HKTDC Hong Kong Means Business

Hong Kong Means Business Hong Kong Means Business

Search form

Languages

  • EN
  • 繁
  • 简
SUBSCRIBE
  • EVENTS
  • MY FEED
  • CONTACT HKTDC
  • ABOUT HKTDC
  • hktdc.com

Section Menu

  • multimedia
  • market spotlight
  • first person
  • Venture Hong Kong
  • heads-up
  • inside china
  • life & style
  • hktdc research

Search form

Languages

  • EN
  • 繁
  • 简
SUBSCRIBE
Hong Kong Means Business

Section Menu

  • multimedia
  • market spotlight
  • first person
  • Venture Hong Kong
  • heads-up
  • inside china
  • life & style
  • hktdc research

https://hkmb.hktdc.com/en/1X0ACUJZ

hktdc research
SAVE FOR LATER
SHARE / SEND

"Scan QR Code" in WeChat and tap "..." to share.

The Guangdong-Hong Kong-Macau Bay Area and Hong Kong

24 January 2018

Bay Area: Aims and Significance

A statistical evaluation of the world’s major bay areas (including the Tokyo Bay Area, the New York Metropolitan Area and the San Francisco Bay Area; see table below) shows that the Guangdong-Hong Kong-Macau Bay Area (the Bay Area) [1] is set to out-perform all of these in a number of key respects, including rate of growth, port capacity, airport access, population level and sheer geographical size. It is, however, trailing these other development areas in terms of per-capita GDP and the maturity of its tertiary sector, indicating that it still has scope for considerable growth. Assuming that all of the areas in question maintain their current level of growth, the Bay Area will have achieved a GDP of US$2.1 trillion within five years, a figure that will see it comfortably overtaking the other bay developments.


Guangdong-Hong Kong-Macau Bay AreaSan Francisco Bay AreaNew York Metropolitan AreaTokyo Bay Area
Land area (sq km)55,905.517,886.421,478.536,898.3
Population (mn)69.67.620.244.0
GDP1 (US$ bn)1,513.4781.221,657.521,774.23,4
Real GDP growth (%)7.05.320.921.93
Per-capita GDP (US$)21,750102,230282,050240,3603,4
Air passenger traffic (mn passenger-times)201.781.3132.2123.9
Air freight traffic (mn tonnes)7.961.182.163.58
Port container throughput (mn TEUs)66.482.426.2527.762
GDP share of tertiary industry (%)65.671.9283.3277.03

Note:
1
At current market prices
2
2016 figure
3
2015 figure
4 2015 average exchange rate for USD1 is JPY121.03

The San Francisco Bay Area covers nine counties bordering the San Francisco Bay. The New York Metropolitan Area covers the three cities of New York, Newark and Jersey and 25 surrounding counties. The Tokyo Bay Area covers Tokyo and its seven surrounding prefectures.
Source: Government statistical departments in the relevant jurisdictions

Thanks to the “one country, two systems” policy, the Bay Area enjoys a unique advantage. While two of the components of the Bay Area – Hong Kong and Macau – are capitalist economies with their own particular strengths, the remainder of the region operates under a socialist system, allowing the advantages of both of these approaches to be fully leveraged. Not only is this a combination unique within China, it is also the only occurrence of such a partnership anywhere in the world.

While the “one country, two systems” approach clearly brings huge benefits to the Bay Area, it also comes with a number of challenges. Most notably, there is the issue of ensuring economic and social integration across the region, while initiating the free movement of factors of production, promoting fair competition and maintaining a high level of co-operation between the various enterprises and institutions operating out of the Bay Area. At the same time, avoiding the emergence of any conflicts and any attempts to take unfair economic advantage of this emerging landscape will remain clear priorities.

Having said that, it is also true that the different systems will complement one another, as has been the case in the development of onshore / offshore Renminbi business. In this instance, running multiple systems in parallel proved a vital testing ground for the country’s wider institutional reform, with Hong Kong’s internationalisation of the Renminbi a clear case in point. Capitalising on the advantages of the “one country, two systems” approach, while navigating around any problems caused by any apparent incompatibilities in the two models, will be crucial to the overall success of the Bay Area.

Compared with China’s other major bays, the Guangdong-Hong Kong-Macau region has the highest degree of marketisation and liberalisation, while also being the most cosmopolitan. In light of these particular attributes, the Bay Area has three designated priorities:

1. Advancing the market-oriented reform of the Chinese economy
2. Enhancing the international implementation of the Belt and Road Initiative
3. Accelerating the Chinese economy’s integration into the wider global economy, while providing a fresh impetus to moves to sustain the global recovery.

In essence, then, integration throughout the Bay Area will be based on the principles of marketisation and internationalisation. In order to achieve this, a high level of co-ordination will be required between government and non-government bodies at a variety of different levels, together with a uniform approach to harnessing a number of individual programmes, market forces and other economic mechanisms.

At the government level, the focus will be on removing any institutional and policy obstacles likely to impede full co-operation between Guangdong, Hong Kong and Macau, while moves will also be made to strengthen infrastructure connectivity and the harmonisation of both technical standards and professional qualifications. From past experience, institutional and policy co-ordination will require the central government and its local counterparts to work very closely together. Previously, such an arrangement has resulted in the successful implementation of the Closer Economic Partnership Arrangement (CEPA) and its supplements and subsidiary agreements, as concluded between the central government and Hong Kong and Macau in 2003. It also played a key role in the July 2017 adoption of the Framework Agreement on Deepening Guangdong-Hong Kong-Macau Co-operation in the Development of the Bay Area, as signed by the governments of Guangdong, Hong Kong and Macau, and the National Development and Reform Commission.

