainland to the rest of the world, the SARs, especially
The coastal region of South China is now home Hong Kong, may tap on 1) the rising connectivity of the
to the technology and financial centers in China, as it financial market in the Mainland with the rest of the
benefits from being at the forefront of China’s economic world; 2) the unique positioning as a gateway for Belt
reforms. Shenzhen, Shantou and Zhuhai in Guangdong and Road Initiative through its connections to overseas,
and Xiamen in Fujian were designated the first four particularly as a financing and litigation center; and
special economic zones since the opening up policy 3) the synergy with Shenzhen in terms of updating
began in 1978. With the support of significant capital technology research and development, according to
investments from the Chinese diaspora that originated President Xi’s pledge in May 2018, possibly through its
in areas such as Taishan, Macao, Hong Kong, Chaozhou, comparative advantage in academic researches.
Xiamen and Fuzhou, the regions established quickly to
become an external facing manufacturing hub since the Outlook
1980s. In the decades that followed, the provinces have
also successfully moved up from production of labor- The Greater Bay Area is envisioned by the government
intensive light-industry products and processing trade not only to become a leading metropolis in itself. Its
to higher value-added products such as mobile phones development is also expected in the 13th Five Year Plan
and the service industries. to radiate to adjacent regions. As the GBA develops by
leveraging the diverse strengths of its constituent cities,
The transition opened up opportunities for the inland in technology and innovation, finance, shipping and
provinces in the region which remain hubs for national trade, advanced manufacturing and hospitality, it is also
resources and agriculture. The governments of inland creating a supply chain of idea, resources and talents
provinces have been proactive in attracting new inbound in its vicinity region. Meanwhile, regional connectivity
investments. Specifically, the Guangxi government has and rising demand for improved quality of life will also
aligned its comparative advantages in heavy industry support development of modern services across the
and its proximity to ASEAN to welcome new industrial region. It could thereby create a more developed and
investments in the automobile, petrochemical, and interconnected South China with the Pearl River Delta
machinery manufacturing sectors in recent years. at its center.
Hainan has also invested extensively on infrastructure
to bring in modern service sectors such as exhibitions
414
3.1 Economic Conditions in South China
Overview and logistics, and high value-added industries such as
pharmaceuticals. With its stated target to become an
South China is a leading engine in China’s international tourism destination in the 13th Five Year
economic growth that includes not plan, Hainan has also launched offshore duty-free policy
only the province of Guangdong, Fujian, Guangxi, and and travel visa waiver to welcome tourists.
Hainan, but also the Special Administrative Regions of
Hong Kong and Macao. Together, the economy of these Meanwhile, the economic prospect of the SARs of
regions measured at 8.27 trillion yuan in 2017, or around Hong Kong and Macao is set to gain from increasing
20.7% of the national GDP. Much of the economy is integration with the Mainland. This is particularly since
concentrated at the coastal region especially the Pearl the announcement of the Greater Bay Area in July 2017,
River Delta. when President Xi Jinping witnessed the signing of
“The development of Guangdong-Hong Kong-Macao
Forerunners in China’s Economic Reform Greater Bay Area”. Being long-standing portal of the
Mainland to the rest of the world, the SARs, especially
The coastal region of South China is now home Hong Kong, may tap on 1) the rising connectivity of the
to the technology and financial centers in China, as it financial market in the Mainland with the rest of the
benefits from being at the forefront of China’s economic world; 2) the unique positioning as a gateway for Belt
reforms. Shenzhen, Shantou and Zhuhai in Guangdong and Road Initiative through its connections to overseas,
and Xiamen in Fujian were designated the first four particularly as a financing and litigation center; and
special economic zones since the opening up policy 3) the synergy with Shenzhen in terms of updating
began in 1978. With the support of significant capital technology research and development, according to
investments from the Chinese diaspora that originated President Xi’s pledge in May 2018, possibly through its
in areas such as Taishan, Macao, Hong Kong, Chaozhou, comparative advantage in academic researches.
Xiamen and Fuzhou, the regions established quickly to
become an external facing manufacturing hub since the Outlook
1980s. In the decades that followed, the provinces have
also successfully moved up from production of labor- The Greater Bay Area is envisioned by the government
intensive light-industry products and processing trade not only to become a leading metropolis in itself. Its
to higher value-added products such as mobile phones development is also expected in the 13th Five Year Plan
and the service industries. to radiate to adjacent regions. As the GBA develops by
leveraging the diverse strengths of its constituent cities,
The transition opened up opportunities for the inland in technology and innovation, finance, shipping and
provinces in the region which remain hubs for national trade, advanced manufacturing and hospitality, it is also
resources and agriculture. The governments of inland creating a supply chain of idea, resources and talents
provinces have been proactive in attracting new inbound in its vicinity region. Meanwhile, regional connectivity
investments. Specifically, the Guangxi government has and rising demand for improved quality of life will also
aligned its comparative advantages in heavy industry support development of modern services across the
and its proximity to ASEAN to welcome new industrial region. It could thereby create a more developed and
investments in the automobile, petrochemical, and interconnected South China with the Pearl River Delta
machinery manufacturing sectors in recent years. at its center.
Hainan has also invested extensively on infrastructure
to bring in modern service sectors such as exhibitions
414
