London Daily

Focus on the big picture.
Monday, Jul 13, 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
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
UK Government Faces Difficult Spending Choices as Labour Leadership Transition Approaches
Rachel Reeves Warns Andy Burnham of Immediate Economic Challenges After Expected Leadership Change
Andy Burnham Prepares to Lead UK Government With Plans for Regional Power Shift and Economic Reset
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
National Health Service Expands Artificial Intelligence Diagnostics Across England to Reduce Screening Backlogs
United Kingdom Launches Fifty Billion Pound Infrastructure Fund to Accelerate Housing and Construction
UK Medical Chiefs Update Health Guidance to Promote Everyday Physical Activity
Office of Communications Keeps Wikipedia Under Review Under UK Online Safety Rules
UK Defence Ministry Expands Deep-Strike Capability Through Precision Missile Programme
Russell Group Universities Warn Funding Cuts Could Damage NHS Workforce Training
UK Parliament Calls for National Emergency Broadcast as Heatwave Conditions Intensify
UK and Netherlands Strengthen Naval Cooperation With New Amphibious Defence Partnership
UK Defence Ministry Joins International Missile Programme With One Hundred and Ninety Million Pound Investment
Bank of England Warns Middle East Conflict and AI Risks Could Pressure UK Economy
UK Government Introduces New Rules to Limit Foreign Influence in Political Donations
UK and France Prepare Naval Mission to Protect Shipping Through Strait of Hormuz
United States Pressures UK to Increase Defence Spending at NATO Summit
Bank of England Warns Artificial Intelligence Investment Boom Could Create Financial Stability Risks
Bank of England Begins Direct Oversight of Critical Technology Providers Supporting UK Finance
Andy Burnham Set to Become UK Prime Minister After Labour Leadership Race Clears Path to Downing Street
Scottish Fishing Industry Calls for Emergency Support Amid Rising Costs
UK Supports Stronger European Response to Russian Actions in Ukraine
Devon and Cornwall Police Release Suspect in Ann Widdecombe Murder Investigation
×