Guangdong is positioned to lead the next phase of China's quality growth

With China's new leadership now in place, Guangdong appears poised for change. Zhang Gaoli and Wang Yang, the two recently appointed vice-premiers who spent part of their careers in Guangdong, have both advocated sweeping changes.

While discussing China's slowing economic growth, Zhang said recently that quality growth is more important than growth in size. Wang had pushed for radical economic restructuring for Guangdong to sustain growth in a higher-cost environment, proposing a plan to "empty the cage and let the right birds in".

Further, the province's new chief, Hu Chunhua, who is seen as a rising star groomed for a top position, has called on Guangdong to reinvent itself like a phoenix.

While there is no dispute on the imperative of quality growth, the key issue is how such restructuring may take place. During Zhang's time in Guangdong, I participated in and contributed to developing its long-term economic development strategy. Guangdong has long since surpassed those goals, attributable more to a liberalised environment than superb planning.

Guangdong now dominates several light industries globally (for example, lighting and microwave ovens) and has developed a world-class ceramic tile industry. Its three new key development zones - Qianhai, Hengqin and Nansha - all have strong emphases in the service sector.

Guangdong has provided the liberalised environment - which allows global know-how, international capital and nationwide human resources to effectively work together - to provide a key engine for China's growth. With the largest and most open regional economy, Guangdong can lead the next stage of its quality growth.