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Consultancy Study on Socio-Economic-Political Trends in Pan-Pearl River Delta Region

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Consultancy Study on Socio-Economic-Political Trends in Pan-Pearl River Delta Region CONSULTANCY STUDY ON SOCIO-ECONOMIC-POLITICAL TRENDS IN PAN-PEARL RIVER DELTA REGION SECOND MONTHLY REPORT PART II COVERING GUANGXI, YUNNAN, GUIZHOU, AND SICHUAN DECEMBER 2004 CENTRAL POLICY UNIT HONG KONG SPECIAL ADMINISTRATIVE REGION Socio-Economic-Political Trends in Pan-Pearl River Delta Region Guangxi, Yunnan, Guizhou, Sichuan (2nd Monthly Report) 2 Socio-Economic-Political Trends in Pan-Pearl River Delta Region Guangxi, Yunnan, Guizhou, Sichuan (2nd Monthly Report) Table of Contents I. Executive Summary ----------------------------------------------------------------- 5 II. Topical Analysis --------------------------------------------------------------------- 9 “Pan-PRD Logistics Development: Opportunities and Challenges for Hong Kong” Part Two: South-western Region South-western Cargoes Bypass Guangxi and Use Ports in Shanghai and Guangdong ------------------------------------------------------------------------- 10 Guangxi Plans to Construct a Logistics Centre for the Greater South-western Region ------------------------------------------------------------- 18 Yunnan Actively Develops River Port Logistics ------------------------------ 22 Enormous Room for Guizhou to Develop Retail Chains --------------------- 26 Chengdu to Develop into a Major Modern Logistics Centre in Western China -------------------------------------------------------------------------------- 29 Strengthening Hong Kong’s Position as a Logistics Hub as it Integrates into the Pan-PRD ------------------------------------------------------------------ 33 Opportunities for Hong Kong in the Mainland Logistics Market ----------- 42 (Appendix) Specific Commitments Related to the Opening of Logistics Sector in the Mainland under CEPA ------------------------------------------------- 52 III. Trends & Updates on the Four South-western Provinces/Region ------------- 55 Economic Development Trends of Guangxi in the First Three Quarters of 2004 ------------------------------------------------------------------------------- 56 Guangxi Introduces Measures to Speed Up Development of Non-state 58 Economy ---------------------------------------------------------------------------- Guangxi Aims to Fill Up its Industrial Zones --------------------------------- 60 Economic Development Trends of Yunnan in the First Three Quarters of 2004 ------------------------------------------------------------------------------- 63 3 Socio-Economic-Political Trends in Pan-Pearl River Delta Region Guangxi, Yunnan, Guizhou, Sichuan (2nd Monthly Report) Table of Contents (continued) Yunnan Prioritises Development of Cultural Industries --------------------- 66 Closer Cooperation Between Yunnan and the ASEAN ---------------------- 68 Economic Development Trends of Guizhou in the First Three Quarters of 2004 --------------------------------------------------------------------------------- 70 Guizhou Opens Up Public Utilities Sector, Uses BOT to Press on 72 Reforms ----------------------------------------------------------------------------- Guizhou Creates Favourable Environment for Insurance Development --- 74 Economic Development Trends of Guizhou in the First Three Quarters of 2004 ------------------------------------------------------------------------------- 76 Chengdu Set Up Three Tourism Centres in 2004 ---------------------------- 78 Sichuan Carries Out Pilot Test for Agricultural Insurance ------------------ 80 Memorabilia of Pan-PRD Regional Cooperation ----------------------------- 83 IV. Data and Trends ---------------------------------------------------------------------- 87 Guangxi ----------------------------------------------------------------------------- 88 Yunnan ------------------------------------------------------------------------------ 89 Guizhou ----------------------------------------------------------------------------- 90 Sichuan ----------------------------------------------------------------------------- 91 Major Economic Indicators of Nine Pan-PRD Provinces/Region 92 (Jan-Sep 2004)--------------------------------------------------------------------- Nine Pan-PRD Provinces/Region: Statistics at a Glance (2003) ------------ 93 Nine Pan-PRD Provinces/Region: 10-Year Economic Trend 95 (1994-2003) )----------------------------------------------------------------------- V. English-Chinese Glossary of Terms ----------------------------------------------- 97 4 Socio-Economic-Political Trends in Pan-Pearl River Delta Region Guangxi, Yunnan, Guizhou, Sichuan (2nd Monthly Report) I. EXECUTIVE SUMMARY 1. With the exception of Guangxi, all the other south-western Pan-PRD provinces are inland provinces, merchandise exports of which