Guangdong may be weathering a difficult external trade environment, yet
growth in one key segment is exploding: cross-border e-commerce. In the first
half of this year, imports and exports ordered and shipped via the internet
grew 76.8% to RMB43.02 billion. Nearly all went through special bonded zones in
Guangzhou, Shenzhen, Zhuhai and Dongguan, where 3,000 enterprises have clustered
to take advantage of easier tax and other regulations.
Admittedly, this is still a small drop in the bucket. The province’s overall
trade was worth RMB 3.28 trillion in the first six months, up 1.3% year-on-year,
accounting for 22.4% of China’s total imports and exports. More than half was
accounted for by private enterprises, which saw their trade numbers grow 5.9%, up
2.2 percentage points YoY.
Hong Kong may be a worrisome mess, but foreign
investment continues to like what it sees in the rest of the Greater Bay Area.
In Guangdong, 7,820 new foreign direct investment enterprises were established
in the first half of the year, worth RMB83.77 billion, up 5.9% YoY.
One of the highlights came from Fortune 500
company General Electric (GE), which has set up the Asian Biotechnology Park in
Guangzhou. It now plans to build a world-class offshore wind turbine assembly
base in Jieyang as well as an operation and development center in Guangzhou.
The provincial government has made efforts
recently to improving the business environment by introducing an “express lane”
for multinational companies to receive approval on projects. As a result,
Siemens has signed a comprehensive cooperation agreement with Guangdong, while
another 17 major projects have settled here.
Alibaba, flush from having announced strong Q2 results, has agreed to pay US$2 billion in cash for NetEase’s cross-border e-commerce platform, Kaola.
Continue reading Alibaba pays NetEase $2b for Kaola
As a traditional manufacturing base, Zhongshan has a collection of clusters in home appliances, lighting and apparel. That might not set anyone’s hair on fire, given how the Greater Bay Area has been turning gung-ho on industrial upgrading since the release of the masterplan in February. However, they are just what is needed by some of the country’s biggest e-commerce behemoths.
Continue reading E-commerce giants move into Zhongshan