Recently, Dongguan released its mid-year economic report, revealing a GDP of 568.68 billion yuan for the first half of 2024, marking a 5.3% year-on-year increase. This growth rate surpasses the national average of 5.0% and the provincial average of 3.9%.
The economic performance of cities serves as a cornerstone and barometer of China’s overall economic health. Dongguan’s economy has demonstrated steady growth and a positive recovery trajectory in the first half of the year, with significant highlights including robust advancements in advanced manufacturing and high-tech manufacturing industries, accelerated growth in foreign trade, rapid accumulation of investment in new driving forces, and sustained release of consumption potential.
Manufacturing towards “new”: transformation from old to new growth drivers
As a major manufacturing city, Dongguan’s economic trends can be quickly gauged through its industrial economy and foreign trade data. In the first half of 2024, the city’s industrial added value for enterprises above designated size reached 251.336 billion yuan, a 10.0% increase year-on-year, significantly higher than the provincial growth rate of 6.0%, underscoring its strong support for the economy.
The industrial sector has seen a resurgence in market vitality with the global recovery in demand for consumer electronics. As one of Dongguan’s “five pillar and four specialty” industries, electronic information manufacturing has rebounded steadily, with a 19.9% increase in added value in the first half of the year.
Dongguan’s new-generation electronic information industry, its largest pillar industry, boasts a solid foundation with a wide range of products. The smart mobile terminal industry, represented by intelligent communication equipment, holds a dominant position.
The vigorous development of new driving forces has also spurred industrial upgrades and opened new growth paths. In the first half of 2024, the added value of advanced manufacturing and high-tech manufacturing industries in Dongguan increased by 14.4% and 16.3% respectively, both higher than the provincial averages of 8.1% and 13.0%. Additionally, the output of high-tech products such as smartwatches, routers, 5G smartphones, and integrated circuits grew rapidly by 135.8%, 96.1%, 33.4%, and 20.6% respectively.
The rapid growth of new quality productive forces has also revitalized traditional industries.
In the first half of the year, Dongguan’s industrial investment increased by 13.8%, with industrial technological transformation investment growing by 23.0%. Transitioning from a “year of investment promotion” to a “year of investment”, Dongguan has accelerated its development of new quality productive forces. Data from the first half of the year shows rapid growth in investment in new growth drivers, with investments in advanced manufacturing and high-tech manufacturing respectively rising by 14.9% and 11%, particularly a 15.7% increase in equipment manufacturing and a 13.9% increase in electronics and communications equipment manufacturing.
Leveraging industrial growth to drive the clustering and development of industries will help Dongguan strengthen new growth drivers and new advantages.
Foreign trade towards “new”: boosting market confidence
Foreign trade is another key driver of Dongguan’s economic growth. As a city that has ranked among the top five in the nation for import and export volume for 29 consecutive years, Dongguan’s foreign trade has shown a clear upward trend in the first half of the year.
In the first half of 2024, Dongguan’s total foreign trade imports and exports reached 637.51 billion yuan, a year-on-year increase of 3.4%. This marks the third consecutive quarter of positive growth in foreign trade since the fourth quarter of last year, with an accelerated growth trend observed in the first two quarters of this year.
Processing trade has rebounded against the trend, and market expansion efforts have yielded significant results. Data shows that in the first half of 2024, Dongguan’s general trade imports and exports grew by 2.9% year-on-year, accounting for 44.5% of the city’s total foreign trade value. Notably, processing trade imports and exports grew by 5.7%, accounting for 27.8%.
The counter-trend growth of Dongguan’s processing trade demonstrates strong resilience and is of great significance.
“This is the combined result of the global foreign trade recovery and Dongguan’s economic transformation and upgrading,” said Bai Ming, a member of the Degree Committee of the Ministry of Commerce Research Institute. The recovery of the global industrial chain is fundamental, and the gradual improvement in the overall quality of Dongguan’s foreign trade has produced cumulative effects, jointly driving the growth of processing trade.
On the other hand, cross-border e-commerce, as one of the fastest-growing, most potential, and most impactful new forms of foreign trade, has shown immense market vitality and growth resilience in recent years, becoming a new engine for Dongguan’s foreign trade growth.
Data shows that in the first half of 2024, Dongguan’s cross-border e-commerce imports and exports reached 42.74 billion yuan. Notably, cross-border direct purchase exports and cross-border e-commerce exports to overseas warehouses performed exceptionally well. In the first four months, cross-border direct purchase exports and cross-border e-commerce exports to overseas warehouses grew by 19.3% and 11 times respectively, together raising the export growth rate by 1.6 percentage points.
More and more Dongguan-made products are making their way to overseas markets through the efficient channel of cross-border e-commerce.
City towards “new”: increasing popularity and vibrancy
Foot traffic and vehicular flow increase significantly, popular restaurants are hard to book, and commercial districts and tourist attractions are packed with visitors. In the first half of this year, the consumer market in Dongguan has been booming and vibrant.
In the first half of the year, Dongguan’s total retail sales of consumer goods reached 218.142 billion yuan, a year-on-year increase of 1.0%, with retail sales of goods growing by 0.9% and catering revenue increasing by 1.7%.
Behind the growth figures is Dongguan’s continuous cultivation of new consumption formats and the release of new consumption vitality.
On the one hand, the gathering of commercial districts has brought consumer popularity. Provincial-level model pedestrian streets (or commercial areas) with local characteristics, such as Hongfu Road Commercial Area and Dongcheng Commercial Area, have provided sustained consumption momentum for the city. During the May Day holiday alone, Minying DG Mall and Haide One Mall in the Hongfu Road Commercial Area attracted 1.7772 million visitors; Wanda Plaza, Dynacity, and Dongguan 33 Cultural and Creative Park in the Dongcheng Commercial Area attracted 1.094 million visitors, with sales significantly increasing year-on-year.
On the other hand, favorable policies have brought consumption dividends. In April this year, Dongguan issued the Implementation Plan of Dongguan City for Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-in. On May 1, the Bureau of Commerce of Dongguan City launched the 2024 Consumer Goods Trade-in Action, rolling out three major activities: consumption coupons for car replacement and renewal, subsidies for car scraping and renewal, and consumption coupons for old for new home appliances.
As the ballast stone for the stable growth of retail sales of consumer goods, Dongguan’s automobile market is booming and has shown tremendous potential. Driven by the consumer goods trade-in policy, retail sales of second-hand cars above designated size in Dongguan grew by 116.2% in the first half of the year.
This wave of policy support has also invigorated the home appliance market. Data shows that in the first half of the year, retail sales of certain upgraded and basic living goods by units above designated size in Dongguan grew rapidly, with daily necessities, home appliances and audio-visual equipment, beverages, and furniture increasing by 50.3%, 37.4%, 32.5%, and 33.0% respectively.
In the second half of 2024, the opening of Dongguan’s first Sam’s Club and Phase III of the Citizen Service Center (C Park) will accelerate the cultivation of new consumption drivers and unleash more consumption potential.
As consumption scenarios continue to be updated and the industrialization process accelerates, Dongguan will drive the transformation and upgrading of traditional industries and the strengthening of emerging industries through “technological innovation+advanced manufacturing”, supporting the continued positive development of the city’s economy.
