Innovation: The Key to Guangdong's Future
- By Bryan Michael Galvan
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E-mail Beijing Review, November 23, 2015
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The press conference of the International Consultative Conference on the Future Economic Development of Guangdong Province is held on Nov. 19, 2015. [Photo/China.org.cn] |
Captains of foreign industries gathered in the warm capital of Guangdong to set forth plans of increased investment and cooperation in China. This year, "innovation" was the most repeated word at the International Consultative Conference on the Future Economic Development of Guangdong Province.
Zhu Xiaodan, governor of the province, presided over the meeting which included executives from Maersk, BP and Siemens, among 17 other companies.
However, as China shifts its main economic engine from industrialization towards consumption, what role will these companies play in the development of the region's future?
Realizing the challenges lying ahead, Zhu stated that a main problem has been that "in recent years, the demand from industrialized countries has declined," Additionally, "a rise in terms of costs with increased competition from Southeast Asia," is an ongoing issue for China as it gears towards the implementation of its 13th Five Year Plan for 2016-20.
One of the key aspects of the Plan is to continue economic growth at a "new normal" pace of 6.5 percent, while maintaining the environment and opening up further to the outside world, according to an interview of Chinese President Xi Jinping by Xinhua News Agency.
"There would also be many other problems," states Zhu, "such as environmental protection or the availability of resources. Therefore, the province will take in the coming years as a comprehensive transformation of its manufacturing industry, where innovation and new technologies should form the central driving forces for improvement."
Innovation for Consumption
A succession of manufacturing bankruptcies have rocked the China Pearl River Delta region in recent months, where Guangzhou is located. In addition, 38 percent of the region's enterprises that have been funded by Hong Kong and Taiwan are suffering from decreases in orders, according to a survey by Standard Chartered Bank.
In spite of this weakening performance, technology-centered industries that are geared towards consumers and environmental protection are growing by 10.4 percent year on year. This growth was reflected in the tone and content of the foreign executives' comments as they discussed the burgeoning potential of the area.
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