Chinese Economics Thread

[Jiang ZeminFanboy]

Guangdong - and the Pearl Delta in general - was the heart of the export industry. It made its money mainly through manufacturing and trade, especially with Hong Kong next door as the city of choice for foreign businesses' Chinese operations. Now that China is relying less on trade, out sourcing more of its manufacturing, and foreign businesses are being replaced by domestic competitors, it isn't particularly surprising that the provinces with the better universities and R&D ecosystems are out competing Guangdong.

Mind you, Shenzhen is doing just fine, but Guangdong as a whole is reaching the end of its cycle. It'll need to invent itself again in the new Chinese economy.

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I don't think export was the problem last few years for Guangdong, this segment was one of the bright spot in its economy last year.

Investment in Guangdong’s housing sector was down 18.2 per cent last year from 2023, while sales of new homes plunged by 21.8 per cent in floor space terms, the bureau said

The province is home to several large property developers mired in severe financial difficulties, including Evergrande and Country Garden.
The fate of another major Guangdong developer, Shenzhen-based Vanke, has also been in question in recent weeks, as its share price dropped to record lows amid rumours that its CEO, Zhu Jiusheng, had been taken away by the police.

Guangdong also saw retail sales grow a paltry 0.8 per cent, in line with the weak consumption figures recorded elsewhere in China last year.
However, the province witnessed a 9.8 per cent increase in trade, as the region accounted for over one-fifth of the country’s total imports and exports, data suggested.

Guangdong’s exports grew by 8.4 per cent and imports increased by 12.5 per cent.