need to be shipped to the coastal ports. Compared with Shanghai and Guangdong, it is shorter in distance to transport the cargo from southwest China to ports in Guangxi. However, as facilities at the Fangchenggang, Beihai and Qinzhou ports of Guangxi are relatively behind, it takes much longer to transit at these ports, reducing the attractiveness of these ports. Hence, a lot of the south-western export cargo would rather take the long route to ports in Shanghai and Guangdong. Recently, a new Guiyang-Zhanjiang-Shenzhen express port-railway link has commenced operation. Via this new express railway, cargo movement from Guizhou to Shenzhen will be reduced by 30 hours compared to the conventional railway transport to Guangzhou. In Sichuan, the Shenzhen-Chengdu “Five-Fixed Trains” also opened earlier this year, cutting the cargo transport time from Chengdu to Shenzhen by eight days. Yunnan also depends on ports in Guangdong for exports, with their cargo mainly transported through Guizhou and Guangxi, then transported to Guangdong for export. In water transport, the distance for shipping goods from the southwest through the Pearl River into the sea or for redirecting to the ocean is half that of shipping them through the Yangtze River. Even though the Pearl River does not traverse Sichuan, cargo transported to the ocean via the Pearl River can still bring substantial cost savings to the province. The use of the Pearl River instead of the Yangtze River by south-western Pan-PRD’s cargo is conducive to strengthening Hong Kong’s position as an international transport hub. 2. The establishment of China-ASEAN Free Trade Area provides the logistics industry in Guangxi and Yunnan with new and enormous development opportunities. Guangxi is the only region in China that enjoys both land and sea links with the ASEAN. The region’s capital, Nanning, is also the permanent host of the China-ASEAN Expo in the future. The city will become the centre of merchandise trade between China, ASEAN and the neighbouring regions. Guangxi hopes to make use of this opportunity to turn the autonomous region into a regional logistics centre for trade between China and ASEAN. It is currently formulating preferential policies on areas such as fiscal, land-use, funding, customs, and administrative control to support the development of logistics industry. To the west of Guangxi, the land frontier between Yunnan and the three ASEAN countries of Vietnam, Laos and Myanmar is more than 4,000 kilometres 5 Socio-Economic-Political Trends in Pan-Pearl River Delta Region Guangxi, Yunnan, Guizhou, Sichuan (2nd Monthly Report) long, while the golden water channel of Lancangjiang River–Mekong River passing through the province and linking up six countries provides the province with sound conditions to develop into a logistics centre. Yunnan has already decided to include modern logistics planning into its Eleventh Five-Year Plan, requesting ports in the border areas be constructed under the objective of “development of port logistics and construction of logistics ports”. 3. As cargo flow between the Mainland and Hong Kong is mainly handled by land transport, Hong Kong’s airport and ports still have to rely on the effective coordination of rail and road transport across the border to be able to fully integrate into the Pan-PRD region and play a pivotal role. Hong Kong has to link up with the PRD road network in Guangdong to facilitate movement of goods from the Pan-PRD region to Hong Kong, from where the goods are exported overseas either via ocean-going vessels at the container ports or international flights at the airport. 4. Threatened by the rapid development of Mainland ports and airports, the key to Hong Kong’s logistics industry development prospect lies in keeping an open mind and wider vision. Should Hong Kong’s logistics companies be able to leap northwards to develop the Mainland market, it could not only tap the Hong Kong logistics market, but also that of the whole Pan-PRD region, and even the entire Mainland. Compared with the Mainland Pan-PRD provinces/region, Hong Kong possesses comparative advantages unmatched by other cities in the region. With years of international market experience, the logistics industry of Hong Kong has established a comprehensive global network, accumulated extensive market experience and management expertise, and nurtured numerous logistics professionals. With these advantages, Hong Kong businesses can develop the Mainland logistics market under the CEPA framework. Apart from providing the much-needed funds for the Mainland logistics industry, the entry of Hong Kong investment will also be conducive to lifting the technological and management standards of the Mainland logistics companies, hence benefiting the development of a modern logistics industry in China. For Hong Kong businesses, by extending the hinterland to
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