London Daily

Focus on the big picture.
Friday, Feb 06, 2026

Guangzhou, Shenzhen consolidate GDP lead over HK

Guangdong’s resilient urban centers tided over US-China trade war, spillover effect from Hong Kong protests

Guangzhou and Shenzhen are set to consolidate their lead over Hong Kong in annual economic output for 2019 as the two economic dynamos charge ahead while anti-government protests continue to plague the former British colony.

The two cities in the neighboring Guangdong province are in the process of releasing preliminary statistics for 2019. Cadres there are heaving sighs of relief as the economy has shown resilience to tide over the US-China trade war as well as the spillover effect of Hong Kong’s social turmoil.

Shenzhen’s gross domestic product expanded by 7% to 2.6 trillion yuan (US$374 billion) last year, ranking only after Shanghai and Beijing. Shenzhen is the largest city economy in the Greater Bay Area, which is a geo-economic megapolis pooling Hong Kong, Macau and nine cities in Guangdong.

Shenzhen mayor Chen Rugui said in a report to the municipal people’s congress that the city’s economy, heavily dependent on export, had largely reversed the downward pressure and started to accelerate after booking a 6.6% growth rate in the first three quarters.

Shenzhen officials previously worried that the United States’ 5G iron curtain blocking Huawei, slackening export, an exodus of manufacturers as well as the economic contagion from Hong Kong’s protests could deal a crippling blow. But the city’s economy has apparently fared better than expected in the final quarter. Shenzhen was just anointed by Beijing last year in a grand masterplan to build a world city to showcase the virtues of China’s social and economic systems.

While Shenzhen is picking up steam, Hong Kong, having just been outstripped by its neighbor for the first time in a fierce GDP race in 2018, is descending further into recession with officials warning of a 2.9% contraction for the first three quarters of 2019. The city’s already tepid export and transshipment amid the US-China trade crossfire have taken a further beating since June when mass protests and widespread vandalism repeatedly brought business to a standstill.

Now all eyes are on Guangzhou’s report card for the year, after the city’s GDP growth outpaced Shenzhen in the first three quarters, prompting observers to wonder if the provincial capital and home to 15 million is poised to redeem its position as the No. 1 city economy in the region, after losing that title to Shenzhen in 2018. Some expect a draw in the rivalry as Guangzhou’s figure is also forecast to be around 2.7 trillion.

Guangzhou is on a spree constructing more metro lines, expanding its airport and container terminus and tearing down tenement blocks to make room for new business districts, in view of Tencent’a promise to keep the operation base of its ubiquitous WeChat social networking app in the city and Alibaba’s plan to build a new southern China headquarters there. The city is also home to China Southern, Asia’s largest air carrier by fleet size, and the site of Toyota’s and Honda’s largest plants in China.

College graduates and startups are also finding that Guangzhou offers cheaper and bigger homes with better work-life balance, education and healthcare compared with other first-tier Chinese cities.

Guangdong’s provincial authorities are pinning high hopes on Guangzhou and Shenzhen to form synergy to further spur growth, with a slew of policies to integrate the two urban centers that are just 130 kilometers apart into an “economic centrifuge” of business and investments to serve the rest of the bay area when Hong Kong’s preeminence in the region is on the wane.

Newsletter

Related Articles

0:00
0:00
Close
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
US and Iran to Begin Nuclear Talks in Oman
Winklevoss-Led Gemini to Slash a Quarter of Jobs and Exit European and Australian Markets
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
NASA allows astronauts to take smartphones on upcoming missions to capture special moments.
Trump administration to launch TrumpRx.gov for direct drug purchases
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Epstein Case Documents Reignite Global Scrutiny of Political and Business Elites
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
UK Royal Family Faces Intensifying Strain as Epstein-Linked Revelations Rock the Institution
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Tech Mega-Donors Power Trump-Aligned Fundraising Surge to $429 Million Ahead of 2026 Midterms
UK Pharma Watchdog Rules Sanofi Breached Industry Code With RSV Vaccine Claims Against Pfizer
Melania Documentary Opens Modestly in UK with Mixed Global Box Office Performance
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
DOJ Unveils Millions of Epstein Files, Fueling Global Scrutiny of Elite Networks
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
×