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Dongguan

Prefecture-level city in Guangdong, China

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Dongguan, China, July 2019
Unknown author · CC BY-SA 4.0

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Through China and World War II

Dongguan's city administration is considered especially progressive in seeking foreign direct investment. Dongguan ranks behind only Shenzhen, Shanghai and Suzhou in exports among Chinese cities, with $65.54 billion in shipments. It is also home to one of the world's largest shopping malls, the New South China Mall, which is seeing increased activity. The city is geographically and thus culturally Cantonese in the Weitou form as well as culturally Hakka in the prefectures of Fenggang and Qingxi; the majority of the 21st century population speaks Mandarin due to the large influx of economic migrants from other parts of China. The city is home to several universities, including Guangdong University of Science and Technology, Guangdong Medical University and Dongguan University of Technology.

Economy

In the Pearl River Delta region, Dongguan was the first urban area where joint production was implemented between village collectives, local Chinese Communist Party cadres, and foreign investors. In the 1990s, that type of enterprise accounted for around 20 percent of all foreign direct investments, and approximately 50 percent of exports by the People's Republic of China (PRC).

Today Dongguan is a major manufacturing hub, although it suffered significant loss of economic activity from the impact of the 2008 financial crisis. The largest industrial sector is manufacturing of electronics and communications equipment; international companies with facilities in Dongguan include DuPont, Samsung Electronics, Nokia, Coca-Cola, Nestlé and Maersk. It is also a strong hub of toy making, with 4,000 toy-production enterprises, and near to 1,500 related factories.

The Dongguan Science and Technology Museum opened in December 2005 and is the high tech commerce park in the Songshan Lake district, which opened in 2003. The museum is a partnership with the Global IT Academy of the Brea Olinda Unified School District in Southern California, demonstrating the city's emphasis on attracting technology business. The city announced in 2005 a planned investment of US$500 million over five years for technology infrastructure improvements. The city administration is considered especially progressive in seeking foreign direct investment. Among the investors were Brazilian shoe manufacturers. Brazil excelled in manufacturing cheap footwear in the 1970s and 80s. The Brazilian community in Dongguan numbered 4,000 people in 2013.

While the city is the fourth largest export region in China, behind Shanghai, Shenzhen, and Suzhou, Dongguan has yet to gain the kind of name recognition outside of China as has been realized by Shenzhen. That may be because the city has focused on infrastructure investment rather than the direct targeting of major corporations with financial incentives for economic development. Nevertheless, Dongguan has been identified by high-level representatives of the National Development and Reform Commission of the central government as one of the most significant growth regions for technology. As part of that plan, the Dongguan local government announced its intention to create and support a 100-billion-yuan photovoltaic manufacturing industry by 2015.

To cope with the impact of the 2008 financial crisis, Dongguan city looked to industrial restructuring, focusing on four pillar platforms, namely governmental services, supporting measures, technology upgrade, and market expansion. The city government claimed that the process has enhanced its capability for independent innovation and the quantity of patent applications.

Dongguan was known as China's "Sin City", where prostitution thrived, but authorities have attempted to eradicate that aspect of the city. On 9 February 2014, China Central Television aired a special on the sex industry in Dongguan. On the same day, Guangdong Provincial Police raided and closed all saunas, bars, foot massage premises, karaoke bars, and other businesses associated with the sex industry. The negative economic impact of the crackdown was reported to be 50 billion yuan, or just over $8 billion US dollars. The campaign affected the livelihoods of taxi drivers and restaurants which, while not directly involved in the sex industry, benefited from the increase in clientele.

The city ranked 13th by Forbes China in its list of the most innovative mainland cities, as well as 18th in Foreign Policy's listing of the most dynamic cities in the world.

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