In an earlier age, the low-lying area surrounding the Pearl River Delta (PRD) had become the heart of Chinese emigration to more attractive destinations abroad. From the 19th to the mid-20th century, Chinese nationals from the PRD channelled across the South China Sea and the Pacific to faraway U.S., Canada, Australia, and to even farther destinations in Latin America. The nearby Southeast Asia also featured naturally on their radar.
Once settled in their new homes after much hardship, they set up the famous ‘Chinatowns’, which were central to the upkeep of their Chinese cultural identity. In a later age, when China began to open up to the world, the Chinese diaspora bridged the mainland with the West. The human connect helped power the emergence of China’s eastern coastline as the ‘factory of the world’.
But much is changing in the bay area surrounding the PRD. Rising labour costs have spurred the migration of capital to low-cost destinations such as Vietnam, Cambodia and Bangladesh. The cities at the mouth of the Pearl River — like Guangzhou, Shenzhen, Zhuhai, Foshan and Dongguan — have been fast losing their lustre as producers of toys, garments, electronics and textiles. In turn, the ‘old’ economy’s losing competitive edge has forced Chinese planners to transform the region into a platform for advanced manufacturing. Now, Information Technology, robotics, aerospace, railways, electric vehicles and other advanced industries are at the centre of China’s transition from low-value to high-end manufacturing.
Five years ago, the Chinese decided to establish the Greater Bay Area (GBA), drawing inspiration from the likes of the iconic Tokyo Bay Area and the San Francisco Bay Area, which had made their mark as leading innovation and hi-tech centres. However, the Chinese ambitions go even further. In total, the GBA will cover 56,600 sq. km., more than four times the size of its counterpart in Tokyo. It will span 11 city economies, which were worth $1.36 trillion two years ago. By 2030, the area’s GDP is set to be worth $4.6 trillion. Hong Kong, Macau, Guangzhou and Shenzhen will be the pillars of the GBA.
A head start
China already has a head start in shaping the GBA plan. The Shenzhen-based Huawei and ZTE have an advanced global footprint. Lenovo, TCL, and BYD, an emerging global leader in electric cars, are also based in Guangdong. Shenzhen is also a heavyweight in the fields of biotechnology and aerial drones.
Hong Kong will remain an indispensable engine of the GBA, leveraging its core strengths in the services and logistics arena. In the first wave of China’s reforms, Hong Kong-based foreign banks and its stock exchange played a key role in financing the boom and drawing foreign investment into the mainland. Hong Kong’s ace universities have drawn thousands of students from mainland China.
Chinese planners are banking on two major infrastructure projects to deepen the physical integration of the GBA. A 55-km bridge over the sea is set to link Zhuhai on the Chinese mainland with Hong Kong and Macau.
The bridge will put the three cities at an hour’s drive away from each other. The project is expected to be commissioned in the second quarter of this year. China also wants to put Hong Kong on the country’s bullet-train map. The Guangzhou-Shenzhen-Hong Kong Express Rail Link is also expected to be completed this year.
(Atul Aneja works for The Hindu and is based in Beijing)