As a priority, the various constituent local governments will also be tasked with maintaining a level playing field for all businesses within the Bay Area, regardless of geographical affiliation or operational sector. To this end, market players will be encouraged to determine for themselves just how they should compete and co-operate with other businesses in order to deliver the maximum benefits on a commercial basis. It is also expected that the Bay Area authorities will look to establish a regional co-ordination and co-operation mechanism as a means of engaging with professional and social organisations, including industry organisations and societies. This mechanism will also facilitate private sector exchanges and collaboration, while looking to raise the standards of the area’s component sectors and optimising the allocation of resources on a market-led basis.

Hong Kong’s Bay Area Role

As the most open, international and market-oriented city in the Bay Area, Hong Kong will play a unique and indispensable role in spearheading the development of the whole region. Moreover, as a free port, it is also the least restricted location in terms of the movement of factors of production. In light of this, one of Hong Kong’s primary contributions to the Bay Area will be to ensure a high degree of openness is maintained, while the overall environment also becomes more internationalised and market-oriented. Ultimately, this is expected to facilitate a freer movement of the factors of production within the region and beyond.

In terms of the individual strengths of the constituent parts of the Bay Area, Hong Kong clearly brings its unparalleled expertise in finance, shipping, commerce and professional services into this new partnership. Under the continuing “one country, two systems” policy, Hong Kong is also expected to capitalise on its wealth of experience in international practices. Within the Bay Area, then, it will both showcase its existing internationalisation, while also acting as a facilitator for the internationalisation of all of the area’s constituent businesses.

In the financial sector, for instance, Hong Kong can rely on the massive economic and trade volume of the Bay Area to consolidate its position as the world’s largest offshore Renminbi market. By building on this foundation, it is also expected to facilitate the overall financial opening up and reform of the wider area. Similarly, Hong Kong’s unrivalled resources in shipping, trade, professional services and a number of other sectors will also make a huge contribution to internationalising the Bay Area and establishing its external connectivity and affiliations. At the same time, the area’s ties and access to the mainland will also be leveraged upon in order to maximise overall economic growth.


[1] The term “Guangdong-Hong Kong-Macau Bay Area” as used in this article refers to a geographical territory that extends across the Hong Kong and Macau special administrative regions and nine Pearl River Delta cities – Guangzhou, Shenzhen, Foshan, Dongguan, Huizhou, Zhongshan, Jiangmen, Zhuhai and Zhaoqing.

BACK TO TOP ^
CONTENT PROVIDED BY
    Topics:
  • Macau,
  • Hong Kong,
  • Mainland China,
  • Bay Area,
  • professional services,
  • one country two systems,
  • Guangdong-Hong Kong-Macau Bay Area,
  • hk platform,
  • internationalisation
  • Macau
  • Hong Kong
  • Mainland China
  • Mainland China
  • Hong Kong
Home

Article Topics

ARTICLE TOPICS

MACAU35997
HONG KONG36027
MAINLAND CHINA35608
BAY AREA123627
PROFESSIONAL SERVICES72579

ARTICLE TOPICS

MACAU35997
HONG KONG36027
MAINLAND CHINA35608
BAY AREA123627
PROFESSIONAL SERVICES72579
ONE COUNTRY TWO SYSTEMS128117
GUANGDONG-HONG KONG-MACAU BAY AREA123429
HK PLATFORM78168
INTERNATIONALISATION128120

Social Share

FOLLOW US

GET WEEKLY UPDATES

newpaper-img

GET OUR WEEKLY EMAIL UPDATES

banner-img


I acknowledge that the above information may be used by the Hong Kong Trade Development Council (HKTDC) for incorporation in all or any of its database for direct marketing or business matching purpose (and may therefore become available to the public within and/or outside of Hong Kong for use by them), and for any other purposes as stated in the Privacy Policy Statement; I confirm that I have the consent and the authority of each individual named in this form to release their personal data for the purposes stated herein.


*For non-EU/EEA customers, please skip this box which is solely for EU/EEA customers as required by the relevant data protection law in the EU.

THANK YOU

Thank you for registering.

interest_article

YOU MAY BE INTERESTED IN

08 October 2020

SWOT Analysis of Hong Kong as an International Business Hub: Future Challenges

05 October 2020

SWOT Analysis of Hong Kong as an International Business Hub: Current Strengths

21 September 2020

Latest Developments of the Greater Bay Area and Hong Kong’s Role

14 September 2020

Hong Kong as the International Business Hub for the Greater Bay Area (Executive Summary)

Related Events

RELATED EVENTS

10 - 12 March 2021

Fashion HK at China International Fashion Fair, Shanghai, CHIC 2021 (Spring)

10 - 12 March 2021

The 56th China International Beauty Expo (Guangzhou) Spring

10 - 12 March 2021

Intertextile Shanghai Apparel Fabrics, Spring Edition

12 - 14 May 2021

Hong Kong Pavilion at the 26th China Beauty Expo, Shanghai
FIND AN EVENT

User login

  • Create new account
  • Request new password

Footer Menu

  • hktdc.com
  • ABOUT HKTDC
  • MEDIA ROOM
  • TERMS OF USE
  • PRIVACY POLICY
  • SITEMAP
  • 京ICP备09059244号

Footer Logo

Copyrights

Copyright © 2021 Hong Kong Trade Development Council. All rights reserved.

SHARE THIS STORY

EMAIL
LINKEDIN
WeChat
FACEBOOK
TWITTER
WHATSAPP

ID: HKTDCofficial

Don't have an account?

Create An Account

successfully added on your preferences.