China's Greater Bay Area* is a region that has captured the attention of businesses and investors around the world. With its strategic location, dynamic economy, and commitment to innovation, there are significant advantages of Greater Bay Area investment, making it an attractive destination for businesses seeking to expand their operations or tap into new markets.
In this post, we cover these advantages, developments at Hong Kong International Airport, the longest sea crossing in the world, how the media in Hong Kong plays a vital role in the Greater Bay Area, and we reveal a 'secret' travel tip to help travelers into China and beyond.
Greater Bay Area (GBA) Initiative
There are many advantages for businesses in The Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area)
This thriving region with a strategic location and a dynamic economy comprises Hong Kong and Macao, Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing.
According to Wikipedia, China's Greater Bay Area 56,000 square kilometres is comparable in size to Croatia and is among the four largest bay areas in the world (New York City, Tokyo, and San Francisco).
86 million people, a GDP of RMB13 trillion in 2022, the GBA presents businesses seeking to expand their operations or tap into new markets.
Investing in the Greater Bay Area offers advantages for businesses seeking to expand their operations or tap into new markets.
Here are just a few of the key benefits:
- Access to a large and prosperous market: With a total GDP of USD 2 trillion in 2021 - equivalent to the GDP of Canada - the Greater Bay Area is one of China's three key mega-regions. This presents a wealth of opportunities for businesses looking to reach a vast and prosperous market. (Source: S&P Global)
- Diversified economic base: The Greater Bay Area is actively investing technology, advanced manufacturing, logistics and other industries to create new opportunities for growth and diversify its economic base. This makes it an attractive destination for businesses seeking to innovate and expand. (Source: China Briefing)
- Openness to foreign direct investment: The Greater Bay Area is committed to facilitating openness to foreign direct investment, with policies that target the opening up of markets, technology and innovation, infrastructure, and resource mobility. See this report by EY for more information.
- International financial centre: Hong Kong's status as an international financial center is a major asset for the Greater Bay Area. As an international banking and insurance hub, as well as an important international capital markets center, Hong Kong plays a vital role in the economic development of the region.
- Efficient market: The Greater Bay Area's policies on opening up markets, technology and innovation, infrastructure, and resource mobility are designed to create new growth engines and transform the region into a more efficient market.
Technology and Law Sectors and The GBA
The development of Hong Kong as a leading centre for international legal and dispute resolution services in the Asia-Pacific region is a key objective.
This includes supporting Hong Kong in becoming a service centre for deal making and resolving investment and commercial disputes related to Belt and Road projects.
To achieve this, mechanisms for international commercial dispute resolution will be refined, an international arbitration centre will be developed, and arbitration and mediation services will be provided to support economic and trade activities in Guangdong, Hong Kong and Macao.
Innovation and technology (I&T) development is a key focus for the Government of Hong Kong, with the aim of injecting new impetus into the economy, improving people's quality of life, and creating quality jobs for young people.
The Hong Kong SAR Government is stepping up efforts in I&T development including increasing resources for R&D, pooling together technology talent, providing investment funding, providing technological research infrastructure, reviewing existing legislations and regulations, opening up government data, enhancing procurement arrangements, and strengthening popular science education.
In 2022, there were more than 1,400 Mainland enterprises listed with a combined 70% of the total market capitlization in Hong Kong.
Hong Kong is the global hub for offshore RMB business since its launch in 2004, has the world's largest RMB liquidity pool and offers a wide range of offshore RMB investment products.
In 2017, Hong Kong handled over 70% of the world's offshore RMB transactions, and in 2018, its RMB Real Time Gross Settlement system recorded a high volume of turnover, averaging more than RMB1,000 billion per day.
Hong Kong has the highest insurance density in Asia, is one of the most open insurance markets globally and an ideal location for Mainland companies to establish captive insurers and handle risks from foreign assets and operations.
Hong Kong International Airport
Last year, Eight PR, through our membership of the Hong Kong General Chamber of Commerce, paid a visit to the Hong Kong Airport Authority to learn about the new expansion programme.
Hong Kong's airport expansion is a key component of China's Greater Bay Area initiative, aiming to integrate the region's economy and infrastructure. By 2030, it is envisaged that HKIA will handle an additional 30 million passengers annually.
But this monumental infrastructure play isn't just about passenger handling. There's an indoor performance arena, more convention and exhibition facilities, retail, offices, hotels, golf courses, sea cargo handling facilities, and automated parking.
The 'Fly-via-Zhuhai-HK' scheme means passengers can connect between the two airports without replicating immigration and customs lines at both ends.
HKIA Logistics Park, Dongguan
Apart from developing SKYCITY, the Hong Kong International Airport (HKIA) is looking to ensure the supply chain to enhance cargo operations.
By setting up the HKIA Logistics Park in Dongguan and an intermodal cargo pier at HKIA, the aim is to streamline cargo transshipment for GBA exports. This means that cargo can be prepared in Dongguan before being seamlessly shipped by sea to HKIA for direct air transshipment.
Security checks can now be carried out in Dongguan, and cargo terminal operators from HKIA will establish operations there, extending their scope of business to cover imported cargo in the future.
Hong Kong-Zhuhai-Macau Bridge (HZMB)
Open 24 hours a day, this 42km road takes just 40 minutes to cross and offers quite extraordinary views of Lantau, Hong Kong International Airport, and the Pearl River Delta.
The Asia Pacific Economic Cooperation (APEC) Business Travel Card (ABTC) simplifies the process of entering APEC economies for short-term business travel.
Participating APEC economies include Australia, Brunei, Chile, China, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Peru, the Philippines, Singapore, Thailand, and Vietnam. Canada and the United States are both transitional members.
ABTC eligibility requires a valid passport from an APEC economy or permanent residency in Hong Kong and regular business travel in the region. Benefits include simplified visas, reduced travel time, seamless travel, and efficient border crossing.
Unique Media Advantage In Hong Kong
The Hong Kong media has a unique advantage to help enterprises establish a foothold in the Greater Bay Area and drive awareness and engagement.
Stories published in the Hong Kong media drives southern China awareness, aiding business development and helping local and international enterprises to generate recognition.
This means organizations in Shenzhen can make use of communications teams in Hong Kong to help manage their PR and communications. International enterprisers can build a strong brand proposition in Hong Kong, identify new opportunities in the GBA and draw up effective sales strategies.
The ease of travel into the GBA from Hong Kong extends to high speed rail, trains, buses, coaches, taxis, ferries, and planes.
With its strategic location, dynamic economy, and commitment to openness and innovation, the Greater Bay Area is a powerhouse of potential.
Developments like the expansion at Hong Kong International Airport, the establishment of the HKIA Logistics Park in Dongguan, and the construction of the world's longest sea crossing, the Hong Kong-Zhuhai-Macau Bridge, further enhance the region's attractiveness.
Tools like the APEC Business Travel Card simplify business travel and foster greater connectivity within the region.
The role of the media in Hong Kong in disseminating vital information about the Greater Bay Area cannot be overstated.
All these factors combine to make the Greater Bay Area a vibrant, thriving, and highly attractive destination for business investment and expansion.
At Eight PR, we have the expertise and experience to develop customized strategies tailored to you and your firm's specific needs with the objectives of building trust, helping you attract new clients, and establish your brand as a credible authority.