MARKET
Why Guangdong's success is no surprise?
by Kirtan Bhana
26 January 2024
It does not surprise me that Guangdong Province has achieved remarkable success. It has had the honor of holding the number one position in the GDP rank of all of China’s provinces for an impressive 35 consecutive years. At around 10% of China’s GDP, Guangdong's staggering 13 trillion yuan GDP, equivalent to over 1.8 trillion USD, is the largest contributor to China's overall GDP. The province would rank in the top ten of the G20 nations, just above Brazil and Australia.
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If we delve deeper and explore Guangdong’s economic landscape, we find a plethora of factors that give it the economic prowess it wields. Guangdong's geostrategic location on the South China Sea, with a coastline of about 4000km, is the longest in China. Guangzhou, the capital, is a historic city and one of the earliest trading posts in China, positioned at the head of the Pearl River Delta SEZ (Special Economic Zone).
Guangdong itself is known as the starting point of the “Maritime Silk Road”. And it's an indication of the robustness and resilience of a people who have adapted to changing global dynamics to attract investment and foster conducive conditions for economic development. This progress is pivotal to China's impressive growth, propelling it to the second spot in GDP globally and about to take the top spot from the USA.
As a global manufacturing powerhouse, many multinational companies have based their operations in Guangdong, like Walmart, Ikea, and tech giants like Tencent, Huawei, Apple and Many others. Guangdong with its well-established infrastructure, efficient logistics, and access to global markets as the leading importer and exporter for China, serving as a linchpin in China's economic success story.
Financial technology, coupled with the digital economy and rapidly transforming monetary and accounting systems, was the obvious step for Guangdong. Positioned in proximity to Hong Kong, a central financial center, it plays out the vision of Guangdong as leading the transition to new money, creating worth and true value.
If we delve deeper and explore Guangdong’s economic landscape, we find a plethora of factors that give it the economic prowess it wields. Guangdong's geostrategic location on the South China Sea, with a coastline of about 4000km, is the longest in China. Guangzhou, the capital, is a historic city and one of the earliest trading posts in China, positioned at the head of the Pearl River Delta SEZ (Special Economic Zone).
Guangdong itself is known as the starting point of the “Maritime Silk Road”. And it's an indication of the robustness and resilience of a people who have adapted to changing global dynamics to attract investment and foster conducive conditions for economic development. This progress is pivotal to China's impressive growth, propelling it to the second spot in GDP globally and about to take the top spot from the USA.
As a global manufacturing powerhouse, many multinational companies have based their operations in Guangdong, like Walmart, Ikea, and tech giants like Tencent, Huawei, Apple and Many others. Guangdong with its well-established infrastructure, efficient logistics, and access to global markets as the leading importer and exporter for China, serving as a linchpin in China's economic success story.
Financial technology, coupled with the digital economy and rapidly transforming monetary and accounting systems, was the obvious step for Guangdong. Positioned in proximity to Hong Kong, a central financial center, it plays out the vision of Guangdong as leading the transition to new money, creating worth and true value.
Editor's note: Kirtan Bhana, a special commentator for SFC, is the founding editor of the Diplomatic Society of South Africa. The article reflects the author's opinions and not necessarily the views of SFC.