Date: Dec 28, 2023

Author: Dr. Yu Zongliang, Director, Research Center for Free Trade and Innovation, CDI

The Guangdong–Hong Kong–Macao Greater Bay Area (GBA) is among China’s most open, economically agile, and business-friendly regions. As of 2022, the GBA's GDP was approximately CNY 13.04 trillion, with a per capita GDP of approximately CNY 150,900. Despite occupying less than 1% of China's land area and being the home of only 5% of its population, the region contributes 11% of the nation's total economic output. In December 2023, the National Development and Reform Commission (NDRC) of China unveiled an action plan to further enhance the GBA's business environment.

Various domestic and international business environment rankings indicate that a better business environment correlates with greater economic prosperity. Therefore, a conducive business environment is crucial for promoting prosperity at the national, regional, and city levels, and serves as a key aspect of economic competitiveness. Enhancing the business environment in the GBA will support the creation of a first-class bay area and world-class city cluster that is dynamic and internationally competitive.

At the micro-level, the action plan revolves around effectively serving and enhancing the sense of growth and satisfaction among businesses by considering their complete lifecycles. This includes encompassing every stage of their development, reducing institutional costs, and ultimately benefitting the public.

From a reform perspective, the action plan highlights the transformation of government functions. The reform and innovation of internal systems and mechanisms fall under the umbrella of constructing a supportive environment within the superstructure.

By integrating advanced concepts and experiences globally, the GBA aims to establish a business environment system that aligns with international standards and achieves a world-class level of marketization, rule of law, and internationalization.…