The GBA, or The Greater Bay Area, is a combination of the regions most powerful Chinese cities located in the southern parts of China. Amongst them are well-known cities such as Hong Kong, Shenzhen, Macao, and Guangzhou, all of which makeup a strong competitor to California’s and Tokyo’s Bay Areas. As a startup or corporation, the GBA is most certainly a location which is fast disrupting the World’s landscape for innovation, trade & logistics, and financial services.
Overview Of The GBA
The entire region is interconnected by the 35 mile long Hong Kong-Zhuhai-Macao Bridge and the staggering 88 mile Guangzhou–Shenzhen–Hong Kong Express Rail. All the cities combined are triggering an influx in China’s GDP which is estimated at over $1.6 trillion USD in 2018, and is expected to surpass $4.5 trillion USD over the next ten years. The GBA covers less than 1% of China’s landmass, and is home to under 5% of its current population, just 69 million people, that’s more than the United Kingdom!
The cities within the GBA all play an important role in the region’s success. Hong Kong with its financial advantages, Shenzhen becoming the technology & innovation hub, Macao is the tourist attraction in the region, along with guangzhou, Dongguan, and Foshan all being the manufacturing powerhouses. Combined they create a complete ecosystem, all of which compliment one another across the region.
How Does This Affect You?
After reading an overview of the GBA, you can begin seeing the advantages the region has to offer. There are many opportunities for startups within the region. Depending on your product or service, the region will most certainly have the skills, market, and infrastructure to help with your development and growth.
Take into consideration how integrated the GBA’s ecosystem is. The top 3 dominant sectors in the region is technology & Innovation, trade & logistics, and financial services. As a startup, you can utilize the region’s talents, as well as, take advantage of the fully integrated network. From development, to manufacturing, to logistics and distribution, the region is a logical choice for your startup.
Due to this immense network, a startup’s, or corporation’s speed is significantly increased. On average we see startups getting to an MVP within the first 3 months of moving here, and a further 9 months to the manufacturing lines. With an integrated supply-chain, infrastructure, and expertise startups can finally deliver on time, and maintain a steady flow of their merchandise.
However, this doesn’t come cheap. Although the GBA is situated within China, there is still a misconception that China is cheap, especially through the R&D phases. Today, China is no longer a cheap labour country, but rather a premium product provider. As you can see, startups no longer come to the GBA in search of cheap labour, but rather the expertise and infrastructure. Especially, with the sharp growth in sectors such as agriculture, medical, sustainable energy, and robotics.
Conclusion
Maybe you’ve heard of the GBA before, or perhaps this is your first time hearing of it. Regardless, the Greater Bay Area is rising in popularity, and has already raised to a professional status amongst industry professionals. Whether you’re an enthusiast, startup, or a corporation, the southern region of China is where you need to go. If you’re staying local, and not expanding global, chances are you will miss out on the evolution of the new industry. Why not come for a visit.
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Written By: Shenzhen Valley Ventures
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