2 min read

Source:https://www.china-briefing.com/news/guangzhou-industry-economics-policy/

Through the link you may find more detailed introduction of Guangzhou City and its preferential policies for Foreign firms.To make it most relevant to Israeli Readers,2 min reading as follow:)

Some Key industries in GZ You might want to know

 Automotive industry The output value of automobiles in Guangzhou increased by 3.3 percent year-on-year to RMB 538.3 billion (US$84.57 billion) in 2021. In particular, the city has strengthened its position as a leader in China’s automotive industry by stepping up efforts to develop intelligent connected and new energy vehicles (NEVs). Guangzhou has created 13 centers for automotive technology and innovation at the national and provincial levels and has already made routes available for testing self-driving cars. Innovation in this sector is driven by electrification, Internet connection, and car-sharing, following national trends. Nansha district’s vehicle production capacity has exceeded 800,000 units annually, with an output value of more than RMB 100 billion (US$14.86 billion). In terms of output value, Guangzhou’s automotive industry aims to reach RMB 1 trillion by 2025. The Guangzhou Automobile Group Co., Ltd. (GAC Group), the leading Chinese state-owned automobile manufacturer, is headquartered in the city. Companies under the GAC Group are involved in automobile R&D, passenger car and commercial vehicle manufacturing, automotive finance, and trade and logistics, among others. The GAC Group includes GAC Honda, GAC Toyota, GAC Passenger Cars, GAC New Energy, GAC Research Institute, GAC Fiat Chrysler, GAC Mitsubishi, and other dozens of well-known companies and R&D institutions in the sector. As such, Japanese, European, and American joint ventures have been successful in Guangzhou. The impact of foreign companies and technology sharing is visible in the diversification of auto brands. For instance, the independent NEV brands – GAC Trumpchi, Dongfeng Nissan Chenfeng, GAC BYD, and BAIC, as well as Evergrande Hengda. 

Electronics and new information technology industry Guangzhou boasts of a strong industrial foundation in intelligent terminals, information communication, 5G networks, communication equipment, computer equipment, and other products. The overall output value of the industry ranks at the forefront of the country, and several well-known globally competitive enterprises have their origin here. As a pillar industry of the regional economy, Guangzhou’s electronic information industry had an operating income of RMB 4.3 trillion in 2021, ranking first across China for 29 consecutive years, and accounting for 29.4 percent of the province’s industrial operating income. Recent data released by the Guangzhou Daily Data and Digital Research Institute (GDI Think Tank) confirms that the electronic information industry is the leading force supporting the city’s development. The most successful companies belong to the computer, communication and other electronic equipment manufacturing industry, software and information technology service industry, and electrical machinery and equipment manufacturing industry. ZTE, one of the world’s largest telecommunications manufacturers, is also based in Guangzhou. Other international firms thriving in the area in this sector include HARMAN, Siemens, and Samsung. 

Why Foreign firms should look to set up in Guangzhou?

 High-tech and innovation-led growth The government attaches great importance to high-tech and innovation as drivers of economic growth, and Guangzhou has been the incubator for several high-tech projects. In line with this, in 2021, the city inaugurated the Guangdong-Hong Kong-Macao Greater Bay Area National Technology Innovation Center. The government also incorporated the Nansha Science City in the Greater Bay Area Comprehensive National Science Center and increased the number of national key laboratories to 21. In the same year, R&D investment accounted for 3.15 percent of the total regional GDP, and the number of patents approved grew by 21.6 percent. Industrial enterprises and businesses in the service sector above the designated size also increased their investment in R&D by over 20 percent and 10 percent, respectively. In 2022, a group of five high-tech businesses in Guangzhou jointly established a new industry organization, the Guangzhou Metaverse Innovation Association, located in the Nansha District. GrowthEase, a business technology services provider under global video gaming giant NetEase, and 37Games, a browser game publisher, are among the organization’s founding companies. The industry body aims to support China’s first attempt at creating a metaverse ecosystem in Guangzhou besides strengthening the regional digital economy. The Guangzhou Metaverse Innovation Association also sets an example for how public-private partnerships can develop to support new technologies. Since its founding, the group has come to include 23 Guangzhou-based technology businesses and research centers, as well as the world’s largest provider of Chinese AI voice recognition technology, iFlyTek, which has its headquarters in Hefei in eastern Anhui province. 

Vision for a digital economy

 In 2022, the Guangzhou Academy of Social Sciences released the Guangzhou Digital Economy Development Report (2022), aiming to provide a digital economy for all sectors of society. 

More relevant content you may click and find through this source: https://www.china-briefing.com/news/guangzhou-industry-economics-policy/

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