District offers 100m yuan ‘Industrial internet’ subsidies

Shenzhen’s Bao’an district is offering subsidies of up to 100 million yuan for “manufacturing innovation centers” to be established there. The district, which centers on the international airport but is a large-scale logistics and commerce hub in the making, has just released a plan aimed at transforming traditional manufacturing industries through the IoT model, which in China is known as the “industrial internet”.

A set of detailed criteria for the subsidies has been formulated. Any enterprise formally identified as being engaged in industrial internet development, by authorities at the municipal, provincial, or national level, qualifies for financial support if they set up in Bao’an. The district will add up to 50% of funding provided by these higher-level authorities, capped at 50% of the enterprise’s total required investment. Depending on the size of the project, these can be 100 million yuan, 50 million yuan, or 30 million yuan.

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Shenzhen sets 6% annual growth target for 5 years

Shenzhen’s latest Five Year Plan envisages annual GDP growth of 6% from 2020-25. The plan, which was only formally released yesterday, sets a target of the city’s economy reaching 4 trillion yuan by 2025 – which is roughly 3.5 years from now. By that date, per-capita GDP is expected to have grown by a similar rate – 6% per year – which suggests the city government does not anticipate enlarging its official population (i.e., those with a Shenzhen hukou). The supply of public housing units, however, will be enlarged by 280,000 units.

(GBI comment: Shenzhen has been the country’s fastest-growing major city – in terms of population – together with Guangzhou for many years. It blew past its population growth predictions in the last Five-Year-Plan, as noted by the SCMP, but now apparently is doing away with incentives designed to attract talent to the city.)

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Cross-border art and culture park breaks ground

Construction has begun on a new project in Shenzhen’s Longgang district called the Universiade Culture and Art Park, which is aimed at promoting cross-border interaction between Shenzhen and Hong Kong artists. Covering an area of ​​73,800 sqm, the project, being developed by the Shimao Group, will have small art galleries, art exhibition halls, conference and exhibition centers, performing arts centers, theaters, youth activity centers, community sports venues, libraries, cultural activities centers, and various outdoor areas.

A cultural activity center sits at the heart of the project, covering 8,000 sqm. It is expected to open in 2023.

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GZ, SZ push demand for cross-border e-commerce talent

Recruitment website Zhaopin has released a report showing that Guangzhou and Shenzhen are by far the country’s biggest recruiters of talent for the burgeoning area of cross-border e-commerce. In the first quarter of 2021, positions advertised on the platform for foreign trade import and export industries overall rose 11.2% year-on-year, with Guangdong ranking just ninth at 18.3%. However, the fastest-growing segment was in cross-border e-commerce operations, where the province accounts for 51.6% of the country’s overall demand. Nearly all of this came from its two biggest cities, Shenzhen and Guangzhou, which accounted for a combined 48.8% of the total.

Cross-border e-commerce is a category denoting direct online sales between merchants in China and buyers overseas. It includes, for instance, sales by Chinese firms on Amazon.com and Aliexpress.com.

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Shenzhen supports digital projects with 3m grants

Shenzhen has opened applications for subsidies that can be worth up to 3 million yuan for projects focused on building digital public services. The promotion plan is aimed primarily at projects involving high-end software, innovative apps, data security, blockchain technology, Internet innovation, big data and cloud computing. Organizers of forums or exhibitions in these key areas may also apply.

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Marine economy adds oil

Guangdong’s marine industries generated output of 1.7 trillion yuan in 2020, highest among the country’s 33 provinces for the 26th consecutive year. The cluster of industries accounted for 15.6% of regional GDP and 21.6% of the country’s total marine-industry output. This is largely concentrated in and around its major ports: Guangzhou (Nansha), Shenzhen Shekou and Yantian), Zhuhai, Dongguan and Zhanjiang. It includes six major marine industries: marine electronic information, offshore wind power, marine biology, marine engineering equipment, natural gas hydrates, and marine public services.

Shenzhen is in the vanguard of this effort, and is ploughing tens of billions of yuan into development of new marine-technology parks, with particular focus on the development of the marine biomedical industry. Parks built or underway include: Sino-European Blue Industrial Park, Ocean New City, Shenzhen International Biological Valley, National Southern Ocean Science City, and Dapeng Ocean Biological Industry Park.

Pingshan has more than 600 biopharmaceutical companies, while Dapeng New District Marine Biological Industrial Park has 61 projects, and the number of intellectual property projects obtained exceeds 120 (items). In 2020, the province’s marine biomedical industry generated output of 5.1 billion yuan, a year-on-year increase of 23.6%.

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Guangdong GDP up 18%

Latest data from the provincial government show that Guangdong’s economic recovery continued to set a strong pace the first four months of the year, with GDP rising 18.6% YoY, driven by surging industrial output and foreign trade.

Growth in industry came in at 25.1%, with the construction sector sizzling at 29.5%, while total foreign trade was up 30.3%. Exports shot up by 36.2%.

Investment came in at 28% growth, and although the services sector lagged behind overall at 15.6% growth, there was a surge in accommodation and catering, which was up 43%. Retail sales clocked 27.8% growth.

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Hottest May in Shenzhen

The average temperature in Shenzhen in May was 28.5℃, the highest ever recorded for the month, according to the local meteorological authority. The highest daily temperature of 35.0°C was the fifth highest ever in May. Moreover, it was also an exceptionally dry month, as the city’s average cumulative rainfall was just 114.2 mm, 52.6% less than the average over the past 5 years (of 240.8 mm). June is forecast for more rain, around 300-350 mm, which would be just 1-2% less than the average for the month over the past five years.  Typhoons are possible, but more likely to occur in mid-June.

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Loans surge for SME firms

Loans from banks to small and micro enterprises are booming in Shenzhen, according to official reports. As of the end of April 2021, total outstanding loans to SMEs were up by 44.4% year-on-year; reaching 844,400 companies, an increase of 46.8% year-on-year. Foreign companies were even more favored: loans to them rose by 76.3% year-on-year. So far this year, more than 10,000 companies have obtained bank loans for the first time.

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Universities keep top 10 rankings

Times Higher Education has released its 9th Asian University Rankings, with 31 universities in mainland China ranked among the top 100. Tsinghua University and Peking University continued to occupy the top two positions, while three universities from Hong Kong were in the Top 10: HKU at 4th, Chinese U at 7th and HKUST at 8th. The highest-ranked university in Guangdong was Shenzhen’s Southern University of Science and Technology, which came in at 26th.

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