China revealed that it is planning to make its own Greater Bay Area that will match or even outdo California's famous tech hub called the Silicon Valley. The Chinese government vowed to change the Greater Bay Area that consists of 11 Southern China cities into a global financial and technology complex.
At present, the place has been described as China's most dynamic area that is economically sound. This makes sense because it has the technology center of Shenzhen, Macau's gambling hub and Hong Kong's financial center.
Moreover, this ambitious project is also being pushed to integrate Macau and Hong Kong into the rest of China regions. Another intent is to break free from the low-end manufacturing that the country has become known for. The future Chinese Silicon Valley will present quality products that are created by innovation and well-suited for consumption.
Further, as mentioned in Tech In Asia, China wants to carry out the Greater Bay Area proposal to become a global economic powerhouse that can rival any advanced tech center in the world. The Chinese know this will take a long time and require billions of fund but they seem prepared for these.
Once built, it is expected to contain schools, research institutes, national Science center and other hi-tech facilities. It should also feature a place for China's research and innovation.
"Whether China's technological ambition can be realized will largely depend on investment in basic research," Ouyang Liangyi, the associate professor at Peking University HSBC Business School said in a statement. "Most of China's technological innovations are application-oriented, which needs support from foreign suppliers, in areas such as chips - the development of the underlying technology is decided by the entire environment, not something that the Great Bay Area alone can change."
Bloomberg reported that the plan for the Greater Bay Area that will connect China's coastal cities with Macau and Hong Kong was actually brought up first by President Xi Jin Ping in 2017. Its reemergence early this week seems to indicate that many Chinese like the idea since stocks soared after the plans were announced again.
In the original blueprint, Hong Kong, Macau, Shenzhen, and Guangzhou were designed to be the four main cities in the Greater Bay Area and they will be the key players in the success of the project. They are expected to work and propel the region's economic development.
Although the project is good, it was pointed out that many issues could arise from it like the issue of tax, customs, and legal systems. It involves two other countries so some experts can see the complexities of the plan.
"The vagueness of the 11-chapter document suggests that officials will struggle to realize the initiative's goals," Yue Su, an economist at the Economist Intelligence Unit, said. "The difficulties in agreeing to reforms that both advance the cause of regional integration and are palatable to officials in Guangdong, Hong Kong, Macau, and the central government will be the key challenge."
