Editorial: Guangdong Should Speed ​​up Its Economic Transformation – 20240430 – English – Daily Ming Pao

Guangdong’s economic growth was merely 1.9% in 2022, lower than the national figure of 3%. In 2023 it became 4.8%, still below the national figure of 5.2%. The continuing slowdown in growth is primarily attributable to the fact that foreign trade has been in a slump. Guangdong’s dependence on foreign trade is 64%, but in 2022 foreign trade grew only by 0.5%. In 2023 it further declined to 0.3%. Poor foreign trade performance has been affecting all sectors and countless people. If all that had been caused by the pandemic and the international economic environment, the downturn would have been justifiable.

However, foreign trade rebounded robustly in the first quarter of this year, and the total value of Guangdong’s imports and exports jumped by 12%. Still, its economic growth did not rise above the national level, which shows that the quality of foreign trade still needs improvement. Furthermore, Shenzhen’s foreign trade in the first quarter rocketed by 28.8%, and Shenzhen’s total foreign trade value has climbed further to reach nearly half of the province’s total. This further reflects the need for Guangdong — Shenzhen excluded — to pair foreign trade with high-tech products.

Shenzhen’s experience in transforming its economic development model into one of high technology has set a model for other cities in Guangdong Province. Shenzhen’s economic size surpassed Guangzhou’s in 2016, and the gap has been widening continuously.

The fact that Shenzhen has left other Guangdong cities in the dust reflects the huge discrepancies between cities in Guangdong Province in terms of developmental speed. In the final analysis, it is down to the uneven development of high-tech industries. Shenzhen’s investment in education and scientific research is much higher than that of other cities in Guangdong Province. This has a lot to do with the different tax systems. The Shenzhen government only pays taxes to the central government, while other cities in Guangdong pay taxes not only to the central government but also to the provincial government. With money that is spared, Shenzhen can vigorously develop high technology.

In spite of this, however, the commitment to and drive for economic transformation on the part of the Guangdong provincial government and the other cities have everything to do with the situation. In the past, when the real estate industry was booming and foreign trade was so successful that no one had to worry about orders, people sat on the laurels and paid no attention to investment in high-tech research and development. Now they are suffering the bad consequences.

That said, Guangdong’s education and scientific research foundations are still strong, and the provincial government’s finances are still sound. It should be able to play catch-up. It should contemplate the planning and coordination of different cities’ development of different industries. The provincial government has an indispensable role to play. When each city focuses its effort and resources on one industry, the entire province’s transformation can be expected. If Guangdong maintains its status as the biggest economy of the nation, it will not only be in the interest of the people of the province, but will also contribute to the accelerated development of China.

Ming Pao Editorial 2024.04.29: Guangdong’s economic growth continues to stall and transformation should be accelerated to avoid dragging down the country

Guangdong Province’s economic growth rate in the first quarter of this year was only 4.4%, lower than the national growth rate of 5.3%. What is worrying is that this has been lower than the national average for more than two consecutive years. Guangdong’s economic scale accounts for one-tenth of the country’s total foreign trade, and its total foreign trade accounts for one-fifth of the country’s total. If economic growth continues to slow down, the impact on the country will also intensify.

Guangdong’s growth rate will be only 1.9% in 2022, lower than the national rate of 3%, and only 4.8% in 2023, lower than the national rate of 5.2%. The growth rate continues to slow down. The biggest reason is the sluggish foreign trade. Guangdong Province’s dependence on foreign trade is 64%. In 2022, foreign trade growth will only be 0.5%, and it will further decline to 0.3% in 2023. Poor foreign trade performance affects all industries and even thousands of households. If it is only affected by the epidemic factors and the international economic environment, it is a crime other than war.

However, foreign trade rebounded strongly in the first quarter of this year. The total import and export value of Guangdong Province increased by 12%, but the economic growth rate still did not rise higher than the national level, which shows that the content of foreign trade still needs to be improved, and Shenzhen’s foreign trade in the first quarter With a sharp increase of 28.8%, Shenzhen’s total foreign trade value has further climbed to nearly half of the province’s total, which further reflects that in addition to Shenzhen, the growth of Guangdong’s foreign trade also urgently requires the advancement of high-tech products.

Shenzhen’s experience in transforming its economic development model into a high-tech model has set a model for other cities in Guangdong Province. Shenzhen’s economic scale surpassed Guangzhou’s in 2016, and has since gradually left behind.

The situation reflected by Shenzhen’s dominance in Guangdong Province is that the development speeds of cities in Guangdong Province are very different. The ultimate reason is that the development speed of high-tech industries is different. Shenzhen’s education and scientific research funds are different. The investment is much higher than that of other cities in Guangdong Province. This has a lot to do with the different tax systems. Shenzhen only pays taxes to the central government, while other cities in Guangdong not only pay taxes to the central government but also to the provincial government. Shenzhen is exempted from paying taxes to the central government. The remaining funds from provincial taxes can be used to vigorously develop high technology.

Even so, this is related to the determination and courage of the Guangdong Provincial Government and other cities in economic transformation. In the past, when the real estate industry was booming and foreign trade had no worries about no orders, they only focused on making money while neglecting investment in high-tech research and development. Now they are experiencing the consequences. .

Even so, Guangdong’s education and scientific research foundation is still strong, and the provincial government’s finances are still sound. It should be aware of the comings and goings, and the provincial government’s role is indispensable in planning and coordinating the deployment of different cities to enter different industries. By concentrating energy and resources on one industry, the province can be expected to transform. Maintaining its status as a major economic province will not only be for the sake of the people of Guangdong, but also contribute to the accelerated development of the country.

■/ Glossary new words /

slump : a period when a country’s economy or a business is doing very badly

justifiable : existing or done for a good reason, and therefore acceptable

leave somebody in the dust : to leave somebody far behind