Taking its name from being to the east (Dong) of Guangzhou and being rich in guan, a variety of wetland grass, Dongguan is located on the east bank of the Pearl River and forms part of the middle section of the Guangzhou-Shenzhen-Hong Kong economic corridor. Overall, the municipality covers a land area of 2,460 sq km and, as of the end of 2017, its permanent population stood at 8.34 million people.
Major Development Areas
National level: Songshan Lake High-Tech Industrial Development Zone
Provincial level: Dongguan Eco-industrial Park, Dongguan Waterfront Economic Development Zone, and Guangdong Equipment Technology Industrial Park
Positioning
The city has long acted as a manufacturing base for many of the world’s leading multinational businesses, while also being seen as one of China’s leading industrial and commercial centres. According to the 2017 China Urban Competitiveness Report, published by the Chinese Academy of Social Sciences, Dongguan ranked 14th overall on the mainland in terms of “comprehensive economic competitiveness”.
Core Competencies
Dongguan is world-famous as a manufacturing base, as well as being one of China’s most important export centres, with machinery/electrical products and high-tech items its primary growth areas in terms of foreign trade. With its comprehensive industrial chain and extensive range of support sectors, it is now home to some 9,000 foreign-invested industrial enterprises.
The city’s economy is driven by export-oriented manufacturing, with its five pillar industries seen as electronic information; electrical machinery and equipment; textiles, garments, headwear and footwear; food and beverages processing; and paper making and paper products. In 2017, the total value-added industrial output of all of the enterprises in these five sectors (above a designated scale) was RMB228.83 billion, up 12.9% on the previous year. On top of that, four specialty industries – toy/stationery/sports supplies; furniture making; chemical products and packaging – delivered a further RMB32.14 billion, a 5.6% year-on-year increase.
Under the terms of the city’s 13th Five-Year Plan, six sectors have been prioritized for future development – electronic information, equipment manufacturing, cultural tourism, finance, logistics and e-commerce. The municipal government has also emphasized its commitment to upgrading many of the city’s traditional manufacturing sectors, including furniture making and the production of clothing, footwear and headwear. The emphasis here will be on improving quality and adding value through the introduction of intelligent technologies, while cultural elements will be retained to ensure the city’s output remains distinctive. The establishment of industry clusters and R&D centres with a focus on the robotics and smartphone sectors will also be prioritised.
With regard to services, Dongguan is aiming to establish a state-of-the-art sector, one with the capability to meet all of the needs of the advanced manufacturing industries. By 2020, it is anticipated that 63% of the services sector will be of a high contemporary standard and have a particular expertise in finance and insurance, services outsourcing and exhibition and business management, as well as being able to deliver the required standard of health and elderly care to local residents.
Dongguan is also committed to developing its third-party, fourth-party, bonded and cold-chain logistics resources. In line with this, it is hoped that the city will evolve into an e-commerce logistics hub, complete with a cloud-compatible intelligent logistics network, an innovative use of Internet of Things technology and state-of-the-art geographic information resources.
Preferential Policies for Foreign-Invested Enterprises
1.Supportive Policies for Key Projects
Each eligible key project of foreign investment may receive 50,000 RMB reward per every 1 million USD of registered capital, up to a maximum of 10 million RMB.
2. Supportive Policies for Major Projects
For eligible major projects of 100 million USD each, favorable polices may be given in land allocation, equipment import, productivity promotion, brand fostering, loan financing and project recommendation on a case-by-case basis.
3. Capital-increase Reward for Large Foreign-funded Enterprises
Large foreign-funded enterprises with a subscribed registered capital of more than 5 million USD may receive 100,000 RMB reward for each 5 million USD invested, up to a maximum of 1 million RMB for each enterprise.
4. Subsidiary for Setting up a R&D Center
Research institutes of foreign-funded enterprises may receive from the municipal government a one-time subsidiary of 5 million RMB, 3 million RMB and 1 million RMB each for being recognized as a national-level R&D institution, a provincial-level enterprise engineering center or a municipal-level enterprise engineering center respectively.
5.Awards for High-level Talents
For innovation and entrepreneurship R&D teams that meet certain conditions, each team may receive a one-time R&D expense subsidiary of up to 10 million RMB, and each team leader may receive a one-time living subsidy of up to 1 million RMB (after-tax).