E-COMMERCE  /  SME

By FedEx | First published: February 28, 2024   Updated: October 18, 2024

With faster customs clearance and reduced logistics barriers, China’s Greater Bay Area is enabling the growth of its SMEs. Dive into why this mega-region is ideal for logistics and supply chain operations.

• China’s Greater Bay Area stretches from mega-city Shanghai to the special administrative regions of Hong Kong and Macao.
• In recent years, the trade bloc has punched above its weight, with imports and exports within Asia and the rest of the world on the up.
• As the mega-region grows, advances in technology and innovation across the logistics network are helping to drive Greater Bay Area business opportunities for local SMEs.

China’s Greater Bay Area is fast emerging as a global force to be reckoned with. Comprising nine cities and the two special administrative regions of Hong Kong and Macao, is the mega-region poised to rival the likes of New York and Tokyo?

With a unique geographic location, the Greater Bay Area (GBA) has been part of the “world factory” for almost 40 years. In that time, it has developed a mature, increasingly tech-driven supply chain. In 2023, its total foreign trade reached a record high of RMB 8.3 trillion, accounting for almost 20% of China’s total. The GBA economy is expected to continue growing, as demand for the region’s most popular exports increases: electric vehicles, lithium batteries and solar cells.

The mega-region is flourishing. What strategic opportunities can the logistics industry seize to empower small and medium-sized businesses and drive tech and innovation in the Greater Bay Area?

Faster customs clearance within the Greater Bay Area

Greater Bay Area trade provides local businesses with geographic flexibility, allowing them to operate from different locations to maximize business value.

For example, manufacturers can set up a factory in Guangdong with lower labor costs, and run their import and export business via the free port of Hong Kong.

To facilitate Greater Bay Area business opportunities, the three customs administrations of Hong Kong, Guangdong and Macao are working to strengthen cross-border collaboration. One expansion to their scope of cooperation is improving the efficiency of cargo clearance.

As an Authorized Economic Operator in Hong Kong since 2012, FedEx also benefits from reduced customs inspection and prioritized customs clearance, which helps businesses in the region improve efficiency and gain a competitive edge.

Reducing costs and barriers with smart logistics

The digitalization of the logistics network and the introduction of convenient digital tools help businesses connect with overseas markets. Currently, the digitalization of logistics in the Greater Bay Area can be categorized into three main areas: smart transportation, smart warehousing, and smart delivery.

In Hong Kong, logistics companies receive financial support to upgrade and transition to smart, sustainable logistics through the Pilot Subsidy Scheme for Third-Party Logistics Service Providers. Funding in areas such as technology adoptions and screening for airport cargo is helping enterprises to scale up.

Technology and innovation in the Greater Bay Area are key to success. More logistics firms are investing in innovative technologies to enhance supply chain transparency and operational efficiency. With smarter and more flexible supply chains, small businesses can reduce logistics costs and focus on their core business within the Greater Bay Area more effectively.

Customized logistics solutions are the key to e-commerce success

Businesses in the Greater Bay Area face different administrative regulations, meaning they can’t rely on standard logistics. They need customized logistics solutions to suit their needs.

One solution for Hong Kong businesses is FedEx’s One-Stop Logistics Service, which helps SMEs select the services they need, fully leveraging their logistics network to help achieve profitable and scalable growth.

Another must-have for e-commerce companies is the ability to process online orders and shipments seamlessly. Today’s logistics providers integrate their services with major third-party e-commerce platforms. Increased compatibility with popular B2B providers helps SMEs meet the ever-growing demands of online shoppers.

At FedEx, our Compatible and Alliances programs help GBA businesses generate FedEx shipping labels and use other FedEx features without leaving their e-commerce platform.

Logistics as a growth engine in the Greater Bay Area

The potential of the Greater Bay Area is undeniable, with vast business opportunities waiting to be tapped. To unlock these opportunities, GBA logistics companies must become seamless partners to local enterprises, offering smart, customized and more efficient services. 

By meeting the diverse needs of businesses in the Greater Bay Area, logistics companies can actively power the growth of this emerging region.