Can China’s Greater Bay Area initiative really work?

The Greater Bay Area (GBA) has become a buzzword for governments and corporations, but there remains doubt about how it will materialise.

King & Wood Mallesons says the area’s GDP will exceed US$4.6 trillion by 2030. In the works is the development of a new “Silicon Valley”, combined with the growth of sports, cultural and convention centres meeting increasing mainland Chinese tourism figures and population demand.

Some practical difficulties arise in the new GBA, however. At its heart stands a “one country, three systems” dilemma of merging the three jurisdictions of Hong Kong, Macau and Guangdong, not just economically, but from a cultural, political and legal point of view.

Differences in border controls, environmental protection, currency, legislation, taxes, and rules on investment need to be resolved. Bridging the gap in cities’ education and health care is crucial, along with having a sustainable talent pool to develop the necessary infrastructure for success. And all this comes before placing measures to avoid protectionism and local government silos between regions.

A 2017 PwC report, New Opportunities for the Guangdong-Hong Kong-Macau Greater Bay Area, points this out by quoting scholar Zheng Yongnian.

“The failure to achieve smooth connection in the areas of education, medical care, finance, and security hindered [sic] the rational allocation of resources within the Great Bay Area”, it said, adding that the initiative “is not a patch on the EU in terms of integration, such as labour market, staff mobility, customs pass management, and scientific research cooperation”.