FOSHAN TO BECOME GLOBALLY INFLUENTIAL CENTER

Limitless potential spurs city’s continued vibrancy

From economic growth and industry foundation to infrastructure construction and cultural heritage, Foshan’s limitless potential helps make the prefecture-level city in South China’s coastal Guangdong province one of the nation’s most vibrant areas of development.

Unique location

Located in the heart of the Guangdong-Hong Kong-Macao Greater Bay Area, Foshan is adjacent to Shenzhen, Hong Kong and Macao to the south and borders Guangzhou to the east. It serves as a transportation hub for the Guangzhou-Shenzhen-Hong Kong and the Guangzhou-Zhuhai-Macao innovation and technology corridors and the 2 trillion yuan ($277.84 billion) scale equipment manufacturing industry cluster on the west bank of the Pearl River, facilitating the flow of people, goods and capital throughout the Bay Area.

Foshan’s advantageous geography gives it an edge in further opening-up as well as leveraging its role as a GBA “pole city” in contributing to the integration of the Bay Area. In December, the city’s first comprehensive bonded zone was approved by the State Council, aimed at boosting foreign investment and trade cooperation and establishing a platform for export-oriented economic growth.

“Approval of the Foshan Comprehensive Bonded Zone marks a new stage of opening-up for Foshan and adds new momentum to the high-level opening-up and high-quality development of the GBA,” said Zhang Dingwei, deputy head of the division for free trade zone and special area development of Guangzhou Customs.

Located in Xingtan town, Shunde district, the zone encompasses 1.13 square kilometers and provides preferential policies, including tax exemption on imported goods, tax rebates on domestic goods that enter the zone, and transactions within the zone are free from value-added tax and consumption tax. It is expected the zone will work with the China (Guangdong) Pilot Free Trade Zone in conducting experiments, collaborating in innovation and sharing resources.

Robust foundation

Playing a key role in boosting Guangdong’s economic expansion, Foshan has witnessed significant progress in its growth. Official data show the city’s GDP grew by 5 percent to reach a record 1.3 trillion yuan in 2023 while maintaining its position as the province’s third-largest economy. Foshan’s GDP continues to account for about one-tenth of Guangdong’s total GDP.

According to the provincial work report delivered at Guangdong’s two sessions in late January, as the second city in Guangdong with the output value of industries above the designated size of 20 million yuan exceeding 3 trillion yuan, Foshan is assuming a leading position alongside Guangzhou and Shenzhen in the province’s development. Known for its thriving manufacturing industry, the city is supported by a robust industrial base that spans a wide range of sectors. It is home to two industrial clusters each worth 1 trillion yuan and 10 industrial clusters each worth 100 billion yuan and 31 major manufacturing fields.

Its nine products, namely ceramics, microwaves, electric fans, refrigerators, air conditioners, sterilizing dish cabinets, water heaters, aluminum profiles and soy sauce, have achieved the highest production volume globally. About 80 percent of Foshan’s products are associated with people’s daily lives. Moreover, the city has a self-sufficient industrial system, with 90 percent of its industries having complete support systems, making for a sound and comprehensive industrial structure. It is also one of the few cities in China’s “GDP trillion yuan club”, which refers to those whose annual GDP has reached or exceeded 1 trillion yuan, with a manufacturing industry accounting for more than 50 percent of its GDP.

Additionally, all five districts of Foshan perennially make the list of the top 100 areas in China in terms of comprehensive strength, with its most flourishing districts, Shunde and Nanhai, routinely ranking at or near the top. Meanwhile, Foshan’s Beijiao and Shishan towns are among four in China which have a GDP of more than 100 billion yuan, and nearly 90 percent of its towns have a GDP exceeding 10 billion yuan.

While Foshan’s GDP is heavily driven by the strong manufacturing industry, the private sector remains an important pillar to sustain growth by contributing more than 60 percent of the city’s GDP, more than 70 percent of its tax revenue, over 80 percent of its industrial growth rate and more than 90 percent of its total number of enterprises. Of listed companies in Foshan, 90 percent are private enterprises.

Rich culture

Renowned as an important national manufacturing base and a national historical and cultural city, Foshan’s success reflects its favorable business environment, supportive facilities and well-developed industries, as well as its rich humanistic history.

A birthplace of the ancient Lingnan culture, Foshan has achieved global recognition as a food and kung fu capital, as well as being the home of Cantonese Opera, ceramics and Lingnan herbal medicine, embodying the harmony and prosperity of Lingnan culture and handicrafts. Foshan has been recognized as one of China’s happiest cities three times.