Guangdong - A profile

This article provides an overview of Guangdong for those keen on exploring the possibility of living and working there. The information presented is gathered from open sources and is not exhaustive or meant to supplement or substitute legal and professional advice.

Key Facts

• Land area: 179,757 sq km¹
• Population: 109.99 million (2016)²
• Provincial capital: Guangzhou
• Gross regional product (2016): RMB 8,085.49 billion³
• GRP per capita (2016): RMB 74,016⁴
• Major cities: Dongguan, Foshan, Guangzhou, Shantou, Shenzhen, Zhongshan⁵

Introduction

Guangdong is China’s southern most mainland province and has one of the longest coastlines in China, measuring more than 4,300 kilometres.⁶ It faces the South China Sea to the southeast and south and is bounded by the Guangxi Zhuang Autonomous Region to the west, Hunan and Jiangxi provinces to the north, and Fujian to the northeast.⁷ The Guangdong province is adjacent to Hong Kong and Macau.⁸ Its capital, Guangzhou, is located at the “head of the Pearl River Delta”.⁹ One of the earliest trading ports in Chinese history, Guangdong is the starting point of the “Maritime Silk Road”. The province has a long history of commerce.¹⁰

Economy

Guangdong is known as China’s economic powerhouse. It has the largest and fastest-growing economy in terms of GDP among the 31 provinces and municipalities in the Chinese mainland.¹¹ Guangdong is also home to the Pearl River Delta (PRD) Economic Zone and the Shantou, Shenzhen and Zhuhai Special Economic Zones.¹²

The main engine of Guangdong’s economy is its manufacturing industries. One of its cities, Shenzhen, is the world’s largest electronics manufacturing hub and is home to Foxconn, one of Apple’s suppliers, and other key tech players such as Tencent, Huawei and ZTE.¹³

Major cities¹⁴

Shenzhen and Shantou are two major cities located in the Guangdong province.

Shenzhen

The coastal city Shenzhen, located on the east bank of the Pearl River Delta, was named China’s first Special Economic Zone in 1980.¹⁵ With a population of 12.53 million in 2017, it was voted China’s third most dynamic city, after Shanghai and Beijing, in the 2016 Global City Momentum Index and named the most economically competitive city in the country.¹⁶ In 2017, its GDP grew by 8.8 percent, reaching RMB 2.24 trillion, with per capita GDP of RMB 183,127, the highest in Guangdong.¹⁷ Shenzhen’s four pillar industries are high-tech, financial services, modern logistics and cultural sector.¹⁸ It is home to Tencent, China’s leading provider of Internet value added services, and the birthplace of renowned smartphone maker, Huawei Technologies, and drone maker DJI.¹⁹

Shantou

The port city Shantou is located in eastern Guangdong. It has a population of 5.58 million and a GDP of RMB 208.1 billion recorded in 2016. The port plays an important role in exporting goods to other Chinese cities and foreign countries. Its major industries include plastic products, textiles, energy and machinery.²⁰

Industry

The rapid development of Guangdong’s manufacturing industries could be attributed to foreign investment, especially in the Pearl River Delta. The province’s economic success lies in its light manufacturing industries, where major products include electrical appliances such as television sets, electrical fans and refrigerators, and other consumer products like garments, toys, shoes and electronics.²¹However, in recent years, the province is shifting its focus to heavy, new and high technology industries. This is evident in the increase in the share of heavy industries in value-added industrial output from 52 percent in 2000 to 62 percent in 2016.²²

Guangdong’s nine pillar industries are the electronics and information industry; electrical appliances and machinery industry; petrochemical industry; textile and garment industry; food and beverage industry; construction material industry; paper-making industry; pharmaceutical industry; and automobile industry.²³

Foreign trade and investment

Guangdong contributes significantly to China’s export growth as a leading industrial and export processing base for a variety of products. The province’s major export product types include electric and electronic products, computer and communication technology and machinery and equipment. Its major export markets are Hong Kong, the United States, Japan, Germany, Korea, United Kingdom and ASEAN countries.²⁴

Guangdong has the most advanced infrastructure, well-developed traffic and communications network, as well as convenient custom clearance, making it one of the most favoured investment destinations in China.²⁵ A majority of foreign investments in the province are in manufacturing industries. However, in recent years, more investments were made in infrastructure, agriculture, property and capital- and technological-intensive projects.²⁶

Consumer market

Guangdong has the biggest consumer market in China, with its annual per capita disposal income of urban households at RMB 37,684.3 in 2016. The country’s national annual per capita disposal income of urban households in 2016 was RMB 33,616.2.²⁷ Its retail market is one of the most developed in China, and its retail distribution landscape is changing rapidly with the proliferation of modern retail operations such as chain stores, supermarkets, warehouse type markets and convenience stores. Some of the major overseas retailers that have established their presence in Guangdong include Walmart from the United States and Carrefour from France.²⁸

Tourism

In 2016, Guangdong received 362 million domestic tourists and 35.2 million overseas tourists.²⁹ With its sub-tropical climate, long summers and warm winters, Guangdong is suitable for tourism all year round. It has rivers and lakes that crisscross the Pearl River Delta, a long coast line and wide areas of hills and mountains. Guangdong’s four famous mountains are Danxia Mountains in Renhua County, Xiqiao Mountains in Nanhai County, Luofu Mountains in Boluo County and Dinghu Mountains in Zhaoqing City. Other famous scenic spots include the Lingyang Gorge on the Xijiang River, the Feilai Gorge on the Beijiang River, the Zhaoqing Seven Star Crags and Dinghu Mountains Scenic Spot. Other attractions include Guangzhou Chimelong Paradiese, the largest amusement park in China; and the Kaiping Watchtowers and Village, a UNESCO World Heritage site.³⁰

Singapore and Guangdong

• Launched in March 2009, the Singapore-Guangdong Collaboration Council (SGCC) is set up to promote cooperation in areas such as urban solutions, port operations and logistics, education, environmental services, infrastructure services, infocomm technology, tourism and other modern services between Singapore and Guangdong.³¹ SGCC also seeks collaboration beyond economic areas and includes other areas such as cultural exchanges and workforce training and development.³² Since its inception, SGCC has facilitated numerous collaborative projects such as the Sino Visitor Pass, a cross-border collaborative project between Singapore’s EZ-Link Private Limited and Guangzhou Lingnan Pass, and the flagship Sino-Singapore Guangzhou Knowledge City project (SSGKC), which is aimed at attracting knowledge-based enterprises to jump-start Guangdong’s economic transformation.³³ Singapore’s actual investments in Guangdong reached more than S$463 million in 2016, with bilateral trade alone hitting around S$36.5 billion in the same year.³⁴ Guangdong has been Singapore’s top provincial trading partner since 1988.³⁵

References