Industries in the “new economy” contribute 25.1% of Guangdong’s GDP, according to the provincial government. Growing at 7% – which is in line with overall GDP growth – companies across the spectrum are ramping up R&D spending, too. This is underpinning future growth and is spreading to older industries as well: as of the end of March, 35% of Guangdong’s 40,000 industrial enterprises had established a science and technology R&D department. Overall investment in new technologies came in at RMB140.55 billion in the quarter, up 8.7% YoY.
Sales of 4K television sets are a bright spot, up 44.4% to RMB6.48 million. The star standout, however, was new energy vehicles (NEVs), which saw sales up 252%.
Probably the single brightest spot in this landscape is the Nanshan Science Park, in Shenzhen, where the total market cap of its constituents is over RMB4 trillion. This is where Tencent and Huawei are based. Last year, the park’s GDP hit RMB 501.8 billion, generated by more than 3,500 nationally accredited tech companies across a swathe of new industries such as AI, big data, quantum communication, and biotech.
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