Five years on, China's vision of the Greater Bay Area is materializing

Editor's note: Matteo Giovannini, a special commentator for CGTN, is a finance professional at the Industrial and Commercial Bank of China and a member of the Global Young Leaders Dialogue. The article reflects the author's views, and not necessarily those of CGTN.

China's path toward development over the last four decades has been characterized by unprecedented, sustained growth driven by well-crafted government policies that have resulted in a rapid pace of urbanization.

To accommodate the influx, China's national policy has shifted from expanding individual cities to building massive city clusters that can integrate economically and politically, boosting each region's competitiveness. Five major city clusters have been established including the Jing-Jin-Ji cluster in the north, the Yangtze River Delta cluster in the east, the Cheng-Yu cluster in the west, the Yangtze River Middle Reaches cluster in central China, and the Pearl River Delta cluster in south.

February 18 marks the fifth anniversary of the publication of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). This integrated economic zone leverages the strengths of nine cities and two special administrative regions in south China.

The successful transition from a vision in 2019 into today's reality can be attributed to the region's strategic and historic economic significance. The GBA has a long history of foreign capital inflow and has been for a long time considered one of China's most favorable investment destinations due to its diverse and dynamic industrial ecosystem, affluent local consumer base, and ability to attract highly skilled professionals.

The combination of all these factors has helped to enhance the international competitiveness of the entire mega-region creating a world-class business and innovation hub that today is on par with existing leading city clusters including the San Francisco, Tokyo, and New York Bay areas.

Over the last half of a decade, the integration of Hong Kong and Macao into the GBA has strengthened the region's position as a global financial hub, attracting international businesses and investment and offering a unique combination of expertise from Hong Kong's financial sector and the manufacturing capabilities of Guangdong Province.

In this sense, a vital role has been played by the GBA Science and Technology Innovation Corridor in driving technological advancement in the area, promoting some of the world's most prominent tech companies through a cooperation mechanism between the efficient manufacturing and supply chain sector present in Guangzhou and Hong Kong's reputation as a hub for raising capitals for growth.  

An increased level of connectivity, which facilitates trade, investment, and cultural exchange, and which reinforces China's influence in the global economic landscape, can only be achieved through the construction of key infrastructures.  

The development of projects such as the Hong Kong-Zhuhai-Macao Bridge, which is the longest sea-crossing bridge in the world, the Guangzhou–Shenzhen–Hong Kong Express Rail Link, and the Shenzhen-Zhongshan Corridor, which is set to reduce the travel time between Shenzhen and Zhongshan, have all contributed to enhancing connectivity within the region.

The fact that the GBA is far from being a finished product is well represented by the announcement made on December 25, 2023, by China's key economic regulator, the National Development and Reform Commission, revealing a three-year action plan titled "Three-Year Action Plan for Building an International First-Class Business Environment in the Guangdong-Hong Kong-Macao Greater Bay Area."

Key strategies are aimed at boosting the business environment in the region and at solidifying the region's appeal as a global economic hub through easier market access rules that reduce bureaucratic hurdles, eliminate entry barriers, and ensure a healthy economic landscape where fair competition and level playing field are guaranteed to all market participants. In this context, the enhancement of cross-border customs, visa arrangements, and professional or industry practices, could help to promote "Bay Area standards" that are set to benefit both residents and travelers.

A further boost in connectivity through a gradual expansion of openness of the mainland financial sector to Hong Kong and Macao combined with a comprehensive strategy that goes beyond the GBA perimeter could bolster the region's appeal to foreign investors. This aspect is evident considering measures that include collaboration among Shenzhen, Guangzhou, and Hong Kong stock exchanges, and the implementation of high-quality execution principles of the Regional Comprehensive Economic Partnership, which align with global economic and trade standards required by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The first five years of the Guangdong-Hong Kong-Macao Greater Bay Area have shown that a region that occupies less than 1 percent of the entire nation but contributes nearly 12 percent of the country's GDP, is well on track to become a crucial economic driver for China and the wider Asia-Pacific region.  

The announced strategic plan for the coming years is opening avenues for steady growth and mutual collaboration, making it a must-go destination for those who seek long-term opportunities in the very heart of China's economic engine.

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