Industrial Upgrading in Guangdong: How Well is it Performing?

摘要

Guangdong has played an important role and been in the vanguard of China's economic reforms and opening up since 1978. Industrial production in Guangdong has expanded rapidly, which in turn led to rapid growth in the economy. Fast industrialisation followed and Guangdong has since developed to become the industrial powerhouse for China and the world. Nevertheless, over the recent years, Guangdong has been facing both internal and external pressures to increase its industrial competitiveness and undertake industrial upgrading. Industrial upgrading has been the focal point of government policies since the early 2000s. However, the results from industrial upgrading are not too encouraging and problematic industrial policies have thwarted the government's aspirations for industrial upgrading rather than speeding up the process. In addition, Guangdong's aspirations to move up the value chain and achieve industrial upgrading are met with various obstacles and challenges. Guangdong's industrial development is still mainly driven by the low-end and low value-added manufacturing industry, and the status quo of Guangdong as the world's low-end assembly and processing base remains unchanged.