Winter 2018 update: The Greater Bay Area Initiative

The Chinese Government’s plans to create a “Greater Bay Area” (GBA) in Hong Kong, Macau and nine cities in Guangdong, including Shenzhen and Guangzhou, offering opportunities to Victorian businesses positioned to benefit from growth in southern China.

The GBA aims to create a science and technology hub to rival the world’s innovative bay cities such as Tokyo, New York, Melbourne and San Francisco. Parts of the region are already technology centres and the GBA is expected to intensify connections, competition and capital to further drive innovation and development.

Infrastructure projects are already under construction to strengthen connections within the GBA:

  • a 55 kilometre-long Hong Kong–Macau–Zhuhai bridge, expected to open in 2018, will reduce travel time between the three cities from four hours to thirty minutes;
  • a fast train link connecting Guangzhou, Shenzhen and Hong Kong will be completed in 2018; and
  • a bridge and tunnel connecting Shenzhen and Zhongshan is expected to open in 2021.

The GBA will build on the strengths of Hong Kong’s financial and professional services sectors, Shenzhen’s high-tech manufacturing and innovation skills, and the manufacturing strengths of Dongguan and Guangzhou. The GBA is expected to free up the flow of people, logistics, capital and information across the region and by 2020 become a world-class cluster of cities.

Opportunities in the GBA

The GBA’s will be one of the world’s largest economic regions:

  • In 2017, the combined GDP of the 11 cities in the GBA reached US$1.4 trillion, or 12 percent of China’s economy.
  • The GBA’s eleven cities have a total population of nearly 67 million.

There are likely to be opportunities in science and technological development, particularly in health/life sciences and medtech, as well as increased opportunities to sell premium food and beverage products as incomes continue to increase. There are also likely to be opportunities in education and training, and logistics, all of which are strengths of Victorian companies.

The Victorian Government has built strong government to government relationships in the GBA which will help Victorian companies to develop trade and investment opportunities. The Victorian Government businesses office in Hong Kong is focussed on assisting Victorian businesses looking to expand into the area.

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