I had a chance to visit Dongguan’s Songshan Lake High-Tech Industrial Park. The park is situated 40 kilometres from Shenzhen in southern China. Dongguan has struggled to find a role since the decline of its low-end manufacturing sector. The local government hopes that the High-Tech Park will tap into Shenzhen's booming technology sector and China’s MadeinChina2025 initiative.
My 4 takeaways:
1) Songshan Lake High-Tech Park’s key advantage is availability and cost of land. The park is more likely to capture business from companies looking to escape Shenzhen’s rising prices.
2) The park is looking to develop advanced machinery and robotics, new materials, and information technology sectors, demonstrating the influence of China’s Made in China 2025 initiative.
3) Huawei already has R&D facilities in the area. That’s a start. I would expect to see bigger clusters of activity over a 5-year period.
4) The Greater Bay Area is developing a robust inter-city rail network. However, it is more likely to benefit western Dongguan and the Binhai New Area, rather than Songshan Lake.