Guangzhou has been recognized by the central government for its efforts to upgrade the city’s industrial structure in 2019, ranking among the top 10 nationwide. The city recorded 103.8 billion yuan of industrial investment last year, up 9.1% YoY. Of this, more than a third (35.42%) was spent on “technological transformation”: 36.8 billion yuan, which shot up 43% from the previous year.
The investment has clearly had an effect on growth. This is especially in high-tech manufacturing, which saw output jump 21% over the year. It now accounts for more than half (57.2%) of total industrial output in the city. Strategic emerging industries are the ones to watch, though, as smartphones soared by 170%, industrial instruments by 147.5%, and new energy vehicles by 114.7%.
Underpinning all of this has been strong support from the government via its Support Fund for Technological Transformation. In 2019, the amount committed by the government began to be reduced, yet the total investment by local industry kept rising. Here is how it has grown in the past three years:
2017: 553 million yuan, 310 projects supported, underpinning 24.8 billion yuan of total investment
2018: 630 million yuan, 252 projects supported, underpinning 25.7 billion yuan of total investment.
2019: 449 million yuan; 239 projects; underpinning 36.8 billion yuan of total investment.