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I recently attended a business conference in Hong Kong which focussed on the much-anticipated Guangdong Greater Bay Area proposal. The Impressive key note presentations from senior government officials and business community leaders highlighted the many opportunities that exist if we can leverage the collective strengths of the “9+2” cities that comprise this region.
At the same time, however, a number of obstacles stand in the way of true workability. While many of these do not fall within my sphere of expertise, some important ones do. Mobility of talent and liveability will be vital for the success of this Bay Area strategy-but yet achieving these will be easier said than done:
The 9+2 plan refers to nine cities in Guangdong province, plus the two Special Administrative Regions (SARs) of Hong Kong and Macau. For the Greater Bay Area to truly rival comparative examples such as San Francisco and Tokyo, the movement of people between the area’s cities needs to be fluid and as free of barriers as possible.
Commercial success of the GBA will rely on the attraction and movement of the best talent within the whole region. While there are many levers in successful hiring strategies, financial elements will be the most important. At executive level there is no significant obstacle so this should not be the top priority. Wealthy corporates abound on either side of the border between Guangdong and Hong Kong-Macau and attracting talent from within the region or overseas is not so hard. Senior candidates are often quite open minded on travel and relocation provided the compensation is competitive.
Middle level management can be a tougher task however. In China we still see a large demand surplus for highly skilled managers, with more jobs currently than there are candidates to fill them The technical capabilities of Chinese middle-management professionals has rapidly advanced in recent years, though foreign language skills can still be a challenge for companies that prioritise them.
Southern China in particular will need to attract a lot more middle level managers in the future, yet enticing someone from this demographic to Southern China from Hong Kong, Beijing, Shanghai or further afield, can be a real challenge today. Professionals at this stage of their careers often have the pressures of a young family, aging parents and ballooning financial commitments, all of which can make relocation a stressful and risky venture. As such, GBA proposals should include clear financial incentives and lifestyle hooks, in order to appeal to this group.
Hiring at entry level presents further issues, especially for graduates. In Hong Kong, starting salaries for fresh graduates are significantly higher than those on offer in Shenzhen or Guangzhou – and as such there is less appeal for the best HK graduates to cross the border for work. Similarly, for Chinese graduates to enter the Hong Kong market, the cost of living is a significant deterrent. Once we start to account for other factors like disparities in individual taxation between HK and China, or the benefits of having a Hukou, or household registration, in Beijing and Shanghai versus Shenzhen and Guangzhou, these difficulties can appear magnified. As such, for the region to attract the best young minds the Greater Bay Area project will need to address these factors.
Liveability is what makes a city into a place we call home. While money and opportunity may attract people initially, factors like culture, community and environment will be what helps to retain them. For the greater bay area to thrive, it will need to attract a diverse range of people, and in turn retain them. In time, the major cities in Guangdong province will need to become more international and cosmopolitan. Within the 9+2 zone, Hong Kong currently stands out as the most truly international city, and the one that delivers global-equivalent lifestyles to individuals from so many nations. In mainland China today, only Beijing and Shanghai really boast a truly diverse international living and business environment.
The two major cities in Guangdong, Guangzhou and Shenzhen, need to continue to learn from places like Hong Kong, Beijing and Shanghai if they are to replicate the depth and breadth of cultural offerings that make those cities so liveable for such a variety of people. In my experience of these two, Guangzhou has made the biggest steps forward in this respect over the last 10 years. Every time I visit, I see something new that appeals to my sensibilities as a European visitor – be it a restaurant, a gallery, or a sports event. Shenzhen, however, needs to do more. Commercially, Shenzhen is one of the most amazing growth stories in modern times: and for anyone that does business here, it’s a fast paced and super-dynamic market place, truly the undisputed Silicon Valley of China. I’ve spent a lot of time in Shenzhen since 2008, and I’m constantly humbled by the boundless energy and ambitions of its citizens. Any first time visitor here would be forgiven for being completely struck by its shiny new glass buildings, wide boulevards, long coastline and the lush green manicured road- side gardens.
Where Shenzhen still falls short, however, is in terms of liveability. Often the interiors of buildings and places of interest don’t live up to the exteriors - while its lifestyle, culture and entertainment offerings are yet to cater for a well-travelled international community who expect greater choice and variety. If Shenzhen really seeks to become an international destination city, it needs to invest a lot more focus on its standing for international liveability.
Fortunately, we are in an area where challenges are so frequently overcome, that I’m confident these hurdles are totally surmountable. Based on what I’ve witnessed here in the last 10 years, I have little doubt that the Guangdong Greater Bay Area can be more than a pipe-dream and indeed I look forward to seeing it materialise in years to come.
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