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Country Report Macau

Although Hong Kong and Macau remain much more prosperous than anywhere else in China, their economic prospects are bound up with the development of Guangdong province, which neighbours both territories in mainland China. Finance and tourism both stand to benefit from rising prosperity in the Pearl River Delta that encompasses them all, supported by infrastructure that will create an integrated economy with more than 100m inhabitants. Over the longer term, both Hong Kong and Macau look set to maintain their competitive niches, even as the mainland city of Guangzhou becomes the fulcrum of the regional economy.

Despite their autonomous political status, Hong Kong and Macau have evolved economic models that are heavily dependent on economic growth in mainland China and Chinese policies towards the two territories. In both territories the retail, tourism, and hotels and restaurants sectors are dependent on spending by Chinese visitors, with tourism in Macau fuelling the booming casino and construction trades. Meanwhile, Hong Kong plays an important role as a finance, trade, transport and logistics hub for the whole of southern China.

On the Chinese side, investment and know-how from Hong Kong has helped Guangzhou to become one of China's most developed provincial capitals. Areas such as Dongguan and Foshan have benefited from Hong Kong investment in manufacturing. The one-time village of Shenzhen that has enjoyed the same sort of investment has now become one of China's wealthiest cities, developing services industries that complement and compete with Hong Kong's specialisms. Tiny Macau has had less of a dramatic impact on adjacent parts of Guangdong. So far, the neighbouring city of Zhuhai remains smaller and less successful than Shenzhen, albeit much richer than most other cities in China.
Country Report Macau

The Pearl River Delta: not just a tale of two cities
Infrastructure projects link up the cities
Erasing the boundaries
Who will be the biggest winners from integration?
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