Analysis
China will continue to rely on the Guangdong-Hong Kong-Macao Greater Bay Area, Northeast China’s manufacturing area, the Yangtze River delta, and the Xiong’an New Area “to be main sources of economic growth,” President Xi Jinping said in his new year speech.
Of these, the GBA, centered around the core cities of Hong Kong, Macau, Guangzhou and Shenzhen and the manufacturing and innovation hubs of southern coastal China, “holds the most promise,” The Diplomat said this week analyzing Xi’s statements.
The gross domestic product of GBA in 2023 was close to $20 billion, which is on par with that of the Tokyo-Bay Area, and New York Metropolitan Area, while greatly exceeding the GDP of the San Francisco Bay Area.
Promoting integrated construction Promoting the further construction of the Guangdong-Hong Kong-Macao Greater Bay Area and a demonstration pilot zone for socialism with Chinese characteristics in Shenzhen will be key projects for Guangdong province over the next five years, a senior government official told China Daily.
“A golden inner bay of 100 kilometers around the Pearl River estuary will be created, with more efforts being made to promote high-quality development and integration within the Greater Bay Area,” said Wang Weizhong, governor of Guangdong, during an annual session of the Guangdong Provincial People’s Congress last week.
Delivering a government work report to the first session of the 14th Guangdong Provincial People’s Congress, which opened in Guangzhou, the provincial capital, Wang said construction of an innovation and entrepreneurship base for Hong Kong and Macau youth will provide more convenience and opportunities for residents from the two special administrative regions to work and live in Guangdong.
“We will also promote the construction of Shenzhen as a leading demonstration zone for socialism with Chinese characteristics through reform and innovation, accelerating the construction of major innovation platforms and an economic belt in ports between Shenzhen and Hong Kong,” said Wang.
Guangdong, an economic powerhouse in South China, has set a goal of a 5% GDP growth rate in 2023, according to the government work report.
The province’s fixed-asset investment is expected to increase by 8% year-on-year in 2023, with its import and export volume growing by 3%, according to the report.
Over the past five years, Guangdong has resolutely implemented major national strategies, promoting the construction of three cooperative platforms in Hengqin in Zhuhai, Qianhai in Shenzhen and Nansha in Guangzhou, according to Wang.
The Macau zone in Hengqin Several large infrastructure facilities including the Hong Kong-Zhuhai-Macao Bridge and the Guangzhou-Shenzhen-Hong Kong High-speed Railway have been put into operation.
An overall development plan for a Guangdong-Macao in-depth cooperation zone in Hengqin will be released, helping adjacent Macau to develop a more diversified economy, according to Wang.
“Using Hengqin’s proprietary core technologies to promote the development of the manufacturing industry will benefit both the diversified growth of Macau’s industries and its integration into the overall national development,” said Lei Zhen, chief executive officer of Zhuhai Nanometals Technology, cited by China Daily.
Sci-tech research and high-tech manufacturing in Hengqin would help drive mutual benefits to Macau businesses and their mainland counterparts, according to Lei, also a member of the Guangdong provincial committee of the Chinese People’s Political Consultative Conference.
“Hengqin can utilize Macau’s advantages in international platforms and capital, and the mainland’s advantages in policies, as well as industrial and supply chains,” he said.
Nanometals Technology has realized the industrialization of proprietary core material technologies and applied them to the downstream manufacturing industry. “Core materials made in Hengqin can help upgrade the country’s manufacturing development,” he said.
High-tech manufacturing component in Guangdong province’s GDP is “estimated to hit 12.8 trillion yuan ($1.89 trillion) in 2022, a year-on-year increase of 2% and ranking first in China for the 34th consecutive year, according to the government work report.
According to China Daily, the province’s economic structure has been continuously optimized over the past five years, with the added value of advanced manufacturing and high-tech manufacturing accounting for 55% and 29.5% of the industries above designated size, respectively.
Guangdong is now home to 17 Global Fortune 500 companies, with actual utilized foreign capital over the past five years exceeding 800 billion yuan, according to the government work report.
Opps and challenges The Greater Bay Area in China, encompassing Hong Kong, Macau, Guangzhou, Shenzhen, and other nine cities in Guangdong province, stands as a testament to China’s ambitious economic and developmental vision.
This region, boasting a combined GDP that rivals some of the world’s largest economies, is a focal point of China’s drive towards innovation, technological advancement, and international cooperation.
Despite these advancements, the GBA faces challenges, particularly in terms of integrating diverse legal systems and economic policies across its constituent cities.
The harmonization of regulations, especially in the realm of data protection and business operations, remains a work in progress – legal experts told MDT.
Additionally, the region must navigate the complexities of balancing rapid economic growth with sustainable development and environmental conservation.
Looking forward, the GBA’s potential is immense. With plans to enhance connectivity, foster innovation, and strengthen international partnerships, the region is poised to play a crucial role in China’s economic future and its integration into the global economy.
The success of the GBA will not only be a testament to China’s developmental strategies but also a model for regional cooperation and economic integration worldwide, advocates say. MDT/Agencies
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