Guangdong’s GDP to surpass Taiwan’s this year: governor

The gross domestic product of Guangdong — one of China’s largest manufacturing centers — surpassed Singapore’s in 1998 and overtook Hong Kong in 2003, said provincial governor Huang Huahua.

“We have great hope that at the end of this year, it will likely exceed Taiwan,” Huang told reporters after an advisory meeting with foreign business leaders.

Huang said Taiwan’s GDP last year was US$361.3 billion, while Guangdong’s GDP was US$328.8 billion. But he said his province’s GDP has risen by 14.7 percent from January to October and was on pace to total US$390 billion this year.

He said Taiwan’s current growth rate was 4 percent. Even if Taiwan’s growth increased to 5 percent by the end of the year, he said, this would only yield an extra US$18 billion compared to last year and this wouldn’t be enough to stay ahead of Guangdong.

Much of Guangdong’s growth has been stoked by investors from Taiwan and nearby Hong Kong. They’ve flooded into the province over the past three decades to set up factories that make everything from shoes and toys to computers and sporting goods.

When China began dabbling with market reforms, Guangdong served as the laboratory for the country’s experiments with capitalism. The province developed a reputation for being a freewheeling place that often ignored Beijing’s edicts and pushed the limits of the economic reform policies.

Huang said Guangdong’s annual economic growth has averaged a blistering 14.4 percent between 1990-2006.

Guangdong is home to most of China’s toy makers, which have been embarrassed by a series of product recalls in recent months. Millions of toys have been pulled off shelves because of safety concerns or design flaws.

Huang said that coverage of the controversy by international media has been partially driven by “protectionism.” He said China’s toy makers pay great attention to quality and that any problems were isolated cases.

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