The Pearl River Delta (PRD) consists of Hong Kong (SAR), Macau (SAR) and Guangzhou, Shenzhen,Zhuhai, Foshan, Jiangmen, Dongguan, Zhongshan, parts of Huizhou and parts of Zhaoqing in the Guangdong Province. Since launching its national reform programme in 1979, the PRD has become the most dynamic region in China. The average real rate of GDP growth (excluding Hong Kong and Macau) has exceeded 16 percent annually since that time, which is well above the People’s Republic of China’s national figure of less than 10 percent. The Pearl River Delta has grown into a global manufacturing powerhouse and an important consumer market. 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. In 2000, the PRD had a population of 48 million people. Per capita income has been growing substantially in recent years, as have consumer expenditures.
The Pearl River Delta encompasses only about 0.4 percent of China’s land area and only a little more than 3 percent of the population. But the region accounts for more than 20 percent ofChina’s total GDP, 52 percent of China’s exports, and 52 percent of utilised foreign capital (figures from 2002). The GDP of the Pearl River Delta, about RMB 2,264 billion in 2001, was greater than that of any other region on the Chinese mainland. The region has attracted numerous investors from all over the world who use the PRD as a platform for serving global and Chinese markets. In providin capital, management, technology, market knowledge and access to international markets, Hong Kong has played an important role in the development of the region. Hong Kong has been the source of over 70 percent of the cumulative foreign direct investment in the region since 1979, or roughly eight times the investment of North America, Japan, and Europe combined. In addition, Hong Kong has linked the PRD with the rest of the world, handlig 70 to 80 percent of its seaborne exports and an even greater percentage of its airborne exports.
Since the early 1980s, much of Hong Kong’s manufacturing base has moved to the mainland in search of lower-cost land and labour. As a result, 63,000 Hong Kong and Taiwan enterprises now own and manage a far-reaching network of activities in the area employing nearly 11 million people. Most of these companies are small and medium enterprises (SMEs).
The Pearl River Delta’s infrastructure is constantly changing. Many huge projects top the list of infrastructure priorities : the construction of the Shenzhen Western Corridor; a 5.1 km bridge from Tun Men to Dongjiaotou; a new logistics centre for the Shenzhen airport; a light railway to run from Shenzhen to Guangzhou, and the planned 29 km bridge from Hong Kong/Lantau to Macau/Zhuhai. In addition, Guangdong Province’s telecommunications infrastructure is the pride of the nation with more than 32 million mobile subscribers (16 percent of China’s total) and over 19 percent of China’s 53 million Internet users. Ericsson of Sweden is the leading supplier of telecommunication infrustruture equipment and technology in the Pearl River Delta.
The Closer Economic Partnership Arrangement (CEPA) between the mainland and Hong Kong and Macau will accelerate the pace of the economic development of the region. The Pearl River Delta will further develop into a production base in the global supply chain and will at the same time serve as the operational centre for foreign companies that target China’s domestic market. In conclusion:
The Pearl River Delta provides many opportunities for foreign companies!