Pearl River Delta Free Trade Zone: Hong Kong + Guandong + Shenzhen

China is experiencing liberalisation. Just three months after launch the pilot free trade zone (FTZ) in Shanghai, China ‘s central government has agreed to approve 12 new FTZs. According to a statement in Xinhua1, Guangdong is one of them (the other is Tianjin and the remaining ten locations have not yet been named) and is expected to launch this year.

 

The proposed FTZ in the Pearl River Delta covers (SAR) Special Administrative Regions of Hong Kong and Macau, as well as parts of the cities of Shenzhen, Qianhai and Guangzhou, a so-called golden pentagon. The potential of this area can be very interesting to foreign investment, and the project wants to take advantage of the strengths of every city. Union means strength.

 

Guangdong Province is located in southern China, in the Pearl River Delta. This area is one of the most dynamic regions in China. It has become an important industrial market for all sorts of inputs, materials, and capital goods. Recently, the U.S. Chamber of Commerce in South China published a study showing that in this area there are 200 businesses of the Fortune 500 list. It is also a major market for transportation and trade-related services. Rapid urbanization and burgeoning city populations have created demand for infrastructure, building materials, transportation services, housing, and other goods

and services associated with urban development.