Guangdong approves new regulations for Nansha
China's Guangdong Province has just approved its latest regulations to deepen cooperation between Guangzhou's Nansha District and Hong Kong SAR and Macao SAR and ultimately build it into the next hub for advanced industries in the Greater Bay Area.
How important is Guangzhou's Nansha?
Despite being a county-level district, China has big plans for Nansha. Its strategic location gave it a head start. It’s only an hour’s drive from Hong Kong, half an hour away by high-speed railway from all major GBA cities, and surrounded by five airports. Not to mention that it is home to the biggest port in Southern China. All of these make it an ideal location for starting or expanding businesses.
Being one of Guangzhou’s fastest growing districts, it is now home to a sizeable manufacturing industry and a major producer of automobiles. Now it’s hoping to attract players in future-looking fields such as semi-conductors, commercial spaceflights, biotech, artificial intelligence and electric vehicles.
Highlights of new regulations for Nansha
First of all, delegating powers. Provincial and municipal governments will delegate relevant powers to Nansha "as much as possible"; and fast tracks will be set up for Nansha. This allows the district to explore reforms more freely and effectively.
Second, support for innovation. World-class research universities will be built within the district; there will be easier cross-border flow of research materials; there will be faster grants of patents and stronger IP protection; instead of the 25% standard corporate income tax rate, there will be a reduced 15% CIT rate for companies operating in encouraged industries within Nansha.
Third, deepening cooperation. Specific fund will be set up for Hong Kong and Macao youth to either work or start their businesses here, plus living, medical and housing subsidies to help them relocate; there will be preferential individual income tax; more mechanisms will be explored to attract Hong Kong, Macao and international professionals to participate in the construction of Nansha.
And there is one guideline highlighted above these measures: Tolerance of errors during innovation, which means the region is highly encouraged to take bold moves as long as it’s within the framework of the rule of law.
Guangdong to further promote high-quality manufacturing
What’s also worth mentioning is the other official document released, which is "Regulations on Promoting High-Quality Development of Guangdong’s Manufacturing Industry". This document does not name Nansha specifically, but the measures are clearly good news for the district.
The regulations are encouraging local governments to build advanced manufacturing clusters with a series of support polices, including smoother government-enterprise communication, lower costs for land and energy use, stronger introduction of innovative talents, and more sharing of major scientific research infrastructure to enterprises.
The message is clear for Nansha. It’s going to get all the supports to make itself an industrial powerhouse.
Being the geographical centre of the Greater Bay Area, Nansha is often called the “heart of the GBA”. As the world is witnessing the rapid development of the GBA, Guangzhou’s Nansha is expected to unleash more untapped potentials one can hardly imagine.
