The Guandong-Hong Kong-Macao Greater Bay Area (GDHKMC Bay Area) contains eleven major cities (9 in mainland China plus Hong Kong and Macao) and given the geographical proximity of all these people and businesses, many economists talk about the bay area as a region in its own right. It’s no surprise given the number of people living around the bay, 68m people – more than the entire population of the United Kingdom.
The Bay Area generates around 12% of the entire GDP of China and contains three of the busiest container ports in the world – Guangzhou, Shenzhen, and Hong Kong. The actual GDP of the Bay Area can be compared to the entire economy of Russia or South Korea – this is the scale of business being undertaken just in this one Chinese Bay Area.
Just look at how the Bay Area compare to other major international bays:
GDHKMC Bay Area: 56,000sq km GDP $1.3tr 66.72m people
New York City: 783.84sq km GDP $1.7tr 8.6m people
Greater Tokyo Area: 36,800sq km GDP $1.8tr 43.84m people
San Francisco Bay: 17,900sq km GDP $0.8tr 7.6m people
In terms of size and population there is nothing that comes close and this offers a wealth of opportunities for companies that need access to a Bay Area for shipping, but also need skilled people and all the facilities and infrastructure available in this region.
PwC research into the opportunities for the GDHKMC Bay Area highlight five key areas:
- Total GDP of Guangdong, Hong Kong and Macau regions was equivalent to 14% of the national economic aggregate, making the region “as rich as a country” in terms of total economic size and population.
- Apart from the obvious advantages in many areas of the manufacturing industry, the Bay Area has a very prosperous tourism industry characterised by big market size and large numbers of visitors.
- The Bay Area also leads in insurance, finance, technology, real estate development, automobile and home appliance manufacturing, etc., and some of the industries even outpace their global counterparts.
- The “三” shaped city cluster is an outstanding feature in the world, for there are no such big three cities so close to each other at home and abroad.
- Compared with the rest of the country, the 9+2 cities are better developed, have greater demands and are better positioned to be developed into smart cities.
China, Hong Kong, and Macau have designed a framework for the future of the Bay Area to ensure cooperation and development that assists all parties. This cooperation plan extends back to early 2017 and is designed to ensure that all opportunities for development in the region are explored in detail. I believe that this development will only accelerate as more private sector companies take an interest in the development of the Bay Area.