Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Wednesday, Nov 27, 2024

Guangzhou, Shenzhen consolidate GDP lead over HK

Guangdong’s resilient urban centers tided over US-China trade war, spillover effect from Hong Kong protests

Guangzhou and Shenzhen are set to consolidate their lead over Hong Kong in annual economic output for 2019 as the two economic dynamos charge ahead while anti-government protests continue to plague the former British colony.

The two cities in the neighboring Guangdong province are in the process of releasing preliminary statistics for 2019. Cadres there are heaving sighs of relief as the economy has shown resilience to tide over the US-China trade war as well as the spillover effect of Hong Kong’s social turmoil.

Shenzhen’s gross domestic product expanded by 7% to 2.6 trillion yuan (US$374 billion) last year, ranking only after Shanghai and Beijing. Shenzhen is the largest city economy in the Greater Bay Area, which is a geo-economic megapolis pooling Hong Kong, Macau and nine cities in Guangdong.

Shenzhen mayor Chen Rugui said in a report to the municipal people’s congress that the city’s economy, heavily dependent on export, had largely reversed the downward pressure and started to accelerate after booking a 6.6% growth rate in the first three quarters.

Shenzhen officials previously worried that the United States’ 5G iron curtain blocking Huawei, slackening export, an exodus of manufacturers as well as the economic contagion from Hong Kong’s protests could deal a crippling blow. But the city’s economy has apparently fared better than expected in the final quarter. Shenzhen was just anointed by Beijing last year in a grand masterplan to build a world city to showcase the virtues of China’s social and economic systems.

While Shenzhen is picking up steam, Hong Kong, having just been outstripped by its neighbor for the first time in a fierce GDP race in 2018, is descending further into recession with officials warning of a 2.9% contraction for the first three quarters of 2019. The city’s already tepid export and transshipment amid the US-China trade crossfire have taken a further beating since June when mass protests and widespread vandalism repeatedly brought business to a standstill.

Now all eyes are on Guangzhou’s report card for the year, after the city’s GDP growth outpaced Shenzhen in the first three quarters, prompting observers to wonder if the provincial capital and home to 15 million is poised to redeem its position as the No. 1 city economy in the region, after losing that title to Shenzhen in 2018. Some expect a draw in the rivalry as Guangzhou’s figure is also forecast to be around 2.7 trillion.

Guangzhou is on a spree constructing more metro lines, expanding its airport and container terminus and tearing down tenement blocks to make room for new business districts, in view of Tencent’a promise to keep the operation base of its ubiquitous WeChat social networking app in the city and Alibaba’s plan to build a new southern China headquarters there. The city is also home to China Southern, Asia’s largest air carrier by fleet size, and the site of Toyota’s and Honda’s largest plants in China.

College graduates and startups are also finding that Guangzhou offers cheaper and bigger homes with better work-life balance, education and healthcare compared with other first-tier Chinese cities.

Guangdong’s provincial authorities are pinning high hopes on Guangzhou and Shenzhen to form synergy to further spur growth, with a slew of policies to integrate the two urban centers that are just 130 kilometers apart into an “economic centrifuge” of business and investments to serve the rest of the bay area when Hong Kong’s preeminence in the region is on the wane.

Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×