Pearl River Delta Economic Zone
Encyclopedia
The Pearl River Delta Economic Zone (once called 粤江平原), which consists of Guangzhou
, Shenzhen
, Dongguan
, Foshan
, Zhongshan
, Zhuhai
, Jiangmen
, and parts of Huizhou
and Zhaoqing
, has been the most economically dynamic region of the Chinese Mainland since the launch of China's reform programme in 1979.
The 2008-20 plan, released by China's National Development and Reform Commission
, is designed to boost the pan-Pearl River Delta
as a "center of advanced manufacturing and modern service industries," and as a "center for international shipping, logistics, trade, conferences and exhibitions and tourism." Goals include the development of two to three new cities in the region, the development of 10 new multinational
firms, and expansion of road, rail, seaport and airport capacities by 2020. They include construction of an 18 miles (29 km) bridge linking Hong Kong
, Macao
and the Pearl River Delta
, construction of 1864 miles (2,999.8 km) of highways in the region by 2012, and rail expansions of 683 miles (1,099.2 km) by 2012 and 1367 miles (2,200 km) by 2020.
Cities such as Shenzhen and Guangzhou are among the most affluent in the Chinese Mainland. Close links to Hong Kong mean that Pearl River Delta region consumers adopt international tastes earlier than most places in China, making the region one of the trend setters in China.
Guangdong's early experience with reform allowed a market-oriented culture to develop earlier than in other places in the Chinese Mainland. Starting in 1979, Guangdong Province and the SEZs were given greater political and economic autonomy than other jurisdictions in the Chinese Mainland. Areas of greater autonomy included finance and fiscal matters, foreign trade and investment, commerce and distribution, allocation of materials and resources, labour, and prices. In 1988, Guangdong was granted expanded powers to set its own economic direction, and was designated a 'comprehensive economic reform area'. This gave rise to the creation of the Shenzhen Stock Exchange, as well as development of a land lease system and some privatisation of housing. Shenzhen became a leader in terms of foreign exchange markets, operation of foreign banks, land reforms, and stock market development.
The economic development of the Pearl River Delta Economic Zone took off after the reform programme was instituted. The region's GDP grew from just over US$8 billion in 1980 to more than US$89 billion in 2000 and nearly US$221.2 billion in 2005. During that period, the average real rate of GDP growth in the Pearl River Delta Economic Zone exceeded 16 percent, well above the People's Republic of China national figure of 9.8 percent. Since the onset of China's reform programme, the Pearl River Delta Economic Zone has been the fastest growing portion of the fastest growing province in the fastest growing large economy in the world. In the process, a region that was once largely agricultural has emerged as a manufacturing platform of global importance. It is a world leader in the production of electronic goods, electrical products, electrical and electronic components, watches and clocks, toys, garments and textiles, plastic products, and a range of other goods.
For the first ten years of China's economic reform process, the internationalisation of the Chinese economy was largely a Pearl River Delta phenomenon, with the export-oriented production of foreign-invested entities based in Shenzhen, Dongguan, and Guangzhou leading the way. In recent years, the development environment for indigenous private-owned enterprises has improved dramatically in the Pearl River Delta Economic Zone and local firms are now playing an ever-growing role in the region's economy. In this regard, Shenzhen, Dongguan, Foshan, and other parts of the Pearl River Delta Economic Zone have been at the forefront of private sector development in China.
.
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
, Shenzhen
Shenzhen
Shenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
, Dongguan
Dongguan
Dongguan is a prefecture-level city in central Guangdong province, People's Republic of China.An important industrial city located in the Pearl River Delta, Dongguan borders the provincial capital of Guangzhou to the north, Huizhou to the northeast, Shenzhen to the south, and the Pearl River to...
, Foshan
Foshan
Foshan is a city in central Guangdong province in southern China. The prefectural area under the city's jurisdiction over an area of about 3,840 km² and a population of 5.4 million of which 1.1 million reside in the city proper ....
, Zhongshan
Zhongshan
Zhongshan , also spelled Chungshan and historically known as Xiangshan or Siangshan, is a prefecture-level city in the south of the Pearl River Delta in Guangdong province in southern China. Zhongshan, one of the few cities in China with an eponymous name, is named after Dr. Sun Yat-sen who was...
, Zhuhai
Zhuhai
Zhuhai is a prefecture-level city on the southern coast of Guangdong province in the People's Republic of China. Located in the Pearl River Delta, Zhuhai borders Jiangmen to the northwest, Zhongshan to the north, and Macau to the south. Zhuhai was one of the original Special Economic Zones...
, Jiangmen
Jiangmen
Jiangmen , is a prefecture-level city in Guangdong province in southern China with a population of about 4.48 million in 2010. The 3 urban districts are now part of Guangzhou - Shenzhen built up area.-Names:...
, and parts of Huizhou
Huizhou
Huizhou , historically known as Waichow, is a city located in central Guangdong province of the People's Republic of China. Part of the Pearl River Delta, Huizhou borders the provincial capital of Guangzhou to the west, Shaoguan to the north, Heyuan to the northeast, Shanwei to the east, Shenzhen...
and Zhaoqing
Zhaoqing
Zhaoqing is a prefecture-level city of Guangdong province in southern China.-Geography:Zhaoqing is located 110 km northwest of Guangzhou, in the west Pearl River Delta. It lies on the north shores of the Xijiang River, which is flows from west to east, and opposite of Gaoyao...
