Greater Bay Area - China's Booming Southern Mega Region - China Guide

Introduction

The Greater Bay Area (GBA) is a mega-region that is progressively integrating and revamping nine major cities within the Pearl River Delta, plus two special administrative regions - Hong Kong and Macao - into a single globally competitor on par with existing leading city clusters such as the San Francisco, Tokyo, and New York areas.

Guilherme Campos

Manager, International Business Advisory

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The GBA is considered one of China's most favorable investment destinations, thanks to its diverse and dynamic industrial landscape, significant and affluent local consumer base, and the ability to attract highly skilled professionals. It also boasts a long history of foreign investment.

Since its inception in 2017, the GBA initiative has generated high expectations from the business community for coordinated development among the cities. Progressing rapidly, the removal of barriers that restrict the movement of capital, trade, information, and people, in combination with targeted government policies, is expected to continue to foster growth across its main areas and sectors.

Cities and Economic Zones

The Greater Bay Area encompasses nine cities in the Pearl River Delta, including Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan, Huizhou, Zhongshan, Jiangmen, and Zhaoqing, as well as two Special Administrative Regions, Hong Kong and Macao. These cities are situated in close proximity to one another and are connected by a vast network of transportation infrastructure, including high-speed rail, bridges, and tunnels.

Guangzhou is the capital of Guangdong province and the largest city in the Greater Bay Area. It is a key player in the manufacturing and financial services industries, with a particular focus on the automotive and petrochemical sectors. Shenzhen, located just across the border from Hong Kong, is known as China's Silicon Valley and is home to some of the world's most prominent technology companies.

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Hong Kong and Macao are both Special Administrative Regions of China and are significant financial centers in their right. Hong Kong is a major hub for international finance, and its stock exchange is the world's sixth-largest. Macao, on the other hand, is known for its thriving tourism industry, particularly in the gaming sector.

Other cities in the Greater Bay Area, such as Zhuhai and Zhongshan, are emerging as key players in the region's development, thanks to their strategic locations and rapidly growing economies. These cities are seeing significant investment in industries such as technology, advanced manufacturing, and logistics, as the region seeks to diversify its economic base and create new opportunities for growth.

Integrated into one diverse and dynamic region, this range of cities and economic centers offers a broad yet unique set of strengths and advantages. Its proximity to major markets in Asia, as well as its well-developed infrastructure and business-friendly policies, make it a highly attractive destination for businesses and investors looking to tap into the region's vast potential.

Industries

The Greater Bay Area is a hub for many industries, including finance, technology, innovation, and advanced manufacturing.

The region's economy includes a powerful financial services sector, which accounts for a larger portion of regional GDP. Hong Kong is a significant contributor to the financial services sector, with its stock exchange being the world's sixth-largest. Shenzhen is also a key player in the financial services industry, particularly in terms of fintech.

The technology sector is another critical industry in the Greater Bay Area, with the region being home to some of the world's most prominent technology companies. The region has a strong focus on innovation, with the Guangdong-Hong Kong-Macao Greater Bay Area Science and Technology Innovation Corridor playing a vital role in driving technological advancements in the area. Shenzhen is again a particular leading hub for technology startups, and is often referred to as China's Silicon Valley.

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The Greater Bay Area is also one of the larger hubs for manufacturing, including advanced manufacturing in electronics, robotics, biotechnology, and new materials.

Guangzhou, in particular, has emerged as a key player in the manufacturing sector, thanks to its well-established supply chains, access to cutting-edge technology and well trained labor force.

Overall, the Greater Bay Area is a diverse and dynamic region, offering significant opportunities for investors and businesses in a range of industries. Its strengths in finance, technology, and advanced manufacturing make it a crucial economic driver for China and the wider Asia-Pacific region.