Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Guangzhou, Shenzhen consolidate GDP lead over HK

Guangdong’s resilient urban centers tided over US-China trade war, spillover effect from Hong Kong protests

Guangzhou and Shenzhen are set to consolidate their lead over Hong Kong in annual economic output for 2019 as the two economic dynamos charge ahead while anti-government protests continue to plague the former British colony.

The two cities in the neighboring Guangdong province are in the process of releasing preliminary statistics for 2019. Cadres there are heaving sighs of relief as the economy has shown resilience to tide over the US-China trade war as well as the spillover effect of Hong Kong’s social turmoil.

Shenzhen’s gross domestic product expanded by 7% to 2.6 trillion yuan (US$374 billion) last year, ranking only after Shanghai and Beijing. Shenzhen is the largest city economy in the Greater Bay Area, which is a geo-economic megapolis pooling Hong Kong, Macau and nine cities in Guangdong.

Shenzhen mayor Chen Rugui said in a report to the municipal people’s congress that the city’s economy, heavily dependent on export, had largely reversed the downward pressure and started to accelerate after booking a 6.6% growth rate in the first three quarters.

Shenzhen officials previously worried that the United States’ 5G iron curtain blocking Huawei, slackening export, an exodus of manufacturers as well as the economic contagion from Hong Kong’s protests could deal a crippling blow. But the city’s economy has apparently fared better than expected in the final quarter. Shenzhen was just anointed by Beijing last year in a grand masterplan to build a world city to showcase the virtues of China’s social and economic systems.

While Shenzhen is picking up steam, Hong Kong, having just been outstripped by its neighbor for the first time in a fierce GDP race in 2018, is descending further into recession with officials warning of a 2.9% contraction for the first three quarters of 2019. The city’s already tepid export and transshipment amid the US-China trade crossfire have taken a further beating since June when mass protests and widespread vandalism repeatedly brought business to a standstill.

Now all eyes are on Guangzhou’s report card for the year, after the city’s GDP growth outpaced Shenzhen in the first three quarters, prompting observers to wonder if the provincial capital and home to 15 million is poised to redeem its position as the No. 1 city economy in the region, after losing that title to Shenzhen in 2018. Some expect a draw in the rivalry as Guangzhou’s figure is also forecast to be around 2.7 trillion.

Guangzhou is on a spree constructing more metro lines, expanding its airport and container terminus and tearing down tenement blocks to make room for new business districts, in view of Tencent’a promise to keep the operation base of its ubiquitous WeChat social networking app in the city and Alibaba’s plan to build a new southern China headquarters there. The city is also home to China Southern, Asia’s largest air carrier by fleet size, and the site of Toyota’s and Honda’s largest plants in China.

College graduates and startups are also finding that Guangzhou offers cheaper and bigger homes with better work-life balance, education and healthcare compared with other first-tier Chinese cities.

Guangdong’s provincial authorities are pinning high hopes on Guangzhou and Shenzhen to form synergy to further spur growth, with a slew of policies to integrate the two urban centers that are just 130 kilometers apart into an “economic centrifuge” of business and investments to serve the rest of the bay area when Hong Kong’s preeminence in the region is on the wane.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
CATL Unveils Revolutionary EV Battery Tech: 1000 km Range and 7-Minute Charging Ahead of Beijing Auto Show
Changi Airport: How Singapore Engineered the World’s Most Efficient Travel Experience
Power Dynamics: Apple’s Leadership Shakeup, Geopolitical Risks in the Strait of Hormuz, and Europe's Energy Strategy Amidst Global Challenges
Apple's Leadership Transition: Can New CEO John Ternus Navigate AI Challenges and Geopolitical Pressures?
Italy’s €100K Tax Gambit: Europe’s Soft Power Tax Haven
Budapest latest News Roundup
Travel on all public transport in the Australian state of Victoria will be free in May and then half price for the remainder of this year as the government ramps up help for consumers battling high fuel costs
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Hungary's elections
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
The CIA’s Secret Technology That Can Find You by Your Heartbeat Successfully Locates Downed Airman
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Iran warns of $200 oil as forces target merchant ships in Gulf
Japan to Release 45 Days of Oil Reserves Amid Iran Conflict
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
Nvidia posted better than expected results for the January quarter on Wednesday and forecast current quarter revenue above market estimates.
Ukrainian government intensifies pressure on Hungary and Slovakia with oil blockade
Britain’s Channel Crisis: Paying Billions While the Boats Keep Coming
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
×