Guangdong Province, located in South of the People’s Republic of China, forms an economy city cluster which has been diversified from manufacturing to the service sector, as a Special Economic Zone since the implementation of China’s reform and opening up policy in 1978. Over the efforts of recent years, Guangdong the largest consumer market in China, as well as one of the most prosperous provinces in China. Additionally, Guangdong province has been represented as “World Factory” based on the vantage point of The Pearl River Delta, particularly for Shenzhen and Dongguan. Since the beginning of 2018, China has put forward to the concept of Guangdong-Hong Kong-Macau Greater Bay Area (GBA) which refers to the Chinese government's scheme to link the cities of Hong Kong, Macau, Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou, Jiangmen and Zhaoqing into an integrated economic and business hub.
The GBA’s eleven cities have a total population of nearly 67 million, which is greater than the Tokyo Metropolitan Area - the world’s largest city cluster with a population of 44 million. The GBA also has a combined GDP of US$1.34 trillion, which is lower than the US$1.61 trillion of Greater New York and US$1.78 trillion of Greater Tokyo. (Note: Data here from Fung Business Intelligence 2016)
With the deep implementation of One Belt One Road Initiative and the tentative proposal of GBA, Greater Bay Area will connect with the 21st Century Maritime Silk Road so closely leveraging the advantages of government that it can boost relative industries like automobile industry, communication industry and so on.
Electronic information industry of Guangdong province always plays a crucial role in Chinese economy since many it giants founded their bases here such as Huawei, ZTE, OPPO, VIVO and so on. Revenue of computer, communication and other electronic information industry rose to 13.8% with its revenue from core operations of almost CNY3.15 trillion until April 2017, according to National Bureau of Statistics.
Communication industry has been boosted rapidly, especially under the circumstance of favorable local and country policies recent years. At the end of July. 2018, Huawei announced its business results that they generated CNY325.7 billion in revenue, an increase of 15% over the same period in 2017. The company's operating margin in 2018 H1 was 14%. Electronic information industry has been spread out in the Pearl River Delta to form a worldwide electronic information industry hub with mature supply chains and high-end products. (Note: All data from Huawei)
Guangdong has developed to an electrical machinery cluster centering on Guangzhou, Shenzhen, Foshan and other cities which have a good foundation of manufacturing while spreading to the Pearl River Delta to promote the development of surrounding areas. The economic district owns a number of advantaged products which possess large market shares in domestic. Household appliance industry in Guangdong holds a significant position in China, featuring with a complete range of products, advanced production supporting facilities. Moreover, there are a number of famous brands and leading brands in Guangdong such as Midea, Gree, Galanz, TCL, Skyworth, Hisense and so on. Midea revenue reached CNY2.43 trillion in 2017, growing up to 52.8% in the global large household appliances market. The revenue of TCL is respectively almost for CNY1.12 trillion, growing up to 65.8%. Meanwhile, the revenue of Gree is up to CNY1.4 trillion, growing up to 29% in 2017. (Note: All data from relative companies)
Guangdong is the largest automobile production base in South China. The automobile industry is centered on Guangzhou and Foshan and reflects to the main districts of the Pearl River Delta. Currently, the expanding scale of automobile production forms an automobile industry cluster with competitive product development capabilities and export competitiveness. The passenger car of joint venture brands dominates the market and Toyota, Honda, VW and many other world-class automobile enterprises established its branch in Guangdong.
Especially, Shenzhen BYD Group leads the new energy automobile industry, of which the new energy product occupies over 10% market shares in global. According to the statistics of China Association of Automobile Manufacturers (CAAM), the sales volume of new energy passenger car of BYD had reached to 113,669 ranking first in China’s new energy automobile market.
In China, since living conditions keep improving recent years, people are becoming more and more willing to invest in home decoration. The increasing purchasing market needs has driven the furniture market to develop in leaps and bounds. The revenue of furniture industry reached CNY752,70 billion, growing 11% yearly in 2017. (Note: Data refers to chyxx.com)
After more than 20 years of rapid growth in its furniture industry, China has now become the world’s largest furniture production base and exporter. According to information released by the China National Furniture Association (CNFA), among all regions in China, Guangdong-Hong Kong-Macau Greater Bay Area has the highest concentration of the furniture industry with the highest production output and strongest integrated support capability.
GBA (Greater Bay Area) has a complete production line, well-developed retailing market and supporting industries. The production value of furniture in GBA makes a great difference in China and export trade. Shunde, a city in GBA, has more than 2000 furniture manufacturing companies and over 200,000 craftsmen who occupy in the furniture industry. Dongguan is also a famous furniture production base in which many large-scale furniture companies located.
Guangdong is also the production base of construction materials ranking first in China according to the quantity. Nearly 8,000 construction material enterprises grew up in Guangdong thus forming a batch of unique and influential product clusters, such as Foshan ceramics, Foshan (Shunde) construction coating, Foshan (Dali) aluminum profile, Chaozhou sanitary ware, Yunfu stone, Jiangmen (Kaiping) bathroom plumbing and so on.
In the first half of 2017, the revenue of building materials industry grew 12.3%. Guangdong is one of the great ceramics export provinces in China, especially for Chaozhou, Foshan and so on. Currently, Guangdong construction material industry is transforming to a new and high-tech industry characterized with smart manufacturing. The automatic production, robotics, and smart factories have become “New Normal” of sanitary, coating and wooden flooring enterprises.
Although the pharmaceutical industry started late in China, it is one of the fastest developing industries in recent years. At present, China has become the second largest market of pharmaceutical industry after USA, showing its great potential. The medical technology industry in Guangdong has been leading the market and it is the production base of medical devices for Chinese medicine. There are over 2,100 medical device production enterprises in Guangdong Province. For example, Mindray, as a world’s leading medical device manufacturer with its headquarter in Shenzhen, has sold its products and solutions to over 190 countries and 100,000 health care organizations. Mindray not only leads medical market in the pharmaceutical industry in China, but also the third largest manufacturers of life signs monitor system after GE and Philip. The revenue of Mindray in 2017 was 111,74 billion, realizing the growth of 23.7%. (Note：Data from Mindray) Today, Mindray’s products and services can be found in healthcare facilities in over 190 countries and regions. 50% of emergency departments and 90% of anesthesiology in Turkey teaching hospitals use Mindray ultrasound systems.
Guangdong, with the GDP growth of 7.5% of the nation and value of the import and export trade played a big role of the total value, is the best platform for overseas enterprises to enter China market. As the south gate of China leverage the advantages of the Belt and Road Initiative and Guangdong-Hong Kong-Macau Greater Bay Area, Guangdong will make contribution to the cooperation with our neighboring countries and build a convenient and fast transit corridor in order to connect the domestic market to the overseas world. (Note: Data from GDSTATS.GOV.CN)
Reference from: HKGC, theregister