In February 2019, “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area” (abbreviated as “Outline Development Plan”) was released. Prof. Wang Cong, Associate Director of Shenzhen Finance Institute, asserted in interviews with Chinese Business Network and Sina Finance that “Outline Development Plan” guides the development of the Greater Bay Area and clarifies the positioning of the nine Pearl River Delta (PRD) municipalities, which enables the nine PRD municipalities to leverage their comparative advantages. “Such planning would enhance the Greater Bay Area’s leading role in the country’s economic development.”
Prof. Wang Cong points out the following highlights of “Outline Development Plan”. First, to expedite the structural adjustment of the manufacturing industry, and purse smart development of the manufacturing industry, particularly regarding the R&D and production of key components, in reaction to the trade disputes with the U.S.
Second, to step up the protection and exploitation of intellectual property (IP), capitalize on the IP collaboration mechanisms of Hong Kong/Guangdong, Macao/Guangdong and the Pan-PRD region, and strengthen cooperation in IP protection in the Greater Bay Area. To support the development of Hong Kong as a regional IP trading center. This would significantly encourage technological innovation.
Third, to progressively promote mutual financial markets access, in particular, to expand the scale and scope of the cross-boundary use of RMB in the Greater Bay Area. Banking and financial institutions in the Greater Bay Area may launch cross-boundary RMB interbank lending, related RMB derivative products and cross distribution of wealth management products. “These are significant achievements, which would progressively promote cross-boundary use of RMB in the Greater Bay Area, and accumulate experience for the internationalization of RMB.”
Last but not the least, to facilitate the flow of capital, technologies, information and talents. The Greater Bay Area, with Hong Kong’s leading universities and research institutes, Shenzhen’s prominent capabilities for innovation and creativity, Dongguan and Zhongshan’s complete production chain systems, as well as Shenzhen and Hong Kong’s diversified financing channels, already possesses the fundamental conditions for developing into an international innovation and technology hub. If the advantages of these elements are capitalized, more high tech enterprises, such as DJI Innovations and SenseTime, would emerge in the Greater Bay Area.
Prof. Wang Cong maintains that launching the “Outline Development Plan” against the current complicated internal and external environment would indeed “energize the Chinese economy”.