By Liam Zanyk McLean

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Diplomats See Results of Guangdong Innovation Efforts

By Liam Zanyk McLean

the Trinidad and Tobago Ambassador to China was among a delegation of diplomats and reporters who visited China’s thriving southern province of Guangdong during the week of April 18，visiting high tech firms and development zones indicative of the province’s culture of innovation.

The Ambassador， Chandradath Singh，told a panel of Guangdong Provincial Government officials that he was “extremely impressed” with the progress of China’s high tech firms， which have become a focus in Guangdong as the province shiths toward its “new normal” of technology-driven， sustainable growth.

“China has shown us that it is a world leader in manufacturing and innovative production，” Singh said. “It is clear to me that further increasing exchanges between our two countries will benefit all.”

Reporters from China Report ASEAN were also in attendance to document and photograph the visit to Guangdong， The province is situated in China’s deep southamong China’s provinces （only Hainan，a popular holiday destination， is further south）. Geographic advantages and ports in Guangzhou， the province’s capital， and Shenzhen， its second largest city， have seen the province grow into a buzzing hub of trade between China， Southeast Asia and the rest of the world.

Import-Export Capital of China

Delegation members attended the opening ceremony of the 2016 China Processing Trade Products Fair （CPTPF） on April 21 in Dongguan， a city of 8 million positioned in the center of the Guangzhou-Shenzhen Economic Corridor. For years， Dongguan has served as a manufacturing hub and has recently shifted focus to more high tech production-more than 70 percent of its exports in 2015 were comprised of mechanical or electrical goods. Dongguan-made smart phones now account for 20 percent of the world’s total， according to 2015 figures.

The CPTPF， held from April 21-24， featured a wide range of products for export as well as domestic sale， including smart phones， clothing， kitchenware， toys and furnishings. In total， the fair attracted 807 firms from 19 provinces and municipalities，Hong Kong and Macao， with 2，500 exhibition booths and nearly 2，000 international buyers in attendance.

Dongguan has proved a bridge between manufacturing and export in China’s economy， as its location and its well-established production infrastructure have made it a key player in China’s booming export market. The city has a key role to play as China’s economy slows down and Guangdong shifts toward more high tech manufacturing.

Songshan Lake， near Dongguan，has been crucial to efforts to modernize Guangdong’s manufacturing sector. A hightech development zone was established in 2001 surrounding several nearby lakes and covering 72 square kilometers in total. the area boasts remarkable scenic beauty and has managed to attract talented tech experts.

“I first came to Dongguan in 1998 and at that time， it was mostly rural，” said Ragnar Balduson， Minister Counselor and Deputy Chief of Mission of the Embassy of Iceland in China， who was visiting the area with other diplomats. “It was old and backward everywhere. I never expected that Dongguan would develop as much as this ather only 18 years.”

The South China Institute of Industrial Design， located in the heart of the Songshan Lake high-tech zone， gives showcase to a number of the region’s most significant innovative products， ranging from drones to 3D printing.

“the Chinese government has made the decision to develop their economic ‘new normal’ in part from the supply side，” Singh said. “Here is a wonderful example of the Chinese government supporting brand new industries. I think my country can learn from China on this issue.”

Dongguan’s shift in focus from lowtech to high-tech manufacturing with an emphasis on research and development is beginning to show promise.

“Dongguan has a special location， right between Hong Kong and Guangzhou，”Balduson said. “Innovation will boost Dongguan’s economic development， as well as that of adjacent cities. In the future， I think it is clear the city will focus on research and development. The Chinese Government’s 13th Five-Year Plan has set a development direction for Dongguan， which can offer market-based， cooperative platforms to meet the demands of the future. Dongguan’s fu-ture will not only influence China， but also the world as a whole.”

Ambassador Chandradath Singh and other diplomats visiting a robot manufacturer in Dongguan

Innovation， Guangzhou Style

Nearby Guangzhou also boasts a significant number of high-tech firms. The city’s Huangpu District includes three clusters of high-tech firms valued at a total of 100 billion yuan （US$15 billion） and four clusters valued at 50 billion yuan （US$7.5 billion）. Of Huangpu’s companies， 3，400 have received foreign investment and 135 have received investment from Fortune 500 companies. there are 63 listed companies in the district.

Not all of the high-tech firms that have grown so prominent in Guangdong are privately owned or start-ups. GRG Banking，a state-owned maker of ATMs and other banking-related products， has the largest ATM production capacity in the world and around one-fithh of global market share due to its innovative products and focus on research and development. Research and development spending at GRG averages around 8 percent of revenue per year， significantly higher than technology industry averages.

“As Guangdong has historically served as a center of commerce， it makes sense that a company from Guangdong would play such a key part in the means of that commerce-money，” Balduson said.

GRG has sold ATMs to banks in more than 80 countries worldwide and more than 170，000 of its ATMs are currently in operation across the globe. A company spokesperson said the firm hopes to boost sales to developing economies， as GRG already has a strong foothold in Chinese，American and European markets.

As China introduces a “new normal” of economic policy and growth slows down，it is vital for manufacturers to shith toward high-tech products and invest in research and development. As a key commercial center in southern China， Guangdong Province is set to play a key role in this transition.

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The Information Office of the State Council of China organized the 2016 edition of “China in Foreigners’ Eyes” on April 19-21，2016. 21 diplomats and experts from 14 countries and international organizations， led by Chandradath Singh， Ambassador of Trinidad and Tobago to China， participated in this visit to Guangzhou， Dongguang，Guangdong Province to have a more intuitive understanding of the leading role of technological innovation for economic development in the state of new normal.

Ding Xiaoming， Inspector of International Liaison Bureau of the State Council Information Office and Chen Shi， Deputy Editor in Chief of the China International Publishing Group （CIPG）， President and Editor in Chief of China Report， CIPG，traveled with the visitors.

About the author:

Liam Zanyk McLean is an English editor of China Report ASEAN， CIPG.