, has been the most economically dynamic region of the Chinese Mainland since the launch of China's reform programme in 1979.
The 2008-20 plan, released by China's National Development and Reform Commission
National Development and Reform Commission
The National Development and Reform Commission , formerly State Planning Commission and State Development Planning Commission, is a macroeconomic management agency under the Chinese State Council, which has broad administrative and planning control over the Chinese economy...
, is designed to boost the pan-Pearl River Delta
Pearl River Delta
The Pearl River Delta , Zhujiang Delta or Zhusanjiao in Guangdong province, People's Republic of China is the low-lying area surrounding the Pearl River estuary where the Pearl River flows into the South China Sea...
as a "center of advanced manufacturing and modern service industries," and as a "center for international shipping, logistics, trade, conferences and exhibitions and tourism." Goals include the development of two to three new cities in the region, the development of 10 new multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
firms, and expansion of road, rail, seaport and airport capacities by 2020. They include construction of an 18 miles (29 km) bridge linking Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, Macao
Mação
Mação is a municipality in Portugal with a total area of 400.0 km² and a total population of 7,763 inhabitants.The municipality is composed of eight parishes, and is located in the Santarém District....
and the Pearl River Delta
Pearl River Delta
The Pearl River Delta , Zhujiang Delta or Zhusanjiao in Guangdong province, People's Republic of China is the low-lying area surrounding the Pearl River estuary where the Pearl River flows into the South China Sea...
, construction of 1864 miles (2,999.8 km) of highways in the region by 2012, and rail expansions of 683 miles (1,099.2 km) by 2012 and 1367 miles (2,200 km) by 2020.
Population
The Pearl River Delta Economic Zone encompasses 0.4 percent of the land area and 3.5 percent of the 2005 Interim Census population of the Chinese Mainland (a population of 45.5 million people), it accounted for 9.9 percent of GDP and 28.9 percent of total trade in 2005.Economy Overview
As the most dynamic region in the Chinese Mainland, the Pearl River Delta Economic Zone is increasingly important as a market. Given the massive scale of its export sector, the region has become an important industrial market for all sorts of inputs, materials, and capital goods. It also is a major market for transportation and trade-related services. Rapid urbanisation and burgeoning city populations have created demand for infrastructure, building materials, transportation services, housing, and other goods and services associated with urban development. The Pearl River Delta Economic Zone is also a highly attractive consumer market.Cities such as Shenzhen and Guangzhou are among the most affluent in the Chinese Mainland. Close links to Hong Kong mean that Pearl River Delta region consumers adopt international tastes earlier than most places in China, making the region one of the trend setters in China.
History
In 1979, the Central Government of the People's Republic of China announced that Guangdong Province would be allowed to follow less restrictive economic policies and would be permitted to set up three Special Economic Zones (SEZs), including two in the Pearl River Delta, Shenzhen and Zhuhai. Preferential policies in the SEZs included a number of features designed to attract foreign investment, such as a 15 percent tax rate, tax holidays of up to five years, and the ability to repatriate corporate profits and to repatriate capital investments after a contracted period. They also included duty free treatment of imports of raw materials and intermediate goods destined for exported products, as well as exemption from export taxes.Guangdong's early experience with reform allowed a market-oriented culture to develop earlier than in other places in the Chinese Mainland. Starting in 1979, Guangdong Province and the SEZs were given greater political and economic autonomy than other jurisdictions in the Chinese Mainland. Areas of greater autonomy included finance and fiscal matters, foreign trade and investment, commerce and distribution, allocation of materials and resources, labour, and prices. In 1988, Guangdong was granted expanded powers to set its own economic direction, and was designated a 'comprehensive economic reform area'. This gave rise to the creation of the Shenzhen Stock Exchange, as well as development of a land lease system and some privatisation of housing. Shenzhen became a leader in terms of foreign exchange markets, operation of foreign banks, land reforms, and stock market development.
The economic development of the Pearl River Delta Economic Zone took off after the reform programme was instituted. The region's GDP grew from just over US$8 billion in 1980 to more than US$89 billion in 2000 and nearly US$221.2 billion in 2005. During that period, the average real rate of GDP growth in the Pearl River Delta Economic Zone exceeded 16 percent, well above the People's Republic of China national figure of 9.8 percent. Since the onset of China's reform programme, the Pearl River Delta Economic Zone has been the fastest growing portion of the fastest growing province in the fastest growing large economy in the world. In the process, a region that was once largely agricultural has emerged as a manufacturing platform of global importance. It is a world leader in the production of electronic goods, electrical products, electrical and electronic components, watches and clocks, toys, garments and textiles, plastic products, and a range of other goods.
For the first ten years of China's economic reform process, the internationalisation of the Chinese economy was largely a Pearl River Delta phenomenon, with the export-oriented production of foreign-invested entities based in Shenzhen, Dongguan, and Guangzhou leading the way. In recent years, the development environment for indigenous private-owned enterprises has improved dramatically in the Pearl River Delta Economic Zone and local firms are now playing an ever-growing role in the region's economy. In this regard, Shenzhen, Dongguan, Foshan, and other parts of the Pearl River Delta Economic Zone have been at the forefront of private sector development in China.
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