Industrial upgrading clicks in Guangzhou

Industrial upgrading is paying off for Guangzhou. In the first three quarters, high-tech manufacturing grew 20.9%, 0.3 percentage points faster than that of the first half of the year. It now accounts for nearly two-thirds of total industrial output.

A key driver of this (pardon the unavoidable cliché) is the New Energy Vehicles industry, in which output soared (+81.9%) as Guangzhou Auto Corp ramped up new production lines. Next year, the city’s NEV annual production capacity will reach 300,000 units.

Guangzhou has been focused on creating clusters of innovation in a few key areas. It has heavily ecouraged R&D investment with various incentives, which has led to the establishment of 495 enterprise technology centers, including 326 provincial-level enterprise technology centers. 

Top of the to-do list has been the construction of “value innovation parks”. These have been developing capabilities in integrated circuits, “Internet-plus manufacturing”, ultra-high-definition TVs, and a wide variety of big data applications. The government has spent more than RMB 2 billion yuan in subsidies for key industries, platforms, and enterprises.

The ultra-high-definition video-related industry is a particular hotspot. Guangzhou has cultivated a community dedicated to dominating production of 4K TVs, which at the same time has developed the country’s first ultra-high-definition ultra-high-speed camera and its first 5G+8K camcorder. Shipments from Guangzhou of 4K ultra-high-definition video boards has been leading the world for years, and it is estimated that by next year, output will exceed RMB 200 billion.

Key research institutes have set up here as well. These include the Guangzhou International Artificial Intelligence Industry Research Institute, Guangzhou Regenerative Medicine and Health Laboratory, and AsiaInfo Data Global Headquarters. Guangzhou has 19 national key laboratories and 213 provincial key laboratories.

The potential for 5G is perhaps the most promising in Guangzhou. Over 10,000 base stations have been built so far, and services are being trialled in many areas and buildings. This will have particular advantage for applications related to 4K high-definition live video, VR/AR, drones, and others.

Huawei is working closely with the city to promote applications across key industries, especially with large companies such as Guangzhou Automobile. At present, the Huangpu District is billing itself as the first IOT and “smart city” demonstration zone for 5G technology in the province. The city has gathered 60 5G industry-related enterprises here.

The VR industry is seen as promising, too. Guangzhou Time Network is rolling out a “Black Box” series of VR products, including the world’s leading VR theme park solutions. 

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