China's Quiet Powerhouse

Abstract

Since the onset of its economic reform program in 1979, China has become the world's most dynamic large economy. Most outsiders, however, do not appreciate the extent to which the mainland's economy is a series of loosely coupled regional economies, some driving China forward and others holding it back. Foremost among China's economic regions is the Greater Pearl River Delta, a region consisting of Hong Kong, Macau, and the Pearl River Delta Economic Zone of Guangdong province. The Greater Pearl River Delta accounts for less than 0.5% of the land mass and less than 5% of the population of China, but approximately 20% of its GDP and nearly 40% of its exports. The vast majority of the external investment in the Pearl River Delta has come from Hong Kong. A decade from now, the Greater Pearl River Delta may not be China's largest economic region in terms of GDP, but it will continue to be the most affluent region in China.