Page 72 - AmCham South China 2026 Special Report on the State of Business in South China

integrated circuits expanded by 87.4%, 46.3% the country¡¯s total , making the region the top
8
and 14%, respectively . destination for international capital.
5

Looking ahead to the 15th FYP, the dividends of
the Regional Comprehensive Economic Partnership Outlook of South China
(RCEP) will continue to unfold, strengthening South
China¡¯s ties with Association of Southeast Asian The region is poised to become a major
Nation (ASEAN) markets. Further integration and powerhouse, leveraging each city¡¯s strengths in
deeper synergies could unlock more room for new a synergistic manner to drive China¡¯s trade and
foreign trade formats and models. The GBA will economic growth, particularly in technology
continue to serve as a driving force, innovation and innovation, finance, shipping and trade,
leader and open gateway for the country. It will advanced manufacturing and hospitality. In
optimize resource allocation and clarify functional response to rising trade conflicts and geopolitical
divisions among cities to achieve coordinated complexity, the GBA has stepped up efforts to
development at a higher level. enhance market interconnectivity and introduced
a range of innovative measures to spur growth.
The 15th FYP will inject new impetus into the GBA,
The most attractive region for with domestic consumption and high-quality
foreign investment sustainable growth as long-term priorities. As
the GBA enters its next development phase,
Despite external headwinds and rising the government is expected to unveil a set of
geopolitical tensions, the Chinese mainland and coordinated policies to promote market opening,
Hong Kong remained two of the most attractive technological innovation, talent mobility and
destinations for investment in 2024, with total professional cooperation. Leveraging competitive
foreign direct investment (FDI) inflows reaching advantages, Hong Kong and Macau will play a
US$116 billion and US$126 billion respectively. greater role in regional integration, enabling
6
The six provinces of South China were the cross-border businesses centered on trade,
dominant recipients, absorbing 19% of the investment and financial services within the GBA.
country¡¯s total FDI inflows .
7

There is a clear shift as multinational
corporations (MNCs) make more long-term
investments in China and seizing opportunities in
strategic sectors. Leveraging world-class industries
and an open ecosystem, the GBA has emerged as
a powerful magnet for foreign investors. It has
evolved from the traditional ¡°front shop, back
factory¡± model to a global value chain system
characterized by the dynamic roles of ¡°Hong Kong
service + Shenzhen innovation + Pearl River Delta
(PRD) manufacturing¡±. The PRD now focuses on
eight trillion-yuan industrial clusters, including
next-generation electronic information, artificial
intelligence (AI) and pharmaceutical and medical
devices. In 2024, foreign-invested enterprises
in Guangdong and Fujian accounted for 51% of

5 CCTV, https://jingji.cctv.com/2025/07/18/ARTIGB7tzt-
gAOQjAb5LK1acG250718.shtml
6 World Investment Report, UNCTAD, https://unctad. 8 Ministry of Commerce, https://wzs.mofcom.gov.cn/
org/system/files/official-document/wir2025_ch01_en.pdf ztxx/art/2025/art_75b7a9b76ba744dd8cad3ec0ad51f
7 Government sites of provinces/regions, EY analysis 4f8.html

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