THE Guangdong-Hong Kong-Macao Greater Bay Area, or the GBA, and the pivotal role it plays in furthering China’s modernization, deepening reform and opening up, and enhancing international partnerships with countries across the world, mostly with Asean countries, including the Philippines.
China’s modernization drive is about internal development and creating an open, innovative and integrated modern state with the global economy. This reform agenda is particularly significant in the Greater Bay Area, a beacon of China’s vision for the future. This region exemplifies the fusion of modern technology, finance and international cooperation.
Amid global uncertainties, the third plenary session of the 20th Communist Party of China (CPC) central committee, held from July 15 to 18, 2024, represents a crucial turning point in China’s ongoing efforts toward modernization, comprehensive reform and economic resilience. The session’s discussions underscored China’s unwavering commitment to deepening its integration with the global economy while advancing domestic development and enhancing international cooperation. In this strategic landscape, the Greater Bay Area emerges as a cornerstone of China’s strategy, pivotal in driving these goals forward.
Renowned for its economic dynamism and vibrancy, the GBA is a testing ground for new and innovative economic policies, especially those related to high-tech industries, financial innovation, trade logistics and accelerating technological innovation, particularly in artificial intelligence, digital economy and green technology. With cities like Shenzhen at the forefront of technological innovation, the GBA is poised to lead these transformative efforts. Positioned as a burgeoning global innovation hub, the region will likely benefit from reforms discussed during the recent CPC third plenary session. These could lead to more robust policies supporting startups, increased research and development investment, and strengthened collaboration between academia and industry. Consequently, the GBA is emerging as a vital engine in driving China’s sustainable growth and resilience.
A new era of reforms
The Guangdong-Hong Kong-Macao Greater Bay Area is one of the world’s most vibrant and economically dynamic regions. It comprises nine cities in Guangdong province and the special administrative regions of Hong Kong and Macao. This region is home to over 86 million people and contributes nearly 12 percent of China’s GDP.
The GBA is not just a geographical region; it is a strategic initiative to transform this area into a leading global hub for innovation, finance and trade. The region’s strengths are manifold, and these include:
– Innovation and technology: The GBA is at the forefront of technological innovation, particularly in artificial intelligence, biotechnology and renewable energy. Shenzhen, one of the key cities in the GBA, is often referred to as China’s Silicon Valley; it houses numerous tech giants like Huawei and Tencent.
– Economic Integration: The GBA’s role in fostering greater economic integration between the mainland, Hong Kong and Macao is inherent in deepening reform and modernization. The area’s advanced infrastructure, robust legal frameworks and dynamic economy make it an ideal region for piloting new policies to achieve these goals.
– Innovation ecosystem: The GBA is set to lead in implementing China’s technological and economic reforms. The area’s innovation ecosystem, supported by top-tier universities, research institutions and tech giants, is well-positioned to lead China’s digital and green transitions.
– Global connectivity: GBA’s world-class ports, financial institutions and multinational companies keep China integrated with the global economy despite geopolitical tensions.
– Financial services: Hong Kong, a major financial center within the GBA, continues to play a crucial role in linking China’s economy with the global financial system. The city’s robust financial infrastructure offers unparalleled investment and capital-raising opportunities.
– Logistics and trade: The GBA’s strategic location and advanced logistics infrastructure make it a key gateway for trade between China and the rest of the world. Hong Kong and Guangzhou ports are among the busiest in the world, facilitating the movement of goods on a massive scale.
Opportunities for PH
The Philippines stands to gain significantly from closer ties with the Guangdong-Hong Kong-Macao Greater Bay Area. The synergies between the two regions are evident, and the potential for collaboration is vast.
Regarding trade expansion, the GBA offers a lucrative market for Philippine products, particularly in sectors like agriculture, electronics and textiles. The region’s demand for high-quality goods aligns perfectly with the Philippines’ export strengths. In 2023, the bilateral trade between the Philippines and China reached a record high, with the total trade volume exceeding $40 billion. The GBA alone accounts for a significant portion of this trade, providing a strong foundation for further growth.
Concerning investment opportunities, the GBA’s emphasis on innovation and technology presents immense opportunities for Philippine businesses, particularly in sectors like IT-BPM (information technology and business process management), which is already a key driver of the Philippine economy. By establishing partnerships with companies in the GBA, Philippine firms can gain access to cutting-edge technology and innovation ecosystems, thereby enhancing their global competitiveness.
Regarding tourism and cultural exchange, the GBA’s proximity and connectivity to the Philippines make it an ideal partner for promoting tourism and cultural exchange. With its rich cultural heritage and natural beauty, the Philippines can attract more tourists from the GBA, mainly from Hong Kong and Macao, which are popular destinations for Filipinos.
Likewise, regarding education and talent development, collaborations between educational institutions in the Philippines and the GBA can facilitate the exchange of knowledge and expertise, particularly in science, technology, engineering and mathematics. These partnerships can help nurture a new generation of Filipino talent that is well-equipped to participate in the global economy.
Conclusion
As we look toward the future, it is clear that the Greater Bay Area holds tremendous potential for China and its global partners like the Philippines. The GBA will continue to be a beacon of innovation, economic resilience and global connectivity, contributing significantly to China’s vision of a modern, prosperous and integrated future. Most importantly, the GBA represents an opportunity for the Philippines to strengthen its economic ties, enhance its technological capabilities and foster greater cultural and educational exchanges.
As the GBA develops continuously, the Philippines must be a key partner in this dynamic region. By doing so, we can ensure that both nations, the Philippines and China, can benefit from the opportunities that lie ahead, paving the way for a prosperous and mutually beneficial future.
Indeed, the Guangdong-Hong Kong-Macao Greater Bay Area stands at the forefront of this transformative journey, embodying the principles of innovation, integration and resilience central to China’s vision of modernization, reform and opening up. But beyond economic metrics and policy frameworks, the true measure of success lies in our ability to foster collaboration, build bridges and create opportunities for all. The Greater Bay Area is not just a regional project; it is a global opportunity — a chance for nations like the Philippines to engage, learn and grow alongside one of the most dynamic regions in the world.
Anna Rosario Malindog-Uy is a PhD economics candidate at the Institute of South-South Cooperation and Development at Peking University in China.
