Do you believe that there will be economic benefits from the proposed, ‘Pan-Pearl River Delta Region’, the so called 9+2? In your opinion who might obtain the most benefit?

Since the launch of China’s reform program in 1979, Shanghai has been the head of the Chinese economy. Struggling to keep up economically with Shanghai, leaders of nine provinces in South China and two special administrative regions signed an agreement on creating a regional forum to coordinate economic policy and fuel growth. The agreement is known as the ‘Pan-Pearl River Delta Region Cooperation.

The nine provinces include Fujian, Jiangxi, Guizhou, Sichuan, Yunnan, Hunan, Guangdong, Hainan and Guangxi Autonomous Region, and the two special administrative regions are Hong Kong and Macau. The Pearl River Delta Region encompasses a regional economic system, which will be a key destination for foreign investment and a platform for China’s growing integration into global economy.

Therefore, there will be universal economic benefits shared by every city among the region. Hong Kong will be benefit most because we play an important role in facilitating the opening-up and future development of the region.

Market barriers among provinces will be broken up because local protectionism and unreasonable interference are eliminated. The Pan-Pearl River Delta will create a common market of commerce and trade. The region occupies one fifth of China’s land mass and has a dense population of about 460 million. With a gross domestic product of about 5 trillion yuan, its economic strength exceeds one third of mainland’s total. The GDP of the region is forecasted to increase to US$1,000 billion by the year of 2010. With vast areas of land and abundant supply of labour, the Pearl River Delta will become an extensive international network and a manufacturing powerhouse of China.

Within the Pan Pearl River Delta Region, Guangdong will be the major economic powerhouse. It ranks as the head of the nine provinces in terms of the level of economic advancement. Macau will enjoy a wider range of market and resources opportunities.

Then what about Hong Kong? Hong Kong will become the hub of the Pan-Pearl River Delta because of its stronger capability in doing business and in opening new markets.
Hong Kong will be the biggest source of foreign investment in the region. As an international and high value-added services centre, Hong Kong helps upgrade the regional economy and link the Pan-Pearl River Delta to the rest of the world.

Comparing the strength of Hong Kong and the nine provinces, Hong Kong has its own advantages in raising capital, financing and logistic services. Being the largest investor in the region, Hong Kong will utilize its strengths to help develop supply chain management so as to make way for more products manufactured in the region to access the world market successfully.

Hong Kong will also be the most prominent logistic spot in the Pearl River Delta. In 2003, a total of 13.5 million containers from Guangdong were re-exported through Hong Kong, 5.8 million of which being shipped to Hong Kong via the Pearl River. Thus, not only can Guangdong improve the waterway network in five years but Hong Kong will also enjoy a growth in logistic industry.

Therefore, I believe Hong Kong will obtain the most benefit. Hong Kong acts as a door which helps China attract foreign investment. With the rapid economic development of mainland China, Hong Kong’s role as a regional financial, shipping and information centre will be more and more important. Hong Kong’s status will be irreplaceable.







P.s. It's quite funny for a literature student to write something about economics, so don't tease me that I wrote a pile of shit!