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Inside China’s Booming Greater Bay Area

By FedEx | February 28, 2024

With faster customs clearance and reduced logistics barriers,  China’s Greater Bay Area is enabling the growth of its SMEs. Dive into why this mega-region is ideal for logistics and supply chain operations.

China’s Greater Bay Area is fast emerging as a global force to be reckoned with.

Comprising nine cities and the two special administrative regions of Hong Kong and Macao, the mega-region is poised to rival the likes of New York and Tokyo.

With a unique geographic location, the Greater Bay Area has been part of the “world factory” for almost 40 years, and has developed a mature supply chain. In 2022, its total foreign trade reached US$2.5 trillion, accounting for 5% of the global total. The economy of the Greater Bay Area is expected to continue growing, as businesses regain their momentum in exports in this post-pandemic environment.

With the mega-region flourishing, what strategic opportunities can the logistics industry seize to empower small and medium-sized businesses in the Greater Bay Area?

Faster customs clearance within the Greater Bay Area

The Greater Bay Area provides local businesses with geographic flexibility, allowing them to operate from different locations to maximize business value.

For example, a manufacturer might set up their factory in Guangdong with lower labor costs, while running their import and export business via the free port of Hong Kong.
Green sampan boat crosses harbour surrounded by skyscraper buildings

To facilitate the growth of businesses in this mega-region, the three customs administrations of Hong Kong, Guangdong and Macao are working to strengthen cross-boundary collaboration, and expand their scope of cooperation to improve the efficiency of cargo clearance.

As an Authorized Economic Operator in Hong Kong since 2012, FedEx also benefits from reduced customs inspection and prioritized customs clearance, which helps businesses in the region to improve efficiency and gain a competitive edge.

Reducing costs and barriers with smart logistics

The digitalization of the logistics service network, coupled with the introduction of convenient digital tools, is instrumental in helping businesses connect with overseas markets. Currently, the digitalization of logistics in the Greater Bay Area can be categorized into three main areas: smart transportation, smart warehousing, and smart delivery.

In Hong Kong, logistics industry practitioners are encouraged and given financial support to upgrade and transition to smart, sustainable logistics through the Pilot Subsidy Scheme for Third-Party Logistics Service Providers. Most recently in February 2024, the Pilot Scheme was enhanced with a higher funding ceiling and an extended scope of funding.

More logistics firms are also investing in innovative technologies to enhance supply chain transparency and operational efficiency. With smarter and more flexible supply chains, small businesses will be able to reduce their logistics costs and focus on their core business within the Greater Bay Area more effectively.
Night-time street of Hong Kong with colorful neon shop signs

Customized logistics solutions are the key to e-commerce success

With businesses in the Greater Bay Area facing different administrative regulations, they can’t just rely on standard logistics. They need customized logistics solutions to boost transport efficiency and transparency.

One such solution is FedEx’s One-Stop Logistics Service in Hong Kong , which enables businesses to select the services they need and fully leverage their logistics network to help achieve profitable and scalable growth.

Another must-have for e-commerce businesses is the capability to process online orders and shipments conveniently. Today’s logistics providers are increasingly integrating their services with e-commerce platforms, empowering small businesses to effortlessly meet the ever-growing demands of both online shopping and customer expectations.

At FedEx, our Compatible and Alliances programs help businesses generate FedEx shipping labels and use other FedEx features without leaving their e-commerce platform.

Logistics as a growth engine in the Greater Bay Area

The potential of the Greater Bay Area is undeniable, with vast business opportunities waiting to be tapped. To unlock these opportunities, the logistics industry must become a seamless partner, providing smart, customized and more efficient services for businesses.

By meeting the diverse needs of businesses in the Greater Bay Area, logistics can actively power the success of this emerging region.
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