Guangdong leads in modernization drive

As one of the original test cases for the nation's opening-up policy, South China's Guangdong province has always been a trailblazer in economic reform, and now the region is once again leading the nation in a new era of industrial restructuring and modernization.

The official statistics of the province speak for themselves:

Its tertiary industry made up 45.5 percent of the GDP in the first three quarters of this year, an increase of 0.9 percentage points from a year ago. This was made possible by the rapid development of finance, modern logistics, information services as well as industrial services, including R&D and reform;

High-tech industries, advanced manufacturing and strategic growth industries became new economic growth points in the first nine months of this year, with the added value of high-tech industries posting a growth of 10.9 percent from the comparable period in 2011 and accounting for 23.2 percent of the total industrial added value. The advanced manufacturing industry grew 7.8 percent to make up 47.9 percent of the total;

The figures for industrial added value in less-developed and mountainous areas in the east, west and north of the province were higher than the average of the province by 10 percentage points, 3.3 percentage points and 2.6 percentage points, respectively;

The comprehensive industrial energy consumption in the third quarter dropped 3.6 percent from a year ago compared to a rise of 1.1 percent in the first quarter.

Furthermore, the province topped any other region nationwide in innovative performance in 2011. It was unrivalled in crucial technology indices, including the number of R&D staff, inventions and patents, corporate innovative capability, high-tech industrial output and exports, according to a report on China's regional innovation capability released by the Ministry of Science and Technology.

"Guangdong's road to industrial transformation and modernization has by no means been smooth. Its experience deserves a thumbs-up and further promotion across the nation," said Wang Yiming, vice-president of the Academy of Macroeconomic Research under the National Development and Reform Commission.

Guangdong began to plan a way to transform and upgrade its industries in late 2007. However, because the province has long been heavily dependent on foreign trade, its endeavors were challenged by the global financial tsunami that broke out in 2008.

"If it had not been for the strong will and forward-looking outlook of the provincial leaders, it would not have been possible for the province to continue its drive for industrial transformation and upgrade during the global economic downturn and wariness on the market afterward," analysts said.

Among the key measures for industrial transformation and modernization are supports for independent innovation and the relocation of labor-intensive industries in the prosperous Pearl River Delta region to less-developed regions to create room for the development of high-tech industries, advanced manufacturing and strategic growth industries as well as modern services.

"Though some of the Pearl River Delta cities suffered from the temporary slowdown initially, they are ushering in more handsome returns," said Wang Yiyang, director of Guangdong provincial government's development research center.

Official statistics indicate that the 35 provincial industrial parks set up in less-developed regions for taking over transferred projects from the Pearl River Delta region had generated an industrial output of 500 billion yuan ($80.05 billion)and paid 24 billion yuan worth of taxes by late 2011, more or less equal to a medium-sized city in China.

Meanwhile, a cluster of growth industries, such as advanced displays, software, new materials and next-generation telecom, have taken shape in the Pearl River Delta region, each of which is capable of yielding an annual industrial output of more than 100 billion yuan.

And 11 growth industries churned out an industrial output of 1.1 billion yuan in 2011, up 19.5 percent from 2010.

zhanlisheng@chinadaily.com.cn

(China Daily 11/10/2012 page16)