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CHINA
PEARL RIVER DELTA UPGRADES INDUSTRIAL SECTOR China maintains a strong manufacturing sector, with Guangdong always spearheading the drive for industrialisation and economic transformation. Contrary to dominant Western economic theories saying that the service economy will replace industry as economies develop, and despite similar rhetoric of some Chinese economists, the PRD regional economy has persisted in its efforts to upgrade local industry. There has been relocation of industries, but mostly within the region and not outside, except by foreign‑invested firms seeking lower costs. Industry is still the priority of PRD city governments. There has not been any significant sign of retreat of local industries. Instead, there has been much industrial upgrading and adding of new industries, mostly in advanced machinery and smart phone production. The region as a whole is still predominantly a manufacturing area, with a
Backed by the central government, the PRD is investing heavily in modern infrastructure as well as in advanced industries based on Germany’s Industry 4.0 plan. It aims to make the PRD one of the most advanced industrial regions in the world SHENZHEN
JANUARY 2017