China's Greater Bay Area: From regional synergy to global prominence

Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinion and not necessarily the views of CGTN.

February 18 marks the sixth anniversary of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). Over the past six years, this region, which occupies less than 0.6 percent of the national land area, has generated over 11 percent of the country's total economic output. Its economic output has jumped from 10.8 trillion Chinese yuan ($1.49 trillion) to 14 trillion yuan, with an average annual growth rate of 5.5 percent. As a result, the GBA has overtaken the Tokyo Bay Area to become the world's largest bay area.

This achievement not only highlights a new milestone in China's regional economic development but also underscores the institutional advantages of collaborative innovation among Guangdong, Hong Kong and Macao under the framework of "One Country, Two Systems."

When the Outline Development Plan was released in 2018, the GBA's economic aggregate was 10.8 trillion yuan. By 2023, this figure surpassed 14 trillion yuan, marking a growth of 3.2 trillion yuan over five years. This remarkable expansion can be attributed to the strong driving forces of core cities like Shenzhen, Guangzhou and Hong Kong. In 2023, Shenzhen's GDP reached 3.46 trillion yuan, ranking third in the country, Guangzhou secured the fourth spot with 3.04 trillion yuan. Dongguan and Foshan have also joined the "trillion-yuan club," forming a robust "five-city linkage" economic network with Hong Kong.

The GBA has evolved from the traditional "front shop, back factory" model to a global value chain system characterized by the dynamic roles of "Hong Kong service + Shenzhen innovation + Pearl River Delta manufacturing." The Pearl River Delta now focuses on eight trillion-yuan industrial clusters, including new-generation electronic information and smart home appliances.

Meanwhile, Hong Kong and Macao a continue to drive the region's modernization through services such as finance and law, creating a complementary pattern. Hong Kong's cross-border financial and legal services offer critical international support to the industrial chain, enhancing the GBA's global competitiveness.

Over the past six years, monumental infrastructure projects like the Hong Kong-Zhuhai-Macao Bridge and the Shenzhen-Zhongshan Link have been completed, enabling the major cities in the GBA to achieve "one-hour living circle." In addition, the GBA's airport cluster boasts an annual passenger throughput capacity exceeding 280 million and the port cluster handles 85 million 20-foot equivalent units of container throughput, with routes that span major global trading ports.

The region has also made significant strides in market integration. Initiatives like the "Hong Kong and Macao Medicine and Equipment Connect" and "cross-border financial connect," along with the establishment of 183 "Greater Bay Area Standards," have enhanced cooperation among Guangdong, Hong Kong, and Macao. Platforms like Hengqin, Qianhai and Nansha have introduced innovative models, such as "Hengqin research and development + Zhuhai manufacturing," leveraging institutional innovation to create experimental fields for greater openness.

The GBA is home to 75,000 national-level high-tech enterprises, with industry giants such as Huawei, Tencent and BYD leading the global competition. The "Shenzhen-Hong Kong-Guangzhou" technology cluster has maintained its position as the second-largest in the world for four consecutive years. A prime example of the region's technological prowess is Chinese automaker GAC Aion, whose self-developed magazine battery 2.0 technology has significantly improved the endurance of new energy vehicles. This achievement reflects the broader trend of manufacturing industry upgrades within the GBA, positioning the region as a global leader in innovation and advanced technology.

Looking ahead, the GBA must further solidify its role as a key "dual circulation" hub by promoting cross-border data flow and mutual recognition of talent qualifications and enhancing the level of Closer Economic Partnership Arrangement. Relying on its growing carbon trading market and hydrogen energy industry cluster, the region can build a "dual carbon" demonstration zone. Guangzhou and Foshan have launched the world's largest hydrogen energy industrial base, which could connect with Hong Kong and Macao's green financial resources in the future.

The GBA is also increasing its share of China's exports to member countries of the Regional Comprehensive Economic Partnership and can further expand its presence in the ASEAN market through cross-border e-commerce and digital trade. By integrating Hong Kong's international finance center with Shenzhen's venture capital system, new opportunities such as RMB internationalization and digital asset trading can be explored.

Moreover, the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone will help attract world's top scientific research institutions, fostering a robust innovation chain of basic research, application transformation and global market access.

The Guangdong-Hong Kong-Macao GBA has effectively transcended administrative boundaries through institutional innovation, reshaped the industrial landscape with scientific and technological advancements and linked the global market with openness and inclusiveness. Its success not only provides a model for more regional coordination but also demonstrates the practical path of Chinese path to modernization to the world.

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