Dongguan’s private sector has become the backbone of the economy, now accounting for more than 50% of GDP, 60% of fixed-asset investment, and 70% of tax revenue.
According to the local government, private industries have seen double-digit growth for the 12 months until March, when a slowdown induced by the drop in external trade kicked in. At the end of Q1, however, the number of newly registered private firms was continuing to grow, up 12.5% YoY to 1.14 million.
They are being attracted by incentives, of course. Data shows that Dongguan cut RMB50 billion of the tax burden for private enterprises in 2018. The local government is also investing heavily in infrastructure buildout under the GBA masterplan.
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