Hong Kong and Guangdong to intensify cooperation to promote growth in the Greater Bay Area

In order to further integrate the economies of the Greater Bay Area (GBA), Hong Kong and Guangdong have announced a week of events and business activities. The goal of these activities is to produce high-quality growth in the post-pandemic age.

John Lee Ka-chiu, the leader of the city, declared that more meetings and visits will be made with Guangdong officials now that things are back to normal following the relaxation of Covid-19 restrictions at the border with the mainland.

"We will enhance mutual cooperation [with Guangdong and pursue] high-quality growth to facilitate Hong Kong’s integration with the nation’s development," said Lee on Wednesday at the SmartHK Forum in Guangzhou.

His remarks highlight the growing interdependence of the Greater Bay Area's governments in the post-pandemic age as China makes every effort to resurrect its economy. The bay area's pursuit of high-quality growth is a reference to Beijing's admonition to address the nation's economic barriers in order to spur recovery.

The second-largest economy in the world had a sluggish post-Covid recovery in April as consumer prices barely increased and the youth unemployment rate reached an all-time high. Without going into specifics, Premier Li Qiang stated last week that measures would be made to increase household spending and export orders following a two-day visit to the eastern Shandong province.

According to Wang Weizhong, the provincial governor of Guangdong in southern China, "Guangdong’s pursuit of high-quality development provides unlimited business opportunities for domestic and overseas companies including Hong Kong enterprises. We hope that Hong Kong companies will bring capital, technologies and management to strengthen cooperation."

According to Wang, the province is concentrating on high-tech businesses including digital information, innovative materials, and renewable energy while simultaneously maintaining the industrial sector's crucial role.

According to Lee, 210,000 Hong Kong companies have established themselves in Guangdong, making up 70% of all foreign corporations in the province, while 9,000 Guangdong firms have done the same in the financial hub.

Several government agencies in Hong Kong, including the Hong Kong Trade Development Council, organized and supported the forum.

About 70 Hong Kong companies set up booths to showcase the goods and services the city can offer in sectors like business services, technological innovation, and design. Additionally, companies from both sides participated in a session to match partners.

Governments and corporations have taken part in several tours and meetings since the borders between Hong Kong and the mainland reopened in February, including Lee's visits to four cities in the bay area.

Tang Ping-keung, the Secretary for Security of Hong Kong, led a delegation on a two-day tour to Guangzhou, Dongguan, and Huizhou on Wednesday as part of the expanded collaboration between the Greater Bay Area cities. In these cities, he is anticipated to visit businesses that specialize in innovation and technology and to network with his local counterparts.

With 86 million people, the Greater Bay Area is one of China's most developed areas and a major center for manufacturing and exports. According to the region's finance secretary Paul Chan Mo-po, the region's GDP is now the same size as Italy's at US$2 trillion.

By fLEXI tEAM