Guangdong, China’s southern province, is charting an ambitious course toward digital transformation with the unveiling of a three-year action plan on Tuesday. The initiative aims to consolidate the strengths of manufacturing, trade, and technology in the Greater Bay Area development zone. The primary objective is to spearhead digitalization, overcoming technology barriers and prioritizing the growth of the digital economy, particularly in the face of restrictions from the United States.
The cornerstone of this initiative is the establishment of a “Digital Bay Area,” as outlined in the detailed 15-page blueprint. This digital hub will encompass the special administrative regions of Hong Kong and Macau, with plans to provide cross-boundary data services. Guangdong intends to build national data exchange hubs in the cities of Guangzhou and Shenzhen, implement cross-border data whitelisting, and construct offshore data centers within specific zones of the Greater Bay Area.
The province aims to leverage its technology, manufacturing, finance, and human capital to create a digital ecosystem that fosters collaboration, enhances supply chain efficiency, and attracts foreign investments through shared data.
According to the Guangdong provincial government, “By 2025, the construction of the ‘Digital Bay Area’ will have been basically completed, with effective docking of the digital regulatory rules of the Greater Bay Area, efficient connectivity of new infrastructure construction, and balanced development of computing and storage capacities.”
The Greater Bay Area, a scheme initiated by Beijing, seeks to integrate several key cities, including Hong Kong, Macau, Guangzhou, Shenzhen, and others, into a cohesive economic and business hub. With a GDP exceeding 13 trillion yuan (US$1.8 trillion) last year, it has become the world’s 10th largest economy.
Guangdong’s move comes as a strategic response to navigate the challenges posed by Washington’s tech restrictions and advance its goal of elevating the industry up the value chain. The province plans to infuse digital technologies into its industrial and supply chains to ensure stability, smoothness, and cost-effectiveness.
The plan also encourages leading enterprises to establish collaborative laboratories focusing on key areas such as general artificial intelligence and high-end computing. Intelligent robots will be applied to smart manufacturing to enhance efficiency.
Peng Peng, Executive Chairman of the Guangdong Society of Reform, sees the initiative as an alternative approach to expanding Shenzhen’s digital technology overseas through neighboring international cities like Hong Kong and Macau. However, challenges in sharing information due to different systems in Hong Kong and Macau are acknowledged, prompting suggestions to start with data exchange in university campuses in the region.
Guangdong’s plan aligns with the broader vision of creating a unified data market, exploring cross-border data flows, and accessing investment promotion data from Hong Kong and Macau. The ultimate goal is to position the Greater Bay Area as a global digital hub, leveraging Guangdong’s existing high level of digitization, robust GDP, and strong manufacturing base.