China stated that the Greater Bay Area would connect Hong Kong, Macau and other nine cities of Southern China. The project aims to become the second largest economy by developing technology and innovation, increasing financial link among these cities. Some say that China is trying to overcome Silicon Valley by developing this grand route. Greater Bay Area is a very crucial part of China. According to HSBC, Greater Bay Area is the home of 70 million people and 37% of export is made from this region. China expects greater integration among several cities by developing greater Bay Area.
What Is the Plan?
The plan aims to integrate the cities of southern China, Hong Kong, and Macau. The plan will develop the technology and build a financial link between China and Hong Kong. Some of the projects have already been started. Blueprint suggests that the plan will develop many sectors on this route."If you think about the cities that are included in the Greater Bay Area... they are complementary to each other," says Albert Hu, associate professor at the National University of Singapore.
Prof Hu says it "makes a lot of sense to try to improve connectivity between these cities".
"If all these things could be implemented, I think the area would be more productive than the sum of the individual cities."
The plan also highlights the importance of central government goal of improving innovation capacity of the region. Analyst suggests that the whole region will get benefit after getting interconnected to each other. Greater Bay Area will make Hong Kong boost its role as a global trade and financial center.
However, closer economic integration could be challenging for the region having different customs, public service, and the economy. The plan has also sparked some concern for Hong Kong on “Two systems, One Country”.
Can it really Overcome Silicon Valley
Experts say that there is a long way to go for China to overcome Silicon Valley. Some Analyst says that China generates one-third of financial income as generated by Silicon Valley. The plan is to grow the regional economy rather than competing with Silicon Valley.