Pearl River Delta development plans for 2020

1. Outline of the plan for reform and development of the Pearl River Delta (PRD) 2020
GDP
¥711 bn pop PRD excluding HK, Macao (2007 HKTDC figures)
10 mil GDP pp RMB 53,820, or 2.8 times national average
3.6% China’s population but 8.8% of national retail sales
Trade, MICE 7 mil ¥315 bn
3.8 mil Mfg in auto parts ..
¥60 bn 4 mil
¥111 bn
F&B products
Mfg in electronics … Mfg in laser diodes, electronics…
¥361 bn
6 mil
¥681 bn ¥2,002 bn
Mfg in industrial ceramics, electronics
8.6 mil
2.5 mil ¥123 bn
Mfg in lighting, motorcycles… 7 mil
Logistics, Financial Centre
4.5 mil¥111 bn Mfg in electronics
Financial, MICE, Business Svc,
Petrochemicals, Machinery Port, Intl airport Centre…
¥90 bn
1.5 mil Port
¥110 bn
0.5 mil
Put together by MTI Futures Group with
Entertainment, MICE Centre existing slides from HK Civic Exchange

2. What is the context of PRD 2020 and why
does it matter?
The drop in G3 demand has hit Guangdong hard, and increased the urgency
for reforms. PRD 2020 is a ‘pilot region’, which means lessons learnt here will
be applied to creating mega city clusters for rest of China.
Guangdong has chosen to reject ‘three highs one low’ industries (high
investment, high energy consumption, high pollution, low yield ‐ 高投入, 高能
耗, 高污染, 低效益 ) and ‘clean the cage and change the birds’ (腾笼换鸟) to
move up the value chain.
Successful reforms would create a cluster of highly interlinked, advanced
manufacturing and service hubs for South China/ASEAN, the next
generation/wave of Chinese MNCs supported by an enlarged domestic PRD
middle class in one of the world’s most dynamic city clusters.

6. Outline of the plan for reform and development of the Pearl River Delta (2020)
Creating a
Moving up
services hub
the mfg
for Asia
value chain
Pacific
Knitting
together Conserving
‘the most resources
‘Stepping
dynamic city and
out’ globally
cluster in minimizing
Asia Pacific’ pollution
Moving Creating/
from ‘made repairing
in GD’ to urban and
‘created in rural social
GD’ safety nets

7. Knitting the PRD together with unified 1(a) urban planning (roads, railways, airports)
1(b) energy, water, waste & info infrastructure & 1(c) public services
Expand GZ
More Baiyun airport
South China
Logistics
Internet
Integrate rural‐urban
development reform PRD Inter‐city
railway
FS MRT GZ MRT
Integrate rural‐urban
development reform
DG MRT
Lead ‘one department’
Digital PRD government pilot
network Expand SZ More
Integrate rural‐urban Bao’an airport SZ MRT
development reform
Zhongshan‐Shenzhen cross
Wantou water estuary link
conservancy
project
HK‐SZ airport
Pilot social reform cooperation
HK‐Zhuhai‐
Macao bridge
Power from
Garbage projects

8. Drawing north Guangdong into the PRD.
East and west Guangdong will supply PRD with energy, steel, water etc.

9. mileage

10. Moving the PRD up the manufacturing value chain away from labor intensive
industries into 2(a) 5 inter‐related capital and technology intensive industries and
2(b) creating potential globally competitive manufacturing companies.
Fine
Pharma chemicals
Aircraft
mfg
Shipbdg
Petrochemical & repair
Nuclear
Power
Equipment
Mfg Ship building
Ocean
Wind
Engg
Power
Power Iron & Steel Automotive Car
Tx industry
clusters
CNC New
lathes Zhanjiang energy
Steel auto
Base

12. Moving the PRD to match HK and Macau in service industries by creating 3(a)
regional financial centers, 3(b) targeting specialized conventions, 3(c) logistics
hubs, 3(d) international outsourcing hubs and 3(e) software and cartoon bases.
3 cities
for intl
service
outsrng
Outsrng
Hubs
SZ
Second
Regional Board
Conventions Financial
GZ Centers
Baiyun GD
Airport Financial
Zone
Software/
SZ
Bao’an Logistics Hubs Cartoon
Airport Bases
GZ Port
SZ Port

13. Moving from ‘made in GD’ to ‘created in GD’ via 4(a) developing high tech
industries, 4(b) creating an ‘innovation axis’ and alliance 4(c) consolidating
national level ‘innovation enterprises’.
100 RI‐
Industry
3‐5 tech >6 GD‐CN
MNCs > alliances Academy
of Science
¥100bil PRD projects
3‐5
Innovation
clusters Alliances Attract
> ¥100bil MNC
PRD‐ HK ‐
High Tech Macao R&D
Industries Innovation
GZ
Science Axis SZ
City Innovtn
Center
Consolidtng
SZ hi‐tech
industrial New Ag national South
belt enterprises China
New
Medicine
Center
50 natl/ GZ Intl
New 10 intl Biological
rice innov Island
enterprs

14. Opening up internationally by 5(a) knitting PRD to HK, Macao and Taiwan.
Encouraging GD enterprises to ‘step out’ (走出去) to 5(b) ASEAN and other
emerging markets of 5(c) Africa and Latin America.
Cross‐
strait Ag
co‐optn
Zhuhai‐
Hengqin
Zone Taiwan
Enforce Macao
CEPA ASEAN CN –
ASEAN
FTA
RMB
business Emerging
Hong Kong Markets
PRD
enterpris
es to list
in HK

16. What would a successfully reformed Pearl River Delta 2020 look like?
GDP pp RMB 135,000, or 3.6 times 2008 GDP
High‐end services
Traditional
industries Mfg in electronics, Lake
Songshan Tech park
Machinery eqpt, new‐type flat Port, base for petrochem.
panel display, financial services
Port‐front eqpt mfg, chemicals, healthcare Advanced mfg base: Communications
eqpt, biological engg, new materials,
automotives using new energy
Advanced mfg
Gaolan Port, ocean engg, Financial, MICE, Business Svc,
aviation industrial park, intl biz Port, Intl airport Centre…
and tourism resort.
Entertainment, MICE Centre